Once you make sure that you're taking advantage of all possible deductions and advantages available to you in your primary line of business (see below), it's time to look afield and see what opportunities you might find to generate passive income in other lines of business.

You don't have to look very far given the plethora of opportunities that are now available on the internet. Once you know how to avoid the omnipresent scams (of which there are all

If you're in a service business, as I am, next there is that worry about being paid--even agencies and direct clients that that have reputations for good payment practices can have their own cash flow crunches from time to time. Finally, there is the need to continue marketing, and managing the flow of work so that we don't endanger our health working too many hours, but do not risk losing future jobs by being unavailable when a favorite client calls for our services.

In addition to the challenge of balancing all these demands, there is the problem that many entrepreneurs face--"dry" periods during holidays or, if you are specialized in a sector that experiences seasonal surges, such as landscaping, times when there is simply less work to be done.

During these times, especially when we are awaiting payment from slow payers, it is amply evident that we need to find a way to not to be 100% dependent on income from our current efforts.

You see, the problem with being an entrepreneur, especially in the service sector, is that we are in the "time for money" economy. We may be entrepreneurs, but basically, we work once and get paid once. That is in contrast to being in the "money for results" economy of people who are in what Robert "Rich Dad" Kiyosaki calls the B(business) or I(investment) part of the cash flow quadrant. If you have what he calls a real business--one that operates, like the local McDonalds, whether you are physically there working or not--or are an investor, the money keeps flowing because you get certain results. You don't have to be there working the business.

This is an important distinction. Do you want to work for your money, or do you want to have your money working for you? You're in a much better position to do the latter if you have the work model that my friend multi-millionaire mentor Tom Antion recommends: work once and get paid . . again. . . and again . . . and again!

This is what generating passive and residual income is all about, and you are especially well positioned to start doing that once you have got up your business entities set up properly.

How can you begin to do this in your business? Here are a couple of ideas to get you started:

1. Think about how you can create passive streams of income out of what you are already doing in your business. As a translator, for example, I've noticed a lot of discussion on various translator discussion lists about the issue of copyright: Do you as the translator have any copyright to the translations you produce? The consensus is generally "no". However, if you work with CAT (computer aided translation) programs, as I do, you do indeed produce something in the course of your work that qualifies as intellectual property: your translation memories (TMs). Here are some ideas as to how this might work for you if you are in translation or in other service industries such as consulting, photography, or even manufacturing, in which you no doubt produce intellectual property.
   
   
   1. Assert your rights by inserting a copyright notice, getting trade or service marks, or obtaining patents to protect the product of your work. You must protect the fruits of your labors by making it difficult for others to sell it or use it for their own profit
   2. Charge a separate fee for your protected materials. Annoyingly enough, some agencies are starting to demand that you offer a discount for "fuzzy matches" and still more, that you submit your TM with the translation. This is something you should avoid doing if you possibly can. One agency for which I work regularly has started to claim the right to deduct 10 or 15% off your fee if you fail to submit your TM with the job, if they requested the TM at the time they offered you the job.
      
      

      I believe that all translators should treat TMs as the valuable intellectual property that it is and charge such a fee in addition to the cost of the translation job itself. 100% or 200% of the job would be reasonable if you stand to lose even just 2 or 3 future jobs, but if you're afraid of losing clients, perhaps you could start with simply applying a licensing fee of 15 or 20 or even 30% of the job.
      
      The same goes for other types of intellectual property. If you are a landscape architect and you design a magnificent sophisticated design for a property in a particular climate zone, that took you time, and you invested talent and imagination, as well as all that have learned from past experience in order to produce it. If you produce such a plan, you should be sure to charge a fee for using it (a licensing fee of a royalty if it is possible for such uses to be tracked) so that it will pay for the many times your same one-time effort is reused for profit by others.
      

   3. Charge your company royalties on the use of your copyrighted material to generate sales. This brings me to my next point, on which will elaborate below: Once you have a TM and terminology database to which you keep adding, or a basic template that you use to generate an architectural or business plan, then each time you use it to produce another product or servicefor your business, you can charge your business a fee for the use of your intellectual property. If you charge your company 15% of the total job per use of your TM. This royalty or licensing income is taxed as ordinary income, but as passive income, it can be used to offset passive losses generated by other sideline activities such as real estate investing. Unless you are a "real estate professional" (spend at least 50% of your time doing real-estate related business), your passive losses in real estate can be used to offset salary/wage income only up to $25,000 (if you have earnings of $100,000 or less per year). Check with your tax accountant to verify exactly how and where you will report this royalty income on your return.
   4. Write specialized articles for your field and charge your company a licensing fee or royalties for publishing them on the internet or in trade publications. Have the company pay you royalties on sales of your articles or ebooks.
   5. Spread the wealth. If you have a large volume of work that you cannot handle yourself, start generating some passive income by subcontracting to other professionals. The margin you make is compensation for your marketing, administration, and quality control efforts, and you increase the total volume of work you can handle.
   6. Add an additional line of business.

