Click here to view the embedded video.

In this video interview with Darren Rowse of Problogger.net, we continue this series of conversations about how to making a living online.  This video interview follows two previous interviews.  One with Leo Babauta and one with John Chow.

Darren has been blogging professionally for a very long time and has a wealth of valuable information on the subject of actually making a full time income on the Internet.  He was very helpful to me in the early stages of my online development and anyone who knows him would agree when I say that he is one of the nicest guys in the Cloud.  So I hope you enjoy our conversation and are able to take away some useful tidbits regarding online income and the value and freedom it provides.

Also, be sure to check out his awesome Twitter blog (Twitip.com), Digital Photography site (digital-photography-school.com) and follow him on Twitter (if you’re not already).

Click here to view the embedded video.

In this video interview with John Chow of JohnChow.com we continue the conversation from the previous video interview with Leo Babauta about making a full time income online.

John has been making a living online for many years and has a wealth of information to share to those who are interested in either taking the leap into the cloud or just refining their current ventures to get the most out of their hard work.  So be sure to check out our conversation and learn more about how both John and I bring home the bacon online.

Click here to view the embedded video.

In this video interview with Leo Babauta of zenhabits.net we talk about making a full time income online.  Both Leo and I have been supporting our families with our online incomes for some time now and we hope this discussion is useful to some who are working hard to do the same.

Also, if you’re a fan of zenhabits and you like the super minimalist design of Leo’s blog, you need to check out the free zenhabits Skin (this skin requires the Frugal Theme) over at the Frugal Theme Skin Store!

I remember, early in ’09, listening to all the financial forecasters prophesying potential disaster for many years to come.  A kind of dollar dooms day set the tone for continued Wall Street woes.  But it seemed that the agreed upon perspective was that 2009 would deal us the worst hand and by 2010 we should start seeing a lining of silver streak across those gray clouds above.  So we’ll have to wait and see what 2010 provides in terms of consumer confidence, but regardless of the degree of upswing we must first understand these irreversible adjustments that have already taken place.

A New Kind Of Economy Starts With A New Media

Even before the crash, the term New Media had been effectively created and dispersed among the masses.  FaceBook was stepping on the face of MySpace on its way to competing with Google and Yahoo in terms of all out Internet traffic, while out of our blind spot rose a 140 character powerhouse that tweeted its way to the top of social networking simplicity.  News was no longer preceding Paper as the idea of waiting until morning for the latest had become an archaic activity, and advertisers couldn’t jump ship fast enough for our old way of consuming information to effectively adjust.  We were moving at light speed and only those who saw this change coming well before the term New Media was even coined, flourished as a result.

2009 brought us a year where the masses frantically made their way online.  From that computer guy next door to John and Jane Real Estate Agent down the street to Grandma and Grandpa, we saw new domains flying off the shelves of GoDaddy like never before.  From Life Coaches, to Web Designers to bloggers of every size, shape and color, the shift from big business website domination to that of a growing community of mom and pop online shops was drastic to say the least.  It had been going on for a few years leading up to this exodus to the Cloud, but falling stock prices and political turmoil had become that straw that broke the Camel’s back.

A Common Misconception Of Global Proportions

Something I’ve noticed throughout 2009 is a common misconception that somehow this economic crisis has reshaped the way we do business.  On the surface this would seem to be an accurate assessment, but if we dig a little deeper we will see that the only thing it did was speed up the process that was already set in motion well before this monetary mess.

Common sense would show us that it was only a matter of time that the Internet reshaped our livelihoods and leveled the playing field for both consumers and Entrepreneurs alike.  The false bottom of our economy was only acting as a temporary deterrent for the majority to get on board.  Once the rug was pulled out from under us we had no other choice but to leap forward.

It’s kind of like getting out of bed in the morning (bare with me as I break out an analogy .  We look at the red lit numbers of our bedside alarm clock as they tick well past their initial warning to wake.  We know we need to get up, but our bodies convince us to remain cloaked in our horizontal cloud of warmth just a few minutes longer.  Then, from out of nowhere we hear screaming in the other room.  It’s our 6 month old laying in their crib with an empty stomach and a poopy diaper (can you tell I’m a new dad? .  So what do we do?  Turn off the baby monitor and go back to sleep…just kidding…sometimes.   We pull off those covers, baring the brunt of the cold morning air, and go in the other room to tend to the task at hand.  That source of outside stimulation gave us no choice but to act and our crappy economy is what finally yanked us out of bed to tend to the inevitable shift that was already taking place for much of the rest of the world.

The Forrest Fire Effect

Other than waking us up and pushing us out of bed, our ’09 economy had a kind of forest fire effect that needed to take place.

Too many people were making money hand over fist for no other reason than the fact that there was money to be had.  Business sense or not, you could earn a strong living regardless of the quality of your work.  I personally witnessed all kinds of ‘professionals’ and consumers alike, just throwing money at everything in their path as it seemed to burn a whole in the pockets of their Calvin Klein kackys.  Shows like ‘Flip That House’ were popping up everywhere so we could watch as people like us made way too much money buying and selling property.

When I ran my computer business here in my hometown I worked with a lot of Real Estate Agents.  During that time I watched as more and more new agents popped up (many of which had no place selling homes or working with people for that matter) and continued to make money hand over fist.  The job market was in a kind of free-for-all state where you could pretty much take your pick of profession and enjoy a pretty paycheck as a result.  Whether you were feeling this false economic high from a direct connection to the hot spots like Real Estate or, like me, enjoying the run off as their prosperity poured into other businesses as they pushed ahead, you were most likely enjoying a powerful financial peace of mind.

Yet as the smoke began to settle and reveal the true state of our financial system our hearts sank along with our stocks.  And so began the process of weeding out the weak and forcing us all to re-adjust our ways.  Just like a forest fire clears out the over grown vegetation, this crisis has taken away the ease at which we made a living and pushed us to a new land of promise and hopefully with wiser ways to guide us.

