One entertainer’s approach to building wealth beyond the stage

Ottawa-based rapper Luigi Fidelia – known professionally as City Fidelia – has sold out shows across North America, Asia and Europe. But he wants to be known as an entrepreneur, not just an entertainer, learning an early lesson about expanding his income sources to protect himself financially.

As well as running a music studio and artist management company, House of Ensemble, he’s an investor in an Ottawa skating rink, Skate & Play, and its attached restaurant, EXIT Lounge. Mr. Fidelia is also preparing to launch In House, a technology platform to help artists simplify their career management, and connect with other artists and fans.

“Diversifying has saved me,” he says.

Any business income can fluctuate dramatically. By having multiple income streams and personal investments, an entrepreneur can draw on alternative pools if one part of their business slows down, says Kate Childerhose, a financial adviser with Edward Jones in London, Ont.

She says business owners must also put on their own oxygen mask before helping somebody else. “You’re not being selfish by taking care of yourself, because you’ll be able to continue supporting other people.”

It’s a challenge Mr. Fidelia faced as his profile grew. Many of his ventures are focused on arts groups that may not have funds to pay for his services. “We’re for the community, but I still have to pay the rent at the studio and at Skate & Play. I’m working hard to try to make things work.”

While Mr. Fidelia is happy to offer free support to community members who may not have the means to pay, he had to learn to say ‘no’ to unpaid requests from organizations that had budgets to compensate him.

“When I’m giving a lot of my time for free, the things that deserve my time could suffer,” he says.

Two years ago, a life coach told Mr. Fidelia that, while he “loves to give”, it’s important to give to himself in the process too.

Typically, Mr. Fidelia puts aside 20 to 30 per cent of the money he earns, but when business is booming, he’ll try to increase that to 50 per cent. “I’m a pretty minimal person. I don’t overspend on clothes or cars. A lot of my money goes into re-investing in the business.”

In 2018, he was able to purchase a home where he now lives with his mother. “To get to a point where arts and culture allowed me to do that – that was a great feeling.”

Mr. Fidelia has since renovated the house to include a separate apartment. Potentially, that can accommodate another family member or be rented out in the future for an added financial cushion.

When it comes to major financial moves, such as a property purchase, Ms. Childerhose recommends business owners work with financial experts to examine their cash flow and upcoming business needs. The goal is to determine whether money should stay inside the company or be pulled out to build personal wealth.

Before putting money into a new venture, Mr. Fidelia works backwards from the worst-case scenario, calculating his and his family’s living costs and upcoming expenses, and whether there’s enough left over for a “rainy day”.

His dream is to create a company that can allow aspiring artists to work nine-to-five in something they love, just like he does. Along the way, he hopes to create a “big safety net” for himself and his family. While his ventures can involve moving significant amounts of money, he says the income he takes home doesn’t always match his hard work.

“I’m rich in spirit, opportunity and experience, but that doesn’t mean that my bank account has millions of dollars.”