The dream of working for yourself requires way more work than most people realize. Not only is pressure way higher but now there are more things that you need to consider. Reaching financial security when you work for yourself is harder because you feel the successes and the failures on a very different level especially financially.
While the only way to be successful is to give your all to the projects you take on, the importance of financial security should always be on your mind. Most successful entrepreneurs will tell you the most important thing that will bring out the piece of mind is having multiple streams of income that can give you the confidence to take on new projects and think outside the box, while also staying responsible.
While it would be unrealistic to think that you will be able to purchase make investments at the very beginning of your career, the best thing you can do for your business and your financial well-being starts by creating multiple revenue streams as early as possible, from in risky and more stable markets. You will notice that among the most famous and successful entrepreneurs very little are focused on one thing specifically.
They all start out doing one thing, start getting profit and becoming successful and then they always create some additional source of income, independent from the first business. Not only does this follow the age-old saying, don’t put all your eggs in one basket, but it also gives you an opportunity to discover something else that might become your focus project in the future.
Realize that unpredictability is part of the industry
Entrepreneurship is so popular because you can succeed with just a good idea and good networking skills. It is one of the more open industries that allows even those who might not have the connections or the best university degrees to do something truly important and impactful. You have the chance to change your situation very quickly, go from earning a minimum wage to making some substantial money, but the thing that makes entrepreneurship so great is also what makes it risky. This is why as soon as you start to feel somewhat financially stable you need to start thinking about the ways to multiply your revenue streams.
There are a couple of roads you could take to ensure your financial stability by starting to invest in different markets. The popular choice among entrepreneurs is usually a stock market or an FX market. These types of investments to ring a considerable amount of income, they don’t even need that much attention from you after it gets going in the beginning. The most crucial step is to choose the right broker to avoid any misunderstandings or unnecessary losses and make sure to look up top online Forex brokers in your country to ensure you are working with a legitimate broker.
Ideally, you should have a balance between something as risky but profitable as the forex market, and something stable like a house or a couple of houses. This would be your investments, that you will be able to count on that don’t need too much managing, and can continue to bring your income even if your current project falls apart. You should also consider investing in stock and bond markets, for even longer-term security. Particularly the bond market can be your go-to that won’t need much of your attention but will continuously generate income for your savings and future plans.
While the thought of working a 9 to 5 job at a corporation that has been around for decades might not sound as exciting, you can rest assured that the concept that has been working for 50+ years will still work for at least a couple of years.
In Entrepreneurship, while you can become successful fast, your product or idea could lose relevance really quickly, especially if you are a beginner and don’t know how to keep a fresh product relevant. This is an art within itself and you might need to start expanding your team if you want your product or the idea to continue its course in the same way. But the fact is that there are a lot of people with good ideas and unless your product is outstanding it will eventually run its course, but that is not necessarily a bad thing. What you need to do is to ensure that when that does happen you already have a backup plan and hopefully new business.
I can finally afford the luxury of long term financial security…
Managing the pressure to succeed
In entrepreneurship, the pressure to be constantly succeeding is greater than probably in any other line of work. When you put all your hopes on that one thing the pressure to make it right can quickly overtake your entire being. Pressure can often stunt the way you think and how you manage stressful situations and if you are leading an entire team or a business by yourself stressful situations will be plenty. This is not to say that you should slack on your most important projects but if you have the luxury to think and work on your side projects as well and run a couple of things at the same time, you will find that the pressure will interfere less and less in your day to day brainstorming sessions and you ill be able to create plans and map out future moves without the overwhelming feeling that your entire career may depend on this one project. So this is not only a way for you to secure the state of your career, but you can start looking for more streams of income that will be exciting and advance you in your career with more confidence. When people talk about multiple incomes the emphasis is usually on the passive income since it does not require that much attention and can be done quickly. But in this career, once things get going there is really not that much need for you to be constantly present, especially if you have a team of professionals who share your viewpoint and are willing to do the assigned work. It’s important to stress that this advice applies to more season entrepreneurs, the ones that have already seen what is like to be successful and run a business that generates actually income. It is crucial to not lose momentum when the thing starts looking up and to make sure as soon as possible that you are no longer living paycheck to paycheck and can finally afford the luxury of long term financial security.