Free Agent Realities Copyright 2002 Paul BednarWhen you jump into
free agent arena, it doesn't take long to figure out a new set of rules and expectations exist. Those who know and embrace these new realities thrive. Those who are either not aware or ignore them fail.
Here is a list of 5 realities that are critical to success of any free agent.
1. A different skill set is required
No longer is it enough to only know your area of expertise. That's for employees. As a free agent, you need something different. You need a new skill set that has both technical expertise and knowledge to run a business. Most people do not have any trouble with expertise aspect but have significant difficulties with business functions. Some of necessary business skills are:
* Marketing
* Writing proposals
* Giving effective presentations
* Managing finances
* Adhering to various state and federal rules and laws
You have to be committed to continuously learning a lot of information and comprehending it within a short period of time. If you would rather have a company to look after you and provide structure, you should stick to your current job.
2. Cash flow is name of game
This is most important component of being a free agent. Cash flow refers to amount of money that "flows" through your business. It replaces your paycheck. The first part of cash flow is "cash" or money you receive from clients for work you perform. If you do not have any clients, you will not receive any money. If you do not receive any money, you will not be able to pay your bills.
Next is "flow" aspect. If your monthly bills are more than your monthly income, you have a negative cash flow. If your monthly income is more than your monthly bills, you have a positive cash flow.
It doesn't take a rocket scientist to figure out that length of your free agent career depends on whether you have more months of positive cash flow instead of negative cash flow.
3. Your reputation is vital
As an independent worker, you no longer have financial might of your employer or their marketplace creditability as support. When you were an employee and would mention your company's name at a family or social gathering, people were "impressed" because it was something they could relate to. Also, you could feed off your company's reputation. Unfortunately, people are easily impressed with job titles and big buildings.
