A Great Book to Read

I must recommend Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust. The principles mentioned in the book are applicable to many aspects of your life. Time and time again it seems that people are always trying to gain something from a relationship. You will be much more successful in both your personal and business life if you put others first.

How Did They Do It

An interesting read from the Reuters Blog on how 4 young entrepreneurs made it to a million dollars by the time they were 21-24. A common theme is that they are not actually concerned with making a lot of money initially. The Entrepreneurs are just pursuing a business that they are passionate about.

Think Outside the Box

1) Don't Start Without a Business Plan

Once you have figured out the WHY, you will need a clear plan of action. A business plan allows you to clearly define your goals and how you intend to reach them.

2) Don't Get Stuck in the Past

While it is important to retain the value from your past experiences, you don't want to let them stand in your way. Learn from your past and plan for your future.

3) Don't Fall into a Discount Trap

BELIEVE in yourself and your product. Unless you plan on opening a business the size of WalMart, do not try to compete solely on price. Differentiate your product or service from your competitors and win customers that way. It may take longer to acquire customers but you will have a much more viable business in the end

4) Don't be Afraid to Fail

You can not let fear become a barrier to your success. It is inevitable that your business will hit a bumpy road on its way to success. Learn what doesn't work and adjust your sails to the wind.

5) Think Outside the Box

Be willing to approach things differently. Use your creativity to gain an advantage on your competitors.

How Much Are You Worth??

It is completely understandable to be nervous about venturing out on your own. It is reasonable to expect to earn at least the same amount of money that you are currently. Here are a few things you should consider when setting your price.

1) Set a reasonable goal as to how much you would like to earn. You may want to check out salary.com to find comparative wages.

2) Don't forget about Uncle Sam. You will be responsible for paying your own taxes. A good rule of thumb is to add a factor of 15% to your salary.

3) Include your overhead expenses. These are expenses such as rent, utilities, phone, advertising, etc...

4) Figure out your billable hours for the year. You don't want to simply multiply 40 hrs per week x 52 week in a year. Include holidays, sick days, and vacation. Don't forget to include non-billable hours. This will be time you spend hunting for new clients or doing paperwork.

5) Add up your operating costs and divide by billable hours. This will give you your estimated hourly rate.

Almost done...

6) Factor in a profit margin. Somewhere betweeen 10% and 30%. This will come in handy if you ever choose to expand or get a bank loan. It also doesn't hurt to build a little money up in the bank in case business slows down at all.

Calculating your hourly rate this way is important if you want your business to succeed because it is based on your actual costs and needs. While you will see others with lower hourly rates, dont be scared into competing on price. Sell yourself and the service you are offering.

The Golden Circle

Simon Sinek gives a great talk on how great leaders inspire others. He talks about what he calls "The Golden Circle." At the very heart of the circle is WHY?. Why do you get out of bed in the morning? Why are you doing what you do? People don't want to be sold with WHAT you have rather they want to know WHY you do it. This is a must watch for anyone considering starting their own business. Please let me know your thoughts.