A New Way Of Livelihood

Now that we’re all out of bed and dealing with the day ahead it’s time we effectively adjust our perspectives or risk being trampled by the coming stampede.  2009 brought us a kind of 49er gold rush where we all picked up our shovels and headed online.  Yet I believe it will be during the year of 2010 that we truly stake our claims effectively.

Because so much of this was new to us we were flying by the seat of our pants.  Decisions were made by guesstimation as there was no historical data to guide us.  Yet now that we have a year’s worth of success and failure to analyze we can start educating our decisions and securing our steps.  Inevitably we’ll start seeing the shelves of Barnes and Noble and the server space of Amazon overflowing with books on how to make it online.  Just keep in mind that by the time the ‘teachers’ make their way to their podiums, much of the opportunity has already passed by.

This new way of making a living hasn’t necessarily stripped the worth of our initial skill-set, but instead given us incentive to make some adjustments.  I, for example, moved from working on computers in my local community, to developing website software for the World Wide community.  Some may have sold items by means of brick and mortar and now find the Internet to be a better venue.  Maybe you counseled individuals face-to-face and now use your LCD screen as a window into the minds of your patients.  Whatever the specific situation, there’s most definitely a WWW at the beginning of your new way of livelihood.

Even those who either can’t or don’t fully need to move online, will be required to have a presence in the Cloud.  From social media to online advertising, the Internet is only going to become more prevalent in our daily business dealings.  Those who resist will inevitably fail and even the dragging of feet will provide a passing lane for our competition.

A Crowded Cloud Makes For Stiff Competition

Just like the gold rush, too many shovels in the stream makes for a lot of disappointed dreamers.  The blogging craze of the past few years has brought about this allusion that a catchy domain name and few well versed posts will position yourself for a future filled with fat Adsense checks from Google.  The result has been a few miners striking it rich and many weary writers with nothing to show but some calloused finger tips.

But those with their eyes open and a willingness to adapt have found great opportunity to profit.  As the masses continue to make their way to our online marketplace we will continue to see the need for skills of all kinds.  Just like our pre-’09 business world, this Cloud Community will continue to open doors of opportunity for each of us.  We just need to position ourselves so we can walk though them.

Let’s say you’ve just moved to Hollywood in hopes of becoming a big star.  You’re waiting tables in a diner right next to a big production studio and practice your lines while serving food, nervously awaiting your next audition.  There’s nothing wrong with this picture, but the harsh reality is that you’re probably not going to find your face on more than a low budget TV commercial and even if you ever DO make it big you could be looking at years before this takes shape.  So the question is, “What are you doing in the mean time?”

True Bill Paying Income Can Be Found Online, But At A Cost

I’ve found over the past year and a half or so online that it has been the many small steps of small success that have continued my forward motion.  I’ve seen a great number of individuals come and go as they seek a quick buck.  I myself have failed over and over again and found great discouragement as reality hit too close to home.  Yet each time I’ve fallen down I’ve somehow found my way back onto both feet and just a bit more sure footed as a result.  I’ve tried many different avenues for revenue and found many things I don’t enjoy as well as those I do.  But it only takes one properly fitting online profession to make a living and once you achieve that goal you’ve just bought yourself more time to gain even greater Internet success.

Let’s face it. The idea of making a living purely online is a pretty awesome concept to consider!  No longer are you bound by location as you can work from anywhere that connects you to the Cloud (and these days that’s just about anywhere).  Your flexibility to enjoy your family and friends expands exponentially and, assuming you’re working for yourself, the word Boss is now just a dated piece of slang from the ’60s.

When I set out to achieve this goal back in July of 2008 I really had no idea how I was going to completely replace my computer business income through a website.  Initially I attempted to profit from writing, writing and more writing.  This blog was new, but growing, yet my bank account was still unaware.  I then worked on writing that I would actually sell directly (as apposed to making money off advertising).  Still no go.  It wasn’t until about 6 months later that I found a way to profit from my Internet connection.

I realized that though I didn’t really want to delve back into services I needed to temporarily adapt my abilities to do just that.  This is when I began building WordPress websites for individuals.  With the right advertising connections I found more work than I knew what to do with and finally had a full time income online.

BUT, and this is the big but, this was only the beginning and by no means even close to my intended destination.  Though I enjoyed much of this design work, it just wasn’t what I wanted to do.  I had already spent 5 years in services and I was looking more in the direction of products so I could try my hand at development, marketing and sales.  This would come my way very soon, but keep in mind that I had to sacrifice some of my perfectly pictured online presence so I could find a spot to start my journey.  It was this crucial step that gave me the platform to stand on so I could see stage two.

So my WordPress Web Design business morphed a WordPress Theme development and sales business.  This was something that was quite new to me but much more suited to my personality and idea of success online.

Securing An Online Income Requires Diversification

Those who make a living online probably have a main source that pays their bills.  Yet there’s just as good a chance that they also enjoy multiple streams that they’ve picked up along the way.  My WordPress Theme business is certainly my main source of income, but in all the time I’ve been online I’ve managed to keep my eyes open to the opportunity for other income sources as well.

I mentioned my failed attempt at earning a living by selling written content.  It is true that making a full time living from ebook sales or even advertising from your blog is quite a challenge to say the least, but making an extra bit of cash each month from these pursuits is not out of the reach of most.  Every month I bring home the bacon with my WordPress Theme business, but I also enjoy income from book sales and ad revenue.  We could survive without it, but it offers a bit more peace of mind, knowing that not all our financial security is tied into a single source.

This also offers greater flexibility as I continue to push ahead to scale the looming peaks on the horizon.  My family is growing and therefore I must do the same for my online presence.  Each step of the way I broaden my horizons and strengthen my resolve to keep moving forward.

May Your 2010 Be Everything You Planned For

The potential for success and prosperity in 2010 is great, but will only find its way to those who are willing to be flexible and yet steadfast in their ways.  The rush to stake our online claim is still in the early stages, but the competition is already fierce.  For many of us technology can feel like a double edge sword (filled with opportunity yet constantly growing more complicated), but it’s crucial for us to tackle none the less.

