A friend of mine, Eduardo Remolins, is a great believer, even a prophet of individual entrepreneurship.
In his podcast series called “Mind your business”, he describes a trend that started in the last century with big corporations like Nike and Apple: they do not possess tangible actives but excel in design and organizing a network of providers.
Based on this concept, he advocates individual entrepreneurship either as a sideline when you have a fixed job or as a solution when you are young or at a later time when companies would no longer hire you.
It touches a cord with me because since my retirement I have been active as a consultant. I started with an office in town and an assistant that ate up part of my income. Over the past years, technology has made me independent, with clients all over the world. And I use many providers: graphic artists, marketing specialists, IT wizards and even Eduardo for strategic advice.
A dream? Yes, because I don’t depend on consulting fees to survive. I have a pension both from my former employer and from the State.
For young or elderly entrepreneurs, the situation might be different, and this is where risk financing comes in. Most countries have a social security system that will cover basic risks, such as health and accident. However, pensions are rather on the meager side. People today live much longer, which makes a private solution even more relevant.
And here comes the insurer. They will take some money from your consulting fee and pay it back as rent, with interest, when you no longer work and need it.
No need to worry about the vagaries of the stock exchange or the interest curve! Risk financing without risk!
Paul.
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