I know the idea of a passive income sounds great, however it does take some time and effort to set up.
I suggest you don't quit your day job for a while, set up and operate your passive income in your spare time until you know its generating enough profit for you to give up your day job.
You need to make sure you enjoy the field you're venturing into. It's no good having a business involving boats if you get sea sick, can't swim and hate the smell of the beach.
Start small and build the business slowly as the business and customer base grows. I suggest you don't spend all your savings and mortgage the family home straight away. Start gradually and build the business as you gain confidence and see that the business is heading for success.
Lots of people (my self included) have had great ideas that we think will change the word, however implementation can be tricky, expensive and time consuming and sometimes what you think is a great idea is not such a great idea that others will want to pay for.
If you're going to compete with your employer you need to be very careful. Make sure you're not using their products on your website without their permission, check what your employment contract says, maybe there is a conflict of interest, maybe there is a non-compete clause. Your employer most likely with have a more mature business with some solid customers, they may be in a better place to compete with you as you will be just starting up and in a potentially vulnerable position economically.
When setting up your business there is not necessarily a huge hurry to open straight away. I suggest taking your time, think about all the pros and cons, do as much home work as you can, save some funds, do as much initial preparation before you go public.
Don't think that sales will occur from day one, it may take days, weeks, months or even years to build sales.
Make sure you budget for marketing, there are many types of marketing and some will work and some won't work for your product. You're likely to try a few avenues that don't work before you find the niche marketing strategy, maybe you will try radio and magazines and find these don't work but that a simple mail drop works effectively for your product? Who knows until you have given it a go? You will need enough funds to hold over till your strategy works and customers start emerging for your product.
This article is not meant to be discouraging, it's meant to give you a few tricky questions to challenge you to make sure you have covered all your bases before you launch into setting up your own passive income business.
Good luck
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