I started meditating last year, and it completely changed my life. I’ve always had a nagging inner voice built off my fear and insecurity. It’s completely gone now, and I’m in control. I’m no longer a victim of my emotions, and no longer have episodes of anxiety or depression. I sleep more soundly, I’m more productive, I have better relationships, I manage stress better, and I’m more focused. All of this because I’ve learned to train my brain.
In today’s digital age, we live in a noisy world that’s full of distractions. Our brains are constantly in overdrive. Even worse, we get addicted to the need for distraction, and are constantly checking our phone for a “like” or status update that makes us feel good. This isn’t healthy.
Meditation trains your brain to take a break, calm down, and ignore the noise. You learn to observe your thoughts and emotions, without having to react to them right away. For me it has had two profound effects. First, my brain is clearer and more focused, and I’m able to prioritize and be more productive. Second, I’m no longer a slave to my emotions. I can recognize a negative feeling right away, and take a step back without having to respond. This keeps me from having a knee-jerk reaction, and often helps me identify and solve the root cause of discomfort.
What is Meditation?
Meditation is like exercise for the brain. By making it a simple habit, you can make your brain more resilient and stronger. It can also come in handy to release off some mental steam when you’re feeling stressed.
Meditation has been around for millenia, with written records dating back to 1500 BC. It’s developed from a Hindu / Buddhist practice into a powerful personal productivity trend that’s caught on with many successful entrepreneurs and executives.
There are many ways to practice it, but it’s basically an exercise to focus on your breath, clear your brain, and be present. You may have thoughts and feelings that come to mind, and you practice acknowledging them and letting them go.
TED Talk about Meditation
How To Meditate
It’s much easier to start meditating than you think, with guided instructions that will talk you through it. All it takes is 3-10 minutes, and a free app on your phone.
Step 1: Download a Guided Meditation App
I’ve tried many guided meditation apps, and I have two favorites. I like the voice of Meditation & Relaxation: Guided Meditation (Android, Apple) and the variety of exercises. I’ve also tried Headspace: Meditation & Sleep (Android, Apple) which has a lot of different exercise themes, but the paid version is expensive and it gets repetitive. Both have excellent free courses that will teach you how to get started, and I suggest that you try both of them. If you’re not sure which to try, Meditation & Relaxation has a female voice, and Headspace has a male voice with a British accent. Pick whichever sounds more appealing 🙂
Step 2: Meditate
Next you need to find a time and place to practice your meditation where you won’t be interrupted. Perhaps locking your office door, in bed in the morning, or on the sofa after everyone has gone to bed. You don’t need the perfect place or the perfect posture, you just need somewhere that you’ll be comfortable and left alone.
Step 3: Make it a Habit
Once you’ve tried a few times, you should seek to make meditation a habit. I suggest to give yourself a 30-day challenge and see if you can do it (almost) every day! You can use an app like Habit Bull (Android / Apple) to track your progress. See my article on The Easy Way to Build a New Habit.
Ideally you should look for a time when you can make it a habit. This will vary depending on your schedule, but it might be first thing in the morning, in the afternoon, or right before bed. For me, I developed a habit of doing it in bed first thing in the morning, so that I could start my day off with intention.
Lastly, remember that meditation is about progress, not perfection. You will have days when you can’t focus, and that’s OK. It’s still better to practice than to skip it.
When I got serious about quitting my job and going into business on my own, I didn’t know where to start. I looked into franchising because it provides an existing business model and a lot of support.
I bought a massage franchise, grew my location to be profitable, and built up its reputation. I had a manager to run the day-to-day operations, so that I could focus on marketing and growing the business. Most of the time I only had to work about ten hours per week, which I could do from anywhere. I only went in to periodically check on the business and get a free massage. Five years later, I sold the business for a profit.
If you have no experience running a business, or even if you do, a franchise can be a great way to go. Rather than going it alone and figuring everything out for yourself, you partner with a parent company (the franchisor) who provides everything you need to get started.
Franchising is a business model where a parent company, called the franchisor, licenses the use of its business systems and trademarks to independent companies, called franchisees. The franchisee invests their own money to open an independently owned and operated business, following the rules and model of the franchisor. Franchising is regulated by the Federal Trade Commission in the United States, to help make it a safer investment for franchisees.
1. Proven Business Model & Business Systems
When you buy a franchise, you are copying a business model that has proven successful in other locations. You will get many business systems that are already designed for you, so you don’t have to reinvent them, and there may be many that are centralized for economies of scale.
For example, my massage franchise came with a membership business model where I get paid on the first of every month, before my bills are due. They have systems for booking appointments, customer service, marketing, employee training, key performance indicators, and much much more.
Compare this to starting your own business, where you have to make every decision yourself and don’t know what will work.
2. Training & Support
Franchises have a training program for new owners, as well as ongoing support. They have a vested interest in making you successful.