   Once you make sure that you're taking advantage of all possible deductions and advantages available to you in your primary line of business (see below), it's time to look afield and see what opportunities you might find to generate passive income in other lines of business.
   
   You don't have to look very far given the plethora of opportunities that are now available on the internet. Once you know how to avoid the omnipresent scams (of which there are all t

   Finding Vending Machines For Sale
   If you want to invest in a vending machine, there are a number of reputable suppliers to choose from.Vending Machine CompaniesAutomatic Products Automatic Products international, ltd. produced their first glass-front vending machine in 1949. Today, API operates all over the world and is the leading U.S. manufacturer of glass-front snack/candy, hot beverage, fresh/frozen food, and snack/can combination vending machines.Beaver Vending Beaver Vending Corporation was begun in 1963 and has since become one of the most respected vending machine companies in the world. They sell vending machines for gumballs, stickers, and small candy. They also distribute Black Dog Woodwork designs, such as the eye-popping Wazoo Toys and Candy Cable Car kiosks.Crane Merchandising Systems Crane Merchandising Systems offers a complete line of vending machines, including those for food, snacks, hot and cold beverages, and combinations. Owned by the Crane Company since
   y for results" economy of people who are in what Robert "Rich Dad" Kiyosaki calls the B(business) or I(investment) part of the cash flow quadrant. If you have what he calls a real business--one that operates, like the local McDonalds, whether you are physically there working or not--or are an investor, the money keeps flowing because you get certain results. You don't have to be there working the business.
   
   

   This is an important distinction. Do you want to work for your money, or do you want to have your money working for you? You're in a much better position to do the latter if you have the work model that my friend multi-millionaire mentor Tom Antion recommends: work once and get paid . . again. . . and again . . . and again!
   
   

   This is what generating passive and residual income is all about, and you are especially well positioned to start doing that once you have got up your business entities set up properly.
   
   

   How can you begin to do this in your business? Here are a couple of ideas to get you started:
   
   

   1. Think about how you can create passive streams of income out of what you are already doing in your business. As a translator, for example, I've noticed a lot of discussion on various translator discussion lists about the issue of copyright: Do you as the translator have any copyright to the translations you produce? The consensus is generally "no". However, if you work with CAT (computer aided translation) programs, as I do, you do indeed produce something in the course of your work that qualifies as intellectual property: your translation memories (TMs). Here are some ideas as to how this might work for you if you are in translation or in other service industries such as consulting, photography, or even manufacturing, in which you no doubt produce intellectual property.
      
      
      1. Assert your rights by inserting a copyright notice, getting trade or service marks, or obtaining patents to protect the product of your work. You must protect the fruits of your labors by making it difficult for others to sell it or use it for their own profit
      2. Charge a separate fee for your protected materials. Annoyingly enough, some agencies are starting to demand that you offer a discount for "fuzzy matches" and still more, that you submit your TM with the translation. This is something you should avoid doing if you possibly can. One agency for which I work regularly has started to claim the right to deduct 10 or 15% off your fee if you fail to submit your TM with the job, if they requested the TM at the time they offered you the job.
         
         

         I believe that all translators should treat TMs as the valuable intellectual property that it is and charge such a fee in addition to the cost of the translation job itself. 100% or 200% of the job would be reasonable if you stand to lose even just 2 or 3 future jobs, but if you're afraid of losing clients, perhaps you could start with simply applying a licensing fee of 15 or 20 or even 30% of the job.
         
         The same goes for other types of intellectual property. If you are a landscape architect and you design a magnificent sophisticated design for a property in a particular climate zone, that took you time, and you invested talent and imagination, as well as all that have learned from past experience in order to produce it. If you produce such a plan, you should be sure to charge a fee for using it (a licensing fee of a royalty if it is possible for such uses to be tracked) so that it will pay for the many times your same one-time effort is reused for profit by others.
         

      3. Charge your company royalties on the use of your copyrighted material to generate sales. This brings me to my next point, on which will elaborate below: Once you have a TM and terminology database to which you keep adding, or a basic template that you use to generate an architectural or business plan, then each time you use it to produce another product or servicefor your business, you can charge your business a fee for the use of your intellectual property. If you charge your company 15% of the total job per use of your TM. This royalty or licensing income is taxed as ordinary income, but as passive income, it can be used to offset passive losses generated by other sideline activities such as real estate investing. Unless you are a "real estate professional" (spend at least 50% of your time doing real-estate related business), your passive losses in real estate can be used to offset salary/wage income only up to $25,000 (if you have earnings of $100,000 or less per year). Check with your tax accountant to verify exactly how and where you will report this royalty income on your return.
      4. Write specialized articles for your field and charge your company a licensing fee or royalties for publishing them on the internet or in trade publications. Have the company pay you royalties on sales of your articles or ebooks.
      5. Spread the wealth. If you have a large volume of work that you cannot handle yourself, start generating some passive income by subcontracting to other professionals. The margin you make is compensation for your marketing, administration, and quality control efforts, and you increase the total volume of work you can handle.
      6. Add an additional line of business.

