Business – Securing Your Financial Health – Three Mistakes That Solo Professionals Make

Sometimes professionals have expertise in their chosen field but do not do well in their practice. They want to have their own business but cannot seem to earn enough money to do so.

There are three mistakes that solo professionals make which stop them from having success in business:

1. Lack of focus – When Tiger Woods was asked why he was such a good golfer, he came up with an excellent answer. He said “I focus better than other people”. He has wind, television cameras and spectators as distractions. If he doesn’t focus on the ball he will not hit it.

Solo professionals do not always focus on the activities that are billable – seeing clients and doing things that can be invoiced. Examine your day. Do you focus on the things that bring sales and income to your business. Sitting on committees, doing community service and attending workshops may be interesting but they should be planned so that they are not done instead of the things that lead to profit.

2. Over-spending – Do you really need that expensive vehicle or computer system? Are you trying to maintain a status that is beyond your financial means? Many professionals spend money they don’t have with the idea that they will earn it in the future. In the meantime they pay for it over and over again in interest costs.

Consider what you really NEED to operate your business. I have met with clients in offices that I rented by the hour, provided telephone therapy and made do with an office where we shared a bathroom with other offices in the building – just to keep costs down. It is far better to earn money that isn’t committed than to face the stress of thinking that you have to “perform” in order to survivi financially.

3. Trying to do everything – When you think that you must perform all the tasks of a busy office, you jeopardize your health, energy level and future. Many professionals come to me with a diagnosis of depression but, when I complete the assessment, I realize that they are really in a state of being “overwhelmed”.

Take time to examine the things you are doing and decide if there are things that you can have others do for you. Often you can work one additional hour a day to earn the amount you would need to hire someone for 8 or 10 hours. Ensure that you have people in your life who will be honest with you about your self-care. It is easy to forget to eat or not get enough sleep but a caring friend or family member will help you to get back on track.

As a solo professional, you will need to protect yourself – professionally, financially, physically and mentally – so that you can carry on in your business without interruption.

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The End of Caring – Solo Professional Financial Planners a Dying Breed

Due to the over regulation of the financial independent planners, many of these specialists no longer wish to take clients that have less than $500,000 to invest. Often, it takes too much paper work to process and each new client comes with regulatory and litigation risks. Who loses in all this? Everyone in the middle class and all those that have less than $500,000 to invest, the very people who need these services the most.

It is not that these practitioners do not care, these solo professional financial planners do very much care, but due to regulatory nightmare they are not allowed to care anymore. This is why the solo-professional financial planner is a dying breed, as they are being consumed by larger offices, and brokerage firms that are in it to sell their own financial proprietary products, or make money churning accounts and flipping stocks like a bunch of day traders.

Under the auspice of trying to regulate the industry, protect every consumer and investor, we have created regulations which end up hurting the small solo-professionals, the very person that are on the ground floor helping the consumers and taking business away from the wire houses that didn’t care about the little guys.

We’ve made a terrible error and we’ve allowed the wire houses to use our regulators to attack their competition, leaving more money for themselves and less competition in the market place, indirectly screwing over the middle-class investor. To listen to the SEC at the Congressional hearings justify their position in making all these excessive rules, you’d swear they care about the individual investor.

Of course, that is pretty hard to believe considering the results of their actions. I am disgusted that the SEC allowed this global crisis meltdown because they were so busy making a new rule every seven days against independent broker dealers, and solo professional financial planners. If you don’t see this yourself please go ask a financial planner about this.

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