The beauty of being an entrepreneur is you have no profit ceiling, and therefore unlimited earning potential. No boss or large bureaucratic organization stifles your creativity and limits the weight of your wallet. You set your own price, limit your own overhead and essentially control your own destiny. The price of this freedom, however, is the fact that you have no safety net. If profits falls, you have a bad year, or business is in the toilet- you get flushed.
This is the risk that prevents the sane and rational people from venturing out to be reckless pirates that take 6 weeks of food on a 7 week journey to raid a British ship that might not be there in the first place. To be a pirate and an entrepreneur requires taking risks. So how do pirates and entrepreneurs survive? They bury their treasure.
Here is my first lesson to becoming a successful entrepreneur:
When people work steady jobs they sometimes live paycheck to paycheck. You do NOT do this. The people with bosses have the security net of a steady flow of income whether they thrive at their profession or not. It does not matter how good you are, because one non-payment from a client, one failure to turn a suitable profit, or one bad incident concerning a dog, two kids and you driving by without stopping could land you in court, and destroy you credibility forever.
Don’t live paycheck to paycheck.
As your success begins to perpetuate, and you have a good referral marketing scheme in place, ensure that your profit ceiling is pumping significant collateral into your security net. The old step ladder cliche is a very suitable metaphor here because you must use a percentage of your profit ceiling to fill the next step on which you will walk upward to facilitate your ongoing success. I don’t care how much money you begin to make; if you are not building a strong financial step higher than the one you are currently standing on, you are not moving upward.
If you were on a bridge with a floor and a ceiling and needed to travel upward toward safety, would you take plaster from the ceiling to make a new step, or from the plaster you are currently standing on?
Be smarter. Study Physics because this is the discipline that will dramatically improve your problem solving. If it’s too hard, read slower; if it’s impossible, get a tutor. Read at least 4 publications concerning your respective industry a day, and generate new content for your website blog at least 4 times a week. You must be a thought leader to begin getting new clients coming to you, and so you must be exceptional. Unless you are rich, you will solve problems and overcome obstacles with a keen mind, and not from your opinion on last night’s episode of Jersey Shore. Don’t be a dullard which is what the politicians and media want you to be. You get fat when you consume too much and you get stupid when you don’t consume enough.