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ISBN 978-1-4303-0787-7
Afterword 224
“So many fail because they don't get started - they don't go. They
don't overcome inertia. They don't begin.”
- W. Clement Stone
A WAKE UP CALL
didn’t want to get fired. There was a hint of shame in his step. Shame
that he was leaving the office at 9pm on a Friday. Shame that he was too
weak to say no when his boss gave him extra work that he knew he
wouldn’t have time to complete. Shame at the half hearted job he had
done on it just to get out of the office before it was completely dark
outside. Shame at the fact he would probably get home and crash on the
couch, being completely exhausted and unable to go meet his friends
who were already out having fun. Sweat glistened on his forehead and
his face looked dark and unshaven. He had showered that morning, but
that was a full twelve hours ago. His button down shirt had come un-
tucked on one side and his tie hung loosely around his neck. He pulled
the tie off the rest of the way and undid the top button of his shirt,
finally releasing the choke hold of the work day.
In this man’s face I instantly saw myself and suddenly realized
how far I had come in the past year. It had been almost exactly one year
since I’d quit the job that he was now going home from. I knew the
exact emotions and feelings going through his head as he left those doors
because I had been in his exact spot.
In the years after college I tried a number of different jobs. Like
many people, I was at a point in my life where I didn’t really know what I
wanted to do. But I had a degree, and the “right” thing to do was to go
find work. I had applied to a number of companies and, like many
people, ultimately decided to work at the company that gave me the best
offer! It’s almost funny to think about in retrospect, but this is truly how
many people decide what they will spend one-third of their life doing.
They essentially leave it up to chance and wait to see who gives them the
best offer. After being hired, I reported to work and did what I was told.
I was flooded with new information to learn, new people to meet, and
The First Step on the Journey 9
new processes to master. This was all interesting and exciting at first, but
would eventually turn out to be a suffocating experience.
1 In late 2004, a class action lawsuit was filed by the employees of Electronic Arts, the
world’s biggest third party publisher, for unpaid overtime. They claimed the company
culture required them to work evenings and weekends, and refusing to do so could put
their job in jeopardy.
10 Breaking Free
important things in my life. The first thing that started to change was my
health. After working long hours, I was often too exhausted to make it
to the gym. And simply being emotionally drained was causing me to use
junk food as self medication. “I’ve had a hard day, I deserve it”, I would
justify to myself. Even when it wasn’t junk food, it was nice restaurant
meals paid for by the company and overindulgence. There were long
breaks between meals with all the work to get done, so I was always
either starving, or stuffed and drowsy. There was no in between. Then
there was the issue of sleep. Each morning an epic battle of biblical
proportions was waged in my mind between responsibility and apathy. I
developed a love hate relationship with my snooze button. It was my
only friend, and my worst enemy at the same time. Each morning would
require several cups of coffee. It never seemed to actually wake me up,
but would instead make me jittery enough not to fall asleep. After lunch,
a siesta sounded absolutely divine, but the company didn’t share my same
views on the value of power-napping. I was so tired, I actually fell asleep
in the gym one day! I had just done a set of reps on the incline bench
press. I put down the weights, and woke up a half hour later! That was a
good day though, at least I made it to the gym. In speaking to my peers
at the company I realized I wasn’t alone. Many of them had gained 20-
30 pounds in their first year at the company. The stress, combined with
the lack of time to exercise and eat right, was a sure fire formula for
weight gain.
Then there were the relationship problems. Most of the people
I worked with struggled to stay on good terms with friends, lovers, and
spouses. Unless you wanted to date inside the company, having time for
a real relationship was difficult at best. One woman I dated told me I
was never around, and she was absolutely right. Moreover, I’m sure it
wasn’t ideal for her to date someone who was constantly exhausted,
The First Step on the Journey 11
slowly gaining weight, and didn’t like his job! I had no time for hobbies,
and no time to pursue the things I loved. I dropped out of touch with
many friends from school as my life began to revolve more and more
around work.
Many of my co-workers, like myself, had ideas of working for
themselves or starting a business some day. But when their “real job”
required all their time and then some, spending even an hour or two
extra per week on their own company was difficult. Mostly these were
pipe dreams and water cooler gossip. When it came down to it, they
were all talk. Society and conventional wisdom was telling us how lucky
we were to have such a secure high paying job. After all, there were
people out there who had to dig ditches for a living, right? “Nobody
loves their job 100% of the time” or “I’ll just do this for a few years to
get experience” would help us rationalize. But the fact was that we were
paralyzed by fear in our current occupations. Stuck in a job we didn’t
love was not a fun place to be, but it sure beat the unknown risks of a
start-up business, right?
I wasn’t the only one at the company who realized the situation
we were in. In fact, entry level colleagues like myself would constantly
complain about work. It was their favorite topic. To be fair, a small
percentage of people there truly loved what they were doing. About five
to ten percent of the employees appeared to be really passionate about
their work. They were the type of person who was born to do the job,
and woke up excited every Monday. I could tell they loved it because in
their free time they would read up on the industry and ponder ways to
improve the results for their clients. That minority group was greatly
outweighed, however, by the people who viewed it simply as a job. To
most of us, it was a way to earn money and make it through another day
in life.
12 Breaking Free
When it came down to it, money really was the rationale behind
spending one-third of my life doing something I didn’t truly love doing.
That and the fact I was too scared to go out on my own to follow my
dream of starting a business. My tanks were out of balance, and I began
to search desperately for a better way of living. I started reading every
book I could get my hands on and sought out advice from those whom I
admired. The next year would take me on a wild ride, and would
transform my life more than I could have possibly imagined. This wasn’t
a change or improvement. It was a quantum leap in all around life
fulfillment that would change me forever.
READY TO CHANGE
Deep down, I knew that I needed to take the plunge and quit. I
had known it for a long time, but had not really wanted to admit it to
myself. Working for myself had been a dream since I was in high school,
but I was still unsure of what to do. I decided to seek advice from others
and the advice I got was sometimes conflicting. People would say “You
The First Step on the Journey 13
need to stay at a good firm like your current job to learn more about
business before striking out on your own”. People would say “There is
no security in being an entrepreneur" and "You don’t want to burn any
bridges”. My parents and peers were not exactly supportive of quitting a
perfectly good job after spending all that money on a degree! But at the
same time, I had read a number of books on the subject and these
experts had a much different message. They told me that true happiness
comes only from following your path and purpose in life. They told me
that the journey to accomplish this is difficult, but rewarding. They told
me that doing the right thing for yourself may not always make other
people happy, but that doesn’t matter. I looked at my role models. They
weren’t cogs in a giant machine, working their way up the corporate
ladder. My heroes were people who worked for themselves, who were
doing new and innovative things. I didn’t want to be another person at
the cocktail party who defined themselves with “I work in accounting”,
“I work in sales”, or “I work in HR”. I didn’t want to see people’s eyes
glaze over as their brain processed what I said into “I’m boring and
settled for mediocrity in life”. I wanted to say “I invented [INSERT
AMAZING PRODUCT EVERYONE USES AND LOVES]” and
actually mean it. Or “I’m an astronaut, professional surfer, international
spy, and amateur detective”. Whatever! As long as I felt like I was doing
what I loved and my life had significance.
At first I told myself I would wait until Thanksgiving to decide.
I wanted to make sure I wasn’t making a rash decision on a whim. If I
still felt the same way by Thanksgiving, then I’d pull the trigger. But
soon it became apparent I wouldn’t make it that long. Every day I
thought more and more about it. Finally I decided I would give my
notice to quit in one week, but didn’t tell anyone. Part of me thought
that I was completely crazy and that it was a stupid idea. Maybe it was
14 Breaking Free
A NEW LIFE
Over the next few years, some truly extraordinary things
occurred. It started with a few days of rest. I went to the exit interview
(wearing shorts and sandals) and poured my heart out about how
working at their company had left me feeling suffocated. I gave them a
few suggestions for improvement, they wished me luck in my new
adventure, and I headed for home. The first thing I did was sleep. A lot.
I had some catching up to do! After a few days I was rested and I began
to think about what the future had in store for me, and what my next
step would be. My mind was racing with newfound ideas and freedom.
The First Step on the Journey 15
I’d wake up in the morning with great ideas. I’d get great ideas just
before falling asleep at night. Sometimes even while showering I would
have great ideas and try to remember them, but often by the time I
finished showering my mind was on to other great things! I even tried
writing notes in the fogged glass of the shower and contemplated getting
one of those clip boards that scuba divers use to write underwater. That
way I’d be sure to remember all my brilliant thoughts!
I started reading again. All those books I had been meaning to
read, but never had time for suddenly became one of my top priorities. I
even took a speed reading course and was soon devouring a book a
week. Not things I had to read; things I wanted to read. Educational
things. I was acquiring new skills and ideas at a rapid pace.
Before long I found myself getting an extraordinary amount of
work done in an average day. Not only was I not working unpaid
overtime, but I was working at home. I would go to “work” in my
underwear or work by the apartment swimming pool with my laptop.
Even when I was doing something boring, like taxes, it didn’t even really
feel like work because I was working for myself! It was just something I
had to get done for me, not something I had to get done because my
boss told me. I didn’t have an hour round-trip commute through rush
hour traffic, so right there I had an extra hour in every day! The benefits
of this one item alone, not commuting, were (and continue to be) simply
staggering. Having an extra hour every day means you gain eleven full
days every year to do whatever you want. You could spend more time
with friends and family, read something thought provoking or
inspirational, or compose a masterpiece. Looking back, it’s almost
ridiculous for me to imagine myself wasting an hour of every day going
through traffic listening to Britney Spears and weight loss advertisements
on the radio.
16 Breaking Free
One day I sat down with a piece of paper and a pen and asked
myself a question. What have I wanted to accomplish in the past year
that I just didn’t have time to do? The result of this simple question was
astounding. Within six months of quitting my job I was taking salsa
lessons, learning Brazilian jujitsu and Thai kickboxing, and had joined a
public speaking club called Toastmasters. I was in the best shape of my
life and had more energy than I knew what to do with. I worked on
building a regular sleeping schedule and finally developed a good
relationship with my alarm clock by not needing it. Eventually, even if I
slept the same amount, I had more energy each day because I was excited
about what I was doing. I was finally living life. If someone cut me off
in traffic I didn’t get upset, things were going too well. I had time to do
errands which before would get pushed back farther and farther. My
apartment was actually clean for once and since I didn’t avoid (and
actually enjoyed) going to the grocery store, my fridge was always stocked
with great healthy food. I stopped using junk food as self medication
and stopped spending as much money eating out. I even became a better
cook. My dating life exploded as I had time to meet new people and
build relationships with them. Perhaps most importantly, the women I
was meeting were exponentially more attracted to a man who didn’t hate
his job and life. My happiness and my newfound freedom were
contagious. People couldn’t help but want to be around me. I had a
sense of empowerment that I really was in control of life. Instead of
reacting to external events, I was now generating my own events and
direction.
Of course some of you may be wondering about the tiny little
problem of money! “Of course you were having all kinds of fun, you
weren’t working!” But in reality I was. I was just working smarter. To
be fair, I had taken a big pay cut and while my happiness tank was full,
The First Step on the Journey 17
my money tank was not quite so full. Fortunately, I had taken a few key
steps before quitting to ease the transition into working for myself. I had
started a business that was ready to go from the day I quit. It didn't equal
my old salary right off the bat, but it soon grew to cover my expenses.
(How to make this transition smoothly will be a major topic of the book
in Chapter 4.)
Figure 2 –Doing what you love but unable to pay the bills!
is that the money will come naturally. Start a business in an area you are
passionate about, and you’re well on your way to having both tanks full.
CONGRATULATIONS
I’d like to stop for a moment here and congratulate you. By the
very fact you have read this far, you have done an amazing thing that the
vast majority of people don't have the courage to do. You took time to
invest in yourself and your future! Almost everyone has had the feeling
at some point that they didn’t like their job or they wanted financial
freedom working for themselves. But very few have ever actually done
anything about it. They settled for mediocrity and the safe way out.
Even out of all those who did do something about it and purchased this
book, studies show that a fraction of them will actually open it and read
it! You are at this very moment in an elite group of people who have
gotten this far. I have the confidence in you that you’ll take the points
from this book that make sense to you, discard the ones that don’t, and
take the final most important steps at the end of this book to start
making changes in your life.
something great, pursue their ideas, have the freedom to choose their
work, or add meaning to their lives by contributing greatly to the world,
they are never able to do it. And let me tell you, in a way I don’t blame
them. It is downright scary to quit your job. When you actually do it, its
somewhere between the feeling you get asking your high school crush to
the dance and speaking in front of a million people! What makes it
worse is that instead of having someone there to hold your hand and
reassure you, most people are telling you that you’re crazy and trying to
talk you out of it.
Let me be that helping hand to walk you through it. Will it be
scary? Yes! Will it be hard work? Yes! But the rewards are so amazing
that it’s worth it and when you become financially free by working for
yourself, you will wonder why you didn’t do it sooner. Besides, I’ve
come up with a bunch of ways to make the scary part less scary, and did
some of the hard work for you.
I’m firmly convinced that the world would be full of so many
new inventions, better music, innovative software, cooler trends, less
violence, and happier people, if only people became free from their next
paycheck. If they could only take that difficult step into
entrepreneurship and working for themselves, then their lives and the
lives of everyone around them would benefit. Unfortunately, when you
don’t love your job, you’ll just do the minimum to not get fired. By
doing this you are selling yourself short. You aren’t using your full
potential, and you aren’t giving your greatest gifts to the world.
Everyone deserves a chance to reach a life of fulfillment and use
their greatest gifts to contribute to the world. As Lao Tzu, the Taoist
philosopher said, “A journey of a thousand miles begins with a single
step”. So let’s get started, and take the first step together!
20 Breaking Free
CHAPTER 1 SUMMARY
Brian’s Note
Yes, at the end of each chapter, there will be a little
summary. In my experience, the best presentations/books where I
learned the most followed the philosophy of “tell em what you’re
gonna tell em, tell em, then tell em what you told em”. At least, it
always helped me to hear it a few times.
There will also be exercises at the end of most chapters
(although not this one). I encourage you to keep a pen or pencil
handy with this book, so you can jot down some notes on the actual
exercise pages. The exercises are the most important part of the
book, even if they seem a little hokey at first. They make the
material personal to you, and there is something magical about the
physical action of writing that sets you well on the way to
accomplishing your goal.
• Most of us sacrifice too much for a day job that we don’t truly love.
o We let “who offered the most money” determine what we
do with one-third of our lives.
o We put in long hours.
o Our health suffers.
o Our relationships suffer.
o Our money tank is more full while our happiness tank is less
full.
o We work because someone tells us we have to.
• For many the answer is working for yourself.
The First Step on the Journey 21
EXCUSE OR LEGITIMATE
REASON?
I ’ll be the first to admit that not everyone should quit their
job and go to work for themselves. There are a number of
legitimate reasons why this might not be a good idea for you which we’ll
discuss in this chapter. With that being said, however, the primary
problem is not the people who shouldn’t quit their job. It’s the people
who are coming up with excuses not to quit that are totally based on fear.
The wonderful grey matter resting between our ears is good for many
things. Unfortunately, it is also very good at creating excuses not to act
when we have an incredible opportunity in front of us. The majority of
people are using excuses, not legitimate reasons, to justify why they
haven’t taken the first step.
To the untrained eye, reasons like “I need to get more
experience”, “I haven’t been able to raise the money”, and “I don’t know
24 Breaking Free
which we’ll discuss later), or if they are legitimate reasons. The next time
you hear yourself say “I don’t have enough experience”, you’ll remind
yourself that you are going to learn as you go and that’s the best way to
get the experience! The next time you say “I haven’t been able to raise
the money” you’ll know that many successful people heard no 100 times
before they heard one yes, and that you probably need far less money
than you think (Chapter 7). And the next time you think to yourself “I
don’t know how to manage the finances, find any customers, or make the
website!” you’ll know that you can either learn it, outsource it, or get by
without it. The vast majority of the excuses we give ourselves are just
that: excuses. Our greatest limitations are the ones we create in our own
mind.
With that being said, let’s examine a few of the actual legitimate
reasons why quitting your job might not be the right thing.
It’s not as good as everyone having a full tank, but may be a necessary
sacrifice in the short term.
Keep in mind, this doesn’t mean you are doomed forever to be
in this position! After the kids are through school, or if the situation
improves in other ways, you may still be able to pursue the journey
through this book. A friend of mine had her father support her through
school for four years of college in a line of work he wasn’t passionate
about, just to pay her tuition. But once she had graduated, her father
promptly quit and went back to medical school to become a doctor at the
young age of 59!
