Digging Your Well BEFORE You Need It

Just as with the seasons, Spring always follows Winter and Summer always follows spring, this pattern has been around for most if not all of our existence on this planet and most certainly in our lives. 

The same patterns tend to take place with our economies.  We can't predict our economic summers and winters as accurately as we can the weather seasons but we know with certainty that they exist.  We know that bad times will always follow good times.  So why do we not pay attention to these economic cycles like we do with the weather?  We prepare for winter by putting snow tires on our cars but most people don't prepare for an economic winter by making sure they have a backup plan in case they lose their jobs.

In the stock market when most shares are rising it is called a Bull Market.  When the shares are declining it is called a Bear Market.  There is a saying amongst stock brokers that one must pay close attention to.

"The Bull walks up the stairs while the Bear jumps out the window."  This means that the market drops faster than it rises.

What does this mean for you and me?

When everything is going well, we tend to get lulled into a state of complacency. We love our jobs or at least we think we are going to have our jobs forever.  Markets seemingly collapse overnight and companies panic and lay off people.  They have to get lean or lose money.  You lose your job and because most people don't have a backup plan they end up losing their homes as in 2008 and things get really bad.

When things get ugly is when most people try to build a business on the side.  That is akin to digging your well when you have run out of water and are thirsty.  I can tell you from experience that building a business when you have no money or when you are in panic mode is never a good idea.  The best time to dig your well is BEFORE you need it. 

For almost four decades I have been telling people to make sure they have a job and make sure as well that they are building a business on the side.  So what should you build?  In my opinion you have 3 basic options:

1- Do what you love.  If you love making candles or jewelry or like to knit, build a business around that.

2- Partner with someone else.  Maybe you have not figured out what you love to do. Or maybe you are better at sales and marketing than creating something with your hands.  Then go ahead and find someone who is making candles and jewelry and partner up with them to increase their profits.

3- Franchise!  If you have the money get a franchise as it eliminates some of the risk because of the support and systems you get from the franchisor.  If you don't have the money get involved with a good network marketing company for the same reason.  They have the systems and support in place.

The main thing is to DO SOMETHING.  Make something happen on the side as insurance against you losing a job.  There are of course many other reasons to build a business on the side like padding your retirement account, having the ability to travel more and leaving a legacy for your kids and grandkids.

You can also lower your risk by seeking mentorship from a friend, family member or a coach like me for Ideas, strategies, planning and implementation.  Just make sure they have been there and done that before.  Everyone has advice and the worst advice is the free advice you get from people who have just read something in a book.  On this subject let me leave you with some advice from Anthony Robbins.

"Everybody's got a tip.  Everybody has an answer. But I'll give you a hint: they rarely have one that will really help you. People without any knowledge or mastery will promote their own theories and criticize others' strategies with such vehemence, even though they have no proven track record.  It's like a psychologist on Prozac telling you how you can have a fulfilled life. Or an obese person telling you how to get thin and fit. I don't know about you, but I'm sick and tired of hearing from all these "experts" who tell us what to do, but haven't produced results in their own lives."

Go ahead and make 2015 the year you look back on as the year that set you up for a life of sustainable financial abundance.