As the dust begins to settle and our economy rebounds we will certainly see a new marketplace in the Cloud.  Fortunes will be made and lost, but more importantly livings will be earned. What makes this year of 2010 so crucial is that much or our online presence will be established during this time.  Whether we like it or not our ‘profiles’ are already being formed.  So it is up to us to either effectively form them ourselves or let it be done for us.  The former will provide great online opportunity and the latter will put us in our place as another part of the herd.

Your 2010 Toolbox For Building An Online Business, Blog, Community And Presence

As a second part of this post I have created a kind of text based toolbox to help you build that business, blog and/or community as well as effectively form a powerful presence online.  So be sure to click the above title if you’re interested in learning more.

I hope you have an absolutely AMAZING and PROSPEROUS 2010 and may it be the beginning of even greater success in the future!

Eric Hamm

Click here to view the embedded video.

Peter woke up early that morning, the freshly baked sun beaming its way into his bedroom window.  As he slid out of bed he looked over at his wife Sarah, peacefully resting, unaffected by the incoming rays.

“Today was going to be another scorcher”, he thought to himself as he laced up his semi-casual work shoes.  “At least I get to sit in an air conditioned office.”  Peter was once again trying to convince himself that his lackluster position as assistant manager at the local office supply store was really not that bad.  He was always looking for ways to ‘see the bright side’, but his feelings never took the bait.

Like any other day, Peter was off to open the store, reign in the morning employees and spend his 10 hours of daily dues pretending to care about sales numbers and monthly goals that the ‘higher ups’ had set before him.  As he neared the sliding glass doors of the Office Emporium, Peter lifted his head, put on his fake smile and somberly drudged into his daily domain.

The Other Half

As Peter pushed through his morning routine, Sarah was at home packing brown bags with PBJ’s and potato chips.  One of the few things that Peter and Sarah remained passionate about was their two little boys, John and Peter Jr (who they jokingly referred to as 2nd Peter, in reference to the book in the Bible.)

Sarah was a pretty young woman with lots of life in her.  She loved her husband and cared dearly for her two children.  Choosing to be a stay-at-home mother, Sarah was prepared to live on a bit less as she had quit her job weeks after finding out that her and Peter were going to enjoy parenthood within the year.

Sarah smiled a lot, much more than Peter, yet you could still see her inner flame was constantly having to be re-ignited.  She was a half-full kind of person, yet she was always affected when she saw Peter’s daily frustration as he drudged through his so called career.  It pained her to see him knowingly disregard his God given talents to pay the bills.  She saw so much passion and potential in her hard working husband, but that flame dimmed a bit more each day as his possibilities for change seemed to dwindle.

Off To School

The School bus pulled up to the neighborhood stop and Sarah watched as little John and Peter Jr walked up the steps that led them into the big yellow bus.  Sarah giggled as she does every day, finding humor in the over sized backpacks that practically swallowed her two boys whole.  Then the bus grumbled up to speed and drove off to the next stop on its list.

Dinner Conversation

As Peter walked in the door, the last dinner plate was being set in its proper place.

“Mmmmmm…that smells heavenly…”  Sarah heard her husband compliment her food every time he smelled or tasted it, but she knew his praise was genuine each and every time and that meant the world to her.

“How was work?”  Sarah liked to ask as she never wanted Peter to think she didn’t care to know about his day-to-day life spent away from home.

“It was work and it pays the bills.”  This was Peter’s coined phrase, something he’d say when his honest answer was too depressing to consider entertaining.

“Well, you’re home and we’re happy to see you.  Now let’s get some food in you.”

The boys came running in to greet their dad.  “DAAAAAD!!!”

“Hey guys!  How was school?  Did you learn anything fun and exciting?!”  Peter, though dying inside when future was tagged with his own name, the possibilities he saw in his two boys were tremendous and would inspire anyone to make the most of their days.

“We did, we did!!”  2nd Peter, being just a year and half younger than John and equipped with a talkative spirit, piped up in response to daddy’s question.  “We learned about all the cool stuff we can do when we get older.  The teacher asked us what we wanted to be, what stuff we got excited about”

“And I’m going to fly airplanes!!”  John finally actively joined the conversation.  Passionate about everything that has the ability to defy gravity, John has dreamed of nothing but manning the many machines that soar through the air.

By the time the boys had finished their outburst of excitement, Peter was sporting a smile from ear to ear.  His eyes were beaming with a boyish glow and he couldn’t wait to hear more.  He enjoyed nothing more than to hear that his sons were going to take the World by the horns and ride each day like it was their last.

Sarah also enjoyed these kinds of conversations, but not just because her boys were full of life, but because it was one of the few times she saw hope for something better in Peter’s normally placid pupils.  She smiled and then piped up, “Alright boys!” (grinning at her husband as she had purposefully phrased her statement as if she were the mother of three) “Let’s sit down and eat.  The food’s getting cold.”

For the rest of the evening Sarah’s three ‘boys’ talked about this exciting subject.  Peter was just as active in the back and forth as they hashed out their plans to do this and do that and how they were going to invent cool stuff and enjoy the future that was waiting to be embraced.

But as the conversation came to a close, Peter’s enthusiasm began to cool off as he glanced at the clock and remembered his morning meeting that was only hours away.

“Off to bed you two.  You’re going to need your rest if you plan on starting your new adventures.”  Peter knew this would get his sons in gear and it worked like a charm.  It was a smart parenting tactic, but it was genuinely stated none the less.

The Conversation

Sarah sat down with Peter when she had put away the last of the dessert leftovers.  “Honey, do you realize that you were talking to yourself during much of your conversation with the boys?”

“You think?”  Peter’s tone was questioning, but with no sense of surprise.  “Which part?”