I should also point out that just because you are supporting a
family doesn’t mean this is your “legitimate reason”. For this to be a
legitimate reason you must be supporting a family and have money be
tight. In other words, failure for you to bring home a paycheck would
have immediate consequences not just for yourself but for others around
you. There are plenty of people supporting families who quit their jobs
to work for themselves. The difference is that they aren’t living paycheck
to paycheck. Does it mean it will be easy for them not to have a steady
paycheck? No. Does it mean they are looking forward to it? No. Does
it mean what they won’t have any sacrifices? No. What it means is that
they will find a way to live with it for a chance at something much
greater. Chapter 4 will deal in depth with this topic of how to take a pay
cut smoothly.
Finally, “My husband/wife/significant other thinks I’m crazy for
wanting to quit” doesn’t count. Make your own decision and stick to
your guns.
Is it Right for Me? 27
After all, they did say “large” distribution company. Or will you see
through their social mask and discount them as another boring person
you met at the party. Ask them how they like it and you may hear some
words like “It’s not too bad”, “It’d be better if...”, “But it has great
benefits”, and “Next year I might...”. If you ask enough people this
question, you will start to be able to spot them from across the room.
Without even asking, I can usually spot the people in the room who love
their work. They are having the most fun.
You may already know that you don’t like your job. But what if
you are on the fence? I mean, some parts of it you love, but some days it
really gets to you. What are some good indicators that you love your job?
Here are a few.
“How could this happen to me?” You see, the universe did this to them.
It was out of their control. They are a victim, leaves blowing in the wind,
without any control of what events take place in their lives. As you can
imagine, this is a cause of great distress in their life because bad things
keep happening to them. The world must hate them. And even when
good things happen, they think “Wow, what luck!” They can’t take
credit for good things, because the world gave it to them. It was just
their lucky day. Such is the fate of those people with an external locus of
control.
On the other hand, people with an internal locus of control are
the people that don’t believe in luck. They make their own luck. Instead
of reacting to external events, they are creating their own events. They
have an ultimate goal in mind and they are constantly making small steps
toward it because that’s what they are focused on. When work shows up
on their desk, they don’t react to it. They evaluate it. Does it help them
accomplish their goal? If it does then it gets high priority and they want
to do it because it helps them reach their goal. If it’s unimportant then
they delegate it or don’t even do it! They are too focused on
accomplishing their goal to deal with unimportant things. If they get a
parking ticket, no one did it to them. They take responsibility, learn their
lesson, and move on without getting upset. After all, how silly would that be
to let a stupid parking ticket control you? They are in control of
themselves and reaching their goals, and something like a little parking
ticket sure isn’t going to matter in the big scheme of things.
The best way to sum up this idea is to realize there will always be
things you can blame failure on. Unsuccessful people talk about how the
economy is just not strong enough, taxes are too high, the wrong person
is in office, their family is holding them back, etc, etc, etc. But then they
change their locus of control, build success habits, and change their lives
Is it Right for Me? 33
slowly. Five years later they wake up and they are extremely successful.
But guess what? The economy is about the same, taxes are about the
same, the person in office is about the same, and their family is about the
same. Everything is about the same except for one very important thing:
them! They made a decision to take control of their lives and not allow
external events to control them, and that made all the difference.
Remember the internal locus of control and try to make it an
integral part of your life. Most people with this character trait have a
strong desire to control the destiny of their own life. They can’t
accomplish this by working for someone else, so they start their own
business.
1 Brian Tracy is one of the top success coaches in the US. We’ll hear more about him
later.
36 Breaking Free
action right then to get started. Don’t wait until tomorrow; do it today.
Right now if possible. And just keep doing a little bit every day (make it
a habit, which we’ll talk more about). Pretty soon, you’ll look back and a
month will have gone by and so much has been accomplished you will
hardly believe it. You can eat an entire elephant, if you only have to take
one bite a day. Don’t focus on how much you have ahead; just focus on
the single next step right in front of you, and do it.
If you think you are too young (with the exception of being a
student, which I described above), telling yourself you will get started
later is the same as saying you will never do it. Take massive action the
moment you decide.
At the same time, I’ve also known people who were born with
everything they could need (Ivy League education, loving parents, trust
fund) who ended up spending their life in and out of rehab, suicidal, or
on anti-depressants.
The point I’m trying to make here is simple: your past does not
equal your future.
External situations simply don’t matter in the long run. The only
thing that matters is what is on the inside. You can make a decision right
now to stop using the excuse of your current situation. To take
responsibility for your own progress and improve your life no matter what.
If this is an excuse you’ve been using, my only goal is to make
you aware of it. That is the first step to cutting it out of your life and
moving on to success.
Learn it yourself
• Google
The first step is to type whatever you are wondering about in Google
and start reading. This is most likely the single greatest resource ever
created. Every successful person I know uses it dozens of times per
day.
• Wikipedia
Visit en.wikipedia.org. It’s the largest encyclopedia in the world
(far bigger than Britannica) and is written in many different
languages. You will almost surely find a detailed article on it with
links to the best sites.
Is it Right for Me? 43
• Forums
Find a discussion board on the internet related to your topic. Join it,
search it, and post to it. Every single industry and profession (and
often times even individual products) will have a huge discussion
board dedicated to it. Even if you search the board and it doesn’t
have what you want, post your question! I joined a board like this
when researching a mechanical engineering issue for a product I was
designing. I posted a highly technical question (at least it was to me,
to these old timers it was second nature) and within a day I had a
dozen responses from people with 10, 15, even 20 years experience
in the industry. They were eager to help and share their knowledge,
and it was entirely free!
As a side note, for almost any topic, there will be several discussion
boards, but one of them usually accounts for probably 80% of all the
content. The more participants the forum has, the higher the value.
You don’t need to find all of them, just find the one best one.
• eHow
Go to www.ehow.com and you will likely find an article on how to
do exactly what you are pondering. You can get step-by-step
instructions on everything from designing an effective business card
to selling a business. This website is amazing.
• Speed Read Books
Whenever I am trying to learn a new skill (how to market a product,
how to cook, how to compose a song, etc) one of the most valuable
things I do is get the top one or two books on a subject and read
them. Just this one act alone will give you more knowledge than
99% of other people out there. If you need an in depth knowledge
of a subject, read the top five or ten books on a subject to get
44 Breaking Free
Does this take awhile? Of course. But successful people are simply
those who are willing to never stop learning.
You really owe it to yourself to learn how to speed read. Yes, speed
reading and speed comprehension are real. Make an investment in
this skill and it will continue to reward you for the rest of your life.
• Networking
Learn how to network! They say that you are only five or six degrees
away from anyone on this planet, and I really believe it’s true. Its not
who you know, it’s who the people you know, know!
For example, let’s say I had a complex and tough question about
how bio-diesel fuel affects the metal parts in an engine compared to
regular gasoline. I happen to know very little about bio-diesel, but I
Is it Right for Me? 45
did hear about a lecture a year ago on alternative fuels that was given
by one of the world’s leading experts. My acquaintance John hosted
that event and could put me in touch with the speaker. I also know
that my former roommate’s father works for Shell Oil, and even if he
can’t answer my question, I’m sure he would be able to put me in
touch with half a dozen people who research the topic for the living.
If you have a question, reach out to your network! Even if they are
acquaintances or you haven’t seen them in a while, most people are
more than willing to help.
• Take a Class
Most community colleges offer very inexpensive classes (could be as
low as $15) on a whole range of topics such as business accounting,
website design, and marketing. On any given day, hundreds of
seminars are probably being given in your city on various topics.
Also check your local city’s small business association to see what
classes they offer.
The way these sites work is that you post a project on the website,
and experts from around the world come to bid on it. It’s great
because you don’t have to go out and find people or negotiate prices.
The professionals are already there, bidding the lowest price to get
your business! Because these people are bidding from all over the
world, it’s often amazing how inexpensively you can get quality work
done. You can look at prior work and feedback from past clients
(they have a feedback system just like eBay so you know if they are
legitimate) and make an educated decision on whom to select for the
job.
Now imagine your perfect ideal self as you would be in the future
if you had fully accomplished this goal. Imagine yourself five years from
now with all your dreams fulfilled. Take a moment and actually visualize
yourself, imagine how it would feel, how others would perceive you, and
how you would feel about yourself. Compare it to how you are now.
Take a moment and try it. Go ahead!
I bet that goal seems a long way off, doesn’t it? Comparing your
ideal self with how you are today is going to be a pretty large difference.
If you are like most people, this can be down right depressing to think
about. The goal seems almost impossible. You have tried and worked
hard for all this time and it still seems so far away!
Now, think back to five years ago, or to a time when you first
started thinking about a goal. Think about how you acted then, how
little you knew, what you were like, and how people perceived you as it
relates to this particular goal. Now compare this to where you are today.
WARNING:
The next few pages of this book are going to contain some
written exercises that will take a few minutes. If you are anything like
me, you might be tempted at this point to skip over the exercises and
start reading the next chapter, especially if you are in a hurry. For
your own sake, please don’t! I will tell you why.
When I first started learning about this topic, I was too quick
to hear an idea, agree with it, and move on to the next. I never
stopped to actually experience it for myself. I think that on some
level I thought I was smart enough to understand it without writing
anything down. But it wasn’t until years later that I started actually
doing the exercises myself, and that is when my success went up
drastically. I can’t fully explain it, except to say that there is
something magical about the act of physically writing something
down on paper. Even if you have a thought in your head that you
think is crystal clear, try writing it down and you will discover new
aspects you hadn’t even considered.
Perhaps, like me, you have discovered the power of writing
things down while sending a letter or email to a friend to ask for
advice. You are writing away, trying to explain the problem clearly so
your friend will understand the exact situation you’re in, when
suddenly you arrive at the solution yourself! The very act of putting
your thoughts into words clarified the problem to the point where
you now knew the next step. Typically, I still send the letter or email
anyway, and thank the person for being such a good listener!
Is it Right for Me? 51
CHAPTER 2 EXERCISES
What do you like about your current job (assuming you work for
someone else)? Please list at least five benefits or positive aspects that
you enjoy.
1.
2.
3.
4.
5.
What do you dislike about your job? Please list at least five negative
aspects of your job.
1.
2.
3.
4.
5.
What would be some advantages to quitting your job? Please list five.
1.
Is it Right for Me? 53
2.
3.
4.
5.
What would be some disadvantages to quitting your job? Please list five.
1.
2.
3.
4.
5.
Think back to conversations you have had with others (family, friends,
significant other, etc). What reasons come up in conversation about why
you shouldn’t quit your job?
1.
2.
3.
4.
5.
CHAPTER 2 SUMMARY
• It’s often hard to tell whether the reasons we use are excuses or
legitimate reasons.
• Many people’s excuses are nothing more than limiting beliefs.
• Who shouldn’t quit their job?
o Those struggling to support a family.
o Current students.
o People with no idea what business to start.
o Those who truly love their job.
• Who should quit their job?
o Those with a desire for control of their life.
Strive to become a person with an internal locus of
control, avoid people with an external locus of
control.
o Risk lovers.
o Big dreamers.
o People who are bored with their life.
o Those who don’t spend time on what they are passionate
about.
• Common excuses.
o I’m too old/young.
o I don’t have any good ideas.
o I’m not wealthy/well educated/from a good family.
o It sounds like a lot of work.
• I don’t know how to do [blank].
o Learn how to do it yourself.
Google
Is it Right for Me? 55
Wikipedia
Forums
eHow
Speed read books
Networking
Take a class
o Pay someone else to do it.
Outsourcing
Answers Websites
Partnerships
Trade
Chapter 3
Building the Confidence to
Take the Scary Step
"Only those who dare to fail greatly can ever achieve greatly."
-Robert Francis Kennedy
the book, you did the exercises, but who are you kidding? Those other
people who did it are so much smarter than you, they aren’t in your
situation, they have all those advantages, and that’s why it won’t work for
you.
Does this sound at all like the little voice in your head? I will tell
you one secret: Everyone, from the most successful CEOs to the highest
paid actors and musicians to the president of the United States, at one
time were very unsure of themselves and had the same thoughts going
around their head. Actually, more than that, they still have those
thoughts go around their head once in a while. In fact you can never get
rid of them 100%. The only difference between those that are successful
and those that aren’t is that successful people don’t listen to those negative
thoughts.
This is such an important point, we are going to explore it in
depth in this chapter. When it comes down to it, it’s fear, not actual
knowledge, that trips people up on the path to becoming a successful
entrepreneur. Like many things in life, being self-employed is a mental
game. Those who are mentally tough are the ones who succeed.
We must admit and embrace the fact that life is filled with scary
experiences. They are all around us. Can you think of a time when you
saw a good looking “hunk” or “babe” sitting across from you at
restaurant or coffee shop? I bet you were nervous and trying not to look
silly in front of them, and maybe you even thought about going over to
say “Hi”. But your brain made a whole slew of excuses: “They look
busy", "I shouldn’t bother them”, “I bet he/she has a
girlfriend/boyfriend”, “I look like a mess just running out of the house
like this”, “I would go say ‘Hi’ if I was dressed better”, and “What if they
aren’t interested and everyone sees me get rejected?”
Building the Confidence to Take the Scary Step 59
Brian’s Note
I am actually in a coffee shop right now writing this, and as I
was writing that last paragraph a cute girl walked by that I wanted to
meet. Just as I suspected, my brain instantly came up with an excuse!
“I’ve got to get some work done on the book, and I don’t have time
to take a break”. But then I thought, “Brian, how hypocritical would
that be to be writing a book about this very topic when you can’t do
it yourself!” Anyway, I had some anxiety but finally went and did it.
Maybe I should send her a copy of the book since she is now in it.
I tell you this to illustrate an important point. Recognizing
these excuses we create is only the first step. You can understand it
and believe it intellectually, but it doesn’t change the fact that your
brain will do it! It is a constant battle we wage with ourselves to
remove our limitations and ignore the inner critic.
that you will be so glad you took, so let’s look at some of the things that
might hold you back.
1 For example, Abraham Maslow’s famous hierarchy of needs. This is also discussed by
many contemporary people such as Tony Robbins.
Building the Confidence to Take the Scary Step 61
way to remember this is action eliminates fear2. Be like a Nike ad and just
do it.
In fact, after a while you can actually train yourself to respond
positively to a nervous unconfident feeling. Feeling nervous will turn
into an automatic response where your brain says “Hey, I’m feeling
nervous, that means its time to just do it!” Actually, sometimes when I
start to feel nervous about a particular event, I stop and tell myself “This
is great! It means I’m about to learn something”. Feeling nervous or
unconfident about something means you are about to have an incredibly
valuable experience. What a great opportunity!
The second thing to realize about confidence is that it really isn’t
that important to have. You can get by without it. What you need
instead is to build competence3. Imagine for a moment that you are
riding a motorcycle. Would you rather be confident or competent? A
confident person who lacks competence might take the bike right into a
very dangerous situation and not be able to get out! On the other hand,
a competent motorcycle driver who lacks confidence will still be alive to
slowly build the confidence over time. So don’t worry about getting
confidence. Just learn the basics to become competent. Then take
immediate action! The confidence will come as a byproduct over time.
2 I didn’t create this phrase. I first heard it from a man named Don Akers, who is a
business coach and former Golden Gloves Boxing champion.
3 This concept is attributed to a man named Erik Von Markovik.
Building the Confidence to Take the Scary Step 63
"Keep away from people who try to belittle your ambitions. Small
people always do that, but the really great make you feel that you,
too, can become great."
- Mark Twain
doing! Some people will probably write me angry letters for saying this,
but it must be said. Wait at least until your little tree has become a
sapling, strong enough to survive on its own, to tell those people who
might not understand what you are doing. At the same time, actively
seek out and surround yourself with people who do understand what
you’re trying to do. Other entrepreneurs, for example will help keep you
in the right mindset.
What’s important to keep in mind here is that your discouraging
family and friends don’t mean to sabotage you. They actually care for
you deeply. But your parent’s or spouse’s goals for your life are not
always in harmony with your goals for yourself. Often, from their
viewpoint it would be great (at least they think it would be great) if you
took the “safe” route of getting a good job from a large company with
decent benefits. Then they can sleep at night with plenty of certainty.
This might make you safe, but it will almost certainly guarantee a life of
mediocrity. Remember, that only those who dare to fail greatly ever
achieve greatly. If you are doing what everyone else is doing, there is
probably something wrong. After all, whose reality do you live in?
Theirs or your own? It’s time to stop caring what other people think.
You’ve only got one shot on this planet and my advice is to spend it
doing what you want, not what others expect of you. Even if they don’t
understand at first, they will eventually come to love you more for being
your true self and reaching your full potential.
damage can be swift and drastic! As grown ups, we really aren’t very
different.