      Once you make sure that you're taking advantage of all possible deductions and advantages available to you in your primary line of business (see below), it's time to look afield and see what opportunities you might find to generate passive income in other lines of business.
      
      You don't have to look very far given the plethora of opportunities that are now available on the internet. Once you know how to avoid the omnipresent scams (of which there are all

      The Eight Best Franchise Opportunities Of 2006
      Wondering what franchises provide the best business opportunities? The results are in for 2006’s best franchise businesses. Check here to see if your favorite franchise made the list!International. This company provides graphic design for signs large and small, as well as trade show displays, banners, electrical signs, and graphics for vehicles. The company has a great track record, with over twenty years of experience under its belt and consistently strong sales.HomeVesters of America, Inc. You’ve probably seen those ads that say “we buy ugly houses!” Meet the company behind the ads: real estate experts who operate in a special niche market—undervalued property. Those who’ve bought into the franchise love the fact that the business provides group rates on vacant property insurance and strong support of its franchise owners through conventions, personal consultations, a detailed website, and more.Haagen-Dazs Who doesn’t love ice cream? Franchis
      er aided translation) programs, as I do, you do indeed produce something in the course of your work that qualifies as intellectual property: your translation memories (TMs). Here are some ideas as to how this might work for you if you are in translation or in other service industries such as consulting, photography, or even manufacturing, in which you no doubt produce intellectual property.
      
      
      1. Assert your rights by inserting a copyright notice, getting trade or service marks, or obtaining patents to protect the product of your work. You must protect the fruits of your labors by making it difficult for others to sell it or use it for their own profit
      2. Charge a separate fee for your protected materials. Annoyingly enough, some agencies are starting to demand that you offer a discount for "fuzzy matches" and still more, that you submit your TM with the translation. This is something you should avoid doing if you possibly can. One agency for which I work regularly has started to claim the right to deduct 10 or 15% off your fee if you fail to submit your TM with the job, if they requested the TM at the time they offered you the job.
         
         

         I believe that all translators should treat TMs as the valuable intellectual property that it is and charge such a fee in addition to the cost of the translation job itself. 100% or 200% of the job would be reasonable if you stand to lose even just 2 or 3 future jobs, but if you're afraid of losing clients, perhaps you could start with simply applying a licensing fee of 15 or 20 or even 30% of the job.
         
         The same goes for other types of intellectual property. If you are a landscape architect and you design a magnificent sophisticated design for a property in a particular climate zone, that took you time, and you invested talent and imagination, as well as all that have learned from past experience in order to produce it. If you produce such a plan, you should be sure to charge a fee for using it (a licensing fee of a royalty if it is possible for such uses to be tracked) so that it will pay for the many times your same one-time effort is reused for profit by others.
         

      3. Charge your company royalties on the use of your copyrighted material to generate sales. This brings me to my next point, on which will elaborate below: Once you have a TM and terminology database to which you keep adding, or a basic template that you use to generate an architectural or business plan, then each time you use it to produce another product or servicefor your business, you can charge your business a fee for the use of your intellectual property. If you charge your company 15% of the total job per use of your TM. This royalty or licensing income is taxed as ordinary income, but as passive income, it can be used to offset passive losses generated by other sideline activities such as real estate investing. Unless you are a "real estate professional" (spend at least 50% of your time doing real-estate related business), your passive losses in real estate can be used to offset salary/wage income only up to $25,000 (if you have earnings of $100,000 or less per year). Check with your tax accountant to verify exactly how and where you will report this royalty income on your return.
      4. Write specialized articles for your field and charge your company a licensing fee or royalties for publishing them on the internet or in trade publications. Have the company pay you royalties on sales of your articles or ebooks.
      5. Spread the wealth. If you have a large volume of work that you cannot handle yourself, start generating some passive income by subcontracting to other professionals. The margin you make is compensation for your marketing, administration, and quality control efforts, and you increase the total volume of work you can handle.
      6. Add an additional line of business.

      Once you make sure that you're taking advantage of all possible deductions and advantages available to you in your primary line of business (see below), it's time to look afield and see what opportunities you might find to generate passive income in other lines of business.
      
