Hi, I’m Janet Clark, here with you on Janet Talks Business TV and our subject today is financial freedom.
What does that mean to you?
Here’s what it means to me:
If you’ve been part of the Freedom Shift community for awhile, you know a few things about me. If you’re new or just meeting me for the first time, let me share a few tidbits with you.
I am an entrepreneur at heart. Here’s the definition of an entrepreneur –
a person who organizes and operates a business taking on greater than normal financial risks in order to do so.
I spent many years in the corporate world, and even then I lived like an entrepreneur. I gravitated to the sales positions where the base salary was lower but the commission potential was higher. Being in sales also gave me time freedom and flexibility to manage my own time.
For the past 10 years, I’ve run my own business and here’s what financial freedom means to me in two words Recurring Revenue or sometimes called Residual Income.
What I mean by recurring revenue is monthly income that continues to come in on a regular basis. The way to generate recurring revenue is to sell services on a contract basis.
Here’s an example. When an insurance agent sells a one year policy, they can depend on the monthly premiums to come for 12 months. When I had a telecom agency, I sold services on 3-year contracts, which meant I would receive a commission each month on the revenues that came in from that client every month for 3 years.
In a business coaching and consulting business, recurring revenue occurs when you enroll clients into 6, 9, or 12 month programs. You can then rely on that income for the length of the contract. This is how I define financial freedom.
Knowing that each month there is a baseline of revenue coming into the company.
I sent a blog post out earlier this week describing how the Freedom Shift reached $10K in monthly income within 12 months of startup. The beauty of this that the 10K is recurring revenue, meaning it is the base line of income that we can expect over the next 6 months to 9 months. We don’t have to continually start each month at zero.
The great thing about having a base income stream is the ability to continually invest a certain amount back into the business and also know there is plenty left over.
If you are ready to create a recurring income stream in your business and you would like to know the exact formula we used to create it – click the link below this video and schedule a chat with me.
Next week, I’ll share some secrets about creating multiple income streams. I just love being an entrepreneur, don’t you?
Sending You Light and Love! Tune in again next week.
Don’t hesitate to book a chat with me. Even if we’ve spoken before, I’m happy to catch up!