“The WHOLE part.  The entire conversation.  From the second you realized the topic was about living the life that you wanted and not one that was chosen for you, the light turned on and your normally stress filled tone was like it was when I first met you.”  Sarah was hoping that Peter would take her observations as pictures of possibility and not just a reminder of what could have been.

“You know how it is.  You remember the days when tomorrow seemed filled with limitless possibility.  When your list of what ifs far outweighed the fact of what is.  I just let myself get a bit caught up in the moment and dreamed of much different circumstances.  I started to think about a life that involved more time and freedom and work that filled me with enthusiasm, not frustration.  But don’t worry, I’m not planning on quitting my job or anything.  I was just playing along.”  Then Peter got up from the couch and made his way up to the bedroom, sensing the days end and coming sunrise.

Sarah stayed seated for quite some time.  She just couldn’t get Peter’s final comments out of her head.  When he assured her that he wasn’t going to leave his job, her emotions had taken on a stance that was completely different from her past concerns.  She found herself screaming inside, “Quite the damn thing!  QUIT!!!”

An Unfinished Story

I could continue to play out this scene, but I believe it’s a story that is all too common, yet has many different endings.  I wrote it as a kind of fictional story of my factual past, yet I have a feeling some others who read it will be able to relate.

I’m not in any way advocating the mass exodus from our current lines of work, but I am encouraging all of us to be honest with ourselves when assessing our work life and the lifestyle that goes along with it.  I truly believe that there is a form of income producing activity that is actually appealing to each individual and not completely out of reach.

If you are someone who is not happy with your job or business or so far from your childhood aspirations to achieve great things, you need to take a long look at your life and how you’re living it.  And when I say ‘great things’ I mean whatever you believe is worth your time,  effort and focus. We have powerful minds and amazing hearts that are capable of producing something that no other individual can muster.  So by falling in line with the masses and doing ‘what you’re supposed to do’ you are snuffing out the flame inside you.

So whether you’re stuck or just struggling to make your way to a better space, I encourage you to open your eyes to the possibilities and never settle for anything less than amazing, whatever your amazing happens to be.

Eric

One of the common questions I receive when a visitor first lands on this blog and reads my ‘About Me‘ page is, “How did you start your own computer business?”  Whether they are interested in the IT field or just wanting to know how to start a small business, I try to help as much as I can.  I’m passionate about being a small business owner and feel that everyone should have the means and opportunity to pursue this dream if they have it.  With a recent request about how to start a small business, I decided it was time to go ahead and right a post, detailing the process.  I plan on covering both the practical AND mental aspects as well as touching on the technical details that make it legal and legit.

I apologize if it’s a bit lengthy, but it’s necessary to cover all the bases if I want to make it truly a useful resource.  I’ll try and break it up in chunks that are easily digestible.  If nothing else, just bookmark the post and use it as a reference as you start making the changes necessary to start a small business.

The Entrepreneur Mindset

Before I begin with the ‘how to’ part of this post I want to talk about what I feel it means to be an entrepreneur.  The word entrepreneur does not represent the actions taken by a person, but the natural mindset of that particular individual.  Anyone can try to open a lemonade stand, but an entrepreneur is someone who can do nothing BUT open that stand.  You see, the mindset of an entrepreneur is that of independence and perseverance.  We work for ourselves because we could never fathom the idea of working for someone else.  Maybe we have done just that, but if so, it was probably a brief, painful experience.  You could almost say it’s a kind of sickness or obsession, but we know it’s just part of our DNA.

So if you’re trying to figure out how to start a small business, first ask yourself this question; “Would I be just as happy doing the same thing, but for someone else?“  In other words, is the idea of starting a small business just something you want to try on, like a new pair of pants?  Or are you pursuing something that you just can’t get away from?  Don’t get me wrong, there are many great advantages to working for an employer and I sometimes day dream about these work characteristics.  But as an entrepreneur, it only takes a short second to think of losing my freedom to snap me out of my stupor.  If you’re content with the idea of working for someone else, then maybe this is not for you.  But if you just can’t seem to get this dream out of your head, you’ve come to the right place.

Question #1: Is Starting A Small Business For Everyone?

The simple answer is ABSOLUTELY NOT!  There are many people out there who are either just not cut out for the unique stresses of being a small business owner or who require that common co-worker camaraderie that can only be obtained through work for another.  If you are reading this right now with baited breath to find out exactly how to start a small business, than I think it’s safe to say you are not in this group.  Not to say that you won’t struggle in this new endeavor, but the fact that you are enticed by its independent nature and obtuse opportunity, shows me that you are ready to move on to the next question.

Question #2: How Do You Know What Kind of Business To Start?

Many of you will already know EXACTLY what business you want to start.  But for those who are still pondering this question, here are some tips to help you make the right decision.