If you’ve ever played a sport, you’ve probably experienced this
first hand. Did you ever notice that when you played a team or
opponent that was far better than you, you played up to their level? Even
if you lost, you may have played the best game of your life. Likewise,
when you played a team or opponent with inferior skills, you played
sloppily and without focus. Even if you won, you knew it wasn’t your
best.
In The Psychology of Achievement, Brian Tracy talks about a study
done at Harvard where they tested just how powerful the peer group
actually is. What they found was astounding: one single factor, a negative
peer group, was enough to ensure a person would be unsuccessful no
matter what. Being around unsuccessful people virtually guaranteed you
would be like them!
Your goal should be to surround yourself with the people who
are closest to your ideal self. If you do this long enough with enough
people, you will automatically become more like them. It isn’t even a
conscious process most of the time, and even if you tried to fight it, it
would still happen.
Let’s try an experiment for a moment. Think of your five closest
friends and take the average of their incomes (guess if needed). I can
guarantee you that the number you came up with is remarkably close to
your own actual income! Financially unsuccessful people look at this and
say “I’d have wealthier friends if I could only earn more money!”
Financially successful people look at this and say “I’d earn more money if
I could only find some wealthier friends!”
Aside from finding successful people, you’ll also have to worry
about the unsuccessful ones holding you back. When you make the
66 Breaking Free
decision to quit your job and work for yourself, some people are going to
think you are crazy. Be prepared for it and expect it. This can have a big
effect on you, because they aren't going to be random people off the
street; it may be people someone who you love and respect. Your own
parents, significant other, or children may tell you that you are crazy!
The reasons behind this are many. Very few people take this
path, it isn’t the “safe” route, and we all fear change. Subconsciously,
people who are not living to their full potential may want you to fail in
this endeavor. If you become wildly successful, what are the implications
from their point of view? You would probably stop being friends with
them, they would look lazy or ineffective by comparison, and their model
of the world, which is filled with excuses as to why they can’t succeed
will be broken.
Ultimately however, the reasons why aren’t important. What’s
most important is to realize that what other people think doesn’t matter.
It’s up to you to decide who to listen to and who to ignore. It’s your
responsibility to decide for yourself.
In my own personal experience, I chose to listen to people who
were successful and had the life I wanted. They all told me to follow my
path in life and achieve my true purpose. I also got plenty of advice from
other people who didn’t have the life I wanted. Many of them told me the
opposite. In the end I chose to listen to those people who I most
wanted to be like, and quit my job to work for myself.
GETTING STARTED
Now that we’ve listed the reasons most people fail, let’s focus on
a more positive aspect: how to get started. Taking this scary step in your
life isn’t going to happen all at once. It’s not like jumping off a diving
board where you can build up the courage and just do it once. You are
Building the Confidence to Take the Scary Step 67
going to be tested over and over again, and you will need to build up a
positive mindset that will stay with you day after day.
Believe me, I wish I could write some magic sentence on this
page that would instantly change your beliefs and mindset! But people
don’t operate like that. We are creatures of habit.
Beliefs are built up over time. Imagine a small stream that
bubbles up one day and forms a small trickle down a hillside. It wanders
downhill in no particular direction hitting rocks and trees, going around
them effortlessly. After a while, it starts to form a pattern and become
more consistent in what direction it takes. It starts to carve a little path
in the hillside, about an inch deep until almost 100% of the water is
flowing together. Overtime it builds up, getting water from other
sources such as nearby streams or seasonal rain. The path continues to
carve deeper and deeper into the mountain side. Years go by and it’s a
raging river. Finally one day we come upon it and it has carved a deep
canyon. Even the Grand Canyon was formed this way over millions of
years.
How is someone going to come along one day and change the
river flowing at the bottom of the Grand Canyon? They can’t, because it
has been so deeply ingrained over time. If they had caught it when it was
just a little trickle, barely an inch wide, one person could have easily
changed its course, but now it’s not so easy. The same is true of human
belief. If we have been thinking a particular way for some time, we can’t
change everything in one day.
However, we can still change the path of the river, little by little.
What if we came by each day and dumped a bucket of concrete near the
edge? At first it would have no effect whatsoever. But eventually it
would start to affect the river. A few years later we’d wake up and the
river would be flowing in a totally new direction.
68 Breaking Free
CONSTANT POSITIVE
REINFORCEMENT
Each word is important. Constant, because it needs to happen
every day. Positive, because each time it needs to go in the right
direction. Reinforcement, because it slowly gets stronger and stronger
building on top of itself.
This is the way mountains are moved, and this is the way you
can create an unstoppable mindset toward achieving your goals. What
I’m telling you is that this book you are reading right now isn’t enough. I
would love to have people tell me that this book changed their life, but
what’s more likely is that this book will be a starting point where people
find out what they need to do each day to change their life. Or it will be
one more constant positive reinforcement in a long list that a successful
person is already using.
Imagine you read a book that gave you a new idea or way of
thinking. Maybe you enjoyed the book, agreed with the premise, and
even became excited and ready to take action! Then the next day you
would go to work, think about how much you don’t like your job, and
come home exhausted. Something would come up, new clients, a family
problem, financial issues, and you would delay your action, promising
yourself you would do it later. Each day you would continue to go to
work and be distracted by things that just don’t matter. Finally, a month
later, the “high” of the book would have worn off. It would still be in
the back of your mind, but something more important would always
Building the Confidence to Take the Scary Step 69
seem to come up. Two months later, parts of the book would be
forgotten and you’d wonder if it really made sense, or if it was just some
fad you went through. Six months later, you would stop one day, realize
that nothing has changed, and accept the fact it just wasn’t for you.
Remember, we are creatures of habit. Just one exciting book
can’t possibly wage war against the tide of negative messages that are
telling you something different.
You will have to transform yourself into a permanent student for
the duration of your life, constantly feeding your brain with positive,
educational, and inspirational messages. Every single person that I know,
who I consider to be successful, follows this philosophy. Become a
permanent student throughout your life and never stop learning.
If you already read voraciously or discuss entrepreneurship on a
regular basis, then you are far ahead of most people. But if you are like
most of us, getting educational work done is something we often don’t
have time for. It gets left on the back burner. So I’m going to share with
you three of the best ways I know of to get more constant positive
reinforcement built into your life.
One important point to make here deals with what you are
actually going to listen to. Some people who I’ve given this advice to
have readily agreed and even started using it. But then I find they are
listening to fiction books or that they have stopped listening to music
and started listening to news or talk shows. This is a slight improvement,
but not nearly as effective as what they could be doing. Unless you are
studying to be a fiction writer or a news anchor, there are more effective
ways you could be using your time.
You need to be learning material in specific fields that will help
you accomplish your goals quickly. If you are reading this book, I
assume one of your goals is starting your own business. There are many
fine programs on this subject, which are listed through the book and in
the resource index at the end. Often, the more you learn, the more you
realize you need to learn. There are a wide variety of audio programs
available on marketing, relationships, psychology, writing, rocket science,
finance, and almost any other topic you can think of.
NO MATTER WHAT
This particular phrase is especially important. Something
magical happens when you make a decision to do something no matter
what. It no longer is something you should do, or want to do, it is
something you know you will do, period.
It may sound subtle, but the effect of this is actually quite
profound. You are making a declaration to your subconscious that this is
your new path, and your subconscious listens. Suddenly you will start to
notice things around you that that you never saw before. Events will
come up that you can change and take advantage of. You will wake up in
the morning with random ideas to help you on your path that you had
72 Breaking Free
never even considered before (your subconscious was working while you
slept).
As an example, lets say you decide you are going to quit your job
and start your own business no matter what. (Note: I’m not asking you to
actually commit right here, it’s merely an example.) If you made this
decision and were firmly committed, your subconscious would go to
work right away.
Maybe you’d be on your way to work one day, going through
your usual routine, and happen to notice a sign posted for a business plan
writing seminar. It had been there for months, and you’d never noticed.
At lunch you might overhear some people discussing a business idea, join
the conversation, and make a new friend with similar interests. You may
even depart with their business card and an invitation to join them at a
speaking event the next week. On the way home you could pass the local
bookstore and notice a book in the window written by the same author
you’ve been listening to in your car.
All these things were happening around you already, but you
never noticed them. How could this be? Well, you weren’t fully
committed and focused on starting a business yet. The universe has a
strange way of bringing the very things we think about the most into our
life. If you think every day about being a successful business owner, then
eventually it will just happen as more and more opportunities come into
your life.
The critical first step is making that firm commitment to do it no
matter what. Tony Robbins, a speaker and author, describes this as the
difference between a should and a must. If you tell yourself constantly that
you should go exercise, then you probably won’t do it regularly. It is
optional. The very word itself, should, implies a chance it won’t even
happen! On the other hand, if you tell yourself you must make it to the
Building the Confidence to Take the Scary Step 73
4 See Chad Helmstetter’s famous book “What to say when you talk to yourself”
74 Breaking Free
job. When you do get work done, you wouldn’t be at your peak and it
would take time away from your family. Most likely, you would just be
too tired in the evening and end up watching TV instead of working.
During the day, you wouldn’t be able to discuss your new business at
work with anyone, just in case word got back to the boss. The entire
business would just be a distant second to your regular life. What
percent of your day do think you would truthfully spend thinking about
being self employed? There would simply be too many other
responsibilities to be able to commit fully. In a situation like this, playing
it safe and hedging your bets may very well cost you your primary goal.
If you want to have a backup plan, then have a backup plan for
how you will still accomplish your primary goal: being self employed. In
other words, if you want to hedge your bets, have multiple products,
numerous sales channels to market your product, cash reserves, and
another entire business idea in your back pocket in case things don’t
work out. Don’t have a backup plan in case you never accomplish your
primary goal at all! This is a surefire way to sabotage everything you are
working toward.
their ability and quickly sink to the bottom. The second category of
people are so risk averse they never act at all! This is probably a much
bigger category, and for these people their fear is paralyzing. They have
the best of intentions but never change anything. The secret is to fall
somewhere in between these two groups by taking small steps. By taking
small steps you are minimizing risk and learning as you go, while still
making progress.
Eventually, you’ll have more confidence, you’ll have learned
more than you can possibly imagine, and you will have changed your
entire mindset. You will be focused, determined, resilient, and have all
the tools at your disposal. The day you finally quit your job and strike
out on your own, a sense of calm will come over you as you walk out the
door because you will know you made the right decision. A year later,
you will look back and see how far you’ve come. You’ll hardly even
recognize yourself!
It really is ironic, but as with many things in life, quitting your
job to work for yourself is a mental game. The logistics and physical
steps are not difficult. Anyone can do it. But very few ever do because
the greatest obstacles are the ones we create in our own mind. I have
confidence in you that you will overcome all obstacles in your path to
accomplish this goal, if you decide it’s what you really want.
As always, please take the time to jot down in a few notes in the
exercises on the next page. This is an essential step of reading this book.
Please don’t skip it!
76 Breaking Free
CHAPTER 3 EXERCISES
List five people in your life right now who may be a negative influence or
don’t share your vision of quitting your job and being self employed?
(Note: if you fear them finding this, you can use code words or nick
names, or write it on a separate sheet.)
1.
2.
3.
4.
5.
You may want to cut these people out of your life, severely limit your
time with them, or simply not tell them about your dreams if you have to
be near them!
Who do you admire and respect? Who would you like to be more like if
you could have any life? Who do you think you could learn from?
1.
2.
3.
4.
5.
You may want to make an effort to spend more time with these people.
Always be on the lookout for opportunities to meet with them or find
more people like them.
Building the Confidence to Take the Scary Step 77
What are five ways you could bring constant positive reinforcement to
your life? How could you hear a message daily that would inspire,
education, and motivate you toward your goal of working for yourself?
1. I’m going to fill this one in for you. Go right now to
www.amazon.com (or your favorite book store) and purchase an
audio program called The Psychology of Achievement by Brian Tracy. I
make no money from this, and it is merely one of many good audio
programs, but the single greatest gift you can give yourself in this
area is to get started listening to audio programs in your car as you
commute and go about driving every day. If you are going to do one
thing on this list, make it this one!
2.
3.
4.
5.
How are you “hedging your bets” and playing it safe when it comes to
quitting your job and working for yourself? Are you only partially
committed? Please list a few ways.
1.
2.
3.
4.
5.
78 Breaking Free
CHAPTER 3 SUMMARY
• Quitting your job will be scary.
• There will be anxiety (a.k.a. excitement).
• Become comfortable with anxiety, it means you are about to learn
something.
• Your brain will invent excuses constantly. Say “Thank you for
sharing” and continue.
• Why most people fail.
o Addicted to comfort and routine.
o Lack of self confidence.
Action eliminates fear, start small.
Be competent, not confident.
o An external locus of control.
o Parents & loved one’s expectations.
o A negative peer group.
• We are creatures of habit.
• Beliefs are built up over time like a stream carving the Grand
Canyon.
• We can’t change it instantly; it must be done slowly over time.
• Use Constant Positive Reinforcement.
o Speed reading
o Positive peer group
o Audio programs in your car
• Deciding to do it no matter what, don’t hedge your bets.
• Take small steps in the right direction.
Chapter 4
Taking the Pay Cut
I t’s time to talk about how you are going to handle your
finances during the process of quitting your job. This is an
important topic because it is the lingering excuse many people use to
explain why they can’t quit their job and get their business going!
The unfortunate reality is that most people go through life
without knowing the first thing about how to manage their finances.
This is a subject that I truly believe should be taught in school, but so far
it hasn’t happened. Poor people don’t know how to manage money, so
they pass on what hasn’t worked for them to their children who grow up
poor. Rich people teach their children how to be rich, so their children
grow up rich.
This isn’t a book on money management, but I’m going to
address it here because it is a major factor in how hard it will be to get
your business going. At the beginning, your business finances and
personal finances will be one and the same. Later you will separate them
80 Breaking Free
(Chapter 7), but the principles will remain much the same. The main
problem is that most people spend what money they earn. This sounds
innocent enough, but in reality, this is a major reason for why people
never become wealthy. When poor people get a raise, they celebrate by
instantly going out and getting a nicer car. They take on debt to finance
their house, cars, vacations, credit card expenses, etc. Ultimately they
end up in a rat race where they can never get ahead and they are forced to
keep working their same job because they have so many bills to pay to
just to survive!
Rich people, on the other hand, save at least 15% of their
income and never touch it. This money is then reinvested into income
generating assets (real estate, mutual funds, businesses, etc) until one day
they have enough income coming in that they can stop working, and still
have an income. Because they have assets, they can afford to start a
business. They aren’t living paycheck to paycheck like the majority of
people!
Poor people work for money. Rich people have money work for
them. Poor people believe what they earn is there to spend. Rich people
believe what they earn is there to invest.
For more information on this topic, some excellent books to
read are Rich Dad Poor Dad by Robert Kiyosaki, The Millionaire Next Door
by Thomas Stanley and William Danko, Harv Eker’s programs on
building wealth, and The Richest Man in Babylon by George Clason. Better
yet, get them as audio programs and listen to them when you are done
with Brian Tracy’s The Psychology of Achievement.
If you haven’t been building wealth for the long term, don’t
worry. Most people who start their own business don’t have much
excess cash lying around. The word entrepreneur, almost by definition,
means you are getting things going any way you can! Beg, borrow, and
Taking the Pay Cut 81
steal just to get the first product out. Many famous stories exist of big
name entrepreneurs who started with almost nothing and pulled
themselves up by the bootstraps. So don’t worry, my intent here is to
provide you with practical advice that will help you right now to get things
started. At the same time you can change your personal finance habits
and start making big changes for your future.
When you quit your job to start your own business, you will
most likely be taking a pay cut in the short term to earn more down the
road. There are a lucky few who quit and earn more in their first year
working for themselves than they did at their old job. This is great when
it happens, but we shouldn’t assume it will. Don’t be rash and quit
without a plan in mind. That would be foolish and you could quickly find
yourself in a difficult situation. Luckily, there are a number of ways to
make this transition fairly easy, and I’m going to tell you the three best
ones right now.
The basic strategies involved in smoothly taking a pay cut are (1)
don’t quit your job yet, (2) get a different job with more flexible hours,
and (3) save up enough to survive for six months with no income while
at the same time spending less. One or a combination of these can be
used and we will cover each one in detail.
frustrating to make such slow progress. During the week all I thought
about was the time I could be spending on my new company!
Eventually I had to quit my job to be able to work full time, and
never looked back. Use this method to get as far as you can down the
road to starting your business.
• Tutor
Most people have some sort of skill that would allow them to work
part time as a tutor. If you did well in any particular subject in
school, your job required special knowledge, or if you speak a foreign
language, then you could tutor others.
84 Breaking Free
Tutoring is one of the best part time jobs because your hours are
flexible and you can charge very substantial rates.
Every city in the world is full of students who need help in algebra,
chemistry, physics, writing, grammar, spelling, general study skills,
organization, speaking English, learning a foreign language, preparing
for the SAT, economics, psychology, accounting, statistics, and
more.