I knew nothing about running a business nor about the massage industry before I started my business. The franchisor provides a week of of classroom training, site visits, workshops and conferences, and tons of online resources.
3. Network of Owners
There is also a network of other franchise owners, who you can always reach out to for help. A good franchise will host regular workshops and conferences to get the owners together.
I got many of my best ideas from other owners, including growing my gift card sales from $12k to $50k in just two years!
4. Semi-Absentee / Manager Run
Some franchises are designed to be semi-absentee, which means that the owner isn’t there every day. They are run by a manager who handles the day-to-day operations. This leaves you, the owner, to focus on high level aspects of the business such as marketing, strategy, and finance. Or you can keep your job, spend more time with your family, travel the world, or become a ski bum. In fact, many franchises are designed especially so that an owner can run multiple locations.
My massage business was exactly like this. I had a manager who took care of all of the employees and customer issues, and freed me up to work on the aspects of the business that I liked – marketing to get in new clients and strategy to grow the business. I was often able to run the business in around ten hours per week, and could work remotely while I traveled.
5. Brand Awareness
Some franchises already have national brand recognition, and your location benefits from the marketing of neighboring locations. It is virtually impossible to build up this level of brand awareness on your own.
6. Business Disclosure
The Federal Trade Commission requires franchisors to share a lot of useful information to potential buyers. This is put in a document called the Franchise Disclosure Document (FDD), which is updated and audited annually. This includes the estimated initial investment, upfront and ongoing fees, franchisor assistance, territory, contracts, etc. This can help you understand the costs of the business, what the franchisor provides, and your role in running it.
Furthermore, before getting into a franchise, you can speak with other owners who can tell you what it’s like to actually run the business. They can tell you how much money they make, what the day-to-day operations are like, and how it is to work with the franchisor.
There is nothing like this if you start a business on your own.
7. Financing
If you don’t have enough money to start the business on your own, it’s much easier to get a Small Business Administration (SBA) loan with a franchise. This is because you can piggyback on the reputation of a national brand, so banks are more likely to approve a loan.
Challenges of Franchising
Like any business, a franchise is not a guaranteed success. It may also have higher costs than running a business on your own, as you will have to pay an upfront franchise fee, ongoing royalties (usually a percentage of your gross income), and may have higher expenses. That said, you’ll be able to anticipate many of the costs (from the Franchise Disclosure Document) and many franchises have a higher success rate than starting a similar business on your own.
There are also bad franchisors out there, who have the wrong priorities and don’t provide the support needed to make their franchisees successful. You should spend time getting to know the franchisor as well as talking to existing franchisees before deciding to go forward.
Getting Started
If you are interested in franchising, I can offer a free consultation. I have run a franchise business myself, and now I work with FranNet to help potential business owners find the right franchise. There are over 3,000 different franchise business concepts out there, but which one is right for you?
I will work with you to understand your goals, strengths, and passions. Then we will explore different franchise concepts, to identify which ones fit your lifestyle and financial goals. You will be able to dig deeper, talk with the franchisor, and understand their business model. You can even speak with other franchisees who are already in business.
There is no cost and no obligation to this service. The only thing that I ask is that if you do engage with me that you follow the process. You can let me know anytime if you decide that it’s not for you.
In order to become an Easy Entrepreneur you need to build good habits, and get rid of bad ones. This way it becomes second nature to do the things that keep you motivated and on track, and you stop doing activities that are derailing you. This guide will show you how.
What are Good and Bad Habits?
Good habits put the “easy” in Easy Entrepreneur. They take activities that used to require thinking and effort, and make them second nature. For example, getting enough sleep and picking my priorities each day are good habits that help me stay energized and focus on growing the business.
Bad habits can derail you, reducing your motivation or taking you completely off track. Procrastination is one that I faced early as an entrepreneur, and alcoholism is a good example that derails many successful executives
Here are some examples of good habits that I’ve built over my years as an entrepreneur:
Meditate
Exercise
Get a good sleep
Eat healthy
Pick my top priorities each day
Take the time to greet and connect with employees
Be grateful for everything I have
Get outside the house
Pay attention to my business finances (P&L)
Chip away at a larger project a little at a time
Here are some bad habits that I’ve reduced or kicked:
Procrastination
Stress
Being unfocused, lazy or unmotivated
Watching too much TV or playing computer games
Spending too much time on social media or my phone
Drinking too much alcohol
Eating out too often
I’m not here to preach specifically what are the best habits for you; that’s up to you at this point. But I am here to tell you that it’s good to evaluate your habits, get more healthy ones, and reduce or eliminate the bad ones.
Simple Steps to Build a Habit
Some of my Easy Entrepreneur habits were built/kicked naturally, but others I’ve had to deliberately practice until I learned or unlearned a habit. I’ve found a great technique to do this:
First, pick one or two habits that you want to work on at a time. These can be something you want to start doing or something you want to stop doing. For example, I am currently focused on getting exercise (of any form) and meditating every day.
