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An approach I believe is unproductive is to set up entities and begin the Wealth Cycle but fail to completely
transition from your job so you can focus completely on the new venture. People who do this are straddlers who
want to hang onto their secure job-with-benefits package, even though their passive income would really build
momentum if they gave it more of their time and attention. At this point, these day jobs do not offer safety and
security so much as they represent missed time and opportunity. Even after Rick Noonan started to invest and
manage his assets, he remained a classic straddler, committed to the commute and his indentured servitude.

The Business Directive

When establishing your business, you must first create a business directive. This will help you map out the sequence
of steps needed to launch the business and create a presentation for possible financing. The directive should include

1. Your vision for this business
2. The business strategies and tactics employed
3. A revenue model
4. Revenue projections
5. A marketing plan
6. Sales strategies
7. Your leadership approach

There are numerous business references for helping you do this. Some are listed in the Resources section. This
exercise will not only help you bridge the gap from your current to your potential skill set, but it will serve as good
practice for the time when you establish your ultimate business, the one that represents your bigger vision.
Patricia wanted to make money fast so that she could get to her summer camp. But I needed her to agree to two
things before she even began: to make the effort to create the Web business and to maintain her current lifestyle,
keeping expenditures where they were. When I started my first coaching business, I had some money, but not
enough to launch a business, and I didn’t want to go into debt. I made the decision to sell everything I owned except
my jeep and my computer. That first year, my goal was to just replace my salary from the job I’d left. I rented a
room to have a little office. I lived with friends, paying little rent. And I earned my goal revenue in eight months.

Revving Up the Cash Machine

Revenue Modeling
Revenue modeling will help you determine if your efforts will see any reward.
“Let’s see if you could do $100,000 in sales in one year,” I said to Patricia. Her jaw dropped, but I started to do
the math. Sometimes, the numbers aren’t that daunting when you break them down. “If I took $100,000 a year and
broke that number down into months, that’s $8,333, which over 20 days a month is $419 a day. If you could charge
$100 an hour and find work for four hours a day, that’s $400.”
“That does seem more manageable than $100,000 a year,” Patricia said.
Just to be clear, a $100,000 business is not the goal. To run a $100,000 business for the rest of your life won’t get
you to your Freedom Day; you might as well keep your regular job. If you’re going to be a wealth builder, you need
your Cash Machine to go past a $1 million business and have others working for you. Then you’ll really accelerate
the Wealth Cycle. Patricia needed to focus on finding the personnel and the customers to support 20 hours of work a
week at $100 an hour. This would give her $100,000 in gross sales her first year in business.

Don’t Reinvent the Wheel
See who else is doing what you are doing. Chances are, someone has done 99 percent of what you want to do, so be
a good researcher, find out how he or she is doing it and implement similar tactics. You may even want to look
through the Yellow Pages for a competing business and visit it for advice. If you do this, make sure you pick one in
a region far enough away from you so that you don’t encroach on their market. They may be a good source of
referrals later.