RE: The Past Year as a Free-Agent
Like you, I learned the lessons of feast and famine, and also discovered that being an entrepreneur is more of a lifestyle choice. Here is a piece of advice I offered to someone recently who has chosen this path:

*********

There are a lot of us (most people you will never hear about) that make a living from running an online business. We aren't gurus... we don't sell info-products telling you how you can get rich... 'cause if we knew how, then I expect we would be rich. But we get by, just the same.

Christmas, 2003, I made a total of $988.00 for the month. That was the worst month I've had since December 2000.

Still, I paid all of my bills, bought a used car for $4000 and spent $1000 on Christmas.

I was able to do this because, as an entrepreneur I know if I am to survive I have to live well below my means.

OK... so in December of 2003 I wasn't living below my means, but for the 11 months before... I was.

My ex wife made fun of my truck. Yes... I have two vehicles... paid cash for both.

Between her and her new man they are spending $1500 a month for two new vehicles, financed through the bank, (that's including insurance) and last year, besides child support, I was loaning them money almost every month.

Let me tell you about my cousin Harry. Harry is a millionaire and entrepreneur.

A few years ago on a trip he and his wife were taking, their car needed repair. Actually... the frame broke. The garage where he took his car looked at the problem. After seeing that the frame had already broke and been welded 5 times in the past, they said there wasn't any solid metal left so the car could not be fixed. So Harry had to part with a car that was 20+ years old and bought another one.

Lot's of people have a problem with this type of thinking. My friends and family constantly say to me "Why don't you buy another house?" or "Why don't you buy a new car?"

I'm not here to impress anyone.... heaven forbid! What if I have 4 or 5 bad months in a row?

It has been my experience that this isn't likely, but I would be fine.

Being an entrepreneur isn't about money. It's a lifestyle choice. When you choose this lifestyle then you have to be able to adapt your finances to match this lifestyle. This means finding the ability to live well below your means so the money will be there when you need it.

*********

You also shared a link to Michael Cage's "Lesson 1" and I'd like to share my experience with you in this matter.

Almost two years ago following a divorce, I moved home to Truro, Nova Scotia, after spending roughly 20 years in Calgary. I started a second business... which isn't really important. What is important is how I approached it.

I saw something lacking in this area, and I made a list of people who were already spending advertising dollars on something I could provide too... but also do a better job of it.

I'm sure you realize by now that I'm talking about market research, but there is more...

Many people who do their market research don't find the one crucial item that will determine the success of the business. Just because you have identified a niche market that is spending advertising dollars on a corner of the market you would like to get a piece of... doesn't necessarily mean that they will be willing to pay YOU for a similar product or service.

There is only one way to find out. You have to ask them. This doesn't mean you create a cold-call list, send spam, or write letters. You have to go talk to a sample of your niche market in person, to determine if they would be willing to pay YOU for your service.

You know what?

Since I've been home I discovered a need for small business consultants. There are a few that market their services locally, and I tested a handful of these. They all failed the test -- of course they didn't know they were being tested. This niche market is not being served well (based on my experience and testing) which opens the door for consultants that can meet the challenge.

Best Regards,
Steve MacLellan