[Note: This is an excerpt from my book "Creative Freedom: A comprehensive guide to personal and financial freedom as a creative entrepreneur". If you'd like to be the first to get updates and excerpts, make sure you're on my mailing list, so you don't miss a beat!]
Suppose you saw this "advertisement" on social media. You'd no doubt roll your eyes, scratch your head, and maybe even wonder aloud "Who do they think they are? Beyonce is like The Highlander... there can be only one!"
The Highlander franchise might belie that notion, but I digress.
Regardless, you'd likely consider this ad complete nonsense and skip right on past - no matter how badly you'd like to be the next Queen Bey.
And yet, how many times have you been lured by other similar, yet equally absurd promises?
Depending on the circles in which you travel, you may have mixed emotions about the phrase "earn six-figures a year." After all, earning six or seven figures is the holy grail of many online business coaches and so-called internet marketing gurus.
The phrase "earn six-figures" is often followed by such deceptive codswallop as "in your sleep" or "in your pajamas" or "part time from anywhere".
These inflated promises are often found co-mingling with sentences like "all you need is a laptop and a dream."
Puh-lease.
While it's true that some people have done those things, the reality is that very few people can replicate their success - and when they do, success doesn't happen overnight. There's no "blueprint" or "formula" that's going to give you those kinds of results overnight.
I regularly write about the fact that those kinds of results take time. Jeff Walker, developer of Product Launch Formula, said he got fewer than 10 buyers the first time he launched. He had to launch more than once before he hit seven figures. Beyonce only became Beyonce after years of focused effort, a few heartaches, and more focused effort.
The same is true about building your own Noble Empire. You have to keep showing up consistently, iterating, focusing on what works and discarding the rest. That's how you build a reputation and make a good living doing what you love.
But too many creatives settle for subsistence-level income in their so-called business. It's time to stop the madness. (Tweet this)
That's why I am a firm believer that every creative entrepreneur needs (yes, I said needs) to build a six-figure company. I call it the Six-Figure Imperative.
At its core, The Six-Figure Imperative is both a mathematical equation and psychological illustration (Fusion creatives, rejoice!). In most casts, a healthy company needs to make at least six figures in order to pay the owner a living wage and still be able to cover the business expenses. Sure, there are places in the world where you can live on less (or might need more), but that's a fair baseline for most creatives, and I don't know many people aiming to live closer to the poverty level - which, in the US, is just over $20,400 for a family of 3 (higher in Alaska & Hawaii).
All you Chaotics out there, breathe a minute and let's explore these numbers. If you want to pay yourself $50,000 per year (before taxes), your company needs to bring in at least $100,000. That's based on the Profit First approach that I use with all my clients. Developed by Mike Michalowicz, the Profit First approach recommends that owner's pay be half of the company income.
So, $50,000 x 2 = $100,000 business revenue
Special notes: Once your business revenue is over $250,000, your owner pay percentage will shrink, and your profit sharing percentage will grow. If you want your take home pay to be $50,000, you'll need to add your taxes on top of that number before you multiply. I'm no tax pro, so you'll have to do that math on your own, but this gives you a baseline idea of how it works.
Now, all you Linears can sit back for a minute while we cover the psychological illustration. Most creatives see the six figure mark in one of two ways:
The Six Figure Imperative works to break that psychological block by showing you that six figures is not only reasonable, it's important to the long-term health of any full-fledged business.
When I say "six figures" I mean it as a baseline. I hope you're able to make as much money as you desire with your Noble Empire. Eight figures? Go for it. Ten? Why not? More? That's okay by me, too. But for most of us, the low-end of six figures is a useful rule of thumb.
But there's a big gap between $100,000 and a million. Where should your personal baseline be?
If you're living in a major metropolitan area, where rent is obscene, the low end of six figures might not even cover your mortgage. I saw an apartment listed in Nashville for $8,000 per month. And a girl's gotta eat, right? So your six-figure baseline might be closer to $250,000. That puts you owner pay at $125,000 per year. $96k for rent and $31k for all your other living expenses.