      You don't have to look very far given the plethora of opportunities that are now available on the internet. Once you know how to avoid the omnipresent scams (of which there are all

      The Professor Makes A Minus Power Move
      If you think the power move has costs, consider the alternative. We are talking -- four friends -- bringing one another up to date on our personal and professional lives.David is department chair at the university; he is depressed. “Bummed out,” he says. “I find myself withdrawing, caring less and less about the department, the school.”We are stunned; just a month ago David was so enthusiastic about the possibilities he saw for creating a dynamic department. This is a man who deeply cares about relationships and family and here was his chance, as department chair, to create a caring professional community. He had just overseen a series of interviews with a promising candidate. “She is terrific, she has great energy, her research work is solid, and I think she impressed everyone she met.” This was to be an important beginning, and David was charged up.“So what happened?” we ask. “The Dean,” says David with considerable disgust. “The Dean said he’d support her appoin
      u're afraid of losing clients, perhaps you could start with simply applying a licensing fee of 15 or 20 or even 30% of the job.
      
      The same goes for other types of intellectual property. If you are a landscape architect and you design a magnificent sophisticated design for a property in a particular climate zone, that took you time, and you invested talent and imagination, as well as all that have learned from past experience in order to produce it. If you produce such a plan, you should be sure to charge a fee for using it (a licensing fee of a royalty if it is possible for such uses to be tracked) so that it will pay for the many times your same one-time effort is reused for profit by others.
      
   2. Charge your company royalties on the use of your copyrighted material to generate sales. This brings me to my next point, on which will elaborate below: Once you have a TM and terminology database to which you keep adding, or a basic template that you use to generate an architectural or business plan, then each time you use it to produce another product or servicefor your business, you can charge your business a fee for the use of your intellectual property. If you charge your company 15% of the total job per use of your TM. This royalty or licensing income is taxed as ordinary income, but as passive income, it can be used to offset passive losses generated by other sideline activities such as real estate investing. Unless you are a "real estate professional" (spend at least 50% of your time doing real-estate related business), your passive losses in real estate can be used to offset salary/wage income only up to $25,000 (if you have earnings of $100,000 or less per year). Check with your tax accountant to verify exactly how and where you will report this royalty income on your return.
   3. Write specialized articles for your field and charge your company a licensing fee or royalties for publishing them on the internet or in trade publications. Have the company pay you royalties on sales of your articles or ebooks.
   4. Spread the wealth. If you have a large volume of work that you cannot handle yourself, start generating some passive income by subcontracting to other professionals. The margin you make is compensation for your marketing, administration, and quality control efforts, and you increase the total volume of work you can handle.
   5. Add an additional line of business.

   Once you make sure that you're taking advantage of all possible deductions and advantages available to you in your primary line of business (see below), it's time to look afield and see what opportunities you might find to generate passive income in other lines of business.
   
   You don't have to look very far given the plethora of opportunities that are now available on the internet. Once you know how to avoid the omnipresent scams (of which there are all

   The Maturity Level of an Infrastructure
   Although not at the center of action, Infrastructure can make a difference. For instance when it is not there when you need it. The importance of infrastructure accompanies the growth of any (especially online) business. The more action, the more you need infrastructural support.A step in the design of this fundament for your business involves the capacity plan in which the capacity is calculated and the growth of traffic. The capacity of a building or even a physical bridge could easily be calculated but the capacity if a ever growing internet infrastructure depends on factors you cannot always predict. The size of future traffic.Than, this traffic enters your business, through a first possible “single point of failure” (SPOF).A single point of failure is the weakest link of your chain of activities. A bridge metaphorically shows this weakest point. For you business, this bridge could be a telephone switch or an internet connection. Rather than a physical bridge w
   a "real estate professional" (spend at least 50% of your time doing real-estate related business), your passive losses in real estate can be used to offset salary/wage income only up to $25,000 (if you have earnings of $100,000 or less per year). Check with your tax accountant to verify exactly how and where you will report this royalty income on your return.
2. Write specialized articles for your field and charge your company a licensing fee or royalties for publishing them on the internet or in trade publications. Have the company pay you royalties on sales of your articles or ebooks.
3. Spread the wealth. If you have a large volume of work that you cannot handle yourself, start generating some passive income by subcontracting to other professionals. The margin you make is compensation for your marketing, administration, and quality control efforts, and you increase the total volume of work you can handle.
4. Add an additional line of business.

Once you make sure that you're taking advantage of all possible deductions and advantages available to you in your primary line of business (see below), it's time to look afield and see what opportunities you might find to generate passive income in other lines of business.

You don't have to look very far given the plethora of opportunities that are now available on the internet. Once you know how to avoid the omnipresent scams (of which there are all too many, unfortunately), you can use your existing corporation or limited liability company--or start another one--to generate significant part time income that has a built-in passive and residual component to it.

An excellent place to start is to join an affiliate program related to your main area of expertise: You post links on your website and are paid commissions off the sales that are generated by your own site. For some recommendations and cautions as to what to avoid check the this and previous issues of this ezine for recommended products and our resources page on our website.

Copyright 2006 Azur Pacific Associates