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Self-employed and Cash Flow Quadrant: How to get passive income? [Part 3.]

Cash Flow QuadrantThe article discusses the Self-Employed people – one of four categories of the Cash Flow Quadrant, to which belongs part of the employed population, plus summaries of the advantages and disadvantages of this category.

Why some people do get on the path of Self-Employment?

As I wrote in the article “Employment and Cash Flow Quadrant“, the traditional school system systematically preparing us for a employee career – you’ve probably already heard this statement:

Learn good and you will find a good and secure job…

Most people follow this advice – but when they find their first job, part of them also very soon find that they want to become independent, because most things in employment doesn´t suit them well than vice versa.

Most self-employed people are strong personality type and often do business in the field in which they were formerly employed and gain the necessary training, experience, contacts.

Or they do a business in industry which they like for whatever reason – they found a mission in their life or discovered a talent, which they weren´t able to develop or apply in their previous work…

Who are actually self-employed people?

  • Self-employed persons are essentially professionals in various fields who decided to run a business on their own, because their certain knowledge and skills.
  • Self-employed may be, for example, a lawyer, dentist, doctor, vet, a real estate broker, dealer, architect, financial advisor, coach, trainer education, consultant, author, repairman, controller, shop owner – whether stone or internet, etc.

Would You rather watched a video instead of reading? Here it is…


For Self-Employed people (SEP) is typical that they work many hours a day…

Many of the self-employed people getting up early, go to bed late and most of the day they work hard.

There are some exceptions – as in everything, but if someone is self-employed, you know they do not have time & all the time… They are still doing something in a hurry and have something important that needs to be done…

And this is one of the major disadvantages of this category of the Cash Flow Quadrant.

SEP often work 60, 70 and sometimes even 100 hours a week…

(This is compared to 42.5 hours a week at usual job 2 times as much)


Cash Flow Quadrant - Self-employed

How the career of Self-Employed people looks like?

Self-employed career starts and gradually takes around 3-5 years to success. It takes time than the self-employed person is able to build a strong enough brand on the market, and until people start to trust him / her and repeatedly give work to him / her thanks to recommendations, or their past positive experiences.

  1. First of all Self-Employed Person work hard to create demand for its services,
  2. and then continue to work hard to create demand and meet their commitments to customers…

It would seem that huge demand for their work is the dream of every man …

But there is a trap. Trap in the form of the lack of their personal time.

Simply applies that:

  • Lawyer – physically can not take multiple cases at once,
  • Dentist – physically can not treat more patients per day,
  • Doctor – may see only a limited number of patients per day,
  • Vet – can only look at a certain number of pets per day,
  • Real estate agent – can not physically meet with more clients per day,
  • Dealer – has only a certain number of clients that can physically visit
  • Architect – can simultaneously work on a few projects at the same time or maybe just one,
  • Financial adviser – has only a certain number of clients that can physically visit
  • Sport coach – can only speak with a certain number of clients
  • Personal coach & trainer – can deliver only one training a day, and 3 days in just a week to physically survive,
  • Counselor – can listen and advise a certain number of people per day,
  • Author – can write one book at a time and there is a question mark if someone will buy it,
  • Repairman – can repair only a certain amount of things
  • Auditor (eg. gas boilers) – can give a certificate only a certain number of devices per day


And if anybody working in those profession wants to increase income, he / she does it at the expense of his / her personal life, his / her leisure time, or increase prices for provided services / products.


  • You will encounter initially “invisible ceiling” In terms of time and you will notice it only then, when you hit it literally by your own head…
  • And in terms of money – you can increase prices as soon as you find someone who is willing to pay for your services / products…

Yet in both cases, there are limitations in terms of revenue as well as that income is not generated without your physical participation.

What is the solution in order to you not work so hard? You need to create a system…

If you are self-employed and you do not have either you are not creating a system that will work for you or completely instead of you, then you will have much less time, the more successful you will be.

You’ll work more hours than anyone else, because with your increasing success, and increasing amount of positive references and recommendations, as well as amount of your work increases…

When the whole business is just up to you, so it is difficult to talk about the fact that you could ever achieve time and financial freedom. You reach a certain level of income (and that can be very high compared with the national average), but it would be difficult to get over it – you stop increasing your income on certain level, because you would lack of additional time.

You need to create a system that does not depend just on you and will bring passive income to you…

You need to think likewise Ray Kroc, who created McDonald’s and from one branch spread whole brand to a network of over 50,000 branches worldwide – but he did not do everything himself. He purchased the system from the McDonald brothers, he described the system and start to selling it as a license for fee.