Second, download the HabitBull app. It is free, simple to use, and you can customize with your own habits.
Third, enter your habit(s) into HabitBull. You can schedule whether you want to do it every day, 5x a week, or however often you want. I recommend trying to do them daily, even on weekends, to build your momentum! You can also set alerts to remind you to check off your habit.
Now you are ready to go! Check off that you completed the habit each day in Habit Bull, and see how long it takes
Finally, use HabitBull to check off every day when you’ve completed your habit (or avoided your bad habit). It typically takes me 15-60 days to make something a habit, and then I can focus on other habits.
Once you make HabitBull a habit, it becomes easy to make anything else a habit!
Bonus: Making Progress on Big Projects
This also works if you have a big project that you want to make small progress on every day. Remember, like compound interest, your progress builds on itself, so you’ll get big payout by taking small steps each day.
For example, I used HabitBull to start this website and blog. I added a habit of “write” to my daily tasks. Since I do want to give myself some days off, I only require it 5x a week.
What habits are you working on? Do you have any other tips to share with readers?
AirBnb can be a great way to turn your home into an asset that makes money for you. You can share one room with guests, convert part into a private guest suite, or even rent the whole place while you’re away.
Last year we converted an empty room in our house into an AirBnb listing. The room had been vacant, used for storage. That one room now earns me up to $3000 per month, which is enough to cover my mortgage!
Like any business, there’s an easy way and a hard way to do it. Here are some of the lessons that we have learned with the Easy Entrepreneur mindset.
Step 1: Make Sure Its Permitted
Many landlords, homeowner organizations (HOAs), and cities have restrictions on Airbnb and other short-term rentals. This is a shame, as it’s a benefit to hosts and travelers alike, and there is no real harm to the community if you do it right. If you’re not allowed to host Airbnb, I encourage you to lobby your landlord, HOA, or government to allow it.
In some cases, cities also have specific restrictions and taxes. For example, San Francisco requires a permit and limits you to 90 days per year. Airbnb can help you navigate any city requirements.
Step 2: Design The Space
Our clean bathroom
You want your space to be appealing to prospective guests. It should stand out among other listings, and get good reviews. The best way to do this is to design it with the guest in mind. Like any business, this may require an upfront investment.
At a minimum, guests are looking for a place to sleep, with access to a bathroom. They expect it to be quiet and clean. Ideally it would include a great location, parking, self check-in, a private entrance, a desk with wifi, soap and towels, and other amenities. Some guests may want a kitchen, multiple rooms, and even more. That said it doesn’t have to be perfect to be profitable, so don’t be discouraged to start with what you have. For example, we don’t include a kitchen or laundry.
We designed our space just like a hotel room – with a private entrance, studio bedroom, private bathroom, and the standard features you’d expect in a nice hotel. We are close to downtown and the convention center, so many of our guests are business travelers, but we’ve also had people visiting family, going to a Shark’s hockey game, and international tourists.
We added fresh paint, new bed, open wardrobe, heater / AC, desk, lamps, rug, mirror, and other furniture. We had to cut a new door into the bathroom, and we lock the doors to the rest of the house so that they have a private unit.
Here are some considerations when designing your space:
Entrance. If you can provide a private entrance, that’s best. You’ll get more guests at a premium if they don’t have to share space with you. You should also install a smart lock so they can have keyless entry and come and go on their own.
Comfy bed. Get a nice bed frame and decent mattress, and get good linens and extra pillows. We have a very cozy comforter for the winter. Make it a nice place for people to sleep. If you have space, you can also add a sofa bed or futon to allow extra guests.
Work space. Business travelers need a desk with wifi.
Bathroom. Keep it clean and simple. Provide enough towels, toilet paper, and soap/shampoo. Keep extra in a cabinet. We also provide a hair dryer, iron, and extra toothbrush in a cabinet.
Furniture. We provide night stands, an open wardrobe (so they won’t accidentally leave anything), luggage rack, and a reading chair.
Outlets. Make sure there are outlets next to the bed. As a bonus, you could provide a charging station.
Heater / AC. Even though the house has central heat, we generally keep it cool and added a separate HVAC unit that the guests can use just for their room.
Entertainment. If you have cable and a TV, that’s great. We don’t, and we’ve only had one guest ever comment on it (and he said it motivated him to go for a walk and explore the neighborhood).
Kitchen. If you give kitchen access, make sure it’s clean. We have had requests for both a coffee maker and a fridge, but we don’t have them because we don’t want to clean up after messy guests.
Decoration. Keep it modern and simple. People don’t want to see your personal pictures, so you’ll want to hide your stuff and redecorate if you are sharing your living space while you’re away.
Neighborhood Guide. Put together a page with a list of your favorite restaurants and shops that are nearby. This will help if a guest forgot something or wants to find some food.
