The biggest excuse I hide behind is that I would start a business but I don’t have an idea for one. This seems like a good place to start. There seems to be infinite possibilities for businesses when you look, or pay attention to creative people with side-hustles. However, the idea seems elusive. There are parameters for a good idea, but I also need to be on guard for talking myself out of every idea.
There are many types of businesses to choose from and they don’t have to be an invention or backed by a new idea. There are franchises, services businesses and even taking an existing product or service and offering it in a new way or to a different customer. I understand deep down one is probably never “selling a product” and is probably selling change, or an experience, or education, or community, or customer service. These values should drive the business decisions and I want to discuss them later. Here I want to think about what it is that will be transacted.
One type of side hustle involves involves doing more of what you do. If you are an IT specialist at a company, maybe you take on some of your own IT clients outside of work. This has the benefit of multiple income streams and gives you leverage to negotiate with your employer for more flexible time. However, there is no large net positive in dollars you make for your time. You earn more money, because you are working more hours. Even if you can make better dollars per hour in your side gig, it won’t scale unless you start hiring to fulfill your service contracts. This is possible but also low margin.
The other type of side hustle involves upfront work and on going maintenance work, but can scale without employees. A way to think about it is, if you go on vacation, will your business still be making money while you are gone. This could be YouTube videos or selling products, versus coaching or tutoring or gig economy jobs (Dog/Baby Sitting, Task Rabbit, Driving, Delivery, etc).
Because of my current limitations on time being in school and working full time, the business approach makes the most sense for my situation. It will allow me to create in bursts and continue to grown in the meantime.
Business school tuition is a strong practical motivator to make first steps to starting a business. My program is extremely expensive and has caused concern for the amount of debt I would need to finance it. A better option would be to supplement the payment with additional income from a side business.
One way this could work is to earn and save the cost of tuition before payments are due on the loans. The total cost of the program is $200,000 and the first payment is due in 30 months. This would be closer to about $7,000 per month. Regular monthly payments on this loan would be approximately $2,500 per month which is what I can estimate to save from my primary income. This leaves average $4,500 per month. This seems like a lot but any portion of it would beneficial and acknowledging that the hardest part is going from zero to $10 rather than $10 to $1,000.
The values are less important than having numbers that provide short term useful purpose. It is a motivation that is more tangible and available than a ten year goal, but a mindset that will serve well after these immediate needs are met.
In my very first class session of business school, the very first activity the professor asked us to do was to write on an index card our one, five and ten year goals. The perspective he wanted us to take was of looking back from this time in the future and seeing all the steps we needed to take to get to that point. I am shocked that so far, this very first, seemingly obvious and predictable activity has had the most impact on me of anything else I have done recently.
What I was confronted with when filling out my card was that ten years from now I don’t want to be working for someone else’s company, far from it. I wanted to have made my friends rich.
This is an idea I ran across when talking with a colleague about the company Connectwise that, from my understanding, was founded, built and taken public in a thoughtful way that benefited customers, employees, and shareholders. The founder, Arnie Bellini, built a high quality business that is a net positive in the world and made his friends and early investors rich.
This struck me as the only point; why do anything else.
Starting and running my own business has been on my mind, but the activity in class put me in a perspective that to be there in ten years, it isn’t going to happen on its own. If I am serious about this I need to start taking steps or facing my life towards that goal.
This has caused me a great deal of cognitive dissonance. My excuse thus far has been that while I know a lot about how my company will run (what kind of culture we will have, some people who will work there), I don’t have an idea for what we will be doing or selling.
It seems that most people start with an idea, and I am starting with an index card of pretty general goals. The leap is that with these directions, the rest will follow.