E585 | What Is Semi-Passive Income?

Doc Danny is discussing the idea of semi-passive income and how it can be achieved through the internet and social media. He emphasizes the importance of being realistic when it comes to money and the potential income that can be earned from entrepreneurship.

Danny is particularly focused on the clinical world, helping people start cash and hybrid practices, and aiding with the growth and management of those businesses. He encourages people to spend the weekend thinking about the concept of semi-passive income and how it can be applied to their own lives.

Danny explains that financial freedom is achieved when one's passive income is equal to or greater than their monthly expenses. This can be done by decreasing expenses or increasing passive income, which can come from investments, dividend stocks, real estate, or insurance vehicles. 

Danny then continues to explain that the fastest way to achieve passive income is by building a business, but notes that even when a business is successful, it still requires some work to maintain. As an example, Danny explains that even when they had a successful cash-based practice, they were still working five to ten hours a week.

It was suggested that the best way to achieve this is by creating a business that generates more profit than working for someone else, and then investing the difference outside of the business. This way, the owner can reduce their involvement in the business to 15-20 hours a week, allowing them to focus on other aspects of their life.

It was also pointed out that if the owner gets bored, they can always start another business, but that not everyone is wired the same way. There are other things that can be done with the freed up time, such as taking care of health and wellness, spending time on family, getting involved with other organizations, and pursuing hobbies and social groups.

Ultimately, it is important to have balance in life and to have something to challenge and motivate the owner.

Danny also discusses the concept of semi-passive income. It is achievable to reach a gross revenue of $500,000 to $1,000,000 in a business within 18 months to 5 years. This type of income gives the individual the freedom to decide how much or how little they want to work.

It is important to avoid scams and be wary of people claiming to have passive income. Semi-passive income is a far healthier way to make money because it allows for flexibility and control.

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Podcast Transcript

Danny: Hey, real quick before we start the podcast episode, I want you guys to check out our new YouTube channel for PT Biz. We are putting out a weekly video on the most common questions that we get, and we are breaking those down in a way that's more engaging. Where you can learn better and really focus on one thing at a time.

So if you're interested in really learning more skills to upgrade your cash and hybrid practice, head over to YouTube. Subscribe to the PT Biz Channel and check out the weekly videos that we're coming out with to help you win in the cash-based practice game. So here's the question. How do physical therapists like us who don't wanna see 30 patients a day, who don't want to work home health and have real student loans create a career and life for ourselves that we've always dreamed about?

This is the question, and this podcast is the answer. My name's Danny Matte, and welcome to the PT Entrepreneur Podcast.

What's going on guys? Dr. Danny here with the PT Entrepreneur Podcast, and today we got a short Thursday, hopefully a little nugget of information, something to think about that you can spend a little time thinking about this weekend while you're doing all kinds of fun stuff.

And that's the idea of semi passive income. Now, I think that when you look at the the internet, The worldwide web, as my parents still call it. And social media in particular, what is a lot of people that are talking about money. And I talk about money to some degree as well.

But I, what I try to do is be, As realistic with people as possible when it comes to the idea of money, the concept of what you can make, what your life looks like in terms of entrepreneurship especially within the clinical world. And within the businesses that we help people start with cash and hybrid practices and help grow and run those.

One thing that I. I see a lot is, I see a lot of people talk about passive revenue, and I think passive revenue is a very important goal. I think it's an important concept to understand and it's an important type of money to try to. Achieve as much of it as, as you can essentially to support your life in case something happens to you and your family, and to also create time freedom.

The way that we equate financial freedom and define that is financial freedom is when you have your passive income equals or exceeds your monthly expenses. So you can do one or two things. You can either dramatically decrease your monthly expenses or you can increase your passive income so that your lifestyle is covered by non-direct work, I guess is a good way to put it.

And this can happen in a lot of ways. This can happen through working for someone else and then just investing over a long period of time. This could be in. Dividend stocks, this could be in real estate, this could be in insurance vehicles that pay a ongoing percentage. There's a lot of ways to do that.

