“I want to start my own location independent business. Where should I start?” has to be the most common question I receive in my inbox from subscribers to the Odyssey newsletter.
It is a good question to which there is no single right answer, unless that answer is “It depends”. My advice usually takes the form of “Don’t just sit and think about doing something, actually do something, do anything and you’ll find the path unfolds before you”.
From a location independent business perspective, this usually means setting up your website and offering your services or a product for sale. So in a nutshell, the answer is: Set up your stall, go find some customers and you’re in business. It really can be that simple.
But if you’re looking for more than that – if you’re looking for something more long term than that – the better question to ask is this: What needs to be put in place to set up, run and grow a profitable location independent business?
Here’s the answer…The following checklist focuses on what it takes to run a profitable business which provides you with enough financial clout to truly work from *anywhere*.
#1. A Plan
You don’t need the whole 30 page business plan shebang but what you do need are a loose set of plans which guide your overall direction. At the bare minimum, most successful location independent businesses have the following:
- A mission or overall objective
- Several goals which determine how you’ll achieve your mission
- Core strategies which determine how you’ll achieve your goals
- Flexible, adaptable tactics which are what you do on a day-to-day basis to make your business a success
#2. An established online presence
The important word here is “established”. If you have plans to quit your job or hit the road and only then establish a presence online, you’ll be making things far harder for yourself than is necessary. The key to an online, location independent business is this: be online as soon as you can.
At the minimum, an established online presence requires:
- A blog and/or website
- A mailing list
- Social media profiles (even if you don’t use them, reserve your brand name to prevent brand squatters)
When you’re out on your own running your business, you’re going to need communication channels with prospective customers and clients; don’t wait till you’re desperate for some to start opening the lines of communication online.
Set up an online presence and start working it from the moment you decide to become location independent – even if you don’t have a business yet.
The work you do to build yourself an online presence will provide you with the solid foundations every online business needs to succeed. Start now, even if you have no clue about what you’re doing or how to do it. Learn as you go, it’s the quickest way.
#3. Customers & clients
This may seem like an obvious one but you’d be surprised at the number of people who decide they want to be location independent, even set up their own blog/website and then – and only then – start thinking about their customers and clients.
The obvious bottom line is that you need customers and clients if you’re going to make any money online. To get them, you’ll need to consider the following:
- Who are they?
- Where will you find them?
- What can you offer them that they’ll want to buy?
- How will you serve/service them?
#4. Products & Services
As a business, you are obviously going to need to offer one or more products or services. Don’t wait a while to create these – that’s the mistake too many bloggers and online entrepreneurs make – have these in mind right from the start and then begin to create them, as soon as you can.
Here’s what you’ll need to consider:
- Who will buy this?
- Why will they buy it?
- What value does it offer?
- How can you get feedback & input before, during & after the creation process?
- How much will you charge?
- Where will you sell it from?
- How will you sell it?
- How will you deliver it?
Don’t be afraid about selling. You run a business. Businesses sell stuff. That’s perfectly ok and never let anyone tell you otherwise.
#5. Income Streams – preferably multiple
A business which relies on a sole stream of income – perhaps a single product or service – is a risky one, especially online. The most effective way to diversify that risk is to build multiple streams of income. Here are a few things to consider:
- Online or offline?
- Passive or active?
- Products or services?
- High yield in the short term or slower yield over the long term?
- One target audience or several?
The ideal solution is a mix of the above, and ideally across a range of markets & audiences. Additionally, the best advice in terms of projects you have on the go, is this one – which suggests you should always have a project mix of:
- One short term project which provides an immediate source of income
- Two medium term projects which are maybe 3-6 months away from providing you with regular income
- One long term project which is about 12 months away from providing you with an income
Most aspiring location independent entrepreneurs neglect the 1st one, surprisingly. That’s not a good idea and will cause you unnecessary stress. Focus on the first one, then move on to the 2nd and 3rd ones only when you’ve got your basic financial needs covered.
#6. Communities
A successful location independent business (and business owner) doesn’t operate in isolation, it operates as part of a community – whether those are online or off.
Besides enabling you to connect with potential customers, membership of one or communities enables you to raise your status and reputation (and that of your business), seek out potential partnerships and collaborations, and give back to the communities you’re part of.
Here are a few things to consider:
- Which offline communities do you currently belong to?
- Which online communities do you currently belong to?
- Which new communities could you actively and invaluably contribute to?
#7. A Support Team
The most successful location independent entrepreneurs know their strengths, their weaknesses and their limits – and those of their business. They seek out help when they need it and aren’t afraid to pay for it. The following support is what most businesses need if they don’t have it in-house:
- Strategy, planning and mentoring support
- Administrative support
- Financial management
- Design and branding support
- Tech and development support
While you’re bootstrapping, it’s perfectly ok to do things yourself – in fact, we even started a school to teach you how to do it all yourself – but when you’re ready ready to take things to the next level and/or hit the road, it’s a good idea to have a support team and system in place before you take the leap.
If you’re still wondering where to start, go back and start at number 1. Start with your plan, then get online.
There is no need to wait until you have everything figured out and squared away (here’s a tip: you will never have everything figured out and squared away, everything will change, over and over again), start something now. There’s never a better time than now.
And if you need help, drop by our Startup Training School and join a class. There’s no need to figure it all out on your own, we’re here to help.
