Free,Agent,Realities,Free,Agen business, insurance Free Agent Realities

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Free Agent RealitiesCopyright 2002 Paul BednarWhen you jump into the free agent arena, it doesn't take long tofigure out a new set of rules and expectations exist. Those whoknow and embrace these new realities thrive. Those who areeither not aware or ignore them fail.Here is a list of 5 realities that are critical to the success ofany free agent.1. A different skill set is requiredNo longer is it enough to only know your area of expertise.That's for employees. As a free agent, you need somethingdifferent. You need a new skill set that has both technicalexpertise and the knowledge to run a business. Most people donot have any trouble with the expertise aspect but havesignificant difficulties with the business functions. Some ofthe necessary business skills are:* Marketing* Writing proposals* Giving effective presentations* Managing finances* Adhering to various state and federal rules and lawsYou have to be committed to continuously learning a lot ofinformation and comprehending it within a short period of time.If you would rather have a company to look after you and providestructure, you should stick to your current job.2. Cash flow is the name of the gameThis is the most important component of being a free agent. Cashflow refers to the amount of money that "flows" through yourbusiness. It replaces your paycheck. The first part of cashflow is the "cash" or the money you receive from clients for workyou perform. If you do not have any clients, you will notreceive any money. If you do not receive any money, you will notbe able to pay your bills.Next is the "flow" aspect. If your monthly bills are more thanyour monthly income, you have a negative cash flow. If yourmonthly income is more than your monthly bills, you have apositive cash flow.It doesn't take a rocket scientist to figure out that the lengthof your free agent career depends on whether you have more monthsof positive cash flow instead of negative cash flow.3. Your reputation is vitalAs an independent worker, you no longer have the financial mightof your employer or their marketplace creditability as support.When you were an employee and would mention your company's nameat a family or social gathering, people were "impressed" becauseit was something they could relate to. Also, you could feed offyour company's reputation. Unfortunately, people are easilyimpressed with job titles and big buildings.Now, your reputation is your meal ticket. Everything you doimpacts it. Always keep this in mind. Some clients will hireyou solely because of your reputation. Your free agent careerlives and dies by it.4. Peer relationships changeWhen you get together with your former colleagues for the firsttime since becoming a free agent, you will notice a remarkabledifference. Your former colleagues will still be focused ontheir job while you are focused on marketing, writing proposals,meeting with potential clients, and oh yeah, doing actual workfor which you'll get paid.During your discussion, do not ask your former colleagues foradvice about being a free agent. They don't know what you aregoing through, how much progress you've made, and cannotcomprehend your new responsibilities. Most of these people willnever understand. Don't take it personally. Accept it now andsave yourself the frustration.The issue is not that you don't value their opinion. It is thatyour former colleagues aren't knowledgeable about the issues younow encounter. For example, do you take your automobile forrepairs to the dentist? Of course you don't!Develop a network of other free agents. These people dounderstand your issues and can provide fantastic guidance.5. Initiate all contactAs an employee, a certain structure was provided, mainly anoffice and a paycheck. However, the most important and not oftentalked about structure was a means of regular conversation withother people. Being a free agent has the potential to be verylonely and can be isolating especially if you work out of yourhome. It is possible that the mailman or UPS driver is the onlyperson you'll talk to during the day. This lack of humaninteraction can cause your productivity to nosedive in additionto being very lonely.Make sure you stay connected with the world. Go to lunch withformer co-workers. Call up friends and keep up your network. Besure to have at least one conversation with a human every day.However, you have to initiate the contact, it doesn't come to youlike when you were an employee. Article Tags: Free Agent, Cash Flow, Former Colleagues