Enabler Which Makes Stocks Passive: A Management In Place

Let Management do the heavy-lifting. Publicly-listed companies already have that bonus of having management teams run the business. An owner/entrepreneur should aspire the same thing for his private business to free him up from the day-to-day grind of operations, and make him focus more on being an investor concerned of profitably allocating capital.

How many times have we seen thriving businesses which come to be just that—small businesses? The owner/entrepreneur's time has been so caught up with active involvement in the day-to-day operations that overlooked are the possibilities of automation and delegation. Other opportunities of profit-making ventures are neglected, too.

Virtues of industry and hardwork are important. But if one intends to make a business expand, prosper and make a lot of dough in the process, there should also be that added element of delegation. One can be business-minded, conscious, and concerned about his company's operating realities, but it does not mean he has to be necessarily actively and always engaged in its day-to-day operations.

Because while businesses are alive, operating entities, they eventually ought to run by themselves and be passive—we can’t call it a money machine anyway if your toil and labor involvement are always required! While we are businessmen, we are also an investors, and that being the case, we should aim to focus and allot more of our time on profitable capital allocations as our founded/acquired businesses run by themselves...