• Hobbies don’t always make the best business. We’re often told that we should turn a current hobby into a business.  This can work well and become a smooth transition from play to professional, but for many of us it can be a disaster.  For one, our hobbies are often sacred activities that allow us reprieve from the stresses of life.  Once you add the expectations of a client base, you may quickly corrupt this.  In addition, our hobbies are not always best for monetization.  You may enjoy knitting, but making a living off of that skill might be a burden not worth baring.  The flip side of this argument is that many times it’s our hobbies that represent our greatest skill.  For me, working on computers was certainly  a hobby, so this particular situation worked quite well.  Also, I had other hobbies that allowed me to escape from the daily grind of work.  Just be careful when considering taking your free time activities and putting a price tag on them.
• Money DOES matter. When deciding on what business to start, it’s important that you consider the key factor of making money.  One of the huge benefits of starting a computer business is that your expected fees are much higher than most.  Even if you pick a business that is a bit less enjoyable than another, if you can make more money from it, you can afford to work less and play more.  The worst position to put yourself into is a business you enjoy, but pays so little that you have to work around the clock to make ends meet.  I’ve seen this happen many times before.  The idea of a starving artist may seem romantic, but the starving part gets old FAST. I’m not encouraging you to do what you hate, but to just keep money at the forefront of the decision making process.
• Just like money, personality DOES matter. In a recent post called ‘What Career Is Right For Me‘ I talked about the importance of finding a position that plays nice with your personality.  My computer businesses was an example of a half-match.  I loved working with the people and my ADHD did quite well with the sporadic nature of the business, but the lack of creativity involved and the fact that I was always under the gun to get it done RIGHT NOW, made me less than satisfied with my position.  By making a few adjustments, but keeping the parts that worked best with my personality, I was able to find a better balance for my brain.
• Be careful not to jump the gun. I talk to a lot of people who have little experience in an area of interest and are considering turning that lack of skill into a business.  It usually sounds something like, “Yeah, I recently started playing around with such and such and really like it.  I’m not that good at it yet, but I’m catching on.  Do you think there’s a market out there for those who can do such and such?”  My thought is always, “Well sure, for those who have EXPERIENCE doing such and such.”  Pick out your greatest skills and determine what you have the most experience with and try to leverage that as your next opportunity.  I had been working with computers for many years and knew that the transition to my own business would be doable.  I was also interested in digital photography, but I certainly wasn’t skilled enough to start doing weddings.  Don’t get me wrong, if you’re passionate about something and want to turn it into a business, don’t let lack of experience stop you.  Just be prepared to take the time to learn what you need to know.  It’s easy to let our eagerness push us to start sprinting before we’ve had a chance to warm up.
• Know that there is NO perfect business. Finally, when deciding on what business to start, don’t look for the perfect match.  There just isn’t one out there.  There are some that you will hate and others you will love, but all businesses are work, at least some of the time.  Be prepared to work and you won’t be disappointed.

Question #3: What are the first steps in starting a small business?

So you know what kind of business you want to start, now it’s time to take the first steps in making that dream a reality.

Practical:

• Get a business license. The kind of license you need will depend on the business, but you can find out more by going HERE.  When I started my local computer consulting business, I found that I only need to have a county license that was registered with my trade name.  That’s about as simple as it gets.  Some other businesses may be a bit more complicated, but either way, you need a business license to be legal.
• You may or may not want/need liability insurance. If something bad were to happen while you were on the job or someone tied you to a mistake that caused injury or monetary loss to your client, you may find yourself on the other end of a costly lawsuit.  With liability insurance, you will be covered up to a specified amount.  Also, many of these policies will cover all your legal fees (up to a certain amount).  This can seriously save you from some life changing loss of finances.  But this all depends on what you’re doing.  If you are a professional organizer, you are much less likely to get sued than if you were an auto mechanic.  If a client feels less organized after you leave a job, you may lose their business, but if a client gets in an accident because you improperly repaired their brakes…well, you get the picture.
• You may or may not want/need to form an LLC or Corporation. I never did this with my computer business, but there are some advantages.  By forming a LLC (limited liability company) or Corporation you are separating yourself from your business.  In theory, if your LLC or Corporation were to go bankrupt, your personal finances would be safe.  With a LLC or Corporation you are legally making the business, the business, as apposed to YOU being the business.  As a Sole Proprietor (not forming an LLC or Corporation), your personal assets are not legally protected.  But from my experience and understanding, the most important thing you can have when trying to protect your personal assets is liability insurance.  Because unless you run your business and coordinate your expenses perfectly, a good lawyer can pierce the Corporate veil in a heart beat.  Then you’re no more than a Sole Proprietor in the eyes of the legal system.
• Strongly consider acquiring an accountant. A lot of people think of having an accountant as some large expense that is only for larger businesses, but many accountants are just one-man-shows who have reasonable rates.  I had an accountant just like this, soon after starting my computer business.  The only fee I paid him was once a year to do my taxes.  During that time he helped answer some of the lingering accounting questions I had and helped point me in the right direction when needed.  Sure, you can use tax software and do it yourself, but for the little extra cost of  human interaction, you gain a LARGE amount of peace of mind.  Also, the tax laws change all the time and doing taxes for a small business is a bit more complicated than your standard set.  Just an opinion, but one with 5 years of experience.
• Acquire the necessary supplies to do your job. As a computer tech I needed certain items to properly service my clients computers.  From a decked out computer bag to the required tools to meet any IT situation head on, I was sure to have what I needed.  Depending on the business in question, you may or may not have trouble doing this.  If you’re not sure what you need, search for someone who already does what you plan on doing and pick their brain.  Find out what they use on a regular basis and what they couldn’t live without.  I found that it took a good 6 to 9 months before I had all the essentials.  If I could have done it all over again I would have sought the advise of another, more seasoned tech.
• Build a financial buffer before you take the plunge. I personally just took the plunge.  It worked out and I was able to hit the ground running, but this is rare.  Many will say, “Don’t worry about it.  If you wait for your finances to build a buffer, you’ll never start the business.”  This may be true for some, but I can say for sure that a common business killer is one that had no chance to begin with.  If the first little dry spell is enough to wipe out your reserves, you’ll not only become discouraged, but possibly bankrupt.  So give your business a chance and build a financial foundation before you begin to break new ground.

