While I was thinking about some of the ones who really stand out, I discovered that they all have a lesson or two we can learn (as entrepreneurs). Here are three I picked out, along with the lesson they teach:

Robert Rodriguez. The lesson? Screw people who say you can’t, and prove you can do it yourself. Rodriguez is best known for his later movies, like Spy Kids and the recent Grindhouse collaboration with Quentin Tarantino. But I discovered him when I saw a movie lent to me by a friend of mine (on VHS). It was a low-budget movie called El Mariachi, and it blew me away. I remember thinking: “the guy who made this has balls”. Rodriguez is one of the “VCR directors” – a director who largely learned how to direct by watching a lot of movies. He didn’t go to film school, then do things the “traditional way”; he just DID it. He wanted to direct cool movies, and as far as he was concerned…he could. And I think that’s an inspiring way to view anything in life.

Russ Meyer. The lesson? Fill a niche, and serve the market what it will buy. Russ wasn’t one of the classiest movie-makers. He wasn’t one of the best, either. But he knew what kind of movies people would pay money to see, and he knew what he needed to provide. In case you’re not familiar, his product was pretty much the same in every movie he made: big boobs. Yes, Russ Meyer was a true DIY movie producer and he had the rebellious, irreverent attitude that usually goes along with being a do-it-yourselfer. He made a whole bunch of movies that featured well-endowed women, and his movies remain cult classics to this day – selling still, after decades.

Johnny Depp. The lesson? Fulfill your vision and be true to yourself. Since I was a kid, I’ve always admired Johnny Depp. My sister took me to see Edward Scissorhands when it came out, and even then it was obvious that it was not a conventional movie. I followed Johnny Depp’s films since then. I haven’t always liked his movies, but more often than not I could see some level of genius or artistry in what the film represented or in how Depp performed. I like that about him: he’s willing to do things that not everyone approves of, because he wants to do what he feels is best for him (as an artist, or performer). Shouldn’t we all have a bit of that in the way we live our lives? I think so. If we did, I believe it would lead to more fulfillment and more purpose.

These are fairly simple lessons, but I think if we took each of them to heart they could be life-altering. For an entrepreneur, they could be phenomenal lessons in profit and success.

What IS the Underground Economy?

Basically, an underground economy is one that exists alongside the mainstream economy, but doesn’t participate in things such as registering licenses, paying taxes, or submitting to other aspects of the official “mainstream” economy/tax system. This “shadow” economy is more streamlined and more profitable to the participants while less profitable to the government. Am I advocating this shadow economy? Dear heavens, no – I would never do such a thing. I’m only commenting on what has undoubtedly become more commonplace in these hard economic times.

The simple fact of the matter is that while people have less money, they will look for other means to gain income, and those methods of income-generation will often be unconventional and will be done “on the side”. These methods will include barter and trade in addition to cash-payment income.

Is the Underground Economy “Criminal”?

Underground money-making methods will often include things that are totally outside of the law. During the past few months, there has been a notable increase in home marijuana-growing (with intent to sell the crop) as well as prostitution among previously-unlikely candidates (such as housewives or older women). Just do a search and you’ll find a lot of instances of these. In one article, I read that the “authorities” have found about a five-fold increase in home-grow operations (of pot). It’s a good indicator of what people are willing to risk in order to maintain their income in hard times (in my opinion) – but the risk is outweighed by the legal costs involved if/when one gets caught doing something illegal!

If you want to hear some actual interviews of people making money “underground”, there is a great series done by the radio show “Marketplace” a while back. You can listen to the series here. Even though it’s a bid dated, most of it will be informative and applicable.

Can People “Legally” Work in the Shadows of the Underground?

There are methods of making money within the underground economy that won’t get you arrested, and could be just as profitable. They are still “shady” due to the fact that participants in the underground economy are trying to avoid taxes – but that’s a matter I won’t discuss here nor advocate. Let’s just say, the whole point is to keep as much as possible to yourself when you’re doing things this way.

Some methods of generating income would be selling things at local farmer’s markets and craft shows (for cash obviously). These could be crops but also items that are homemade – soap, jellies, gift baskets, or other products. At a weekend market in my city I’ve seen people selling everything from homemade wine, to candles, to produce, to snacks including hotdogs and drinks. Are all these sellers dutifully reporting what they’ve earned? I can’t say – but I see that many of them could just pocket the cash and the “state” would be none the wiser.

Are there Quasi-Underground Methods of Making Money?

Some people would rather operate a “legit” business but also make some “underground money”. Some of these other methods of cash income involve “side income” within a legitimate, registered business. Some prime businesses for doing this would include restaurants and bars (classic examples of businesses infused with a great deal of hard-to-track cash transactions) as well as peripheral cash-only businesses such as laundromats, self-serve car washes, and vending machine routes. These all require some sort of initial investment – including a lease. But if one has a business such as these, there’s a lot of wiggle room in what is reported. A lot of room to stay in the underground economy.

But for people with little or no assets to begin with, there are still many options. If all you owned was a car, a bucket, and a vacuum cleaner, what would you do with it (assuming you were forced to make money for yourself)? A mobile car detailing service is the right answer. Again, you would have ample opportunities to be paid in cash with a business like this. Similar services could be offered with dog-grooming, housecleaning, aquarium maintenance/cleaning, pool cleaning, and then of course lawn care.

Can Employees of Others Make Underground Money?