Many parents are willing to pay excellent hourly rates to ensure their
child’s success (rates from $45/hour and up are not uncommon).
How does one begin working as a tutor? Post flyers at local high
schools, put an advertisement in a PTA newsletter, or send an email
to all your friends asking them to forward it to anyone they know
with children. But probably the single most effective way you could
find work as a tutor is to make a simple one page website, with your
credentials, experience, photo, hours, rates, busy schedule, and an
easy way to get in touch with you. Then start getting potential
customers to your site by advertising with Google
(adwords.google.com). In less than a month and for less than $100
you will have clients and a side income.
• Bartender
If you like to stay up late, this is a good alternative job because it has
odd hours. You will still be able to work a full 40 hour week on your
new business and bring in some extra money in the evenings and
weekends.
Taking the Pay Cut 85
• Help Desk
Providing technical support or answering phones is a great
alternative job to have. It’s great because you are often left with
nothing to do for long periods of time (and often have access to a
computer). Don’t apply to a job that will keep you busy all day long.
Then it will just be tedious! Try to get a feel for how busy you might
be by visiting the facility at different times or discreetly asking others
who work there. Any job such as this can provide you with a lot of
time to study and plan your business while still getting paid.
College campuses are full of jobs like this and many IT help desk
positions carry these same advantages.
It turns out that that by the end of the month I would have paid
you more than $10 million in total! How can this be? After the first
week you would have only received a dollar and some change, but by
then end of the month it turned into $10 million?
Behold the power of compounding interest. Even Albert Einstein
once said that “The most powerful force in the universe is compound
interest”. Of course your money won’t be doubling every day like our
example above, but you should at least be able to earn a 10% return on
your investment1! Start saving today, and do so for the rest of your life.
Reinvest what you earn. This is the secret of wealth that the rich have
known for centuries, and it will give you the cash reserves to start any
business you’d like.
Of course, one crucial question we must answer is: How much
should I save? We will now answer that question.
Housing
1 ING Direct will pay you 4.5% for now risk free, but by investing in index funds and real
estate, you should be able to earn at least 10% over the long run. If you don’t feel
comfortable investing, speak with a financial planner you trust.
Taking the Pay Cut 89
Rent/Mortgage $ _____________
Home Insurance/Property Tax $ _____________
Home Owner’s Association Dues $ _____________
Electricity/Gas $ _____________
Water $ _____________
Telephone $ _____________
Internet $ _____________
Cable TV $ _____________
Cleaning/Gardening/Pool/Security/Garbag
e Removal
$ _____________
Other Housing Costs $ _____________
Transportation
Car Payments $ _____________
Gas $ _____________
Parking $ _____________
Car Insurance $ _____________
Car Maintenance $ _____________
Subway or Train $ _____________
Other Transportation $ _____________
Living
Groceries $ _____________
Clothing $ _____________
Cell Phone $ _____________
Laundry/Dry Cleaning $ _____________
Hair Care/Hygiene $ _____________
Child Care/Support $ _____________
90 Breaking Free
Health
Health/Life Insurance $ _____________
Doctor/Dentist Visits $ _____________
Prescriptions $ _____________
Gym Membership/Exercise Classes/Sports $ _____________
Entertainment
Restaurants $ _____________
Bars & Nightclubs $ _____________
Smoking $ _____________
Movies $ _____________
Gambling $ _____________
Music (concerts, CD’s, mp3’s) $ _____________
Shows $ _____________
Video Games $ _____________
Magazines $ _____________
Vacations
Plane Flights $ _____________
Hotels $ _____________
Taxi $ _____________
Meals $ _____________
Debt/Investments
Credit Card Debt $ _____________
Student Loans $ _____________
Taking the Pay Cut 91
Giving
Donations to Charity/Church $ _____________
Gifts $ _____________
program. You can get it as an audio program to listen to in your car, and
it will change your entire relationship with money. You will no longer be
a spender or penny pincher (both are equally bad). Most importantly,
instead of working for money, you will start to have your money work
for you.
If you are a spender (buying things on a whim even when you
can’t afford it) then you can listen to programs such as the one I just
mentioned to get that part of your life handled. If you are a saver (cheap,
and feeling guilty whenever you spend money) this can also be a
destructive habit and deserves attention. Likewise, if you have any
negative beliefs about money (such as “Money is the root of all evil”) or
deep down feel as if you don’t deserve money, you should also address
this with programs like the Millionaire Mind.
Again, many people find that their own inner beliefs are what is
limiting them the most.
The book eloquently makes the point that millionaires are not
the people you think. They are not the people driving around in flashy
new cars or visibly displaying their wealth. Instead, most millionaires buy
used cars and live modestly. Many children of millionaires aren’t even
aware they are wealthy until it comes time to inherit.
I was spending some time in Dallas, TX when I first became
aware of the term “thirty-thousand dollar millionaire”. Being an image
conscious city, this was the term coined for those people who earned a
modest living and were trying to live above their means. While they sped
around the city in their new Range Rover with spinning rims, they were
slowly being buried alive in debt.
Most people live a form of this lifestyle, even if it isn’t quite as
extreme. When they get a raise at work, they immediately go out and buy
a nicer car. They are always living right on the edge of what they earn,
leaving nothing to save or invest.
One of the worst decisions you can make financially is to
purchase a new car. It loses about 25% of its value the minute you drive
it off the lot. Instead, purchase a used car with low miles, and don’t get
stuck making car payments if you can help it. Get a car that you can
actually afford by paying cash for it up front. Don’t take on any new
debt! If you can’t afford to pay cash for it, you should probably purchase
a cheaper car.
Remember, financially unsuccessful people aren’t able to plan
for the future because they spend what money they make. Entrepreneurs
are able to plan for the future by saving what they earn instead of
spending it.
This may seem unrelated to starting a new business, but it
actually isn’t. Can you imagine how much more difficult it would be to
quit your job when you are living one paycheck away from bankrupcy?
Taking the Pay Cut 95
The car payments and rent are taking up such a large percentage of your
income each month that you really can’t afford to make less money. In
essence, you become a slave to your job, unable to leave. You can’t
afford to miss this month’s car payments, credit card payments, and rent,
so you can’t afford to quit your job. You are stuck.
If you’ve made some financial mistakes in the past, don’t dwell
on it or get discouraged. Nobody gets it perfect, and you can be sure to
make plenty more mistakes along this journey. What is important is that
you now know the way out and have started building a new habit. Live
below your means and save as much as you can! If you think its too late
to start saving now, just think what you’ll feel like in five years knowing
you could have started today, but didn’t!
As a final note about reducing your expenses, it is very possible
to take it too far in the opposite direction. Becoming a fanatical saver
will simply make you feel guilty every time you spend money. You can’t
enjoy life that way! If you don’t reward yourself for every small success
along the way, you can eventually become discouraged and disillusioned
with the whole process.
The secret to minimizing risk when starting a business is
financial responsibility. Try staying at your old job while you start your
company to keep money coming in, or get a job with more flexible
hours, and start spending less than you earn today. Set up an
“Entrepreneurship Fund” account with six months of cash reserves, and
promise to quit when it’s full. This will allow you to invest for your
future by saving up enough money to quit your job and work for
yourself.
96 Breaking Free
CHAPTER 4 EXERCISES
Try to list five specific times during the week you could set aside to work
on starting your company, even if you were still at your current job.
1.
2.
3.
4.
5.
If your current job involves many long hours, try to write five alternative
jobs you could take on that would give you more time. If you get stuck,
list jobs that sound interesting and fun compared to your current job.
1.
2.
3.
4.
5.
List five expenses or liabilities you could reduce or eliminate from your
life that would allow you to save more money in your Entrepreneurship
fund, and achieve your six month savings goal.
1.
2.
3.
4.
5.
Taking the Pay Cut 97
CHAPTER 4 SUMMARY
• Don’t let the problem of taking a temporary pay cut be your excuse!
• Rich people save at least 15% of their income before they ever have
a chance to spend it.
o Poor people work for money, and rich people have money
work for them.
o Poor people think what they earn is what they have to
spend. Rich people think what they earn is what they have
to invest.
• There are three strategies to use when quitting your job.
o Stay at your current job as long as you can, getting work on
your business done during nights, weekends, or any free
moment.
o Get a different job that requires fewer hours each week.
Tutor/Consultant
Bartender
Help Desk
Part Time at your Current Job
o Save up enough money to live for six months without
income.
Start saving 10% of your income into a separate
high yield savings account, your Entrepreneurship
Fund.
• By using the provided form, you can calculate how much money you
actually need each month to live on.
• Strive to spend less money and don’t get caught in the “rate race” by
incurring debt.
98 Breaking Free
what your highest values are, what makes you happiest, what you are well
suited for, and what you have the potential to be the best in the world at!
All of these will help you determine what type of business you should
start, or what type of work is right for you.
These might sound like some rather tough questions to answer,
but believe me it’s worth it. The alternative is to be like everyone else,
making their way through life one day at a time without a clear goal or
purpose in mind. We must break the habit of purely reacting to external
events all the time (an external locus of control), instead choosing to
create our own reality. Make no mistake about it; this chapter is designed
to do nothing less than help you find the purpose of your life.
Why is it so important to find the purpose of your life or “be on
the path” as I like to say? Well there are a number of reasons, but they
can all be summarized with the following statement: if you aren’t on your
path in life, you can never be completely happy. Let’s take a closer look
at four reasons to give your purpose some serious thought: fulfillment,
relationships, excitement, and significance.
FULFILLMENT
Fulfillment is one of those words with a rather murky definition.
It’s a feeling that can’t really be quantified. Imagine yourself at your
current job now. Are you fulfilled? Instinctively you can probably say
“no” or “not all the time”, but why do you feel this way? The answer lies
in whether you feel like you are contributing, whether you are growing as
a person, whether you are using your best skills, and whether the work is
easy or hard.
Finding Your Path and Purpose in Life 101
If you still aren’t very skilled and someone comes along to give you
a difficult problem, things don’t get much better. Your feeling of
unimportance goes away because you are dealing with more meaningful
work, but you will quickly become frustrated. “Why do they keep giving
me this when they know it’s not my area of expertise?”, you might say.
What if our absent minded host from above had asked you to perform a
magic show for the guests instead of preparing your exquisite cuisine?
Magic isn’t your area of expertise either, but it’s a more difficult task than
parking cars. Your magic show would probably be mediocre at best
compared to the exceptional meal you had planned and trained for. This
would leave you feeling guilty for your poor work and frustrated at how
difficult it was to complete.
If you are finally given work that you are very skilled at, but it isn’t
very difficult, you will quickly become bored. This would be like the host
hiring you, the world class chef, and only asking you to make microwave
popcorn! Cooking is certainly your area of expertise, but your skills
won’t be utilized and you won’t feel challenged. This type of work can
quickly lead to boredom.
These above examples are a bit contrived to make a point, but
they take place everyday in offices around the world. Workers are
frequently matched with tasks they don’t care do be doing, aren’t
qualified to be doing, and are wasting their time by doing. Fortunately,
there is an ideal to strive for here: challenging work that is well matched to your
skill level. This is the area of fulfillment! Here you will be in the perfect
balance where you are challenged, but still able to produce excellent
results. Your skills are being utilized on important tasks and your
contribution is truly valuable.
Finding Your Path and Purpose in Life 103
FINDING LOVE
I bet you didn’t expect to see this in a book about quitting your
job, did you! The truth of the matter is that a person on their path in life
is infinitely more attractive to the opposite sex than someone who isn’t.
Enthusiasm is contagious, and if you can hear the passion in someone’s
voice about what they are working on, you can’t help but get excited
about it too. I’ve had friends that were involved in hobbies I found
downright boring, like painting and board games. But listening to them
talk about it, and after seeing how excited it made them, I couldn’t help
but feel a little bit of the same. The reality is that anything can be fun if
you’re in the right atmosphere.
If you aren’t convinced yet, simply consider the alternative.
How attractive is it to be around a person who constantly complains
about their work, their terrible boss, and the next task they are absolutely
dreading? What a depressing life! “If you hate it so much, why don’t you
quit!” you might say. But of course they never will, because they are
addicted to their struggle. That is “their story” and the excuse they have
been using for why they haven’t achieved more. If they were to give up
that excuse, then they might have to actually take a risk and try
succeeding!
In fact, I’m convinced today that one reason for the high divorce
rate we’ve seen in this country is that people’s mates aren’t “on their
path” in life. It’s impossible to stay attracted to someone who is living a
mediocre life and is afraid to change it. Please don’t be that person!
EXCITEMENT
Another reason it’s so important to find your purpose in life is
that it is just downright exciting! So many people who have gone
104 Breaking Free
SIGNIFICANCE
If you aren’t on your path in life, constantly striving to find out
what your purpose is, then there will probably be a shadow hanging over
your life. This shadow will be the unconscious feeling that your life is
simply unimportant.
What a sad thought, that if you were to disappear tomorrow,
maybe no one would really notice or care. No great project would come
to a halt, no one would wonder who they would turn to now that you are
gone, and in time you would be forgotten. If your life truly is
unimportant, and you aren’t contributing to the world in some way, this
shadow will follow you around until it consumes you on the day you die.
It’s time to break free! The solution is simple: bring significance
to your life by finding what you were born to do.
The minute you decide to work toward a greater purpose than
yourself is the minute you decide to start down the path toward
happiness. The truth is that many people, once they find their purpose,
Finding Your Path and Purpose in Life 105
THREE QUALITIES
Jim Collins, in his book From Good to Great, came up with three
qualities that every great business should have. At the intersection of
these three qualities lies the company’s singular purpose. Some
companies have one or two of those qualities, but rarely does a company
truly find its direction by having all three. He had some excellent
thoughts on how exactly you should come up with that purpose, and
although he was speaking about business, I actually found it helpful in
discovering my life’s purpose.
Everyone has things they are good at and things they are bad at.
They also have things they love doing and things they hate doing.
Finally, there are some activities where it is possible to make money and
there are some activities where it is very difficult to make money.
Your purpose lies at the intersection of all three positive
characteristics: finding something you are good at, love doing, and that
you can earn money from. Each word is chosen very carefully here and
deserves a bit more attention.
108 Breaking Free
thinks about web design in his free time and can’t wait to jump out of
bed each morning to make progress.
Person A and person B might start out with equal revenue and
client lists, but this wouldn’t last for long. Let’s say its time for the
annual Webmaster World conference, a huge industry event and great
opportunity to learn and network. Person A, being burned out with all
his clients, wouldn’t want to also spend his weekend doing web design,
and would justify skipping the conference by saying he needed to spend
more time with his family. Meanwhile, person B would have been
planning the trip for months and would bring his whole family with him.
While there he would discover new technologies to give him a
competitive advantage and would network to establish a partnership with
another firm to add value to his customers. In the evenings, person A
would watch TV and try to relax after a hard day, but Person B would
read web design magazines just because he liked the subject. This would
give him new ideas on how to generate business.
Before long, Person B would have eclipsed Person A’s web
design company in every area. You see, no matter how hard Person A
worked, or how much he forced himself to keep up, he still wouldn’t
have a chance. To him, it would all be work, while to Person B it would
all be fun. This is the key difference: if you hate doing something and
someone else loves it, the person who loves it will always be more
successful.
It doesn’t matter if you are great at it and it makes you tons of
money. If you don’t love it, you have not found your path in life.
List 10 things you happen to be really good at, whether you like
doing them or not. These could be skills that came naturally or
skills you trained for years to master. It doesn’t matter whether
you use them now. They can be from any time in your life.
1. 2.
3. 4.
5. 6.
7. 8.
9. 10.
Now list 10 things that you really enjoy doing. When you have free
time and there is nothing you have to do, you probably end up
doing these things for fun. You probably talk about them
constantly (ask your friends what you mostly talk about). When
have you been happiest in the past year?
1. 2.
3. 4.
5. 6.
7. 8.
9. 10.
Finally, randomly pick combinations of the above two lists, and see
what ways you could put them together to earn money. An
example would be if you are really good at painting, and you feel
happiest when helping children, you could write “paint + help kids
= art teacher” here. Try to force yourself to write 10, even if they
seem silly.
1.
2.
112 Breaking Free
3.
4.
5.
6.
7.
8.
9.
10.
EXERCISES
Imagine for a moment that you just won the lottery and $6 million
has been deposited into your bank account. All taxes and fees have
been paid; it is your money free and clear. What would you do
right now? What would you do tomorrow and in a month from
now? What would you do over the next year? Even if you say “I
would quit and go to Tahiti”, what would you do after that? You
would have a lot of time on your hands and would need to fill it
with something, so what would you do?
1.
2.
3.
4.
5.
