Every enterprise has to go through the toil of recovering its fixed costs. It so happens, many a time, that the enterprise is caught up in the spiral of these fixed costs, and only manages to hang on to some meagre spillover money. If any growth is to be expected, it is very important to get the fixed costs out of the way. Thus Passive income is must have for any human being.
You can say that you will generate income from your business operations to pay the fixed costs. But income from the business is not fixed, is not even certain. Your products may fail, your property may befall some calamity, you may lose an important human resource, you may face a labour strike. Any of these incidents will take a heavy toll on your revenue, and you are bogged down by fixed costs.
To counter fixed costs you must make investments that give you fixed returns. This fixed passive income in your business will take care of the fixed costs. It can be through FDs, interest, rent, and many more sources. Having passive income would also take your mind off the cost recovery, lessening your stress to a considerable amount.
Once the fixed costs are tackled by the passive income, your business is left with extravagant funds. These circumstances will allow you and the employees in your organization in daring to think about growth and plan accordingly. Now, there will be no hesitations. Growth definitely comes to those who dare!
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