Every entrepreneur and business owner hopes to achieve financial success by setting up sustainable streams of passive income that helps generate revenue without active involvement. In his second episode of Kaise Khulege Income Ke Naye Raste? Prof. Paritosh Sharma shares an incredibly helpful tool for an entrepreneur – the Income Score Sheet. This score sheet helps measure various streams of passive income sources and decide the most effective one for business expansion.

The Income Score Sheet analyzes each passive income opportunity through five key pillars. These pillars serve as markers of how well the income sources you pursue match your objectives and, in turn, help you save more time that can be used to grow your business. Here’s what you need to know to get the most out of this tool:

Immediate Cash Flow

Your passive income source evaluation will begin by answering this question: Is there immediate cash flow?

Your answer will dictate how well your chosen source can generate instant revenue. Should your answer be “yes,” evaluate the source of income on a scale from one to five.

• A score of 1 Suggests that source does not has the potential to generate passive income at all.
• A score of 5 means your income source has high potential for generating immediate cash flow for your business.

The greater the score, the more potential it has to yield immediate returns.

Constant Revenue

Next, you have to confirm if this source has the potential to provide passive income on a constant revenue basis. The ability to keep receiving income regularly is extremely necessary for establishing and expanding your business.

For example, a passive income stream sourcing ₹5 lakh one month, but nothing the following month is not a reliable stream.

Assess how frequently the source is likely to pay as well as the ability to continuously receive income from it. The more often income is provided, the more beneficial it is likely to be for the business in the future.

Predictable Cash Flow

Whether the income stream is predictable is yet another important aspect to consider when choosing a stream of passive income. Do you foresee the source making profits for years to come?

Score the source with a rating of one to five, considering the ‘sustainability ratio’ for long term passive benefits.

• A score of 1 represents that the source is unstable or highly speculative, while a score of 5 indicates the source provides consistent levels of income and does not require any additional investment for it to continue making money.

Increacing Cash flow

Every income earning venture has its primary focus, which is to work on increacing cash flow. Does this venture allow you to grow your funding from 1x to 5x or even 10x in the long run?

To criteriosly achieve this, you are encouraged to choose ventures that best suit your revenue generation abilities.

Remember, the more you are able to generate revenue, the more passive income you are bound to earn over a long period of time. That is the better your score in this pillar is, the more far reaching the results for your stream of passive income will be.

Time Commitment

The next thing to ask is around the personal time spend required: What level of time requires you to spend in order to increace the cash return?

The only area which is questionable in regards to passive income is that too much of it requires constant activity. A system that brings income while consuming too much of your personal time shifts the source from passive to active.

One should rate their source of the generation of revenue according to the amount of time the source demands from them. Additionally, a source that requires the least amount of time and effort while still assuring maximum returns is the best source of revenue generation one can attain.

Assessing Your Sources of Passive Income And Earning Global Evaluating Proxy Sets (Geps) Point Measure Metric (Gep Pmm)

It’s essential that you break down each of the five areas individually rating each out of five to determine which source of passive income is suitable for your business objectives.

• Score less than 10: As a passive income source these are not ideal for providing value and will take considerable time to start producing returns.
• Score 10 or more: More helpful sources will earn passive income quickly and afford you more time to scale your assets.

Focusing On Primary Areas of Interest With Geps Smart Ratio Metric Income Proxy Planner Summary (Gep Smr Pmm Is)

Mak The coputer version Excel itself provide additional sheet functionality called Income Proxy Planner or download its free version named @Income Score Sheet. By simply entering your rating and performing the calculation it becomes intuitively obvious which sources make sense to chase after. This simple tool is extremely useful for people wanting to identify which passive income opportunities to attempt pursuing in regards to their business goals.

For advanced individuals Prof. Sharma recommends the use of Excel templates or software subscription services that allow you to easily manage and create dashboards which give an overview of which passive income channels are working.

Massive Action Plan

Based on the evaluation of the score sheet, rate your sources of passive income:

• Rank your passive income sources on a scale of 1 to 5.
• Discard_any sources with a combined score under 10 as they are poor options for acquiring quick and consistent income.
• Shift your attention to the sources with a total score of 20 or more, as these will facilitate a considerable improvement in your passive income.

Prof. Paritosh Sharma has showed you a way to open new iceberg movements as well as achieve more financial freedom by focusing on the right passive income streams which gives you greater control over your time, decresed reliance over active income, and escalates growth in your business.

This article will assist you to not only tackle the issue of earning passive income, but with the evaluation of the various sources and the improvement of these identified passive income sources, there is plenty of untapped potential for active business and financial advancement.

Categories: Busyness To Business