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3 Big Dangers Of Working For Yourself
By: Fernando Cruz
What would you say are the biggest dangers you'll face when working for yourself?
There are quite a few, but before I get into what they are, let me explain where I'm coming from.
I'm sharing this with you out of personal experience. Not some fancy, leather-bound book I read somewhere, so right off the bat I can only speak to what I've experienced.
It may be that you'll never go through or encounter the dangers I'll speak of today, but... I highly doubt that. Chances are you'll have to deal with each and every single one.
Another thing... I'm not doing this to put fear in you or try to scare you from starting your own business. I'm doing this so that you can recognize it when it's happening to you. That way you're much better prepared than I was.
Ok, let's get started: (In no particular order)
Danger #1:
The danger of isolation...
This one's a real doozy. You see, it's so easy to isolate yourself when you're working in front of a computer for hours and hours and hours.
This is especially true if you're starting on online business, but it can affect you in any venture.
Listen, one of my mentors says the following:
"The most dangerous number in business is: One (1). 1 product, 1 client, 1 ad, 1 employee..."
That's probably not an exact quote, but you get the idea. Always remember that real breakthroughs will NEVER happen within the confines of the four walls in your office.
What tends to happen is you become disconnected with the people and the world around you... so make sure that you plan ahead for it by blocking out time where you're out of the office and interacting with people and with your market.
Danger #2:
Income Vs. Expense
When you start making some nice chunks of cash, you're going to find ways to spend it. That's the bottom line. And even though that may seem obvious, the majority of people just don't get it.
It's not about how much you make, it's all about how much you spend.
And this goes double for your business.
The more you grow, the more costly it'll be to maintain that growth, unless you've put up ways to control cost. I'm not an accountant or a financial expert so I can't get into the specifics with you, but in Danger #3 you'll get a solution that I find to be the #1 best way to solve this problem... but more on that in a sec.
For now, understand the following: Your spending habits MUST change in order to have a successful business. If you keep a consumer's mentality, your business will go nowhere.
I tell you this because I can still remember the first month I broke the $10,000 in a month barrier. Even though up to that point that was my best month, it was also the month I spent the most amount of cash.
And not just for the business... I went crazy buying things for myself and my family.
There's nothing wrong with that, but when a business is starting out, the best thing you can do is set aside a percentage to go back into the business (preferably into marketing).
I know you already know this but:
It's not what you make, it's what you spend that you gotta watch out for. Basically, live within your means.
Danger #3:
"I Can Do It All"
Uh... no you can't.
Understand this: You gotta get a team together. By team I mean at a minimum:
Accountant, attorney, financial planner/advisor, distributor (if you're going with physical products), web designer (online businesses) and others depending on your business.
Of course, in the beginning, you've got to do most of these things on your own, but what you absolutely must NOT do yourself:
Accounting, legal, financial planning... unless of course you're educated in any of these fields.
Listen, I know it's expensive, but NOT having these people on your team is FAR, FAR, FAR more expensive.
An alternative would be to just pay as you go. Don't hire a full-time accountant, just consult with them on setting up your books, you maintain it, and meet with him/her 2 - 4 times a year or whatever you deem necessary.
Same with an attorney. Pay for your consultations in the beginning (like how to set up the business, contracts, agreements, and etc...) and then whenever you need them.
Still too expensive? Team up with some local small business and pool your resources together to share the cost of these professionals.
Or how about bartering your service for their service (if it's applicable of course).
The point is, whatever you need to do, do it, but make sure you have this team of pro's around you.
But, make sure they're qualified to help you with your particular situation. Ask them questions, ask them for references (and CALL THEM), investigate them. I mean, what good is a financial planner that's just as rich as you? You want them to help you go up, not stay at the same level.
In other words, just because they're professionals doesn't mean they're the right fit for you right now.
Make sure you understand what it is you want out of the relationship and ask for it. If they can deliver, great... if they can't go to the next person on the list.
What other dangers can you think of?
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