114 Breaking Free
As you may have guessed, what you wrote down in the previous
section is a good indication of what you are passionate about. The
activities you would do with all the money in the world should be the
same activities you do for your regular job (or at least as close as you can
get it)! Bill Gates is a billionaire, yet he still goes to work every day. He
doesn’t have to; he does it because he likes it. In fact, I suggest the reason
he became a billionaire is that he is doing what he loves. Even when he
did need the money, he still enjoyed it, and that gave him the edge to
become very successful.
Now imagine for a moment that your doctor has given you some
bad news. In exactly 30 days, you will be dead! Until that time,
you will live in perfect health, and there won’t be any pain, but you
have exactly 30 days to live. How are you going to spend your
time? In addition, close your eyes for a moment and imagine the
eulogy at your funeral. What do you want people to say?
1.
2.
3.
4.
5.
Finding Your Path and Purpose in Life 115
Things that you would do in the next 30 days before your certain
death are things that you should really be doing now, because they are
what you value most. Why have you been putting them off? They
probably sound scary, or require you to put yourself in a vulnerable
position. Subconsciously, we will find ways to avoid them and it
sometimes takes a new force (a coach, saying “no matter what”, reading
this book, etc) for us to finally take action. How ironic, that the things
we value most are often the things we avoid the most. Right now, before
you go on to the next exercise, take one item from your list and schedule
a time in the next week that you will do it (or at least take the first step
toward it). No excuses, schedule a time right now and make a
commitment that you will do it no matter what on that day.
2.
3.
4.
5.
116 Breaking Free
• What do you get in trouble for now, and what did you get in
trouble for as a child?
1.
2.
3.
4.
5.
Finding Your Path and Purpose in Life 117
List five people that you really admire, and a few qualities you
really like about them.
1.
2.
3.
4.
5.
1 Reportedly, when Jay Leno was a little boy in grade school, his parents once received an
angry note from his teacher stating “Jay needs to stop goofing off in class and take his
grades more seriously!”
118 Breaking Free
2.
3.
4.
5.
Finding Your Path and Purpose in Life 119
If they are honest, they may tell you something you never
realized about yourself. They may tell you that you are constantly talking
about your pet dog, when you were under the impression everyone talked
that much about their pets! Suddenly, something you never would have
considered, that you are passionate about pets, will become clear.
Sometimes our best friends know us better than we know ourselves!
2.
3.
4.
5.
120 Breaking Free
Most people have a theme that runs throughout their life, based
on their core value. It started from a very young age . They may change
professions, friends, clothes, and hair styles, but there is still a theme.
For example, a friend of mine was a doctor, writer, and activist all at
different stages of his life. What theme could possibly run throughout
these? Well, for him it was helping children, his core value. He was able
to bring children into the world as a doctor, educate them with his
children’s books, and protect them by becoming an activist for issues
that affected children. You too have a core value and a theme that is
running throughout your life. What do you value most? More likely than
not, you still have the same goals and desires in some form today. What
have all the different careers and projects in your life had in common?
2.
3.
4.
5.
Finding Your Path and Purpose in Life 121
All of us dream big, but putting those plans into action is a bit harder.
The way to get the most out of life is to actually do some of these things!
At the very least, start making steps toward them. Most people have a
list buried away in there head of tasks like this, but they always view them
as out of reach. Maybe on some level, they don’t feel they deserve to have
such “peak experiences” in life. “That always sounded exciting, but it’s
just not me,” they might say. Bullshit! If it would be exciting, then why
can’t you do it? If you sit and think about it there really isn’t any excuse
(although I’m sure your brain will try to come up with some). Don’t
make the mistake of actually finding your passion, and not going down
the path because of fear.
Self Portrait:
Finding Your Path and Purpose in Life 123
past year, but I’d never found time to research which style or philosophy
to learn. Dan talked about it with such passion, that I joined him at his
next class, and I am still going today. When another of my friends,
Sheena, mentioned she had written a book and that it had led to many
other opportunities, my ears again perked up. Suddenly I realized how
much I would enjoy the process of writing a book and sharing my ideas.
Later that very day I decided on what I wanted to write about and started
an outline!
If you are stuck in a job, and your identity is wrapped around it,
then you will probably never even take these exciting ideas that are
dropped in your lap and explore them. When people talk about their job
they like to say “I am an accountant” or “I am a counselor”. But your
job is not who you are. Your job is simply something you do. Develop a
mindset that you can do anything, you is a flexible concept, and you can try
any new thing that catches your fancy. Not every single thing you try will
end up being a good fit, but you will certainly be getting closer to your
path and purpose each time.
Furthermore, each time you actually do explore one of those
opportunities that sounds exciting (and a bit scary), you will be expanding
your identity and concept of yourself. Do you think Donald Trump was
born with the identity of business mogul, signing huge contracts, jetting
across the country, and dating super models? No way! He approached it
slowly over time, by trying smaller things that weren’t quite as scary or as
far outside his reality. He had to sign a lot of little contracts, to build the
confidence to sign the big ones. Whether you secretly admire the
Donald or despise him, you must also take small steps toward your path
in life. You will wake up one day five years later and be a completely
different person: the person you dreamt of becoming!
Finding Your Path and Purpose in Life 125
2 This exercise is attributed to Stephen Covey in The 7 Habits of Highly Effective People
Finding Your Path and Purpose in Life 127
occupied, and manifest themselves indirectly. But with this exercise they
are right there for the taking.
After doing this for one hour, you may have some interesting
things you didn’t know about yourself on paper, or you may feel like you
have accomplished nothing. But don’t despair. You are beginning the
process of learning about yourself; your highest values, and your deepest
concerns. In short, what is driving your life! You may have to do this
many times, or every day for a month! But if you continue to do it, I
guarantee you will be getting closer and closer to discovering the path or
purpose in life that will bring you the most happiness and success. You
will very likely come up with some exciting business ideas to pursue as
well.
Two variations on this approach are as follows: Variation one
involves going for a long walk through the wilderness or a park. Don’t
bring headphones or anyone else to distract you. Try to go somewhere
isolated where very few other people are hiking. Use this time just like
you would sitting in silence, except you won’t be able to write. Don’t
have a specific agenda, just let your thoughts flow and talk to yourself.
Variation two I learned from a coach named Linda Starr. Get a bunch of
magazines (such as National Geographic) that have plenty of interesting
photos. Cut out any that catch your eye and paste them to a sheet of 8 ½
x 11 paper. Once you have a collage of images, write on the back any
words that come to mind by looking at the pictures. The pictures will act
as triggers to bring up memories or emotions so you can get them down
on paper.
Both of these variations accomplish the same goal of bring up
unconscious thoughts into your conscious mind. They are a great way to
learn about you.
Finding Your Path and Purpose in Life 129
PASSION IS IMPORTANT
Let’s bring this chapter back into focus. We’ve covered a wide
range of exercises and techniques, all of which will help you discover
your passion or purpose in life. But why is this important?
In many ways, this is the most important part of the book. Yes,
it is a book about quitting your job to work for yourself. But the way to
be successful in this process is to find your purpose; once you have
found it (or at least the next step toward it) you will be excited,
motivated, and happier. You see, I could give you all the business advice
in the world (and I will), but if you are passionate about the project you’re
about to undertake, then that will be more valuable than any advice I can
give you. Once you are on your path, your entire life changes. Work is
no longer work. Learning is no longer a chore. Waking up Monday
morning is no longer something to be dreaded. Your life will suddenly
have clarity, meaning, and significance.
Spend some time going through this chapter’s exercises in depth
if you haven’t already. If you have, you may want to try them again a bit
later. Keep at it, and eventually one day an idea will strike you! You may
be talking to a friend when he or she mentions something that gives you
an idea. Or you may be running through the park when you have a great
thought. Or it may come just as you are about to drift off to sleep one
night. But when it hits you, a feeling of excitement will come over you
and you will have trouble thinking about anything else. You’ll be like a
kernel of corn in the microwave slowly getting warmer and warmer as
you do these exercises. At times it may appear you are getting nowhere
and that nothing has changed, but if you keep at it your kernel will
eventually pop! This is the sweet spot that you will be aiming for, and it
will just be the first idea of many. As you get closer to your path in life,
130 Breaking Free
new ideas and opportunities will show up to give you that feeling over
and over again. Pretty soon, you will have so many exciting
opportunities appearing around you that you’ll have to eliminate all but
your top few as a matter of time management! These are the projects
that will bring you success. These are the projects that will bring you
incredible wealth. These are the projects that will fulfill your deepest
values. And these are the projects that will bring passion into your life.
Finding Your Path and Purpose in Life 131
CHAPTER 5 EXERCISES
The exercises for this chapter are found throughout the chapter,
instead of at the end.
132 Breaking Free
CHAPTER 5 SUMMARY
• Finding your purpose in life is essential.
o Fulfillment
High/low skill, High/low difficulty
o Finding Love
Being on your path is attractive
o Excitement
Work becomes fun
o Significance
Your work becomes important, helps others
• Don’t focus on money, focus on finding your passion and money
will follow.
• Three qualities, find something you...
o Are good at
o Love doing
o Can earn money doing
• Exercises
o What would you do if you won $6 million?
o What would you do if you were going to die in 30 days?
o What do you find yourself doing naturally?
o What do you get in trouble for?
o Who do you admire most?
o What do you spend your time talking about?
o What did you want when you were a child?
o What would you do in your wildest dreams?
o Draw yourself!
Finding Your Path and Purpose in Life 133
• Finding your purpose is a journey to enjoy, and there isn’t one magic
answer.
• Take guidance from religion, but don’t depend on God to hand you
your purpose. Take responsibility to discover and create it for
yourself.
• Listen to your feelings, not your logical mind.
• Sit for an hour in total silence with a blank sheet of paper to access
your subconscious.
o Try a long isolated walk through nature.
o Use images to trigger thoughts and write them down as a
stream of consciousness.
• Passion is essential!
Chapter 6
What Kind of Business
Should I Start?
Sure, owning your own business might give you a sense of pride.
But your situation hasn’t improved much. Now, instead of spending
eight hours a day as a worker bee for someone else, you are a slave to
your own business working twelve hour days! Moreover, it could be
years before you recover your initial investment in the business (if you
recover it at all).
The other typical example of starting a business than many
people think of today involves a high tech startup. The typical business
plan goes something like this: First, we’ll take a hot new technology that
has been getting lots of buzz. Then we’ll secure $20 million in venture
capital funding. Finally, we’ll build a team of twenty top engineers from
the best universities, put them in a swanky Silicon Valley office building,
give them stock options, and become millionaires! Unfortunately it
rarely works out and this is once again a poor strategy to build your first
company. You are taking on huge amounts of debt and betting the farm
on an unproven strategy. Even if you aren’t betting your money, and
have secured financing, giving up control of your company is not a
pleasant experience.
If this is the average person’s idea of owning a business, it’s no
wonder most people choose the security of their worker bee jobs, even if
they hate it. Luckily, starting a business today is much easier than the
painful stories depicted above. The first business you start should be
more like a project. For example, putting together a photo album of
your family, writing a journal, or planning a road trip with friends is a
project. Think about your first business as something on this scale. It’s
merely something interesting you are going to try, and the small amount
of money invested won’t be important if you make a mistake (otherwise
known as learning). You may be pursuing several projects at once, trying
new things that catch your fancy. You don’t need a large investment or
138 Breaking Free
venture capital, you don’t need a large team of people, and you certainly
don’t need a swanky office building or retail store.
ELIMINATING COSTS
One of the biggest mistakes inexperienced entrepreneurs make is
that they are far too good at spending money! I have some helpful
advice for you regarding expenses in starting a new company:
WORK AT HOME
As I stated above, you should work out of your home by
creating a “home office”. There are many reasons to create a home
office, but here are a few of them:
1 Incidentally, the $500 per hour lawyer isn’t writing the contract himself. He has an
intern do exactly what you were doing, copying and pasting templates, which he then
gives a quick once over.
2 www.skype.com is a voice over IP service that is excellent and inexpensive for national
and international calls
140 Breaking Free
Many small businesses who rent an office don’t ever have clients
show up. It is a waste of money each month that is slowly but surely
destroying their cash reserves. It’s very reasonable for a new company to
get started at a home office, or through collaboration over the internet.
You can use excellent free call and video conferencing applications such
as Skype to collaborate with other people anywhere in the world. You
can keep your projects organized with tools like Basecamp3. You can
write documents and spreadsheets with others through Google
Documents and Spreadsheets. If you need to have a meeting with clients
or potential clients to “make a good impression”, meet with them at their
office, a restaurant, or a coffee shop. Even big companies with the most
expensive office buildings often prefer to meet at restaurants. A nice
meal or cup of coffee here and there will be far cheaper than rent.
Some people are concerned that they won’t be able to work in
isolation at home. Others are concerned they won’t be able to work with
the lack of isolation at home. Still others fear they might go crazy
3 www.basecamphq.com
What Kind of Business Should I Start? 141
spending all their time in the house! The solution to all of these is to get
out of the house once in a while. When you work at home, it’s advisable
to take your work to a coffee shop or bookstore at least a couple times
per week. Bring a laptop if you have one and look for locations with free
wireless internet access. They provide perfect working environments. I
have met several other successful entrepreneurs in these locations that I
am still friends with today. You should also join local clubs related to
your business and hobbies to stay in touch with knowledgeable people
and keep learning. With a few small changes like this, working at home
becomes one of the best decisions you’ll ever make.
NO EMPLOYEES
As a general rule, the more employees involved in the business,
the more problems you will have. The more time you will spend on the
phone dealing with little problems and the more time will be taken away
from your most important tasks, like building and selling a great product.
Some people have a negative reaction to this statement, and
indignantly reply that “Employees are the most valuable resource a
business can have!” Well, this is true, sometimes. I agree that small
teams can have incredible synergy to become far more than the sum of
their parts. I agree that you aren’t superman or superwoman and you
can’t do everything yourself. But this doesn’t mean you should
automatically move to hiring people as a way to solve problems. What’s
far more likely to happen is that you’ll create new problems!
Several studies on collaboration have shown the ideal team size
to be about three, yet few companies actually practice this. Their
employees instead spend a large percentage of their time on bureaucracy.
Attending meetings, returning voicemails, and filling out the proverbial
142 Breaking Free
4 This term was made popular by the film Office Space , and has come to mean “mindless
paperwork”
What Kind of Business Should I Start? 143
6. You will have to fire people, and learn how to do so in way that
avoids lawsuits.
7. You may be sued by past employees.
8. You may have employees quit and become your competitors.
9. You may have employees steal from you.
The list goes on, but perhaps one of the biggest oversights
entrepreneurs make when it comes to hiring is that they don’t look at the
cost benefit analysis. They simply look at the benefit saying “If we hire
someone to do all of the customer support we’ll have lots more time to
do sales”. Yes, that may be true, but what is the cost and is it worth it?
Let’s say you need to pay this customer support employee $30,000 a year.
Is the benefit of no longer having to answer phone calls from customers
worth $30,000 per year? In other words, will at least an additional
$30,000 in profit (not revenue) come into the business as a result of my
additional time spent on sales5? Moreover, what additional time and
money would need to be spent on finding a good candidate for the job,
setting up payroll, and putting some checks in place to make sure they
are supervised and doing a good job? Would a training program be
necessary for this employee and if so at what cost? Would overall
customer support quality go up or down as a result of this decision? Are
there perhaps other benefits to doing the customer support yourself that
you haven’t considered, such as getting timely feedback on how your
product is performing and your customer’s problems with it? Suddenly,
5 It should be noted that even if an additional $30,000 in profit did come in, you would
only break even in this example. There would be no disadvantage, but you wouldn’t earn
anything either.
144 Breaking Free
through two (or more) people instead of just one. This means a flurry of
emails and phone calls will be constantly going between the group, and if
there is ever a disagreement, it could last indefinitely (there is no boss
with the final say). In my experience, partnerships are rarely formed as a
necessary and sound business decision. They are formed because the
parties aren’t confident or experienced enough to go at it on their own. I
have to admit, this was the reason the first two businesses I started were
partnerships; I didn’t have the confidence or belief in myself that I could
do it on my own. Ultimately they were great learning experiences, and
gave me the confidence to start a business on my own which was far
more successful. If you need to follow the same path, so be it, but just
be aware of the risks of partnerships.
Secondly, a personal assistant may be appropriate as your one
employee. Referring back to the previous section on cutting expenses,
this doesn’t mean you should go out and hire one right away and waste
money. Don’t ever hire a personal assistant until you are making enough
profit to easily hire one, you are so busy you can't handle your workload,
you have a clearly defined list of tasks that sum up to a full time job (the
last thing you want is an expensive envelope licker). Don’t ever hire a
personal assistant to do a job that can be done better or cheaper by some
piece of technology (it will be menial work and they will come to resent
the job). As a general rule, I wouldn’t consider hiring a personal assistant
until you have a net worth in excess of $1 million. Finally, don’t hire a
personal assistant who shares your same skills. Hire someone who
complements you and is skilled in the areas that you are weak.
