#1 – We Only Have 2 Products: Time and Knowledge
No matter how you make a living or who you think you work for, you only work for one person, yourself. Likewise, you only have 2 products to sell, your time and your knowledge. Here are a few example scenarios:
- Migrant Farmer – Sells hours of his/her life to pick fruit or vegetables for a farmer in exchange for money. A perfect example of trading hours for dollars.
- Doctor – Sells hours of his/her life to perform medical treatments based on the knowledge stored in his/her brain. A perfect example of trading hours and knowledge for dollars.
- Best-Selling Author – Spends time crafting a book based on his/her knowledge or intellectual capacity and then sells the book (knowledge) many times over. A perfect example of trading knowledge for dollars. The key benefit here is residual, passive income.
In almost all cases of the self-employed, the small business owner is taking information out of his or her brain and spending the necessary time to convert it into a product of value. This concept confuses some people, and to others it seems obvious. The bottom line is that customers pay you for your time and knowledge. Success is achieved by properly crafting the two into one convenient bundle that can be sold many times over (think of products vs. services).
What knowledge do you have in your brain that provides value to others? How can you extract this information and sell it?
#2 – The Implementation of Knowledge is Power
Knowledge alone is not power! The implementation of knowledge is power. Knowledge is simply a commodity; it’s a product like any other that has the potential to be sold. How knowledge is organized, packaged, presented, shared, and received by others is what makes knowledge so powerful.
Knowledge is useless unless it’s effectively shared with others. Your ability to educate others in a way that allows them to effectively apply the instruction is what makes knowledge an asset… something worth buying.
#3 – Time is More Valuable than Money
One of the most important points to understand is the fact that there are two basic forms of currency, money and time. Of the two, time is the most valuable, for it cannot be replenished. A surplus of time, and the unfettered liberty to do with it as you choose, is the true measure of success.
Your time must be extracted from the formula of making money. No matter how skilled you are at transferring your knowledge to others, if you are paid on an hours for dollars basis, your ability to expand your business will eventually plateau. You will run out of time.
The successfully self-employed have made this realization and concentrate the majority of their time and effort on the single greatest secret of self-employment: generating passive income. Passive income is achieved by applying what you know into a package that can be designed and built once, and then repeatedly sold over and over again. Finding a unique way to promote and sell this knowlege is the key.
Passive Income Examples: Useful books and guides, time saving computer applications, etc.
#4 – Success is About Knowing What You Want
Self-employed success is not the byproduct of working your way up from the ground up. It’s based on knowing what you want, understanding your abilities and implementing them diligently to achieve your goals. There are plenty of people who get laid-off from their 9 to 5 day job and end up making millions in a few short years of self-employment.