You may find that there are a number of things that you don’t have but could have to make your space better. For example, we did construction to add a door between the room and the bathroom, and repainted the room. We also had to buy all new furniture, heater/AC, smart lock, curtains, carpet, etc. All-in-all we invested about $4,000 into the space, which we recouped in the first two months. Keep receipts, everything is a business expense!
Step 3: Design Simple Business Systems
The AirBnb platform handles finding guests and payments (including our city taxes), and it’s pretty easy to use. However, here are some other key systems that you should set up:
Communications. You should communicate clearly with every guest, and respond promptly to any questions or requests. Always communicate in a friendly, positive tone. You can set up standard email templates in AirBnb, and just update with the guest’s names, dates, etc. We have standard emails for confirmation (when they book), check-in procedure (the day before they arrive), and check out procedure (the day before they depart).
Nest Smart Lock I can program this on my phone, from anywhere in the world!
Check-In / Check-Out Procedure. Make the check-in and check-out as painless as possible for both the guests and yourself. We installed a smart lock, so that we can change the code for each guest, and so that we don’t have to be there to meet them. It has the side benefit that we know when they go in and out, so we know if they’ve checked in and out. It was well worth the $300 investment, since guests can check in any time of day/night even when we are away.
Cleaning. This is the one part of AirBnb that’s the most work. Our check-out time is 11am and check-in is 3pm, so it needs to be done during that time (or you can schedule a night off between guests, but that’s lost money). Since we work at home, it’s easy for us to do when we are around. However, we travel a lot, and but we’ve been able to find a reliable cleaner using TurnoverBnb. We can easily schedule and manage the cleanings with that app, and it handles the payment to the cleaner.
Step 4: Marketing
AirBnb handles finding guests for you, but you want your listing to stand out so that you’ll have high occupancy. This will help you get a higher price during busy seasons, and help you get more bookings during quiet times.
Welcoming flowers
Take good pictures. Hire a photographer or talented friend to take pictures with good lighting. It will pay off in the long run. Show the entrance, bed, bathroom, and any other key things that make your place special. For example, we could highlight the snacks we leave and our organic soaps. You could also highlight things in the neighborhood, like nearby restaurants or convention center.
Write a good description. Think about who is your target guest, and look at other listings in your area to get some ideas. For us, we target mainly business travelers, but also get both local and overseas guests on weekends.
Make sure your listing is accurate. When we first put out our listing, we had it as “entire place” which one guest interpreted to be the whole house, and had a fit when he found out that it was only a part of the house (even though there was no shared space). We later found a better classification for our room, and have no issues since. Don’t exaggerate your listing, such as listing it as a 1 bedroom when it’s a studio. People will call you out on it in the reviews.
Surprise and delight. For 5-star reviews, it’s good to give a little extra to your guests. For example, we leave two fig bars and bottles of water in the room (we used to leave two chocolates, until I started eating too many myself). Our soap and shampoo are organic (but bought cheaply from Grocery Outlet). We leave them parking in the driveway if we are out of town or if they arrive late at night. We try to accommodate special requests when possible, like early check-in or to borrow a phone charger, but we’re not afraid to say no when we can’t.
Leave good reviews. When you review your guests, overlook the small stuff and give them good ratings unless something is really wrong. We have only given negative feedback a couple of times, and always try to do it privately to educate guests on standard Airbnb etiquette rather than shame them. Most of our guests have left us great reviews in return.
If you get a bad review, don’t stress. See if there is anything that you can improve for future guests. If not, is there anything you can change in your listing to make it more clear for future guests? Whatever you do, don’t write a long defensive response to the review, as this will just call attention to it and make you look like a bad host.
Next Steps: Get Started Now!
If you have a space that could be an AirBnb, it’s worth starting it right away. Every week you delay is $100s of income! If I had started Airbnb when I first bought my house five years earlier, I’d be $125,000 richer!
While we currently have only one room as an AirBnb, I am working to convert the rest of my house to AirBnb for when I travel. Renting out that additional space could pay for my whole trip!
Do you have any experience or advice as an AirBnb host? Please share.
By renting your home on AirBnb and traveling to a low-cost city, you can get paid to travel! Kuala Lumpur, Malaysia.
I’m currently staying in a studio apartment in Kuala Lumpur, Malaysia. I’ve got a beautiful view of the city from the 16th floor. I’ve got all the first-world amenities I could need – a desk to work at, fast Wifi, clean kitchen, nice bed, climate control, free laundry (in my room no less), gym and pool, and even a cafe in the building! We got a really good deal for about $20/night on AirBnb.
It’s right in the city center. Just outside the condo is a street with bars and a dozen international restaurants. They have burgers, pizza, Mexican, Cuban, Italian, Arabic, Irish, Thai, Vietnamese and many other kinds of food. There are also many local restaurants and cheap street food within a five-minute walk. It’s a ten-minute walk to the subway and posh shopping malls.