In summary, hiring employees is a common mistake and often
carries far more costs in time and money than entrepreneurs realize.
With each additional person added to a team, the amount of time spent
communicating goes up exponentially and the amount of time spent
146 Breaking Free
Experience is the best teacher. Sure, I made a few mistakes, but it wasn’t
anything I couldn’t recover from.
It’s time to realize and accept the fact that you will not be entirely
prepared when you start your first business. So what? Do it anyway. No
one is entirely prepared the first time. But they have the courage to act in
spite of their fear, which is why they are successful today.
ECONOMIES OF SCALE
This is just a fancy economics term that describes how your
business can grow. If you have good economies of scale, then growing
your business will lead to growing profits. But if you have poor
economies of scale, then there is an upper limit on how much your
business can grow.
Imagine for a moment that you decide to start a shoe company.
It is your first business and you’ve decided to make the shoes from your
home and sew them by hand. You have all the materials at home and
can start right away. Each shoe takes you one hour to make, and you will
earn $10 of profit when you sell it.
Now imagine a second business you might start which is selling
an e-Book on the internet. Each e-Book you sell earns you the same $10
profit, but it doesn’t take you any time to sell or make each individual
one. In fact, the entire selling process is automated so that people can
order it and download it without you having to do a single thing.
However, to get the book written and the automated process setup takes
you 100 hours of time up front and $100.
148 Breaking Free
Shoe’s R Us eBook.com
doesn’t require any effort on your part, you are spending your time on
your next business idea and picking up a check each month. It makes
money for you while you sleep. A few more months go by and your e-
Book gets a favorable write-up in a magazine, followed by some word of
mouth marketing. Suddenly your sales go through the roof. Your
website is processing dozens of orders per day. Your business continues
to expand and grow with no upper limit since each sale is automated.
The only time you may spend on the business could be additional
marketing, creating new versions of the product, or dealing with the
occasional technical problem. Overall, this business scales well and has a
lot of upside potential.
The businesses that scale well are those with low per unit costs
of time. This example should not be taken to mean shoe companies are
bad and e-Book’s are great. It is merely the concept of scaling that I wish
to convey here. To further explain, fixed costs are anything that you pay
regardless of how much you sell. For example, you would still have to
buy a sewing machine to make your shoes, regardless of how many shoes
you sold. That is a fixed cost. Per unit costs (or variable costs) are those
costs that vary with how many items you sell. The cost can be in terms
of time or money. For example, for each additional shoe you sell, you
have to buy the raw materials for it. That is a unit cost. You also need to
spend one additional hour to make it, which is a unit cost of time. This
is why I say that businesses with low unit costs of time have good
economies of scale. For each additional item you sell, very little
additional time is required on your part.
150 Breaking Free
The Shoe business is more profitable at first. But after you have
sold eighteen e-Book’s and beyond, the economies of scale will win for
eBook.com. What would the graph look like after one year of sales? Ten
years? Play to win in the long run!
realistically produce and ship every day, week, or year? If you actually
shipped this many, would you be happy with the income you were
generating?
As the old saying goes, be careful what you wish for, you might
just get it! Wishing for a successful business means much more than
wishing for lots of sales. If you get all those sales, will you still be happy?
previous businesses that the “crisis” situations you experienced then will
be a breeze the second time around (but don’t worry, new “crisis”
situations will come up for you to learn from).
So without further ado, here are seven businesses that you can
start for $100 or less. They can be profitable quickly, can be started on
nights and weekends while still at your current job, and follow all the
guidelines discussed at the beginning of the chapter.
• Consultant
Whatever job you currently have (or have had) has given you a skill
set that is valuable to others. Regardless of what industry you are in,
there are others interested in what’s sitting between your ears. You
have the ability now to train people coming into the industry, to be
hired by companies for short term projects, and to be hired as an
expert speaker or trainer. If you decide to go this route, start making
a list of possible customers. The key here is to become an expert
networker. Start going to industry trade shows and events. Read
Thomas Stanely’s book Networking with Millionaires. The secret to
getting more through networking is giving more. Most consultants
who are just getting into the business price themselves far too low.
Often, your price is your perceived value to your customers. If you
aren’t charging very much, you must not be very good. Work with
the first few clients for free to get your foot in the door, and deliver
far more than they expect. Collect their endorsements, and then set
your price in the top third for the industry. Save all your documents
and record your speeches. These materials can be sold as
information products at a later time, which is where the real
economies of scale come into play. When your services come into
demand, there will again only be a limited number of hours you can
154 Breaking Free
work each week, but your information products can be sold over and
over again with no additional work on your part.
Pros: Truly helps people by teaching, puts you in touch with many
great contacts.
Cons: Takes time to build client list and information products.
Key to Success: Be confident enough in the value of your advice to
charge a premium.
mean you should rush into debt if you can’t cover the payments.
This isn’t a book on real estate investing, so it would be valuable to
learn much more before getting involved. Read at least three books
on the subject and start attending local real estate investor meetings
in your area. Find someone who is a successful real estate investor
or real estate agent and buy them lunch (in general, buy successful
people lunch as often as you can, it’s one of the best ways to learn).
While at lunch, ask them questions about their life and how they got
started. Most people will be flattered and enjoy teaching you.
Follow up with them as you make progress and soon you will have a
mentor. This is by far the best way I’ve found to learn about real
estate (and many other subjects): surround yourself with experts.
Pros: Real estate earns passive income. You earn money while you
sleep.
Cons: Can be risky, watch out for scam artists and expensive
workshops on real estate that offer questionable advice.
Keys to Success: Educate yourself and build a network of people to
help you.
• Writer
Everyone has at least one good book inside them, and today it is
easier than ever to become a published author. But writing doesn’t
have to just be about books. You can start a blog, write articles for
publication, or create sales copy for other businesses. Don’t be too
quick to discount writing if you, like many, were never a good writer
in school. The type of writing we are forced to do in school often
isn't a good fit for the student, who then goes on to incorrectly
assume they are not a good writer! Just because you hated writing a
What Kind of Business Should I Start? 157
• Reseller or Affiliate
If you have an interest in marketing, but not in making an actual
product right now, then you should consider reselling goods as an
affiliate. The business idea is simple, successful, and has been
around for years since Amazon.com started doing it back in 1996.
How does this work? Companies have products available for sale
online, and will pay you to let potential customers know about it.
When someone you refer ends up buying the product, you get a
commission. Thousands of companies on the internet offer all types
of affiliate programs to help bring them business. You are a creative
person and can most likely find a way to match people with potential
products they want to buy. The buyers guide website mentioned
earlier is one idea (careful not to let affiliate commissions bias your
reviews, web savvy readers will be able to tell if you are getting paid
for the referral). You can also make affiliate commissions off a blog,
mailing list, advertisements you create, and many other ways. If you
think you can design better advertisements than an existing company
What Kind of Business Should I Start? 159
Pros: You carry no inventory and don’t deal directly with customers.
Cons: Highly competitive and you must love marketing/sales.
Keys to Success: Study marketing and have a genuine interest in
helping customers find what they want.
which will bring them passive income for years to come (meaning
each additional unit sold takes none of their time, it has good
economies of scale).
Information products and seminars can command a very
high price and a profit margin that would be considered absurd in
any other business. Four thousand dollars for a weekend seminar
and $500 for a DVD recording of the event is not unheard of.
Information, especially information that can earn you money or
improve your life in some way, is one of the most valuable products
you can sell. For example, think about how much importance some
people would put on getting out of debt, making it through a
divorce, becoming financially independent, or finding love. If that is
the primary problem in their life at the moment, then they would be
willing to give almost anything for your help. If you can’t imagine
yourself leading a seminar, and the idea of speaking in public brings
on panic attacks, you aren’t alone. Keep in mind that every single
successful speaker you see today was once exactly like you. In fact,
every top speaker I’ve ever met has told me they still get nervous
before a talk. It never goes away completely, and they have simply
learned to become comfortable with being uncomfortable. To
improve your public speaking skills (and other areas of your life) I
highly recommend Toastmasters (www.toastmasters.org). They
have clubs in every major city in the world and for a small fee (about
$50-$100 per year) you will learn an invaluable skill.
Pros: Once the software is made, each additional sale (or subscriber)
takes very little of your time. Good economies of scale.
Cons: You must become a student of good user interface design.
Keys to Success: Make your application so easy to use that
customers fall in love with it and tell all their friends. Make the
transition to using your software seamless.
6 gettingreal.37signals.com
What Kind of Business Should I Start? 163
right. As human beings, we only get defensive when the person we’re
arguing with might actually be right!
Take comfort in the fact that even if you don’t have a complete
game plan for your first business now, you will be able to figure it out.
Any time you find yourself saying “I don’t know how to [blank]”, remind
yourself that you can learn anything or pay someone else to do it.
There is a simple litmus test you can do any time you come
across a decision such as this. Simply stop and ask yourself, “Am I
contributing value to the world?” and “If I were a customer of this
business, would I want it?” If you aren’t contributing value to the world
and your customer probably wouldn’t want it (whether they would know
or not), then don’t do it.
This is not only an ethical issue. This is sound long term
business strategy. This is not something that is optional and would be
nice to do. It is absolutely essential to be successful in business in the
long term. Treat your customers with respect. The Google motto to
“don’t be evil” roughly translates to “Do unto others as you would have
others do unto you”. If you think about the best business ideas in the
world, they were so successful and earned their creators millions of
dollars because they contributed value to the world. They weren’t
products that people regretted buying later. They were products that
people couldn’t live without, that dramatically changed their lives for the
better. These products were so successful because the early customers
went out and told fifty people how great the product was. These
products were designed with the customer’s needs in mind, not the
businesses. Would you be a customer for your company? If the answer
is no, then there is a problem. Address it before going ahead.
I’ll give you an example. You may be familiar with a company
called Netflix, who started up by asking a simple question: How can we
contribute more value to movie renters? The answer turned out to be
that movie renters hated late fees and wanted to keep the movies as long
as they wanted. With that simple idea, a new company was born that
quickly gained momentum. One of their major competitors,
Blockbuster, saw this as a threat and decided to compete by offering “no
late fees”. A national ad campaign swept the country to promote
What Kind of Business Should I Start? 167
transaction plus $0.20”. There were those two fees, instead of ten. Is it
any wonder Google has such great brand loyalty? People love Google
because they are up front and honest. They treat their customers like
they want to be treated themselves.
Remember, integrity is not optional when it comes to business,
and it isn’t something you do to stay out of jail. It is something you do
to make tons of money in the long term because it is sound business
strategy. The old adage that says “find a need and fill it” is absolutely
true. Contribute value to the world, and the world will contribute greatly
back to you. Probably more than 90% of all business people today don’t
fully understand this concept. Your startup will have an incredible
advantage over them by using this philosophy.
What Kind of Business Should I Start? 169
CHAPTER 6 EXERCISES
Before reading this chapter, what came to mind when you thought
about starting a business? What types of businesses did you
imagine?
1.
2.
3.
4.
5.
Now that you have read the chapter, what comes to mind when
thinking about starting a new business? What types of businesses
do you imagine creating? In what areas?
1.
2.
3.
4.
5.
What (if any) new business expenses did you realize you could do
without? What (if any) employees did you realize you could do
without?
1.
2.
3.
4.
5.
170 Breaking Free
What is the best case scenario of your business idea (if you have
one)? What will your income and daily work be like if your
company is a big success?
1.
2.
3.
4.
5.
What ways can you (or your businesses) contribute to the world?
In what ways were you putting your business’s needs ahead of your
What Kind of Business Should I Start? 171
CHAPTER 6 SUMMARY
• This is a totally different way to think about starting a business.
• You don’t need to take on big investment and risk.
• Being self employed simply means you pay yourself.
• Eliminate costs and expenses you don’t absolutely need.
• Start a business with zero employees.
• Don’t wait to get started. Just start with what you have now so you
can begin to get feedback.
• Use the philosophy of “ready, fire, aim”.
• Seek businesses with good economies of scale.
o Higher fixed costs, and lower (or zero) variable/unit costs
will win over time.
o Your time is valuable and limited.
• What if you succeed?
o Look at the best case scenario for your business, and make
sure you like it. You might get what you wish for.
• You can start a business for less than $100.
o Become a consultant.
o Create a buyers guide website.
o Become a real estate investor.
o Become a writer.
o Resell other people’s products for commissions (affiliate).
o Create a seminar or information product.
o Make a better piece of software.
• Start small and build your confidence for bigger projects.
o Don’t be afraid to fail, it’s a great learning experience and
necessary to have success.
o Carry your failures as a badge of honor.
What Kind of Business Should I Start? 173
doubt, peer group, learning habits, and motivation. After all, a motivated
person could easily find out the difference between an LLC and an S-
corp if they really needed to. If you’ve been reading this book frustrated
by the lack of details on the actual steps, then this chapter is for you. Just
keep in mind that to the person who ponders “When will we get to the
real meat of it?”, I reply “The mental game of starting a business is the
real meat of it”. The steps here will help you on your way, but without
the right “inner game” they aren’t of much use.
This chapter assumes you have an idea for a business and are
ready to get started. It is also written from the perspective of starting a
business in the United States. Starting a business is really not very
expensive and is easier than you might think. However, it can be a little
tricky the first time, so I’ve tried to lay it out here as simply as possible.
This is by no means meant to be a comprehensive explanation. People
will write me letters explaining how something in this chapter is not
entirely accurate in certain cases. That is fine! The number of special
cases the IRS has created could fill hundreds of books, but when starting a
business, they simply aren’t important. All you need to know are the
basics, which I will teach you here; the rest can be figured out later. Get
the business started quickly and easily; you can always come back later
once you have revenue. Getting too caught up with the legal and tax
details early on just costs you more money and distracts you from your
main goal. You could talk with some lawyers for months about some of
these topics and they will gladly tell you all the complex details and
charge you handsomely for their time (and you should probably do this
once you have money coming in the door). But if you just follow what’s
in this chapter to get started, you will be 99% of the way there and will
have more time and money to spend on making your company
The Nuts and Bolts of Starting a Business 177
away or drain your personal bank account. You can always just file
bankruptcy with the company and start over with a “clean” slate. It’s a
badge of honor, not a mark against you. Note: There are some special
cases where incorporating doesn’t protect you from liability which we
will discuss below.
Secondly, incorporating offers you great tax advantages that have
helped keep rich people rich for many years. When you own a business,
you can pay for business expenses with pre-tax dollars. This means that
your business related lunches and dinners can be expensed (or at least a
portion of them), along with part of your living costs (if you have a home
office) and your business travel costs. It’s not uncommon for business
owners to take 100% expensed business trips that seem a lot more like
vacations. For example, their flight, hotel, and nice meals are all paid for
by the company even though it is debatable what percentage of their time
was actually spent working. This gets into an ethical and legal issue, and
companies are occasionally audited in this area. Keep good records by
putting business expenses on a company credit card. This will keep a
perfect record automatically for tax time and is far easier than trying to
remember to keep written records yourself. It’s a judgment call what you
will expense and what you won’t. That being said, most entrepreneurs I
know wouldn’t hesitate to expense a dinner with a colleague where
business was mentioned, but the topics ranged from sports to how their
kids were doing.
If you are wondering what it means to “expense” something or
use pre-tax dollars, here is an example. Let’s say your business earned
$1000 profit this year and your tax rate is 33%. Through various
activities during the year, you spent $500 out of your own pocket on
business related expenses (the gas in your car driving to meetings,
meetings with clients, rent for your home/office, etc).
The Nuts and Bolts of Starting a Business 179
If you had not incorporated then you pay the full tax, 33% of
$1000, which is $333. You are left with $667 dollars of after tax profit,
and after deducting your expenses you are left with $167 of profit.
However, if you did incorporate, then you are paying your
expenses with pre-tax dollars. You deduct the expenses before paying
tax, so $1000 minus $500 in expenses is $500 of profit. This times your
tax rate of 33% is only $165 in taxes that you owe. $500 in profit minus
your $165 in owed taxes leaves you with $335 of profit at the end of year,
more than double the profit of your unincorporated counterpart.
