A number of studies have indicated that the vast majority of self employed people fail within the first five years. However, the problem with many of these studies is that they don't take the time to explain “why” this is the case. Below is a list of six key factors which lead to failure to succeed as a freelancer, and I list them here so that you can always keep them in mind as you progress on the path to financial and career success. The key reasons why most freelancers fail within the first five years are:
- A failure to pick the right career.
- Improper transition from day job to becoming self employed.
- Running out of money, often due to improper money management.
- A lack of discipline.
- A lack of focus.
- A failure to keep up with the continual changes that are made in technology.
If you investigate most freelancers who fail to learn the root cause, in most cases, you will find that one of the six factors above played a pivotal role. It is absolutely crucial for you to pick the right area to become a freelancer in. Under no circumstances should you ever become a freelancer in any given area simply because it earns a higher than average salary. This is a disastrous mistake. You should always pick a field, first and foremost, because you love it, and enjoy doing it. This should always take precedence before the salary. Ignore this advice to your own peril.
The second cause of failure is an improper transition from the day job to being self employed. Sun Tzu, the ancient Chinese military strategist who wrote the classic book “Art of War,” said that “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” What Sun Tzu meant by this quote is that successful people are those who are prepared for success before they go into battle, while the unsuccessful go into battle unprepared and then try to figure out how to win.
When it comes to succeeding as a self employed freelancer, your ultimate goal must always be to transition from being an employee to being self employed and then an investor. You should have no other goal but this. However, it is crucial to make sure you transition properly from being an employee to being self employed, because if you do not make the proper transition, you will not succeed. The good news is that we explain step-by-step in later chapters how to do this, and the Ultimate Internet Freelancer is the only book on the market that provides you with such a detailed blue print.
One thing that you may find to be interesting is that there is a fourth level beyond that of being the investor, and this is becoming a capitalist. The difference between a capitalist and an investor is that once you become a capitalist, you begin investing in the ideas of others and start up companies. At this point you will have the capital to function as either a Venture Capitalist or Angel Investor, but only those who have mastered the investment category can make this transition. You also have the option of becoming full blown big business owner, where you have a large number of people working for you.
The basic theme behind this book is that it is best to take gradual steps towards becoming successful and many times success is measuring by the monetary achievements one attains. By taking these steps, you reduce the risk that so many people take when attempting to better their lives financially. The genius of the Ultimate Internet Freelancer is that this book is highly versatile. While we focus specifically on the usage of the Internet in order to make large amounts of money as a freelancer, the truth of the matter is that anyone can make use of this book, whether they're a web designer, freelance programmer, attorney, or doctor. Its principles can be applied to any field where an individual is self employed, and it is a bullet proof guide to success.
Once you understand the steps towards success, it becomes easier to reach, but the key thing that you must always keep in mind is that the path of succeeding as a freelancer will be long and arduous. It will not be easy, not by a long shot, but the good news is that this book can be thought of as the Bible for freelancers. It is a powerful guide that walks you through a road that many see as being perilous, and filled with risk. Many people spend their entire lives working for others, because they are afraid of failure, and they are fearful of attempting to start their own business.
Many of these people consider the idea of starting your own business to be “risky.” However, the fact of the matter is true risk is working for someone else, a corporation that puts profits ahead of employees, a corporation that is willing to outsource, downsize, and cut corners in numerous ways in order to compete financially. When you work for someone else, the key thing you must always remember is that the person you are working for will always look out for their own self interest first, and if this means they need to lay you off, then so be it.
By becoming self employed, you are making the decision, first and foremost, to look out for your own best interests, and this is critically important. While it is true that becoming a freelancer is risky, anything that is worthwhile involves some sort of risk. For instance, each time you get in your car to drive someplace, there is a risk that you could get into an accident, but does this stop you from driving? Of course not. There is a difference between a risk and being a risky person. Driving a car involves risk, but attempting to drive a car when you don't know how to drive is risky. Do you understand the difference?
Attempting to become self employed without having the proper knowledge is indeed risky, but becoming self employed when you have knowledge and a solid blueprint is not risky at all. By purchasing this book, you've made the decision to take on risk, but the rewards of the risks are well worth it. It is first important for you to believe in yourself, to believe that you're capable of achieving anything you put your mind to. This is a crucial component towards becoming successful, one that cannot be overstated.
Most people fail when attempting to become self employed because as Sun Tzu said, “they go to battle and then try to win.” The successful person has a plan laid out long before they go onto the battlefield, and they are willing to make adjustments to this plan as needed once they are engaged in battle, while still keeping their singular goal in mind at the same time. This is referred to as being “grand strategy.” To become a grand strategist when it comes to self employment, you must always keep your goals clear.
The beautiful thing about being self employed is that the path one person takes may be completely different from the path taken by another, while both paths will inevitably converge on the same destination, and this is the destination of financial independence and riches. Regardless of whether you're a programmer or a doctor, a computer animator or a freelance writer, as long as you follow the strategies and directives laid down in this book, you will be eons ahead of those who try to “learn as they go”, or figure out things on their own.