Only you can discern what will really work for you. Maybe you have no kids, or maybe you have seven. Maybe you have no debt, or maybe you've got thousands of dollars in student loans that still need to be paid off. Once you determine your living wage, you'll be able to determine the baseline income goal for your personal Six-Figure Imperative (and also helps you make the six-figure distinction).
There's one last clarification I need to make. The Six-Figure Imperative applies to full-fledged businesses. If you're a creative entrepreneur with a "side hustle" or a hobby that happens to earn some income, this may not apply to you. Creative Freedom is focused on helping creative entrepreneurs build a full-fledged business that's healthy, profitable, and sustainable. The Six Figure Imperative is meant for any Noble Empire that's designed to pay you a living wage and stand on its own. That means you don't need to prop it up by pumping your own money into it all the time, and you're not running it down to zero to keep your personal bills paid. You don't need a job to keep it afloat because it swims on its own.
That doesn't mean that your hobby can't make six figures. It doesn't mean you have to quit your day job to do what you love. There are many stories of creatives that have a day job that pays the bills so that they can create on their own terms. Jim Henson started life that way. But at some point, he decided that being a creative entrepreneur was his path, and he built a company that paid him well - and was able to feed and clothe an army of employees to boot. You dream may not be as grand as Henson's was, but The Six-Figure Imperative can help set you on the path for healthy growth, whatever size your company may be.
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If you're ready to set your own Six-Figure Imperative, and grow your creative business in a sustainable way, the doors are open to my new Portable Coaching program. If you need start up money, we recommend qvcredit as our legal money lender Singapore. They are tuned in for tech and innovation start ups. Designed for creative entrepreneurs in the start-up phase of growth, Portable Coaching is an easy, affordable way to get the help you need to grow your business. Beyond early start-up? I also have two openings for one-on-one advising. These spots fill fast, so check it out today if you're curious!
We're a few episodes into the new season of Creative Freedom, and I'm giddy at the overwhelmingly positive response at this season's show. Fingers crossed I don't jinx anything along the way.
Getting to this point wasn't easy. As I alluded to in Episode One this season, I took a LOT of time off. The last show of Season One aired near the end of August. That's almost a year between episodes, and I'm sure that at least one person thought I wasn't coming back.
Well, I'm back with a vengeance, and an upgrade to boot. But not every upgrade happens with ease. In fact, most of the time, there's a desire to upgrade BEFORE you're ready to actually take the plunge. That's what happened to me.
Here's this week's episode to give you the glossy version. Read on below for the juicy details.
Creative Freedom was actually born from a video challenge that Jason Stein and Rachael Albers launched in a facebook group. I knew I wanted to do more video, but I'd been stalling, and the Wisdompreneurs video challenge was a perfectly-timed kick in my pants to get things going. So I did.
But then life happened, as they say, and by August, there was too much on my plate to keep up with a weekly series. So I pulled back, took a hiatus, and spent time trying to figure out what I really wanted to do next.
As a business consultant to creative entrepreneurs, one of the things I teach is to build your business around who you are and what works for you. I thought it fitting to practice what I preach.
It didn't take long for me to decide that I wanted to do another season. I enjoy video, because it's a chance for me to "be on stage" and help people at the same time. But sitting on a yoga ball in my living room didn't leave me feeling like my best self. I wanted better audio for sure, and hopefully a set upgrade. Then, we decided to buy a house, which meant packing up everything and relocating it. So even my makeshift "set" wasn't going to be available for filming.
We moved and, in the process, I thought I was going to get an office - a studio where I could set up and film a show with better production values. I started painting, and sharing my progress on Instagram. It was exciting to watch the process unfold.
And then life happened again, and my teenager moved back in. He needed a room, obviously, which meant the office was a no-go. It's all good. I set up a mini-office in the fireplace room:
For the most part, it works well, and since this photo was taken, I've added another level of shelving (milk crates ROCK!). But it still doesn't give me a viable space in which to record video. In fact, when I do webinars, I often move over by the window, which works for up-close, talking head-style videos, but doesn't give me the ability to be my fun-loving, arm flailing self.