Unincorporated Incorporated
Taxable
Profit $ 1,000.00 $ 500.00
DECIDE ON A NAME
Once you have an idea for a business, you’ll need to decide on a
name. By far the best method I’ve found to do this is a brainstorming
session. Get a blank piece of paper and a pen and start jotting words
down that come to mind about your business. Write words that have to
do with your product, how it is different from your competition, and the
values of the company. Just start letting the words flow onto the paper
as seeing one makes you think of the next. For example, let’s say I was
starting a business that offered consulting and information products in
the area of eliminating debt. Further, let’s say I differentiated my
business by offering personalized advice, and my strongest company
value was empowering minorities. Then I might start writing down
words as follows:
You get the idea. Don’t worry about them making sense; just
lets the words flow as they come to mind. Now start combining random
words together and see what you come up with. Don’t be afraid to add
in new words you haven’t written down previously. Most importantly,
try not to judge anything you write down as being good or bad. We will
do that later. Force yourself to keep writing until you have at least
The Nuts and Bolts of Starting a Business 181
twenty business names, and don’t stop even if you see one that looks
perfect.
1 www.godaddy.com
2 www.uspto.gov/main/trademarks.htm
182 Breaking Free
EMPLOYER IDENTIFICATION
NUMBER
Your next step to starting a business is to get an employer
identification number (EIN) from the IRS. It’s free and easy and you
can do it right now by calling 800-829-4933. You can also apply online
by going to www.irs.gov and clicking “Business”, then “Employer ID
Numbers”. They will create a provisional number for you right there and
mail you the paperwork later. Under entity type select “other” and enter
“disregarded entity” if you are incorporating by yourself. If you are
incorporating with partners you can select “partnership”. You’ll be
incorporating as an LLC (not a partnership) at the state level, but the IRS
doesn’t have a classification for LLC (more on this later). If you have an
idea for your business already, don’t wait, just do it right now!
it’s another person). The federal government will use this number to
track all correspondence and taxes with your business. You will need this
number for the applications later in this chapter.
INCORPORATE AS AN LLC
There are several different types of companies that you can
incorporate as. Let’s take a brief look at each one:
Entire books have been written on that subject, and that was all
you needed to know. The LLC seems like an easy choice, right?
Granted, this is a bit of an oversimplification, but to be honest with you
184 Breaking Free
the details are really unimportant. For example, there is a specific type of
corporation called a Subchapter S Corporation, which is fairly similar to
an LLC. One may be slightly better than the other in certain cases, but
like I said before, who cares? The difference is minor and saving a few
percent on your taxes when you have zero profit is still zero savings. Just
focus on getting the business started quickly by using an LLC and keep
your mind on what matters. You can have a high priced lawyer look at
your company once you have money coming in the door (and any
choices you've made can always be changed later). The LLC was
specifically designed to help small business owners like yourself get
started, so that is what we will use.
So how do you actually incorporate? First, you will need to pick
a state. You can incorporate in any state, but Delaware is the best choice.
Why Delaware? Delaware is considered a business haven because their
court system is favorable to business owners and their state tax laws are
great for business owners. You pay zero state sales tax and you pay zero
business income tax to the state if your company resides outside
Delaware! For this reason, 58% of fortune 500 companies, and 50% of
all businesses in the U.S. are incorporated in Delaware.
Don’t have an office in Delaware? That’s fine. Many (if not
most) of the businesses incorporated there don’t have offices in
Delaware. They have what is called a “registered agent”. Basically this is
someone who maintains a P.O. box for you and forwards any mail to
you. In general, you don’t get much mail there because for all intents and
purposes your “real” business is established and running somewhere
entirely different. The entire process is totally transparent from your
perspective. You never have to go to Delaware, or even know what that
address is.
The Nuts and Bolts of Starting a Business 185
4 Note that DBA's are based on the county, not the country.
188 Breaking Free
As you can see, if you plan on doing anything illegal, the LLC
status will not protect you. What courts are most wary of are people who
create the company as a façade to conceal some shady dealings. In these
cases, you will not be protected. Therefore, to keep your status as an
LLC you must follow all the rules, even if you aren’t doing anything
illegal. This mean filing all the appropriate paperwork discussed above,
and keeping all your finances separate (more detail on this below).
free business checking and no annual fees. If you can’t find one, use an
online bank. You don’t need a branch, especially if you are comfortable
with deposit by mail5 and will primarily be doing electronic transactions
(such as billing people’s credit cards on a website).
See if the bank can give you a credit card (or even better, debit
card, don’t let yourself be tempted to borrow money) for your business
bank account. If the bank won’t give you one, get a business credit card
from another bank. This will be important for making purchases,
because when your use your business credit card it will automatically
create a record of your business expenses. Avoid at all costs making
purchases for your business on your personal credit card and then
transferring the money over later. You won’t remember, it looks
unprofessional, and it may get you in trouble legally.
Get some free checks with your business name on it, open the
account with an initial deposit from your personal account, and you are
ready to go. You can record your initial deposit as your investment in
the company on your operating agreement.
You should also record this initial investment in a spreadsheet.
This will help you build the habit of recording every single time money
moves between your business account and your personal account.
Remember, it is important to keep the two separate! Don’t just decide
one day that your personal account is low on cash and it’s time to move
some from the business account (or vice versus). That is called a
paycheck, and is a business expense, and it is important to record it. I
guarantee you that at the end of the year (tax time) you’ll be staring at
your bank records wondering where that money went when it left your
5 This service is offered by all major banks today, and it just means you can send checks
to be deposited through the mail instead of walking into a branch.
The Nuts and Bolts of Starting a Business 191
account. If you don’t know what it is, then you’ll have trouble classifying
it as a business expense, and you might end up having to pay taxes on it.
That would be money wasted for nothing!
Remember, the best way to think about your business, is to
imagine it is another person. It’s not “your money” in the business
account to be freely taken out whenever you want; it’s the business’s
money. You just decided to invest in the business. Taking it out without
recording it would be like stealing from this “person”. In fact, they have
a word for taking money out of a business without recording it. It’s
called embezzlement, and it’s just as illegal as stealing.
This point can be a bit confusing to first time business owners,
which is why I stress it here. Always think of your business as a separate
“person” because if you and that “person” become one and the same,
then you are liable when someone sues the business. You want to keep
them separate so if your business goes bankrupt or gets sued, the
business absorbs the loss instead of you. Record all transactions by using
a business credit/debit card for expenses and a spreadsheet for checks.
When you are at business lunch, it’s easy to put it on the company card.
You just got a free discount on lunch because you paid with pre-tax
dollars and can expense 50% of the lunch. Never assume you will
remember some detail of a transaction, no matter how small. When
money is moving between your business and personal account, take
special care to record it. These are your paychecks and expenses and
should not be done on a whim. If you have partners, discuss it with
them before ever transferring money.
Set a salary for yourself (even if it’s very small at first) and pay
yourself first. Many entrepreneurs make the mistake of saying “I’ll take
whatever is left over at the end of the month”. This is a bad idea because
it shows irregular transfers of money as compensation, and more
192 Breaking Free
importantly, there will often be nothing left for you at the end of the
month! By paying yourself on a regular basis and keeping careful
records, you are establishing good business practices from day one.
CREATE A WEBSITE
Your business will most likely need a website presence. This will
allow your customers to find you from all over the world and will give
you a business email address (or many) for more professional
communication. It is inexpensive to have a website these days, and will
cost you about $5-$10 per month. Always pay an outside company to
host your website for you, and don’t try to host it on your own computer
or server. Register your website with a reputable hosting company (you
can check BuyersVote.com for reviews) and you’ll be up and running in
no time.
To get the content of your business website created, you have a
few options. If you fancy yourself a webmaster, then by all means go
right ahead. With some fairly basic HTML skills you can actually create a
decent website by looking at other web pages and finding things you like
to copy (don’t copy it directly, but the look of it). For the rest of us who
are less technical or don’t have the time to put together a great website,
there are some other options. The first option is to use a website
template from a site like www.templatemonster.com and then modify
it. The second option is to outsource the creation of the website to
someone else through www.guru.com and www.elance.com.
Programmers from all over the world will help you create your site for a
very small fee.
Once you have your website created, here are some tools to help
you optimize it and get some more traffic.
The Nuts and Bolts of Starting a Business 193
• Google Adwords
This will instantly get traffic to your site by buying inexpensive text
advertisements.
• Google Analytics
This will help you view your website traffic to see how people are
finding your site, how many hits you are getting, and which pages are
causing people to leave. It works with Google Adwords to show you
measurable return on your advertising dollars.
• Google Website Optimizer
You can use this tool to optimize the layout of your pages and test
different layouts; your sales conversions will go up dramatically.
PAYMENT SOLUTIONS
Next, your customers will need a way to pay you. For most
businesses today, and all those mentioned above, this means credit cards.
Today it is easier to get a credit card payment solution set up than ever
before. Think back to the “old fashioned” business model I discussed in
Chapter 6. If you have a restaurant you need to accept cash, checks, and
credit cards. Employees need to be trusted with cash registers (which are
expensive) and a system needs to be put in place to catch employees that
steal. Checks can bounce and never be paid. Accepting physical credit
cards requires a terminal which you need to rent from the provider and
you’ll have to buy rolls of thermal paper for it. All this means you are in
for quite a hassle with the “old fashioned” model!
Luckily, you are starting a business the smart way, which means
most likely the only thing you’ll need is the ability to accept credit cards
on the internet. For this service you will pay about 2% of each
transaction plus $0.20 to the credit card processing companies. This is
the fee for offering your customers convenient payment options. This
194 Breaking Free
money also covers the credit card processing companies’ risk. Credit
card fraud in its various forms (identity theft, chargeback’s, etc) make it
an expensive business. It is worth the 2% and really you have no other
choice.
When getting credit card processing set up, there are a couple
options which range from basic and inexpensive to professional and
more expensive.
Google Checkout6 is the best basic option in my opinion. You
may also want to check out Paypal7, which at the time of this writing
offers a few more features, but their customer service and user interface
aren’t as good. Either will allow you to create “buy it now” buttons that
customers can click to buy an item on your website and it will also
integrate with more complex shopping carts8. It is “basic” however
because it always requires the customer to leave your website to actually
pay (the address bar in the browser will show they have left your
website). Once they are done the customer is returned to your website.
This is usually an indication to your customers that you are a small
company who hasn’t set up a more professional solution. Does it really
matter? It’s is tough to say, but usually not. Some entrepreneurs try to
hide the fact they are a small company because they think customer’s
won’t trust them or be impressed. I believe this is a mistake. For one
thing, most customers are intelligent and will figure it out anyway. But
you should also be proud of being a small company, and use it to your
6 checkout.google.com
7 www.paypal.com
8 A “shopping cart” on a website is analogous to a shopping cart at the grocery store. As
you find items you want to buy, you place them in the virtual “cart” and go to checkout
when you’re done. It’s simply a container to hold everything you want to buy.
The Nuts and Bolts of Starting a Business 195
9 www.authorize.net
196 Breaking Free
TAXES
As I stated earlier, the IRS has an incredible ability to write
documents that make no sense. Don’t feel bad if it’s confusing. I know
people who have a degree in accounting (CPAs) and even they still get
The Nuts and Bolts of Starting a Business 197
confused. That being said, taxes should not be feared, and you’ll be able
to do them yourself (at least in the initial stages of your company, later
you can outsource it). Your best friend will be Turbo Tax Business from
Intuit10. This piece of software will help you walk through the steps and
hold your hand through the tricky parts. You’ll also be entering all your
data on a computer instead of writing by hand, which will save you
plenty of time.
Keep accurate records throughout the year and back them up
regularly. When it comes to tax time, just buckle down and do it in a
weekend. Remember to deduct as many of your business expenses as
you can (it will be easy since you’ve been tracking them on your business
credit/debit card). Tax accountants would kill me for saying this, but if
you aren’t sure what something is, just skip it and keep going. It most
likely doesn’t apply to you. Despite what they say, the goal of taxes is to
get “close enough”. It is more of an art than a science. Sometimes
magazines will review tax preparation companies by sending them each
identical financial statements from a fictitious company. It’s rare for any
two tax returns to come back the same. If that’s how the big guys
operate, then you can afford to get “close enough”. Just don’t get greedy
and try to cheat. Only about 0.5% of new businesses get audited, but
even with those odds it’s not worth risking jail time and fines.
WRAPPING IT UP
You now have all the technical knowledge at your fingertips to
get a business off the ground. Even if something isn’t 100% clear, just
go ahead. You can figure it out as you go, and action is the best teacher.
10 turbotax.intuit.com - to be clear, I don’t think this software is particularly good, but it’s
the best I’ve found so far, and is certainly better than doing it on your own
198 Breaking Free
Remember to “ready, fire, arm”. You can also get questions answered by
other readers in the discussion forum on our website at
www.startbreakingfree.com.
Take a moment to look back at the chapter. Was starting a
business anywhere near as expensive as you thought? A few hundred for
the LLC setup was the main expense. Website hosting at $5-$10 per
month, a DBA for maybe $10 (if you even need it), basic credit card
processing with zero up front costs, and a free business checking account
are all very easy on the wallet. Do one per day for a week and you will
have your own business! My hope is that by putting this process in plain
English, more people will take the first step toward working for
themselves.
The Nuts and Bolts of Starting a Business 199
CHAPTER 7 EXERCISES
This section will be a mini quiz instead of the usual exercises.
Answers are on the next page, when you’re done.
Please turn to the next page when you are done to check your answers.
200 Breaking Free
• Brainstorming
• LLC’s are designed for small business owners like you. They offer
the limited liability protection not found in sole proprietorships and
partnerships without the increased paperwork of a full corporation.
• Delaware. Zero business sales and income tax. Fifty percent of all
U.S. companies are incorporated there. Their court system is
favorable to business owners should you ever need to go to court.
You don’t need an office there; you will have a registered agent as
The Nuts and Bolts of Starting a Business 201
your proxy.
• Employees require more work on your part because there are more
laws to deal with (taking out taxes, benefits, sick days, etc).
Independent contractors are a much simpler (and therefore cheaper)
way to involve others in your business if you must.
202 Breaking Free
CHAPTER 7 SUMMARY
• The actual steps to starting a business is only about 20% of the
success equation.
• 80% of your success comes from the “inner game” discussed in
other chapters.
o Overcoming self doubt
o Confidence
o Peer group
o Habits of learning
o Motivation
• You should incorporate because.
o It shields you from liability.
Your personal assets are safe.
To maintain this status you must follow all
corporate formalities and keep business finances
separate from your own.
o It offers tax advantages.
You pay for company expenses with pre-tax dollars.
• Select a company name by brainstorming.
o List words using free association.
o Combine words into potential names.
Don’t evaluate any and don’t stop till you have at
least twenty written.
o Check the name’s availability (domain, trademark, and
DBA).
• Get an Employer Identification Number from the Internal Revenue
Service.
The Nuts and Bolts of Starting a Business 203
o The IRS will use this number to track the taxes of your
business, like a social security number for an individual.
• Incorporate as an LLC.
o It offers the best combination of easy paperwork, and
limited liability.
o Incorporate in Delaware.
No business sales or income tax.
Favorable courts for businesses.
o Use an incorporation service online to get setup quickly and
inexpensively.
Use a registered agent in Delaware.
• Get a business bank account with free checking.
o This will help establish your LLC and improve record
keeping for taxes.
o Use a business credit or debit card to keep track of business
expenses.
• Pay someone to host your website, and possibly to design it if you
don’t have the time or technical skills.
• Choose a payment solution, basic or professional, depending on your
budget and needs.
• If you must hire others, make them independent contractors when
possible, instead of employees. Try not to hire anyone at all (see
Chapter Six).
• Use TurboTax to do your own taxes. Keep track of expenses.
Chapter 8
Develop a Plan for Action! –
Making it Stick
"If you talk about it, it's a dream. If you envision it, it's possible.
But if you schedule it, it's real."
- Anthony Robbins
kid’s soccer game and they can’t miss that. The day after they take a
break to watch their favorite TV show because “they’ve earned it”.
Pretty soon a week has gone by and their great plans aren’t quite as
exciting. “I’ll still do it when I have more time” they tell themselves, but
they never get started. After a month they will think back on the
conference or book in passing and recall how excited they were, but they
won’t be able to quite remember why. The moment has passed, the
“high” has ended, and they eventually move back to their old life with
absolutely nothing changing..
What a sad story, yet it happens all the time. I’ve done it. You
probably have at some point. The purpose of this chapter will be to
make sure it doesn’t happen again.
I’m going to share with you several ways to stay on track and
make sure your dreams become reality. We’ll cover some specific ways
to implement constant positive reinforcement into your life, some productivity
and time management techniques, and we’ll finish with a written plan for
the future. By the time you finish with this chapter, you will have a
written step-by-step plan for quitting your job and starting your own
business.