For a night out, we went to the sky bar atop the 5-star Banyan Tree hotel. We had amazing views of the whole city, got to witness a great tropical storm from up close, and then the winds blew away the clouds and had great views of the city at night. Drinks were around $10 each, and were quite good!
For a weekend away, we took the bus to Penang island, and rented another Airbnb that was even nicer! It had an infinity pool and was on the 31st floor!
Everyone here speaks English as a second language, so I’ve had no problem getting around.
Business Model
Clean modern condo for $20/night on AirBnb. Kuala Lumpur, Malaysia.
The cost of living here is extremely low. It’s easy to get by with a good quality of life, for less than $50 a day. Here are some example costs in Malaysia:
Housing: $20-40/day in a private, clean, modern AirBnb condo with gym and pool.
Meals: $2 at a local restaurant, $5-10 at a clean air-conditioned restaurant in a modern mall. That includes tax and service, since they don’t have a tipping culture in Malaysia.
Phone: $15 for a local SIM card with unlimited 4G data for a month.
Coffee: $0.40 for local coffee, or $3-4 for a latte.
Laundry: free in my room.
Subway: around $1.
Taxi: $20 for a 50 minute ride from the airport.
Bus: $10 for a 6-hour ride to Penang.
Flight: $600-700 from San Francisco, $23 to Penang.
Meanwhile, back at home, I’m renting out my living space on AirBnb. I net about $80/day just from one room, and I plan to convert another room when I get back for an additional $100/day. I can manage all the bookings from my phone, with self check-in and a cleaner who turns the room over between guests. It’s a very easy side business to run.
The math is simple. I can earn $180/day from renting out my living space, and I spend $50/day to be here. Stay for a week, and it will even pay for my plane ticket!
How To Do This Yourself
First, you need to set up your living space on AirBnb. Make sure this is allowed by your lease, city, and HOA. Here are some tips for AirBnb:
Give guests the whole space. We give them a seperate entrance, keyless check-in, a bed, and a bathroom. We lock the doors to the rest of the house, and don’t give them access to the kitchen.
Declutter your personal effects. Guests feel more comfortable if they don’t feel like they’re staying in someone’s home. Put all your personal stuff in a locked closet or room.
Keep it clean. Do a deep clean or have a professional cleaner to make the space spotless. Make sure to have a good, reliable cleaner who can come between guests. We use TurnoverBnb to find and manage our cleaner.
Invest in good furniture and linens. We bought some new furniture for the room, and have many sets of quality linens. It’s worth the upfront investment to get good ratings.
Second, you need to find a good place to travel cheaply. Mexico, Asia, South America, and Eastern Europe have many cities where you can live in what I call a “first-world bubble.” You can speak English, stay in a modern condo (often with more amenities than home), drink Starbucks, and eat at clean restaurants at an affordable price (well except for Starbucks, which is expensive everywhere). Of course it’s more fun if you venture outside your comfort zone, but it’s not required.
Some travel tips:
Location, location, location. You want to be central, in a safe (tourist) area, and near public transportation and restaurants. You don’t want to feel isolated and stuck.
Stay comfortable. You can find some beautiful places on Airbnb, whether you want a historic room or a modern condo. I like having a gym in the building when possible.
Manage costs, but don’t skimp. I like my lattes, so I was OK to pay American prices for coffee, but save on everything else. You can afford to treat yourself to some home luxuries.
Set up a routine. If you plan to work and travel, it takes extra effort to keep a routine that includes dedicated time and space to work. Of course if you’re just taking vacation, you don’t have to worry about this!
Please share comments if you’ve tried this yourself and have any additional tips. And for those of you who aren’t allowed to rent your living space on AirBnb, I’m sorry – lobby your landlord, HOA, or government to allow it!
Anyway, my two hours of work is done for the day. Time to go for a walk and find some local food.
“It is better to aim high and miss than to aim low and hit.”
Les Brown
When I was in my 20s, I just went wherever life took me. Luckily I had good parents who guided me into a good education and career, but very little of it was by my own design. I graduated from college and got a really good job with IBM, mostly through luck rather than intentional design. I enjoyed the feeling of being a “free spirit” who just went where the wind blew. However, it didn’t always take me where I wanted to go, and I often struggled.
Soon after I turned 30, I took an amazing vacation that left me with an empty feeling on the way home. I wasn’t too excited about going back to work, and I wanted something more out of life. I started dreaming about my perfect life. I wrote down a few short things, and posted them on Facebook when I got home.
Earn $10k/month passive income
Have a “job” that I can do in a few hours a day, anywhere in the world
Find a soul mate
Own a house in Asia
Have good health
Then I promptly forgot about them. They were just dreams of some far distant future. And besides, I wasn’t the kind of person who planned my life, I just went where the winds took me.
