The Free Agent

The FREE Agent

What is the Reality of Self-Employment?

Simple: You can do it...NOW

Imagine you had 110 customers, clients, patients, members. That is, more than you have right now. Imagine that each one pays you for value received an amount sufficient to give you $10 of profit a week. Such an amount would total $50,000 profit in one year, so that you could, if you chose to, live on that amount. Or, you could use some of that amount to develop and expand your business further. This is called investing in your own business out of the revenue (in this case profits of your business). Could you support yourself in the style you're accustomed to on all or most of $50,000? Interesting question, isn't it? Or, possibly a silly question.

This is not an acedemic question. This exercise is designed to support you in planning for self-employment in a way that makes profit likely. Isn't that a novel thought? What do most people think about profit? I'd say that most people think that profit is chancy, unlikely, hard, or a remote possibility...especially in the first year...or quarter of business.

Also, depending on the nature of your business, you would need to recieve an average gross revenue per customer of $1500, 2000, 2500, 4000, 5000, or even 10,000 from each to clear $1000 profit per customer, again on average.

Such revenue would fall in the range of $150,000 to a million per year, yielding $50,000 profit to you.

If you decide that half of the profit will go to your salary, then your salary becomes an expense of your business. If you decide that half of the fifty thousand is salary, then that amount is an expense of your business; If all of it is salary to you, then all of it is expense and none of it is profit. This is all up to you. That's quite all right for this is your reward for value received. Remember this is your business and you are the boss.

How much you pay yourself and how much you use to develop your business is entirely up to you.

The first thing you get from this illustration is the simplicity of the model and that this is just how simple your business can be in concept. So, keep in mind, with enough clients, customers, members, patients, you can (keeping expenses appropriately low) create a sure profit by planning for it.

1. Aim for profit to start with, and build enough value for the customer and revenue from the customer to yield sufficient profit per customer when multiplied out times 100, remembering to keep expenses low. A key to low expenses is to create a plan for attracting and developing lifetime customers at little or no expense per customer. Approaches to this are guerilla marketing, developing share-of-customer potential, repeat business, give them something to be excited and to talk about, a referral/ recommendation/ leads program, just to mention an important few of the many possibilities.

2. If you start with the 100 customers (or most of them), you essentially provide for your capital needs up front. So, just enroll your first 100 customers before you start your business. Simple, huh? Well, really, it's not all that complicated.

All of these methods will be developed in detail in the coming issues of The Free Press.

So think 100 customers...Think Profitable...Think exponential growth.