CONSTANT POSITIVE
REINFORCEMENT
As creatures of habit, we are stuck in our ways. Shad
Helmstetter had a great analogy in his book, What to Say When You Talk to
Yourself, which helps illustrate this idea. He told a story comparing all the
old beliefs and limiting ideas in your head to a house filled with dusty old
furniture. Let’s say you decided to clean out the house, and put some
new beliefs into your head. I could come in to help you clean out the
house and we would spend all day moving tired old couches, creaky
Develop a Plan for Action! – Making it Stick 207
chairs, and dim lights into the garage. At the end of the day, you’d be
sweaty and tired, but happy to see a beautifully cleaned out house. It
would look so neat and tidy with all the junk gone and you’d feel a great
sense of freedom! But as the evening came, you’d need a chair to sit on
and would retrieve one from the garage. You’d be hungry after a long
day’s work and would eventually have to bring the table in for one last
meal. After your meal you’d be awfully sleepy and might retrieve a
mattress to sleep the night. Slowly but surely the house would fill back
up with your old furniture, because I didn’t give you anything new to
replace the old.
You see, we can spend all day eliminating your old ideas, but if
we don’t replace them with new ones, the old ones will eventually return!
Constant positive reinforcement is not just nice to have, it is
required. I’m going to show you some ways to bring this reinforcement
into your daily routine that will give you incredible strength (and a new
set of furniture) over time. If we don’t continually feed great ideas into
our head, the old habits will come back, and our “conference high” will
fade. Here are some great ways to keep learning after you have finished
reading this book.
become one. The people who constantly complain about how much
they hate their jobs don’t count. Find someone who has already
started a business and has demonstrated their commitment with
action. You will find these people by going to entrepreneurship
related events and locations (small business association classes,
Toastmasters meetings, coffee shops near business schools, etc).
Build your network, and they will build you.
Does that sound pretty silly? Try it for six months and tell me if you
still think so! You can be your own best motivator and coach every
single morning. For more information read Shad Helmstetter’s,
What to Say When You Talk to Yourself.
totally planned. I knew how much I could liquidate all the business
assets for and had pondered what paperwork would need to be filed to
officially close shop. Then I’d wake up the next morning and slap myself
in the face and renew my determination! You will need someone there
to coach you through the tough times of self doubt, whether it is
yourself, an audio program, a book, this page, your peer group, or an
actual coach.
“Success is the ability to move from one failure to the next with
enthusiasm.”
- Winston Churchill
Develop a Plan for Action! – Making it Stick 211
There are many fine books written on this subject and I suggest
you read (or listen to) as many as you can get your hands on. Three in
particular that I enjoyed are Getting Things Done by David Allen, No BS
Time Management For Entrepreneurs by Dan Kennedy, Eat That Frog by
Brian Tracy, and The Seven Habits of Highly Effective People by Stephen
Covey.
I will give you a head start however with a crash course in time
management right here.
1 2
Urgent
3 4
Not Urgent
Figure 14 - Urgency and Importance Matrix. Where do you spend
your time?
You can implement the above to-do list and inbox in any
method you prefer. The technology geeks out there (like myself) may be
tempted to use a handheld computer, spreadsheet, website, or some
other high tech solution. However, after trying various high tech
solutions, I have to say that old fashioned paper and pen has been the
best solution for me. I just use yellow legal pads and two pens with
different colored ink. There is something about the very act of writing it
and putting a big line through it that gives a satisfying sense of
216 Breaking Free
• Present
The subconscious mind can only understand the present moment in
time. So instead of saying “I’m going to start a business” or “I will
start a business” say “I am starting a business”.
• Positive
You should always reaffirm positive beliefs about yourself. Instead
1 calendar.google.com
Develop a Plan for Action! – Making it Stick 217
Each time you write your goals, take a minute to evaluate them.
Was that a positive belief about myself that I just wrote? Am I trying to
change something outside my control or am I focusing on myself? Am I
talking about the future here or did I phrase it in the present tense? A
goal that starts off as “I will try to....” is doomed from the start. In fact, I
cringe every time I hear someone say “I should really get to the gym more
often” or “I’m trying to start a company right now”. The very act of
writing “try” or “should” indicates a lack of commitment and a high
probability of failure. Either you are starting a company right now, or
you probably never will.
A good goal has two other properties; it is measurable and has a
deadline. This is where many people drop the ball, even big time company
CEO’s! Writing a goal that isn’t measurable has one major problem: you
can’t tell whether you’ve reached it or not. Finally, you must have a
deadline to create a sense of urgency. Without a deadline you may
complete your goal, but it won’t be nearly as soon as you’d like.
• Measurable
Instead of writing “This year I earn more money” try “This year I
earn $100,000”. If your goal isn’t measurable then you won’t be able
to determine if you achieved it or how close you are.
218 Breaking Free
• Deadline
Instead of “I sell 1000 widgets” try “I sell 1000 widgets by June 1st
this year”. This provides a sense of urgency and a timeline to follow.
One final tip about goal setting has had a profound effect on my
life2. How often have you been working toward a goal, had moderate
success, and quit part way through the process? It happens to all of us at
some point. It’s fun to make progress and improve every day. We get
excited and a sense of accomplishment! But when we are about 75% of
the way toward completing the goal, the end is in sight. We’ve gotten
this far, and we know we’re going to make it. Suddenly it’s not so fun
anymore. The challenge is gone and we know there isn’t much more left
to do. We’ve been having fun making all this progress, and we know it’s
about to end. This is the point when we subconsciously sabotage
ourselves so that we can keep having fun. We are no longer motivated
and we slip back down the slope of progress only to experience the fun
of going up again! (The brain sure works in funny ways, doesn’t it!)
100%
75%
Progress
Time
Figure 15 When you reach 75% of your goal, double it! Avoid the danger area of
boredom, low motivation, and self sabotage.
The irony of setting goals is that you should never actually reach
them! Instead, when you reach 75% of your goal, set a new target even
higher. A good new goal to set is double what you were aiming for. The
paradox of success is that many people who reach their goal feel
depressed or sad. The fun part of success is the ride up, not actually
reaching the top. Therefore, instead of actually reaching your goal (or
what is more likely, getting close only to experience a lack of motivation
or self sabotage) set a new goal when you are 75% of the way there. In
this way, you will continue to grow without ever actually reaching one of
your goals.
220 Breaking Free
SET A SCHEDULE
Congratulations for getting this far! You’ve done what other
people were unwilling to do. You recognized that you wanted to make a
change, picked up a book for more information, and went through it.
You now know more than 95% of people about how to start a business.
You also know the biggest secret of all: it can be done with less money
and risk than most people realize.
Are you ready to take the next step? Only you can make the
decision. If you are still unsure you may want to go back and re-read
Chapter 2. Becoming self employed isn’t for everyone and isn’t without
risk, but for those who commit to it and find passion in working for
themselves, it can be one of the best decisions of their life.
You could read this entire book, do the exercises, and learn lots,
but if you don’t take action it was merely entertainment. The time to act
is now. If you are ready to proceed down this path, it’s time to commit
by scheduling the next steps. As Anthony Robbins says: “If you talk
about it, it's a dream. If you envision it, it's possible. But if you schedule
it, it's real.” As the final exercises in this book, go with me through the
following pages to set a date next to each action you’ll need to take. At
the end you will sign your name to show your commitment, so think
carefully about your answers. If this seems silly, please still try it.
Remember, I thought it was silly too, but when I started writing my
goals, they started getting done. I can’t explain why it works, but I know
it has worked for myself and many others. What do you have to lose?
Develop a Plan for Action! – Making it Stick 221
Signed: ______________________________
Date: ________________
222 Breaking Free
CHAPTER 8 SUMMARY
• A “conference high” follows a powerful learning experience, but
quickly fades.
• Constant positive reinforcement is the best way to make sure that
what you’ve learned stays with you.
o We can clear out the furniture of your mind, but if we don’t
replace it with new furniture, the old will return.
o We are creatures of habit.
o Subscribe to Business 2.0.
o Surround yourself with positive people and build a peer
group.
o Listen to audio books in your car.
o Spend a moment to focus on your goals each day. Build it
into your daily routine such as when you are showering or
brushing your teeth.
• Use the emergency motivator when self doubt is becoming too
strong.
• When the self doubt creature rears it’d ugly head, thank it for sharing
and punch it off your shoulder.
• Be persistent yet flexible by trying many approaches, not stubborn.
• Study time management to be more productive.
o Work from written to-do lists.
o Spend more time on tasks that are important and not urgent.
• Write goals that are in the present, positive, and personal. Make
them measurable and give them a deadline.
• When you’ve reached 75% of your goal, double it. We tend to self-
sabotage when the end is in sight.
Develop a Plan for Action! – Making it Stick 225
Now that you’ve read the book. Here are a few ideas to help
keep you going!
You should also sign up for the RSS or email newsletter on our
website. Once or twice a week we make posts there to keep the
“conference high” going. They could be reminders of material
covered in this book, inspiring success stories, or new ideas that
weren’t available at the time the book was published. What better
way to build constant positive reinforcement into your life?
internalize it.
Moreover, tell someone else about this book if it has inspired you.
Have them sign up for the free newsletter on our website to get
them started, give them your copy to read, or send them their own.
The more friends you have with the right mindset, the better shape
you will be in. If you give someone a gift that changes their life for
the better, they will be eternally grateful, and you’ll help yourself in
the process.
Finally, if this book helped you out in anyway, please let me know! It
made the book worth writing every time I hear from someone whose
life it has changed. I look forward to hearing from you too, and I
wish you all the best!
Sincerely,
Brian Armstrong
brian@startbreakingfree.com
Recommended Resources
• 1and1.com
An excellent place to host your business website.
• Amazon.com
An easy place to purchase books. Each time you see a book you’d
like to read, add it to your cart. Wait until you have at least $25
worth before purchasing and you’ll never pay for shipping.
• Authorize.net
A good service to accept credit cards on your business website.
• Basecamphq.com
An excellent product by 37Signals. Use it to collaborate with others,
and learn from it as a great business model.
• Blogger.com
Get started as a writer in just a few minutes by creating a blog. Drop
dead simple to use.
• Breakthrough Rapid Reading - Peter Kump
Do the half hour exercises in this book every day for a month, and
you can double your reading (and comprehension) rate.
• Business 2.0
The best business and entrepreneurship magazine available today.
• Delawareinc.com
Quickly incorporate your business in Delaware and get setup with a
registered agent.
• Eker, T. Harv
Read or listen to his programs such as the Millionaire Mind. Highly
recommended.
230 Breaking Free
• eHow.com
An excellent resource of “how to” articles on all topics.
• eLance.com
Use this website to outsource work, instead of hiring employees.
• Getting Real
An excellent book by the people at 37Signals on how to start a
business (and how to design great software).
• Getting Things Done - David Allen
A good read to improve your productivity in your home office.
• Good to Great - Jim Collins
One of the best business books of all time.
• Google Search, Adwords, Website Optimizer, Analytics, and
Checkout
You should be using Google as a resource every day. The tools they
provide are second to none for your business websites.
• Guru.com
Another excellent website to outsource work.
• ING Direct
They offer one of the highest yielding savings accounts today. Start
saving for your entrepreneurship fund here.
• Logoyes.com
Quickly and easily design a logo for your business.
• Lulu.com
Excellent resource to self-publish information products at a low
price.
• Millionaire Next Door, The - Thomas Stanley and William
Danko
This book will change the way you think about success and money.
Excellent read.
Recommended Resources 231
• The Secret
An inspiring video to help you stay positive and bring what you want
into your life. It can be viewed at www.thesecret.tv.
• Toastmasters.org
An outstanding organization to help improve your public speaking,
confidence, and management skills. Also a great networking
opportunity. Highly recommended to improve your abilities as an
entrepreneur.
• Tracy, Brian
One of my favorite success authors. His The Psychology of Achievement
is a must read (or buy as an audio program). His other programs on
time management are also exceptional.
• TurboTax
Generally, I don’t like this product, but I recommend it because it’s
the best thing I’ve found so far for doing your business taxes.
• Washington Mutual
A good place to get your business bank account set up with free
business checking.
• Way of the Superior Man, The - David Deida
An excellent book about purpose and following your path in life to
achieve greatness. Can be read by both sexes.
• What to Say When You Talk To Yourself - Shad Helmstetter
A classic book on how negative we are when talking to ourselves,
and how changing this will lead to great success in life.
• Wikipedia
The best and most thorough encyclopedia every created. An
indispensable resource.
Index
37Signals, 164 bartending, 84
accountants, 200 Basecamp, 142
action, 9, 18, 28, 36, 37, 62, 68, beliefs, 67, 93, 208
93, 101, 118, 124, 207, 210, negative, 93
218, 222 benefits, 144, 199
admiration, 121 Blockbuster, 168
affiliates, 157, 160 blogs, 158, 159
alarm clock, 16 books on tape, 70, 210
Allen, David, 215 boredom, 104
Amazon.com, 43, 77 brainstorming, 30, 38, 41, 131,
analysis paralysis, 148 182, 184, 215
anxiety, 33, 34, 57 brand loyalty, 170
Apple, 164 Branson, Richard, 24, 119, 137
Aristotle, 79 Brian Tracy, 35
articles of incorporation, 187, Brin, Sergey, 24
190, 191 bureaucracy, 9, 143
assets, 80, 190, 191 business
assistants, 140, 141 expenses, 180, 200
attraction, 105 name, 182
audio books, 70, 210 old fashioned ideas, 137, 138,
auditors, 180 154, 196
Authorize.net, 198 starting a, 177
badge of honor, 165, 180 typical, 137
bank account, business, 191 what type to start, 28, 137
bankruptcy, 180 Business 2.0, 209
234 Breaking Free
Google, 24, 42, 84, 142, 164, incorporating, 149, 179, 180,
167, 168, 169, 195, 196, 197, 182, 184, 187
198, 218 state, 186
Grand Canyon, 67 independent contractors, 144,
guilt, 9, 93, 95, 104 198, 199
Guru.com, 45, 164, 195, 198 information products, 155, 161
habits, 32, 36, 67, 69, 70, 81, 86, ING Direct, 87
93, 95, 102, 178, 193, 208, Inmates are Running the Asylum,
209, 224 The, 164
happiness, 13, 17, 35, 102, 106, inner game, 177, 178
110, 129, 216 inner voice, 14, 36, 58, 108, 130,
health, 10, 142 213
Helmstetter, Shad, 208 insignificance, 103
help desk, 85 integrity, 167, 170
helping others, 107 interviewing, 144
Henry Ford, 177 investment, 44, 59, 69, 88, 92,
hero worship, 24 139, 157, 164, 193
heroes, 120 IRS, 178, 179, 184, 187, 199
hiring, 144 isolation, 142
cost benefit analysis, 145 job
wrong person, 144 different, 81, 83
home office, 141, 180 loving it, 28, 30
hours, work, 9 not who you are, 127
IBM, 165, 185 journey, 20, 101, 114, 126
ideal self, 47, 48, 65, 124, 129 Kennedy, Dan, 215
ideas, 14, 131, 133 Kennedy, Robert Francis, 57
identity, 27, 73, 127 lawsuits, 194
importance, 103, 106 lawyers, 140, 178, 179
learn new skills, 25, 42, 144, 227
238 Breaking Free
real estate, 38, 80, 87, 157, 158 separate entity, 179
reasons, legitimate, 23, 25, 26, separating business and
31, 36, 166 personal finances, 179, 192,
records, 194 193
recruiting, 144 Seven Habits of Highly Effective
registered agent, 186 People, The, 103, 215
relationships, 10, 16, 47, 71, 86 shame, 8
responsibility, 32, 40, 63, 66, 96, significance, 13, 34, 106, 107,
128 108, 132
Rich Dad Poor Dad, 80 silence, 130
rich people, 79, 80 skill level, 103, 110
Richest Man in Babylon, The, 80 Skype, 141, 142
risk, 33, 137, 138, 165, 179, 222 slave, 95, 139
Robbins, Anthony, 207, 222 sleep, 10, 14, 15, 16, 71
role models, 120, 121 small steps, 32, 48, 74, 81
rush hour, 15, 141, 210, 211 social security number, 185
safe route, 64, 66, 213, 225 software, 163
salary, 194 sole proprietorship, 185, 191
saving, 80, 81, 86 speaking in public, 162
10% of your income, 86 speed reading, 15, 43, 44, 69
savings accounts, 87 spouses, 25, 63
scheduling, 222 Stallone, Sylvester, 39
S-corp, 177, 178 Stanley, Thomas, 94, 155
self doubt, 14, 36, 57, 74, 128, Starr, Linda, 131
148, 178, 211, 212, 213 starting a business
self talk, 208 defined, 179
self-employed starting out small, 164
defined, 154 startup, high tech, 139
Self-Publishing Manual, The, 159 Stephen Covey, 130
Index 241
wealth, 34, 35, 60, 65, 80, 87, 88, work, hard, 40
94, 133 worker bee, 9, 139
website templates, 195 working at home, 141, 142
websites, creating, 84, 157, 194 Worrall, Dan, 126
What to Say When you Talk to writing, 158, 215
Yourself, 211
Wikipedia, 42
work vs. fun, 106, 111
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