Mental:

• Be prepared for the 6 month hump. I find that it takes a good 6 months of doing anything new, to get used to it.  Whether you are starting a position at a coffee shop or starting your own coffee shop, it will take some time to feel comfortable.  It’s a kind of culture shock for work.  All the little details that will become second nature, start out as constant reminders that you are new at this.  Just push through it and know it will pass.  One of the great things about sticking with a job or business is the feeling your get when you first cross that hump.  Suddenly you can do the job in your sleep and are now able to focus on moving forward and growing the business to new heights.
• Connect with others in your field. Nothing helps dull the pain of a bad business day better than the supportive shoulder of a common colleague.  A few years after starting my computer business I connected with Chad.  As a fellow geek and business owner, Chad totally understood my frustrations on my bad days.  We kept each other encouraged and motivated one another to try and reach new heights with our businesses.  Still friends today, Chad and I have been a valuable asset to each others success (both in business and in life).
• Make sure you have your family behind you. If you are married and/or have kids, it’s crucial that you have their support.  Try and explain exactly what you do, how you will need to do it and what struggles you’ll be going throuh.  The more clear they are on your day to day work, the more supportive they’ll be when you’re having a bad day.  Also, if they are blind sided by some aspect of this new position (maybe you’re coming home late or working on weekends), they will not only have trouble supporting your, but may be a detriment to the success of your business.  Think of your family as an important part of your team.  Let them be apart of your business life, even if just through understanding.
• Be prepared to work more up front. When you first start a new business you will find that you’re required to put in the time and effort to make things happen.  Just like pushing a stalled car, momentum begins with brute force, but follows with smooth sailing. Look forward to the enjoyment of an established business, while you’re first fighting the current of the fledgling vessel you’ve chosen for this new journey.
• Learn to clock out from the VERY BEGINNING. A common mistake we make when starting a small business is to never clock out.  We quickly form this unhealthy habit of non stop work.  Not only does this not allow for personal time with your family, but you never give yourself a break.  Over time you will begin to burn out and unintentionally harm your business.  So just pick a time to clock out that seems right for both your business and your family and stick to it.  Know that it will be waiting for you in the morning and enjoy yourself.

Question #4: How should I advertise my business?

One of the most important things you do to help your business succeed is properly advertise.  I say properly because there are definitely some improper ways of going about this.

The main goal when getting the word out is to target your preferred client base and properly communicate what you have to offer.  Determine what your potential client would desire most about your product or service and make sure to clearly convey this aspect of your offering in your ads.

• Yellow Pages. Kind of the old school way of advertising, the yellow pages can still be a valuable asset to some forms of business.  It really all depends, though.  As a computer service tech I found my yellow ads to be very helpful in not only bringing in consistent business, but helping me grow my client base much more quickly.  But this may not be the case for you.  I would strongly encourage you to seek out others in your area of interest and see what they do.  If they have a yellow page ad, ask them how much they pay for it and what kind of return they’re receiving.  Considering you will be signing a one year contract, you want to be absolutely certain it will aid in the growth of your new business.  (Be careful not to get caught up in the hype of ‘Bigger is always better’.  Those yellow page reps can be sharks and will talk you into something WAY over your budget if you let them.)
• Word of mouth. This is the best kind of advertising out there.  It’s free, highly effective and can go viral.  The only requirement is that you do great work or have an amazing product, treat the client better than most and go the extra mile whenever you can.  The yellow pages may grow your business quickly (depending of the business), but word of mouth will always give you the strongest foundation for future growth.
• Flyers and mailers. This was one of the first forms of advertising I did to get the word out.  I did mailers and handed out flyers and tried to let people know I existed.  I would have to say that this is one of the least effective ways to advertise a new business.  For one, the return is weak.  You may send out 500 mailers and only receive 2 responses.  Also, I find that a mailer or flyer can give a kind of rookie feel.  You almost know from the start that this is a new business, desperate for attention.  Like I said, I did it myself and got a little business from it, but I found it to be lacking.
• Radio and Television. Once again, this totally depends on your business, but I would say this rout is rarely that desirable.  Usually quite expensive and launched with such a wide brush stroke, this form of advertising is hit or miss.
• Internet advertising. Becoming the new yellow pages, the Internet, combined with search engines like Google, makes it easy for the consumer to find the products and services they need.  As time goes by we will see advertising move ever closer to an online only scenario.  So the sooner you share your new business with the web, the better.  I would strongly suggest a search engine optimized website as well as a solid understanding of how Internet advertising works.  Even if you need to pay for a consultation from a professional I would encourage you to do so.  A few changes here or there could make the difference between being highly visible to potential clients and being completely buried among the rubble of lost causes.
• Social Media. The latest craze for Internet Marketing, social media sites like Facebook, Twitter and Linkedin are changing the way we advertise.  Allowing for instant interaction and constant connection, this viral possibility should not be over looked.  What social media allows that other forms of advertising does NOT allow, is the ability to communicate with your potential clients, without coming across as an ‘in your face’ pedlar of a product or service.  Learn the ways of this new wave and you will be ahead of most that are trying to start a new small business.

Question #5: What next?

Once you get past the very beginnings of starting a new business you will find your stride as you move past your rookie status.  Adjustments will be made and success attained, but this journey is still just starting.

You will quickly find that just like anything in life, there are highs and lows and somethings in between.  Those who succeed in business are ones who master the ability to maneuver through these hills and valleys.  I’ve written a series of posts about this very struggle called, ‘Enduring The Road To Success‘.  In it I chart my path from a fledgling business owner to a successful computer consultant.  My main focus is to draw a map of your road ahead, marking the obstacles and pointing out the path of greatest potential.

I hope I’ve laid out a clear and competent guide to helping you on your way to becoming your own boss.  I’m excited that you’re willing to take a chance in life and pursue your dream of starting your own business.  Please feel free to contact me if you have any questions.  I’d love to help in any way I can.

Finally, if you found this information to be helpful or you believe it may be helpful to someone else, please do me the favor of sharing it with others. Whether through Twitter or Stumbleupon or Digg or just emailing a link to a friend.  The great thing about useful content is that it helps others answer questions and solve problems, but the greatest shame is when that information is buried amongst a mountain of Internet clutter.  Help me push this to the top of the heap, that more people may benefit.  Thanks!

Eric

Friday’s post, “Can We Pick Our Talents | Community Insight“, brought about some excellent comments.  One in particular stood out as great insight and a perfect talking point for my following post.  It was by Matt R. (Your Friendly Neighborhood Computer Guy) and he said this:

“The key is to find what you’re talented at, learn to love it, learn to make money with it, and learn to keep it fresh. Once you can do that, you’re set!”