  • What would you be able to fully automate?
  • How could you get involved other people in your business and delegate part of your task to them?
  • What activities could you outsoarce (buy someone else’s work)?
  • Can you write a book that will describe the solutions you provide and sell it?
  • Can you make a CD that will educate your customers to help themselves and sell it?
  • Can you program a software application and sell it?
  • Can you think of some invention, sell it and license it to have a certain percentage of each sale:

If so, then it will ensure that

  • you will not be snowed under with work,
  • you will have more freedom and time
  • Your customers will be served or they do it themselves while you are on vacation,
  • or when you are sick…
  • And of course you will make more money…

Is Self-employed business the safest way how to go through life?

Many people choose a career as self-employed entrepreneurs, because they have a greater influence on their lives, they can decide about their affairs themselves, doing things on their own and have more freedom.

Self-employed entrepreneurs are often very strong personalities who believe in themself and that they are doing the work the best. They are also disciplined and able to work very hard and carry out a great amount of work.

On the other hand – they have no “safety net” under them in case of injury, illness or inability to do their job for some other reason.

Self-employed business has certain advantages but also many disadvantages …

Advantages of Self-Employment:

  • Freedom and opportunity to make decisions about your own affairs – if freedom is something you want and you know what you’re doing, it’s an advantage…
  • You can decide to do as much or as little as you like in that day…
  • You can decide to cooperate only with someone, with whom you suit best in terms of personality…
  • You can decide to take only the job that you like and the others renounce it unless you can afford it.
  • You can benefit from certain tax advantages.

Disadvantages of Self-Employment:

  • You decide about your concerns – it can be fatal, unless you know what you’re doing…
  • When you are truly successful, you will have a shortage of time…
  • You can not scale up your business – you can not indefinitely accept orders – you are limited by your own 24 hours / day, unless you create a system that does not depend on you personally…
  • In the event of an accident, you can lose your business, if you are not able to serve your customers for a long period time.
  • Business and income is often very prone to mood swings of the market – which brings the period of financial prosperity, but also hardship.
  • Often very hard work without posibility to take a rest or have an options to leave business for a longer holiday

If you are purely in this category of Cash Flow Quadrant, then your freedom is and always will be limited.

I do not wish you that and I would be glad if your self-employed business really provides you everything you want from life until the end of your life.

Experience teaches me that many of those who today consider their self-employed business as a great career choice, will think otherwise in the next 5 to 10 years.

“Dig the well until you are not thirsty yet …”

If you want to have more advantages on your side and have plenty of time, as well as finance in the future, you need to start creating a system that will in future generate income without you and you could maintain your lifestyle or improve it.

Start to create a system in your self-employed business that will be a strong foundation for your freedom – financial and time:

  • Either you invent system how you can replace yourself in your profession while generating (equal or greater) income that will provide your lifestyle,
  • or start to invest a small portion of your current active income from your business so that you can create passive income which later equates your active income and you will have more peace & options in your life.

If you do not want to bother yourself with it and you want to build a passive income, to have more freedom and peace in your life and still not have to abandon all of your current self-employed business, get a system that I have prepared for you – click here.

Following articles…

If you are interested in topic of Cash Flow Quadrant more, then read each sequel to deeply analyze its various categories:

Finally, on the subject of self-employement and Cash Flow Quadrant…

If you are a strong person and prefer to do things on your own, try to think for a moment what would happen from now in next 5, 10 or 20 years – will you still have the same amount of energy, so you can carry out the same amount of work you are doing in this moment?

Or would you rather want more time to enjoy your life, be with your family, travel, having more peace?

Do not delay it and search for ways how you can start creating passive income and move from the left Cash Flow Quadrant to the right side in a near future, earning more money, achieve financial and time freedom and have more peace in your life.


If I can help you in this area, please contact me.

I wish you a great day and look forward to our personal meeting.


PS: Do you want to have more money, freedom and peace in your life sooner than others do?

I discovered a way a person can get a passive income “to live a life without borders” by building a business from home, and I have a system for doing it that is so simple that anybody, who has a dream and wants to fulfill it, can handle it. This does not require selling and the best part is that it does not take much time either – maybe 30 minutes of concentrated effort / day.

Do you want to know more about it? Contact me…


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  • Click on the “Thank You” below in this article…


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Robert is an entrepreneur, a writer, a coach and visionary mentor who´s life mission is to help people achieve business, financial and life goals through coaching, mentoring and network marketing. Robert has written several ebooks - the very last one is: Magic words of the Masters of life... (avalaible in czech language only). Do you want to know more? Click here...