That, and there was simply no room for my fancy lighting set-up. Last January, I invested in softbox studio lighting so I could film better quality videos. They have a small footprint, but they still take up space, and the angle of the roof in the new house doesn't allow me to get the lighting up high enough to be effective.
Cue the violins.
So my friend and mastermind buddy, Pam offered to store my lights at her place. And then, in a stroke of supreme generosity (or madness, I'm still not sure which), she agreed to let me film this season's episodes at her place. It's an entire floor of studio space, with plenty of room for everything I could possibly need. I could bring the Damn Whippersnappers into that space and do a show, it's so huge.
I got way more than I bargained for... in a good way. I wanted to upgrade, sure, but I had no idea the Divine would bless me with something this awesome.
Still, I wasn't ready for it.
The first season of the show was recorded a bit more, um, on-the-fly, shall we say? It was not uncommon to script, film, edit, and upload the video in a single day. But now, I had to develop and coordinate a shooting schedule. That way, I could film multiple episodes in a single day. It would be impossible, not to mention rude, to just show up at Pam's house and say "Hey! I had a great idea for a video today, let me in so I can film it!"
Instead, I had to be more intentional. I developed a slate of episode ideas for the entire season. I think there are about 45 or so topic ideas on the mind map you see here, in various stages of completion.
Then, I had to script and rehearse each episode before filming. I also had to collect my makeup, wardrobe, video and audio equipment, and any props I'd need for filming, since Pam lives a few miles away. I couldn't just run back home if I forgot something. That meant developing a checklist to make sure I always had everything I needed when I got to Pam's for a day of filming.
Once I arrive at Pam's, I've got about five hours to get it all done. Why five hours? Because I have a kid that gets off the school bus and I've got to be home for him! During the summer, I have more flexibility, but I still want to keep my shooting time tight, to keep my costs low. Pam's "doing me a solid" right now, but one day, I may need to rent studio time, and that has a cost.
Just because it's free now doesn't mean it won't cost later. Being efficient always pays off. (Tweet this)
I set up and test all the equipment. It takes about an hour to set up the lights, get the balance right, and test the audio gear. I am a one-man camera crew for the most part, so it's up to me to make sure things work properly. Sometimes the lights are a little too hot, and I might not catch it until after I've filmed everything. Oh well. Next time. #ProgressNotPerfection
Once everything's up and running, I have to make sure my hair, makeup, and wardrobe work well and actually shoot the videos. I wish I could say that every video happens in a single take, but that would be lying. Shooting the end of this episode took me over an hour - so I only filmed three that day.
I can usually shoot 4 episodes per session. Then it takes about 30 minutes to pack everything up and get ready for the drive home. Why five hours? Because I have a kid that gets off the school bus and I've got to be home for him!
Now I've got a handful of videos that need to be edited, posted, scheduled, and ready for broadcast. Yep, I do that, too. But like I said I enjoy video, and since I'm a Fusion type, I actually do a fair job at it. Plus, I'm not so busy yet that I feel the need to hire it out.
I'm familiar with filming so most of this wasn't news to me. The only variables I didn't know about related to how long it would take to set up and test the lights and sound, but I've done a lot of tech rehearsals for theater, so I had an inkling. Yes, this is a LOT of effort, and I wasn't sure that, once I dove in, I'd be able to maintain it.
Frankly, with everything else going on, I wasn't ready to assume this much responsibility before winter was over. We were moving, and yes, the divorce is happening. Had I launched season two in the middle of all of that, I probably would have had a mental breakdown. I wanted to create a new normal, and in order to do that, you have to be ready to maintain it - or it isn't normal, is it?
The next time you're chomping at the bit for an upgrade, ask yourself if you're aware of the new responsibilities that come along with the upgrade. Then ask yourself if you're ready to do what it takes to maintain your "new normal".
The answer might surprise you.
What do you want to upgrade? What's waiting for you on the other side of your next upgrade? Are you READY for that new level of responsibility? Share your thoughts and ideas in the comments, and be part of our Rising Tide Community.
This song was recorded before I left town for the Pink Papaya national conference. It was a song I'd heard a couple of years ago
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