On the surface this may not come across as anything more than common sense.  I mean, of course we should do all of that, right?  But the two parts that really stood out for me were, “learn to love it” and “learn to keep it fresh“.  These are two essential ingredients to any successful career.  Let’s take a look at each one individually and see the hows and whys of this insight.

Learn To Love It

I don’t know about you, but when someone tells me to learn to love something I feel as if they are saying, “DEAL WITH IT!”  In other words, you may never actually like what you’re doing, but you can learn to grin and bare it.  This would be true if you weren’t willing to make the proper adjustments to actually LEARN to love it, but if we’re willing to be flexible and stretch ourselves a bit, we should be able to learn to love just about any job that is in-line with our talents.

I mentioned in Friday’s post about the fact that even though I’m good a fixing computers I was just never quite happy doing it for a living.  But this was in-line with my talents and therefore should just be given more time.  Well, I gave it 5 years and felt no happier than I did when I started.  If anything I was just that much more convinced that it wasn’t for me.

So I began searching for other avenues of income.  Anything from COMPLETELY different to very similar.  Finally I combined my recent online ventures with my local consulting business and came up with the right adjustment.  No longer do I find myself in constant frustration over a daily job that just doesn’t feel right.  Now, among other things, I blog, build websites and consult from the cloud.

What made the difference?

For me, it was just a few minor adjustments that made ALL the difference.  No longer did I have to drive all over town, from house to house to business to repair dysfunctional technology.  I was no longer tied to a physical appearance, having to be on the scene whenever I wanted/needed to make money.  This alone was quite refreshing.

The other change that made an impact was the fact that I got to use my right brain as well as my left.  Designing/customizing websites and blogs combines both technology AND creativity.  A perfect marriage as far as I’m concerned.

So as you can see, I certainly made some changes and some could argue that I’m doing something completely different, but I only see necessary adjustments that needed to take place.  You just have to keep trying different things until something sticks.  Just like falling in love with the RIGHT person, you’ll know it when you find the right career fit.

Learn To Keep It Fresh

I don’t care WHAT you do for a living and HOW much you love it, if you don’t learn to keep it fresh you’re doomed to find dissatisfaction and reduced creativity up ahead.

Let’s look at both my computer consulting business and my website design business.  The former was never really my cup of tea and therefore there was nothing really to keep fresh.  Sure, I could (and often did) change it up a bit to try and rejuvenate my passion, but never made it much further than so-so.  It was like trying to become more attracted to a woman that I just wasn’t that attracted to in the first place.

In contrast, right now I find that everyday of work (OK, ALMOST everyday) is fresh and satisfying.  This is a much different feel from even my very first days as an on-site tech.  But I’d be foolish to believe that it will always feel this way.  As repetition occurs and the inevitable stress kicks in, I’m going to question my desire to continue on this same path.  But, going back to the attraction analogy, you can always rekindle an old flame if there was something there to start with.

How To Keep It Fresh

• Take pride in what you do. In my petty attempts to be humble I often downplay the positive results of my work.  But all this does is give me less satisfaction for what I accomplished.  We should be proud of our talents and use that pride to keep our actions fresh and effective.
• Mix it up when you can. I’m a big fan of routine as I know it can help with efficiency, but it can also be a great way to get in a rut.  Mix up the way you do things when you can and try to see things from different perspectives when possible.  Not only will this help keep it fresh, but can be a great way to keep your creativity sharp.
• NEVER stop innovating! No matter what you do or who you work for, never stop thinking outside the box.  Never stop trying new things.  Many of us have a tendency to find what works and then stick with it, but this only leads to boredom and a stifled imagination.  If you want to keep your career fresh then you need to always keep one foot outside the proven path.
• Spend your free time FAR AWAY from your career. What are hobbies for , right?  Neil, of be4success, made this point in his comment on Friday’s post.  Basically, we all need diversity, both mentally and physically.  If we are crunching numbers all day than we might find painting on the weekends to be the perfect balance for a fresh Monday morning.  Or if we’re a painter, we might find some kind of technical hobby to be just what we need to keep our art exploding with creativity.

If all else fails, keep searching.

I really encourage you to never stop pursuing your dreams.  I’m fully aware of the fact that these financial times are tough and that it’s not as easy as trying on a new job like a new pair of shoes.  But if you’re truly unhappy, what’s the difference.  Now, I’m suggesting that any of us quit our jobs and go hungry for the sake of a dream, but if we’re not at least headed in that direction we will NEVER see it become a reality.  Baby steps are fine.  Heck, many believe that baby steps are the best way to go.  Just make sure you’re take SOME kind of step so that as things begin to lighten up you will be THAT much closer to enjoying your work.  And if you ARE in the right place, just not enjoying it like you used to, keep your eyes peeled for changes that might just make all the difference.  I may still be a technology consultant, but I’m a MUCH happier person now that some key adjustments have been made.  Now it’s YOUR turn!

Eric

There’s a lot of talk about being what you want to be and following your dreams, etc…  Much of these ideas are based upon the assumed flexibility of our own skill-set.  That we are somehow capable of gaining a God given ability even when God never gave it to us.

Let’s face it; we are all naturally good at certain things and naturally not so good at others.  Whether we have always had a knack at certain physical actions or maybe our minds can’t help but understand the commonly misunderstood, we are born with gifts that are specific to our bodies and minds.  But what if we desire to do or be something that doesn’t fall into our natural abilities?  Is this a waste of time?  Are we throwing away our gifts?  Maybe we are unhappy with the hand we’ve been dealt?

I have many passions and many dreams for my future and the future of my family.  Sometimes these visions of tomorrow don’t exactly match up with my natural talents and I find that the pursuit of these personal goals become much more labored and usually end with disappointment.  I’m not implying that we should never move outside our comfort zones or reach beyond those things that easily come to us, but I’m wondering if we’re doing ourselves a disservice when we don’t take into account those things we do best.

Being bored with our abilities.