And one of the ways, one of the fastest ways to get to the point where you can do that is actually through your business and. I do want to have one caveat with this when I say this though, because I think the concept for people that they can just ha they, they start a business, they grow a business, and then they never actually have to do anything with their business is just not necessarily it's not accurate.

Even when when we were building our cash-based practice, we got to a point where, I wasn't seeing any patients. My wife's probably working. Maybe 15, 20 hours a week in that business. I was probably working closer to five or 10. But for us to like completely turn that off for us to completely not be involved at all would be really hard and I think would.

Ultimately ruin the culture of your company. So this idea of build it, put somebody in place, never do anything with it again. You can definitely do people do that. It's very possible with different types of businesses but it's very hard to do as well. But it's, and especially in a service business like this, like you're not, it's not a sandwich shop.

Like you're, these are people who are developing personal relationships with everyone that they work with. So I think it is harder to do, but the, I think more achievable and probably better long term way of looking at it is how do you create semi passive. Income because you can create like truly passive income in a lot of other ways, especially if you can create a business that generates profit and more profit than what you know, you obviously would make working for someone else.

And then you can take, the difference and you can invest that outside of the business, I think is a really safe way of going about this. But, To get your business to a place where it's, half a million to a million plus in top line revenue and you're making a couple hundred thousand dollars a year.

It's very possible to do that and to do that in a way that is semi passive, meaning. Your involvement is not 50, 60 hours a week like it is whenever you first get started. Your involvement might be 15 or 20 hours a week. So you have this sort of part-time effort after you've put in massive effort on the front end.

And that's really the only way that I noted. To actually generate passive income is you either inherit it or you earn it and you earn it through massive active income on the front end or active work. So like active work will eventually help build infrastructure, which allows you to take a step back and then create this sort of semi passive entity which from there you could do many things with.

And I'll tell you for me what happened. When we got to this stage is I started to get a little bored and what I what I ended up doing was starting PT bits, I am an entrepreneur and I started another business because that's what I do and it's what I enjoy. So free time for me turned into that.

But not everybody's wired quite the same as me. What maybe for you is more important is, to spend more time. On your health and wellness. Maybe it's to really focus on family things that are more important. Getting involved with other organizations locally. Hobbies that you really, enjoy and want to pick up social groups that you want to be, be able to spend more time with.

This is kinda where I found myself again in a, with a second company where I've in a semi passive role again, and these are, a lot of these things I just mentioned are things that I'm focusing on, things that involve well-roundedness in your life. And it's not necessarily just starting and trying to grow, more companies.

That might be what you wanna do. It maybe it's not, it doesn't really matter. You put yourself in a place to where you have time. You create time to do what you want with it. It could be literally just doubling down on your own business more and spending more time there. But you might find that you don't really need to do that and you can be there half the amount of time, but it still generates the same amount of income.

And this is what I think is really interesting about these businesses is this idea of semi passive income and you're still involved with a company that you really enjoy. You have a culture in that company that you enjoy being around, that you're a huge part of. You may not be there every hour of the day.

Getting in everybody's way, but you can be there as much or as little as you want. And I think that's a very unique place to be, to also have the financial freedom to do lots of people could work part-time, but they get paid part-time. If you could work part-time, but get paid what you would be getting paid, if you're just working all the time in the business, like that's a pretty great place to be and it's very sustainable.

And this is really important too because, I think the idea for a lot of people is, oh, I just, I'm gonna create all this passive income. And then never have to work ever again. What the hell are you gonna do? What are you gonna do with your day every day? What, what's your gonna be, what's gonna be your reason to get up in the morning?

I totally get it. There's, it's great to have balance and have these other things that we do in our life but man, you're gonna go from. Just working at a high clip capacity as an entrepreneur, as somebody that's gold, oriented driven person, and then all of a sudden you're just gonna be like, no, I'm good.

I'm just not gonna do anything ever again. I'm retired. That's gonna last all of a couple months and you're probably gonna be a miserable person to be around because you need something to challenge you too. Like you need something to get you up in the morning, something to work towards getting better at.