A few years later I came across my Facebook post and I was quite surprised. I had bought three rental houses, all of which were profitable and brought me passive income. It was nowhere $10k/month, but it was a good start. I had met a great partner, who I’m still with ten years later and counting. I had resolved the health issues that I had been dealing with, and I went to the gym regularly. I didn’t have a house in Asia, but I also no longer desired one. I still had a regular job which was 40+ hours per week, though I had started traveling more and working remotely some of the time.
For someone who had never set goals, I was surprised that I had accomplished a number of them without even trying!
I learned some valuable lessons from this:
It’s amazing what you can accomplish by setting goals. For the first time, I was in the driver’s seat in my life.
Write them down, and put them out there for the Universe (and your social network) to see.
It’s better to dream big and start small than to not dream at all. I still have’t accomplished 100% of these goals, but I have moved forward on them and have added and accomplished many more goals in the process.
You don’t have to obsess about them to make them happen, though it doesn’t hurt to review them from time to time.
It’s OK to change your goals. Life is not a linear path and your dreams can change too.
Since then, I make personal goal setting a regular process, especially at the beginning of each year. I have set and reached (and changed) many other goals, and accomplished much more in life than I had ever dreamed in my 20s.
What are your goals? What have you accomplished? Share them in the comments here for the Universe to see!
Enjoying life in Costa Rica, while my business is working for me.
“Self-employed people are four times more likely to be millionaires than those who work for others .”
Thomas Stanley, The Millionaire Next Door
My former employer once ran a job recruiting campaign with the headline “why work?” I think they were trying to convince people why to work for them, but I took it literally. I quit my job and started a couple of businesses. Now I’m semi-retired with a couple of businesses on the side, and help other people who want to accomplish the same!
Why work? Well, we all need money to pay our bills and survive. For most people, the easiest way to get money is to have a job where a business will pay you for your time and effort.
But there’s another way. Instead of working for someone else’s business, why not have your own business that works for you? That’s right, a well-run business is an asset that works for you. It creates value that people are willing to pay for, and as the owner of that asset, you collect the income. That doesn’t mean that it doesn’t take work to create and run a business, but ultimately you can build it into something that works for you.
Here are some of my favorite reasons to run a business:
You are the boss. You don’t have to answer to a bad boss, and you don’t have the stress of performance reviews or arbitrary deadlines. No more corporate politics. You make the rules.
Freedom. If you set up your business right, you can work where you want, when you want, and how you want. I’ve run mine from cruise ships, on an African safari, and hiking in the French Alps – all while owning a profitable business with 25 employees.
No income limit. Most billionaires are business owners. Your paycheck isn’t limited to how much (or how little) your boss wants to pay you. This is not to say that it’s always easy to make money, but there is no glass ceiling!
It’s never boring. I’ve learned so much and grown as a person since I started my first business. I’ve learned hard skills like marketing, accounting, and strategy, but also soft skills like leadership, customer service, and diplomacy. Every day is a new experience!
More family time. Since you work for yourself, you can also spend more time at home or traveling with your family. No more missed soccer games, and more time to enjoy life with my aging parents.
More hobbies. You have time to learn other things too. Since quitting my job, I’ve picked up piano, yoga, and cooking, to name a few.
Community. Your business is also a bigger part of a community than you are as an individual. It’s fun being part of something bigger!
Career growth. It’s basically jumping from wherever you are stuck on the career ladder right to CEO, COO, CFO, CMO, and CTO (among others). As an entrepreneur, I’ve learned how to be an executive. I’m also 10x more driven, focused and productive than when I was working for someone else.
Pride. Your business is yours. You created it and you own it! Every time I drive past my store, look at my website, talk with my employees, or see one of my ads, I feel the pride of ownership.
Legacy. Your business is an asset that you can pass on to your kids, or sell, and it can live on.
Business ownership isn’t for everyone, and it does take planning and work to build your business the right way and create the life that you want, but that’s what the Easy Entrepreneur is all about!
Wouldn’t it be nice to retire when you’re young enough to enjoy it, and have the energy to travel the world or spend time with your family? That’s what the Financial Independence, Retire Early (or FIRE) movement is all about.
I hit my retirement number in 2018, still in my early 40s. If I wanted, I could retire and never work another day in my life. However, I like making the world a better place through business, so I’m choosing semi-retirement instead. Now I work on what I want, when I want, and where I want — and travel the world the rest of the time (hi from Los Angeles at the moment!).
There are three basic steps to Financial Independence, Retire Early:
Develop good financial habits.
Know your retirement number.
Prepare for retirement.
Develop Good Financial Habits
While you might think the easiest way to get rich is to win the lottery, many lottery winners don’t have good financial habits and go broke again! The best way to get rich is slowly, through good financial habits. If you don’t have these, I recommend reading some books on personal finance, such as The Millionaire Next Door or Rich Dad, Poor Dad.
Here are some of my favorite financial habits that I have honed over the last decade:
Spend less than you earn. This seems obvious, but most Americans don’t get it.
