If I had a dollar for every time I heard the risk/return principle…… actually scratch that. It turns out that in a way I was paid to listen to every time it was explained to a client and I am nowhere as rich as I had imagined*sigh.
Now I don’t want to blow your mind, but this principle actually can be applied to life outside of financial services. Consider becoming self employed. Now that shit is super risky and if you don’t know what you are doing, it’s likely to result in all risk/no return.
I often am contacted by Paraplanners looking to make the jump and wanting advice. So here are a couple of tips:
Be prepared to have no income – being self employed, you will see massive fluctuations in your cashflow. There may be times where there is no money left after paying the expenses so build up a bit of a cash buffer and discuss the implications with anyone who may be affected by this.
Expect long hours and no social life – weekends will become a distant memory and your work may start to consume your life. If you have a partner and/or children/very needy friends, I recommend you set expectations early so no one is disappointed.
Get up to scratch on your reporting requirements – the Tax man doesn’t care if you are new to the game. You need to know your reporting obligations and make sure you set that tax money aside.
You will need to ‘Tony Robbins‘ yourself - trust me, that warm bed is super hard to roll out of in the morning when you don’t have to be at work by 8.30. It’s going to take some massive amounts of motivation to get started and keep going, especially when times are tough. Set boundaries for yourself and stick to them.
I know the above may be a tough pill to swallow but small business is hard. Be fully committed and expect to work your ass off. The sweet things like working from cafes, taking long lunches, the satisfaction of telling someone to “stick it” when you don’t want to work with them will all come with time but for now, its heads down, bums up.