And obviously it can be other things outside of that, but I like the challenge of a business is just so appealing to people like myself and probably people that are listening to this, that having that passive se or semi passive ability to still work on the business, be involved in the business, but not necessarily have to be be there 50 hours a week.

It's really, I think, an appealing route to go and very achievable route to go with a fairly small business, like I said, between half a million and a million. Gross revenue per year, which if you haven't started your business, maybe that sounds like an unachievable goal, but I can tell you it's very achievable.

We've seen people do get into that range in as short as 18 months. Most people, it's more of like a. Sort of three to five three to five year duration of time if they're working to build a business to that point. And then from there, you get to decide what you wanna do. Like I said, you can kinda work into other things, do more mentorship.

You can start another business. You can just take more time, play more golf. You can do whatever you want. And I think that the idea of semi pri semi passive income, As a far healthier way of looking at it versus just purely, Hey bro, you gotta build your passive income up. Try this, and this thing.

That's probably a scam, which is what I see a lot of on online. And it's just it sucks because you don't really know what to believe, but then you think all these people are living this sort of passive income life doing all this cool shit, but. You actually have no idea if that's the case or if they're just really good marketers and they, that's how they make money, right?

So this is just my opinion. Someone that's coming from someone that's built one of these businesses and a couple other at this point, and looking at these businesses as a free ticket for you long term by just developing completely hands off passive income, I don't think is a realistic idea of how to do that.

And I don't think it's a healthy way to look at it. And it's definitely not a healthy way that your, employees are gonna wanna look at it and be like, oh yeah, I wanna work for this business. This person that is leading it is never around, never doing anything. That's not what they want either.

So you still have an opportunity to be involved, still have an opportunity to make great income, but be a part of a culture. An in-person business that you built that's super special to you and have a really good balance associated with that. So think about that as you're building your business. This idea of semi passive income, building a sort of autopiloted entity that you're working towards, I think is a really good goal.

That's probably gonna suit the lifestyle of many of you, especially with families and especially if you enjoy traveling and being able to take a little bit of time off or more time off than the average person. That's a great setup. It's a great place to to put yourself and it's a good goal to shoot for.

Hey, Pete, entrepreneurs. We have big, exciting news, a new program that we just came out with That is our PT Biz part-time to full-time, five day challenge. Over the course of five days, we get you crystal clear on exactly how much money you need to replace by getting you. Ultra clear on how much you're actually spending.

We get you crystal clear on the number of people you're getting to see, and the average visit rate you're going to need to have in order to replace your income to be able to go full-time. We go through three different strategies that you can take to go from part-time to full-time, and you can pick the one that's the best for you based on your current situation.

Then we share with you the sales and marketing systems that we use within our mastermind that you need to have as well. If you wanna go full-time in your own practice. And then finally we help you create a one. Page business plan. That's right. Not these 15 day business plans. You wanna take the Small Business Association, a one day business plan that's gonna help you get very clear on exactly what you need to do and when you're gonna do it.

To take action if you're interested and sign up for this challenge is totally free. Head to physical therapy biz.com/challenge. Get signed up there. Please enjoy. We put a lot of energy into this. It's totally free. It's something I think is gonna help you tremendously, as long as you're willing to do the work.

If you're doing the work and you're getting. Information put down and getting yourself ready to take action in a very organized way, you will have success, which is what we want. So head to physical therapy biz.com/challenge and get signed up today. Hey, real quick before you go, I just wanna say thank you so much for listening to this podcast, and I would love it if you got involved in the conversation.

So this is a one way channel. I'd love to hear back from you. I'd love to get you. Into the group that we have formed on Facebook. Our PT Entrepreneurs Facebook group has about 4,000 clinicians in there that are literally changing the face of our profession. I'd love for you to join the conversation, get connect with other clinicians all over the country.

I do live trainings in there with Yves Gege every single week, and we share resources that we don't share anywhere else outside of that group. So if you're serious about being a PT entrepreneur, a clinical rainmaker, head to that group. Get signed up. Go to facebook.com/groups/ptentrepreneur, or go to Facebook and just search for PT Entrepreneur. And we're gonna be the only group that pops up under that.