Get out of bad debt. Credit card debt is for suckers. Pay it off first and never borrow from a credit card again (I haven’t in 20 years). Then pay off auto loans and other personal debt, then student loans. Loans that let you leverage appreciating assets, like a home mortgage or a business, may be worthwhile (I have several mortgages, but chose not to go into debt for any of my businesses).
Develop multiple streams of income. I have rental properties, an Airbnb room, stock investments, and three businesses right now. Even if I didn’t work, I’d still have income coming in. And if any of my nest eggs breaks, I still have others.
Invest wisely. Take advantage of compound interest and have your money make money! Don’t try to time the market, but don’t be afraid to go opposite of what everyone else is doing.
Know Your Numbers
Now that you’re saving money, you need to know two numbers:
Your net worth. This is the total value of all of your assets, including cash, money in the bank, home value, credit card debt, . I use mint.com for this to track it daily.
Your retirement number. This is the amount of money that you can live on for the rest of your life. There are a number of ways to calculate this, but I like using the 4% rule. Figure out how much money that you can live on for the rest of your life, and then multiply it by 25. For example, if you need $50,000 per year, then you need $1.25 million saved. You can put this in a fairly safe account that earns 4% a year, and never have to work again! It’s even safer if you have passive or semi-passive income, such as rental properties or a business.
Plan For Retirement
Once you are getting near your retirement number, you should start planning for your retirement. Here are a few things to keep in mind:
Lifestyle – What is the lifestyle that you want when you retire? Do you want to buy an RV, live abroad, or play computer games 24/7? Do you have a spouse and are they onboard? What about children?
Healthcare – The Affordable Care Act may not have made healthcare as affordable as we’d like, but it does put a limit on health insurance costs so that you won’t go bankrupt, especially if you have a pre-existing condition.
Borrowing money – It’s much harder to borrow money, especially large amounts like mortgages, when you don’t have a steady stream of income. If you have a mortgage, you should consider refinancing before you quit your job or sell your business.
Of course, when you reach your number you may be having so much fun that you don’t want to retire! That’s what I’ve done, and it’s one of the best parts of being an Easy Entrepreneur.
Relax and eat for free in an airport lounge. Oman Air Lounge, Bangkok, Thailand.
One thing I like as much as traveling is getting a good deal. There are some great credit cards out there for business owners, and the Chase Sapphire Reserve and Chase Ink Business are my two favorites.
I have earned thousands of dollars of free travel through this combo, and taken free flights around the world!
I have also upgraded my travel experience with free TSA Pre, free Global Entry, free lounge access, and free restaurants at many airports.
Chase Sapphire Reserve
The Chase Sapphire Reserve has become my go-to credit card. Here are some of my favorite perks:
50,000 point bonus for signup. These are worth $750 in free travel! While the points can be redeemed for cash at a rate of $1 per 100 points, they can also be redeemed for travel at a rate of $1.50 per 100 points. You can also redeem points at a 1-1 rate for miles/points with different airlines and hotels, including Southwest, United, Jet Blue, Marriott, and Hyatt.
Free TSA Pre and free Global Entry ($100 value). This makes getting through the airport so much quicker, and I don’t need to get there as early.
Free Priority Pass lounge access, for you and up to two guests. This makes the whole flying experience so much better, as you get to wait in a quiet and calm place. They also have free food and free drinks, and I’ve had many meals courtesy of the lounges. While the quality varies in the US, there are some truly amazing international lounges.
Free airport restaurants, with up to $56 off the bill for you and a guest, at select restaurants through the Priority Pass program.
Earn 4.5% back on restaurants and travel, when you spend it on redeeming travel. This is because you earn 3 points per dollar in those categories, and can redeem the points for travel at 1.5x. You can’t beat that!
Earn 1.5% back on everything else. You earn 1 point per dollar, but these are redeemable at 1.5x on travel.
At the time of this writing, the Chase Sapphire Reserve comes with a hefty $450 annual fee, but it also comes with a $300 annual travel credit (which is automatically taken off your bill) so it’s really only $150. Unfortunately the annual fee on personal cards is not tax-deductible, or you’d get the $150 back off your taxes. However, it’s a no-brainer to pay $150 for $750 in free travel the first year, and you’ll make it back in earnings and lounge access other years.
When linked with a Chase Sapphire Reserve, this card is even more valuable – because the Ink redeems points at a rate of 1.25% when spent on travel, but you can transfer the points to your Sapphire Reserve and redeem them for 1.5% on travel. It’s very easy to link the cards by calling Chase.
Here are my favorite perks, when linked with a Chase Sapphire Reserve:
80,000 points for signup! These are worth $1200 when transferred to the Sapphire Reserve and redeemed for travel, or $800 cash, or 80,000 miles/points with various airlines and hotels.
20,000 points referral bonus when you refer a fellow business owner to sign up (including yourself if you have more than one business).
4.5% back on business categories, such as travel, internet, phone, cable, shipping, social media ads, and web search ads. This is when you convert the points to the Sapphire and redeem them for travel; otherwise they are only worth 3% back.