But what if you wanted to just work for someone else? The best sector is bartending, then waiting tables, and then probably working in a delivery capacity. Bartenders are notorious for many tricks (devised to put dollars in their pockets) and it’s almost expected that they will not be above-board with what they report (as far as tips). Not everyone is suited to be a bartender but for those who have the personality and people-skills, it’s an easy way to earn a lot of “underground” cash. If you want to learn some of the tricks of the trade, the authority book on the subject is called How to Burn Down the House: The Infamous Waiter and Bartender’s Scam Bible by Two Bourbon Street Waiters. (Even if you’re not in this industry, the book is very fun to read and education on more than a few levels!)

Where Can I Learn More About the Underground Economy?

There are many lessons that can be learned about how the underground economy works, as well as what opportunities exist within the underground economy. The people from which to learn these lessons are immigrants (Vietnamese and Korean immigrants being the examples I have in mind) and blacks living within the “inner city”, ghettoes, and projects – you can SEE the underground economy by driving through on a typical day (haircuts being given on porches, hand-made signs advertising BBQ for sale, all kinds of literal “cottage industries”).

If you want to really get knowledge of the how, why, who, and some specific ways of participating, you can start with a few books:

Ragnar’s Guide to the Underground Economy

Deep Inside the Underground Economy

Living Well on Practically Nothing

Under the Table and Into Your Pocket

* Disclaimer: the links to these books go through my Amazon Associates account. If you purchase via these links, I receive a small percentage of the sale – which I appreciate very much.

If any of you guys have ideas or links to good resources on making money “underground”, please post them in your comment.

I don’t mean to criticize just to be a jerk. But this company sure does things in a haphazard and disorganized fashion.

They opened up a bakery cafe about 6 months ago, with plans to open up a few more restaurants. They hired dozens of managers for the four or five different eateries before they all opened. So from the very beginning at her new job in the bakery, at least a dozen or more managers are all arguing over how things should be done, though most won’t even be staying at the bakery but are waiting for their restuaraunt to open. Employees have come and gone. The menu has been changed a few times. Prices have been raised. It’s very chaotic.

Just last week, the second restaurant opened. And while the food was mostly good, it was mass confusion. There’s a wok station. A pizza station. A salad station, and the regular menu. It was overwhelming. They are trying to offer too many varieties of food, like a cafeteria, but more upscale. Is it a restaurant or a cafeteria or a Whole Foods? Can good pizza and good noodles be made in the same place? How do you order your food? I am sure they have a few kinks to work out since this place just opened.

But when it comes to running a business, it really is better to be a master than a jack-of-all-trades. Focus your energies and efforts. Find your niche. Be a Master in your trade. You will develop a stronger business sense and avoid unnecessary confusion and wasted time and money. Be the best at what you do in your particular craft, not some handyman who does a little of this and a little of that.

Then after you are established and things are running smoothly, then consider expanding into other areas or even another business. But trying to do too much too soon will only serve to overwhelm you.

Build momentum. Focus. Succeed.

And when we got back, I started dabbling in real estate investing. So it’s been about 6 months and I’ve made a few bucks here and there. At first, I read a book called “Earning Without Owning” and I did what the authors described and IT WORKED! Yeah, I made a few dollars.

But I wanted to make more money with each deal and I was also a little apprehensive about making huge financial mistakes. Lo and behold, a solution came. I had joined my local REIA and gone to a few meetings. I am a novice and know I need all the help I can get. I availed myself of the e-mail “Circle of Support” (where people can ask questions and get answers from other real local investors) and through that met a seasoned investor who asked me to partner with him. Why did he ask me???? He said it was because he saw that I was out there pounding the pavement and actively looking for deals. It benefits both of us because he is my money partner and an experienced investor who is my mentor; and I find deals that make us both money. This arrangement suits us both. And you will find that no matter what field you are in, many of those who have made it already are happy to help the new kid on the block.

It’s always a good idea to find someone else who has been-there-done-that when you are starting out in a new enterprise. You’ll avoid costly mistakes. You’ll make valuable contacts. You’ll have the benefit of knowledge and experience when making decisions. You’ll be in the fast lane to success.

Just make sure when you’ve “made it,” that you return the favor.

1. Buy bargain tires marked blems. Though perfectly useful, they have minor cosmetic blemishes in the sidewalls.

2. Lengthen the life of windshield wipers by rubbing the edges of the blades with a knife or the striking part of a matchbook cover. This exposes softer material underneath and improves the wiping ability of the blades.

3. Preserve a car’s finish by washing it with cold or lukewarm water, never hot water.

4. Run the air conditioner at least 10 minutes every week to maintain coolant pressure and avoid costly air conditioner breakdowns.

5. Clean corrosion off the battery terminals. Use a wire brush or steel wool to scrape the battery posts and cable clamps. Make a solution of baking soda and water to clean the top surface; don’t let the solution seep under cell caps.

6. Prevent wind resistance, which cuts performance up to 5 miles per gallon, by keeping the windows closed while driving.

7. Drive the recommended speed limit for maximum fuel efficiency. Be aware that every 5 miles over so m.p.h. cuts fuel performance by two miles per gallon.

If you have a car, then you will be spending money on it as long as it runs. Why not make a few small changes and spend less? There are dozens of other things you can and should do to reduce vehicle expenses. These 7 are an easy way to get started on your way to saving some bucks.