The Three A’s
There are three A’s which feed into the Value Stream. Today I will discuss the three A’s and how you can apply them in your life. These three A’s talk about the work you do and the results/revenue you get from them.
Active
If you are active in your business, you are always working. You cannot expect your business to succeed if you do not work hard for it. There are many jobs that can only function when the owner is actively involved in the process. A Carpenter for instance, would have to regularly saw, shape, and make the toys in order to be able to make money and whenever you do not make the toys, you are not making anything of value to sell. In other words, if you don’t do your work, you won’t make any money.
In my opinion, active work isn’t bad; however, active work with backup is better since we only make money so we can spend it and enjoy life.
Asymmetric
When you are active, you have to continuously be active to earn money, whereas with asymmetric you have to put a set amount of hours into a job and then the money will keep flowing in. This means that you only have to work for a while and then the money rolls in.
For example, when you write a book, it takes a long time to write and publish it. After that, you will be rewarded with money depending on the popularity of the book. Which means even though you have to work, you don’t have to do it every day, and the revenue stream can live without you.
The same applies to investing in the stock market. You spend a lot of time analysing a company. If you analyse correctly, then you can earn money without having to work on a daily basis.
Assistive
Assistive is when you hire people to do the job for you. Obviously, the best examples are companies today that employ other people to do work instead of the CEO or manager. This can also be done on a smaller scale like buying a car and hiring a driver. You just got your first taxi.
Combining all three types of revenue streams can help you solidify your cash flow. For example, while you run a business, you invest in the stock market. Which allows you to do Asymmetric and Assistive work.