A common issue I find with humanity is that we tend to tire of those things we do well.  This is often the result of doing nothing BUT those things that come naturally to us.  Maybe we are great at our current job because it is filled with tasks that pull from our talents.  By result of repetition we begin to resent the fact that we are always pulled in a particular direction, as if we have a sign on our backs that says, “I’m good at this, please force me to do it OVER and OVER!”

As a naturally techie type I find myself with my hands on someones keyboard more often than I’d prefer to admit.  I can be ANYWHERE and have someone, in the middle of a relaxing conversation, bust out with, “Oh, so you work on computers?  I have this problem with my blah, blah, blah…”  (It all starts to sound like the grownups talking in the Peanuts cartoons.)  At first you feel important and needed, but later you start to feel like an object, being used for what it can do for the other person, not what it is as an individual.

Growing appreciation for what we’ve been given.

Recently I have transitioned away from being the local computer geek to pursue other things.  It’s been a great experience and I have found new talents that I never knew existed, but even online I’ve naturally fallen into the role of the local computer guy.  At first I found this to be disappointing.  Being at the digital dinner table, deep in conversation, only to end up helping out with a technical problem, I found that my natural role had followed me into the cloud.

This ended up not being such a bad thing.  The fact is, I truly enjoy working with technology and helping people at the same time.  As with any natural ability, when utilizing our talents we feel like we are doing what we were made to do because we ARE.  What I found helpful, though, was to make some adjustments to my place as a geek.  Not only do I excel at tech, but I have an eye for design and enjoy utilizing my creativity.  Once I added this right brained activity to the mix I suddenly felt my passion for 1′s and 0′s come rushing back, but now with a fresh new flavor.  Not only have I come to appreciate what I’ve been given, but I realize my place that seems to follow me no matter where I go and what I do.

What are your thoughts?

Do you ever feel pigeonholed by your talents?  Do you wish you had been given different abilities?  Are you currently utilizing your gifts or are you trying to swim against the tide by working in areas that don’t naturally suit you?  How do feel about your talents?  Are you appreciative or resentful?

Eric

In talking with a blogging friend of mine, the subject came up about selling yourself and still BEING yourself.  We were talking about how it’s not in our personalities to add exclamation points to our sales pitch when selling ourselves.  It’s not that we don’t believe we’re great at what we do or that the potential client won’t completely benefit from our product and/or service, but we’re used to letting our actions speak for themselves.  And yet in this completely commercial World that we live in, with everyone and their grandmother screaming for attention, we are liable to get drowned out if we don’t speak up.

Can you raise your voice without yelling?

It seems clear that in today’s society we HAVE to declare our greatness or nobody will look up from their busyness.  But does this mean we have to become annoying sales people yelling and screaming like a two year old trying to get their mommy’s attention?  Can we still be ourselves and feel comfortable in our own skin while getting in front of others to state or worthiness?  I think these are extremely important questions to ponder because I know that many of us are not willing to be fake for the sake of a buck and yet desire financial success at the same time.

Finding the balance.

It’s not always easy to find that perfect balance between confidence, self promotion and yet an attractive humility that still seems human.  I always tend to air on the side of insecurity which does me NO GOOD when I try to monetize my skill set.  But if I push too hard in the other direction I fear turning others off and coming across as FAKE, a word I despise!  So I’m in the process of finding that balance as my desire for success is much stronger that my insecurity in life.  This is something that doesn’t come naturally, but I know is necessary for certain goals to be met in this lifetime.

What about you?

Am I making any sense here?  Do you ever feel that you’re getting lost in the mix because you don’t want to feel like a show off, and yet you know you’re as good, if not better than, most in your field of expertise?  Let us hear your thoughts so we can hash out this subject of self promotion and staying true to thyself.

The other day I wrote a post called, “The Paradox Of Our Journey For Success“.  Ross left a comment asking, “…what would you really like to do with yourself if you had 10 million in the bank?“  I was about to shoot him a response in the comments, but once I started thinking about it I realized what a great Community Insight post this was make.  So here it is, the question that many ask themselves, but few answer with first hand experience.  I’ll start and then you guys follow up in the comments by sharing your thoughts on the question, “What would you do with 10 millions dollars?”

ME FIRST!  ME FIRST!

I’m not even going to try and say that I  TRULY know the answer.  I don’t think anyone really does until they find themselves in this position, but I’ll share my thoughts none the less.

The first thing I would do is pay off every bit of debt that I have (which is thankfully not very much) and pay back anyone who has ever loaned me money (HI MOM!!! ).  Then I would automate ALL of my bills so I wouldn’t have to EVER look at another piece of paper saying I OWED something.  After this I would fix/add/upgrade everything that Liz and I have been putting off because we lacked the financial resources (hardwood floors, anyone?).  This would be STAGE 1.

Next I would buy a house.  We live in a nice townhouse, but have missed having a driveway, yard and space.  And the idea of owning a home (not the bank owning it), is just a wonderful thought.

Then I would take Liz on the BEST vacation we’ve ever been on.  We’d spare no expense, and just enjoy our time together.

Once we got this out of our system, I would then work with a financial adviser to place the remaining funds in such a way that Liz and I would never have to work again and our children could go to any school of their choosing.

OK, enough with the boring stuff.

The interesting thing about this thought is the fact that I just can’t see not working.  I’m sure many of you feel the same way.  It’s just that I would do whatever I wanted to do; no restrictions.  I actually don’t like the idea of having such a great recourse, only to watch it either stagnate or slowly deplete.  I’d much prefer using my imagination and skill set to grow it into a much greater recourse.  Not so I could buy more stuff, but so I could increase the power of the possibilities.

I could see supporting many great causes and helping those who want to do great things, but just don’t have the resources.  THIS is why I’d like to grow it to an even larger number.  But I LOVE the aspect of freedom that it would instantly give Liz and I.

So what about you?

Have you ever thought about this?  Or maybe I should be asking, “How many TIMES have you thought about this?”  Do you think you’d let it go to your head?  Or is the power and seductive attributes of money no match for you maturity and wisdom?