The last time you heard from me was Thursday January 24th, about two weeks ago.
Better than three months ago huh!
That is, if these communications actually help you.
I sincerely hope they do.
Well today’s post is all about creating streams of semi-passive income.
In fact, it’s about tapping into these global economic shifts in order to do so, honorably.
So, even if you think you can’t, or especially if you think you can’t.
Stick with me, ok?
This post is the 4th in this series:
- Re-Creation In Motion, Part 1 (or Hey, I got a GIG!)
- Re-Creation In Motion, Part 2 (or Hey, I got CANNED…)
- Re-Creation In Motion, Part 3 (or Hey, I have OPTIONS ! )
- Re-Creation In Motion, Part 4 (or Hey, SEMI-PASSIVE INCOME for ALL!!)
These posts are meant to be a sequel to help you implement The Prosperity Pyramid by ongoing example.
This week I’m going to talk about how I restructured my consulting business to potentially generate semi-passive income for me and my stellar team.
If you are a consultant, this will offer new ideas I hope you can apply.
If you don’t consult, yet, what could this possibly have to do with you? A lot!
It leverages up the worldwide economic tectonic shifts we are experiencing now.
Instead of allowing ourselves to be crushed down, it allows us to build a new foundation that can withstand the quake.
Please think about how you can leverage these concepts into your work and life ok!
Stick with me, you’ll see how…
First, I’ve rechristened my business as:
The Alliance Consultancy
Industrial BioTech, BioChem, BioPlastics, BioFuels, BioRemediation
Drivers that Deliver!
You’ll see why I call us an Alliance, but one caveat to start with.
Please don’t be impressed by high sounding titles, technology or terms.
There are lots of unemployed folks with terrific resumes…
The underlying concepts apply, regardless of your degree, or lack thereof.
Over the last ten years when I receive consulting requests that I can’t fulfill alone I bring in my friends as subcontractors on projects.
In all my crazy little ventures I always seek to create mutually beneficial holistic systems. The Prosperity Pyramid is one example.
So, what is my contribution?
First, my warm network and 900+ Linked-In connections is my marketing and sales channel.
It has taken me years to build to this level and has proven to be an incredibly valuable tool.
Second, I complete the terms negotiation and close the contract.
Third, I run all admin (invoicing, payments, accounting, taxes and 1099s) through my business entity.
So, what are the mutual benefits?
My business can present a stronger offering with my friend as a sub on the team.
Plus I receive a 1/5 residual of the subs hourly rate over the life of the project.
This is the first level of semi-passive income.
My friend-sub receives work without having to invest in marketing, sales or admin.
Most folks are very happy to be able focus on the work, not the other stuff!
My client benefits by working with proven, top tier players.
Plus they don’t have to do an exhaustive search and validation.
But then a new situation presented itself last year…
Genesis of a New Idea.
In January of 2012 I was approached via my Linked-In connections by a potential BioPlastics client from the UK.
To spare you the gory detail one of my old associates from Genencor was the perfect fit for this client and them for him.
It took 34 emails (yep, I counted!) and five hours to close this contract.
In February my 1/5 residual covered 40% of my Level 3 (some luxuries) expenses.
In June it covered 25% of Level 3 and lesser amounts in between.
The original contract was for six months, but it continues on today, a year later.
Even better, I was recently contacted via Linked-In by a company from India.
Serendipitously, they may have a product applicable to and desired by the UK company.
We are negotiating a mutually beneficial agreement with the India based company now.
So, what makes this situation different than my typical approach?
HINT: My friend-sub is perfectly capable of leading this.
Come on, you got this….
ANSWER: I’m not active on this project.
My value-add is connection, collaboration and running the project through my business.
So this is a second level of semi-passive income.
The definition of semi-passive income is something you work hard to set up and then it generates an ongoing income stream.
In this case I worked hard to establish connections, have collaborated with others for years and closed the contract.
So, what’s the next question this leads to?
HINT: Come on, what would you ask yourself?
ANSWER: What if I could do this with 4 friend-subs, what about 8?
Well, when I say “Drivers That Deliver” I mean it.
I have 12 on my team now, besides me.
I’ve worked closely with most in the past.
Or they come indisputably recommended by a fellow Alliance member.
I respect them and believe they respect me.
I know if any one of them was in lead on a project in my business I don’t have to worry.
That’s a really good feeling!
So, what’s the next question this leads to?
HINT: Who’s making semi-passive income with this model?
ANSWER: This can be a good way to create two levels of semi-passive income for me, but what about my team?
They’re still trading time for money… that only gets us so far… doesn’t it.
How Can I Extend the Idea to Mutual Benefit?!
Consulting can be a whipsaw between lucrative contracts and “white collar subsistence living.”
Sounds funny, but it’s no laughing matter and why most people opt out.
So, what if this model was reciprocal and we leveraged each other’s networks to:
- Help feed each other work and keep our pipelines full.
- Receive a 1/5 residual as compensation for any projects we bring to the table.
- Share the marketing and sales burden, which many technology people loathe.
- Be more selective in the work we choose to accept.
In short, make more, work less, deliver excellent results, and gain that deep abiding satisfaction that comes from working with a high performance team!
One of the happiest, most joyful, celebration dinners of my life was with my FN3 program team, which I lead for Genencor International in another life, long ago..
The product was worth $75M in revenue the following year, went into Proctor & Gamble’s Tide product in both the US and Europe.
