I borrowed this term from Timothy Ferriss' book, The 4-Hour Workweek. It basically refers to a business which generates income automatically, (like on autopilot) without the need for the owners to spend time running or managing it. Robert Kiyosaki also favors this kind of business because the owners don't have to spend time running them, thus they have more time creating other businesses, or in Tim's case, living around the world and doing exciting stuff.
Wondering what kinds of businesses are set up like these? an easy example can be your friendly neighborhood Mcdonald's. Have you ever seen the owner/s bossing everyone around while taking orders and manning the cashier? Of course not.. The owners of these franchises use leverage and hire other people (i.e. managers) to do the "running" or operating part of their businesses. Robert Kiyosaki can't stress enough that SOLID SYSTEMS are vital for this kind of setup to work. Tim, fortunately for us, has shared his virtual architecture in his book. This is the basic structure or system that he uses for his businesses and I am a true fan of its simplicity and genius. I, however, will reserve the discussion of Tim's VIRTUAL ARCHITECTURE for another post.
So what kinds of businesses are suitable for MUSES?
here's a quick list:
1. Franchises - These businesses should have a proven system of operating smoothly and efficiently without its owner. As in my previous example, a Mcdonald's or Jollibee franchise are perfect examples. You will never see the owner/s manning or running the business. Their only job is to buy the franchise, turn the on switch, and watch their money work for them.
2. Rental Real Estate - Although I separated the discussion on this topic, it is indeed considered a muse because the owner/investor of a rental property will receive his monthly rents regardless of the amount of time he or she puts in. Once the proper investing part is done, your monthly cashflow from rents will be coming in like clockwork.
3. Online Business / Store - Tim's book, The 4-hour Workweek, has a complete guide on how to make your online business run on automatic. He goes into the details of outsourcing almost every aspect of operations and using existing cheap and available technology to drmatically make your life as a business owner easier. I'll discuss Tim's virtual architecture in my next post. Grab a copy of the book, it will change your life...
The 4-Hour Workweek