Together, these credit cards make the perfect pair for traveling entrepreneurs. Not only do you get $1950 in free travel as a sign-on bonus, but you get 4.5% back in a number of useful categories, free lounge access, free TSA Pre, and free Global Entry! They have totally changed my travel experience, and I’ve lost count of the number of free trips and hotels that I’ve gotten from the pair.
Perched 4800 feet above the valley floor.
Half Dome, Yosemite, California.
Fear is one of the biggest obstacles in business and in life. Most of the time, we avoid what we are afraid of, and miss out on great opportunities. What if you could change that?
For example, I was really afraid the first time I had to fire someone at my business. I hate confrontation and I was so afraid that I chickened out. I let that employee keep working until they finally left on their own, even though we had a lot of customer complaints and it was bad for business.
The second time, I faced my fear. It was an HR issue and I had no choice. I rehearsed what I was going to say ahead of time, and surprisingly it went far better than I expected. While I still felt bad about firing anyone, it was the right thing to do for the business.
Fast forward a few years and a few more firings, and I have conquered my fear. I actually felt good the last time I had to fire someone. It was a new employee, who came in with a bad attitude and lazy work ethic. After giving her coaching and a few chances, it was clear that she was bringing down the rest of the team. It was a simple decision, painless process, and the right thing to do for the business. I felt good that I stood up for my business and the rest of my team.
Conquering fear is one of the most powerful tools of any entrepreneur. When you get good at recognizing fear and beating it, it becomes fun!
Understanding F. E. A. R.
My favorite definition of fear is that it’s “False Evidence Appearing Real.”
Fear is a strong emotional response to a threat. It comes from an evolutionary response to real dangers. However, unless there is a tiger chasing you right now, that threat is usually something that you imagine could happen in the future. It hasn’t happened, and in fact there is a good chance that it will never happen.
Unfortunately most people’s response to fear is usually to avoid the situation completely. They are afraid to ask out that boy/girl in high school, so they never try. They are afraid of looking stupid, so they avoid that networking event where they could meet their next client. They are afraid of failure, so they never start a business. In the end, they settle for mediocrity and miss many opportunities to live a great life!
How We Handle Fear
There are three ways to handle fear:
Avoid it completely. This is the most common response. Live a sheltered life and never try anything out of the ordinary. Definitely don’t be an entrepreneur! Please stop reading this blog if you prefer to take this approach, and I suggest to hide under your desk in case an asteroid falls on your house.
Mitigate the risks. Think about the worst outcome, and think of ways that you can avoid it. This is useful when the thing you are afraid of is out of your control, like a recession or a key employee leaving.
Overcome your fear. Face your fear, learn new skills, and expand your comfort zone so that it stops being something you are afraid of. This is useful when your fear is something that’s out side your comfort zone, but in your control, such as a fear of public speaking or that you’re not good enough to succeed.
Mitigating Fear
This process works best when the fear is something that’s out of your control, such a key employee leaving. Here is an easy process to mitigate fear:
Identify your fear and write it down. Specifically, what can go wrong? Write this in the first person, with as much detail as possible. For example, “I’m afraid of losing a key employee. Bob, because he handles all my marketing. His mother is sick and he wants to move to Seattle to take care of her.”
Brainstorm solutions to stop or lessen the damage, should this event occur. Write these down. For example: “1. Pay Bob more, so that he can’t afford to leave. 2. Spend time with Bob to understand what he’s doing with marketing so that I can carry it forward if he leaves. 3. Hire someone right away to learn what Bob does and take over his work. 4. Let Bob work remotely.”
Pick the best solutions and write them out as a positive affirmation. For example, “If Bob leaves, I will let him work remotely to carry on his work while I hire someone to take his place.”
Remember, fear is usually of things that haven’t happened yet! So you may not need any of these solutions, but now you have them in your back pocket in case you need them. You can even implement one as a pre-emptive strike, to keep your fear from happening.
Overcoming Fear
This process works best when your fear is something that’s outside your comfort zone, such as a fear of public speaking or a fear of failure. Here is a simple process to overcome your fear:
Write down what you are afraid of. Write it in the first person, so that you own it. For example, “I’m afraid of going to networking events because I feel awkward.”
Brainstorm ways you can improve your skills and expand your comfort zone to conquer your fear. For example, “I can read blogs or a book on making small talk, and practice asking questions. I can come up with a slick 30-second pitch to describe my business with passion. I can go to a Toastmaster meeting where I can practice speaking in front of others until I’m comfortable.”
Now imagine the new you who’s conquered this fear. Write this down, using the first person and present tense, such as “I love going to networking events because I get to learn so much about people.”
Think about your biggest fear as an entrepreneur. What’s holding you back? Now decided whether you want to mitigate or overcome this fear. Follow the process and write the results in the comments.
There is no judgment here! The only way to move forward is to move forward.