It was an immense, international challenge.
Our team not only came in on schedule, but beat the margin goal by a whopping 25%!
We accomplished something of significance; we all knew it and it felt wonderful.
More than anything from my corporate worker experience, I miss this.
A high performing team, pulling in unison, face to face, in a nice office.
I want it back.
But I digress…
So, what are the shifting global economic forces that these ideas are leveraging?
A Forward Thinking Model
Once upon a time we called it the “Information Age or Economy.”
But we are so rapidly shifting from age to anther I wonder where we are now…
The CEO of a consulting company called M Squared says it is now a “Gig Economy.”
Fewer people will have traditional jobs as more will be forced into free agency.
I urge you to read his paper called “Thriving In The Gig Economy.”
Seth Godin calls it the “Connection Economy.”
It’s our connections and tribes of followers we create that count.
I also urge you to read Seth’s recent post “Scarcity and abundance in the digital age.”
It gets at the very core of this hyper critical point.
Others call it a “Collaborative Economy,” while some say it’s the “Creative Economy.”
Istvan Kenyeres, Founder of the BIOPOLUS Alliance, says this:
“Mankind is in the process of creating a completely new Planetary Ecosystem. Its sustainability relies on our unique mental capabilities to create tools, technologies and complex social structures to develop and maintain the delicate balance between natural, economic and social forces.
Our chances to thrive depend very much on a new generation of "Neo-Renaissance" People. Those who show the innovative combination of scientific knowledge, entrepreneurship and social sensitivity. .... I call them THE CREATIVE ECOLOGISTS.”
What age or economy do you think we’re in now, or better yet, moving into?
What will be the key to not only surviving these shifts, but thriving through them?
ANSWER: The key to thriving in the new world order will be anticipating, and honorably adapting to, these oftentimes bewildering shifts, while helping others do the same.
This is the true heart of “The Alliance Consultancy” business model!
It is a hybrid of the Gig, Connection, Collaborative and Creative Economic shifts.
Individually We’re All Excellent, United We’re Powerful!
So what is it I want for my Alliance Team and I?
- High active income ($/Hr) for each other.
- Semi-passive income for each other.
- Continuing to be players across multiple technology platforms and businesses, while garnering high level insight as a result.
- Landing larger projects that go commercial and can engage most of the Alliance team.
- Creating a business, around an optimal platform, to commercialize a contributing technology, for a subset of the Alliance team that is interested.
Consulting is an honorable means to an end.
That end, for me, is door number 5.
? Questions For You ?
So, what are the questions for you in all of this?
- What if you’re forced to be a free agent in the Gig Economy, what will you offer?
- Have you fostered your ability to connect and expanded your network, in the right way?
- Is your Linked-In profile well developed and polished? Take a look at mine here: http://www.linkedin.com/in/stephenhealey I invite you to connect with me.
- Do you have past work friends that have a complimentary skill set to yours?
- Have you connected with them on Linked-In?
- How might you collaborate with them to mutual benefit and bake a bigger pie, together?
- If you were to develop a flyer for your offering with your complimentary friends, what might it look like? You can use mine as a template here: https://www.box.com/s/zbvk5978cvdjkzw9obab
- How can you and your family adapt and thrive in these rapidly shifting times?
- How can you anticipate what’s on the horizon and successfully surf this tidal wave of global change?
“Please stop waiting for a map.
We reward those who draw maps, not those who follow them.”
– Seth Godin
“Success rests in having the courage and endurance and, above all,
the will to become the person you were destined to be.”
- Dr. George Sheehan
Feedback - Questions?
Whatever thoughts or questions strike you are welcome on the blog here: http://www.sjhealey.com/?p=1271
My hope is to eventually build an on-line community where we actually help each other.
If you made it this far then my stuff may actually be helping you.
If so, I’m going to ask you to help me, and those whom I’m meant to serve.
I’ve only shared this with my closest friends, whom I reluctantly asked for help.
I’m all about helping others, but I don’t ask unless my back is firmly against the wall.
Well is it now…
Since I launched my book in Nov 2011 my platform of interested readers has grown to 616, as of today.
I’m told in today’s crazy, upside down world of self-publishing, and overwhelming internet noise, that this is no small accomplishment.
It feels like failure to me.
I’m also told if an author really wants to seriously spread the word of their book they need to build their platform to 10,000, reader by reader.
This is of course extremely time consuming and hard work.
On the other hand, if one can get to 10,000, then their work has the chance of spreading geometrically by word of mouth.
This is the magic number famous author and publishing guru Seth Godin speaks of.
I’m trying to get there by doing speaking events locally (4 so far, 2 booked), looping back to my friends with this appeal and other means.
I so deeply believe my book could help millions, IF I can get it to them, IF they’ll read it and IF they will act.
Time is of the essence.
If you’re comfortable taking any of the following actions I would immensely appreciate it.
So would those whom it could serve.
If you could write a review for Amazon this is the link to post it: http://tinyurl.com/MLRCREVW
If you know of anyone struggling with:
- Being crushed by their job
- Who’s 401K has been vaporized.
- Or is wisely concerned…
Would you please tell them they can download the FREE full PDF version of Mid-Life Re-Creation from my website here:
Use whatever means you’re comfortable with: word of mouth, FB, LIN, T, ect.
It can save them lots of wasted time, money and emotional duress.
I have to get it to them first.