One of my favorite leaders of all time once looked me dead in the eye and tried to convince me that “I can make an impact without being someone’s manager, as long as I chose to do so“. At the time, I couldn’t be convinced. I felt like unless I was going “up” the ladder of some company, I wasn’t going to be enough. It definitely wouldn’t enable me to make the impact I want to make.
It took me years and years of climbing, and trying and caring about the wrong things for a really long time. I wasn’t even cool enough to realize it on my own! The universe knocked me over the head with it. I had the opportunity to make an impact, wherever I was.
As long as I chose to do so…
This is the core message behind why I think more people should start a business. First and foremost, before we talk about why you should start a business, we should talk about the great freedoms everyone is in pursuit of.
I really like how Dan Sullivan puts it with his Four Phases of the Freedom Cycle
“Freedom of Time, Money, Relationship, and Purpose.” His belief is that “Entrepreneurship requires courage and a massive belief in yourself to secure your own financial independence. The hard truth is, freedom must be earned and isn’t given to us.”
In case you’re unfamiliar, he breaks them down like this:
- Freedom of Time: This is the freedom to be able to do what you enjoy with your time
- Freedom of Money: To do what you love doing, you must have the money to pay for it. So, if you want more time, it will take money to pay for it. In the entrepreneurial world, that means you must pay for other people’s talents so you can be free to focus on your own talent, your Unique Ability.
- Freedom of Relationship: This is the freedom to choose whom you spend time with, both personally and professionally.
- Freedom of Purpose: Entrepreneurs want their entrepreneurial life to integrate with their overall life purpose. This allows them to achieve the satisfaction and significance they desire. Entrepreneurial freedom of time, money, and relationship build up to enable the entrepreneurial freedom of purpose.
I believe more than anything, more people really want the freedom of time. The freedom of money is high on a lot of people’s list. It’s not to say that anyone should desire one or more of these freedoms over another. It’s rather to identify that we as people are motivated by different things, sometimes all at once.
However, I believe starting a business can unlock these freedoms faster, not directly through the business! Absolutely not. In fact, starting a business will erode your freedom of time, money, and relationship at first if done properly. So, that’s why I’m writing to you today.
I want you to understand what you can get out of starting a business and how it can fuel a long-lasting and more fulfilling life. Not because it’s going to make you rich, but simply because you get to choose.
Time is NOT our most valuable resource
I used to say “time is our most valuable resource” for a long time. I don’t know if someone else said that to me and I just internalized it as my own truth. I don’t believe time to be the most valuable, but it is, our most scarce.
No amount of time can compensate for a lack of focus and attention. Your attention is your most valuable resource. How will you spend it?
This belief started with “Power of Unwavering Focus” by
when I first started to realize that my time was valuable, yes, but not even remotely as valuable as my attention. Then Gary V started his whole “Day Trading Attention” movement and I was like, yeah, okay, I think I’m onto something.We can be sitting at our desk, working on a, whatever, presentation for a client. Do you have an interesting podcast in the background? Is there a YouTube video playing on the other screen? Are you pausing to scroll through IG every once in a while? What should take 90 minutes to build a deck becomes 120 minutes. All because we haven’t sharpened our ability to focus on the task at hand.
I like to encourage people to start small and build toward the first freedom. Freedom of time: Create a hobby!
Choose a skill you love to use or that you wish you could use more – Commit to using this skill. Maybe it can’t be daily, but each week find 1hr, once a week playing with this skill. With no interruptions, no distractions. Just you, enjoying your craft!
Should I Start a Side Hustle?
Okay, before I convince you to start a business, start even smaller than that.
When considering a side hustle, let’s think about what we have to offer. What is a skill you have already or one that you wish you could use more? (I love this question!)The goal with answering this question with this context is about making the transition as enjoyable as humanly possible.
Some people recommend going out and getting a certification for a skill you have never used, don’t consider a strength, and that doesn’t fulfill you, “because it’s the most lucrative way (so, they say) to make heaps of money fast.” Taking this approach will only delay your gratification even more and in the case you don’t enjoy doing this thing, you may impact your freedom of time and money all in one shot.
I know people who sell coasters on Etsy, bake gluten free desserts, or edit videos for content creators who make marginal returns, but they love getting to work on their craft – Looking for the next cool design, different ways to remix a recipe, or trying different transitions in their videos.
Most of these people use that extra cash as spending money, even travel funds, not take over the world money.
If we’re just talking dollars and cents, people who start a side hustle are only incrementally closer to becoming financially free than someone who hasn’t. They likely are only making an extra amount here or there. However, they’re building the foundations to achieve other freedoms along the way.
Start small, keep it simple.
Find a friend who needs help. Start a crafting project and try to sell it on Etsy. Most importantly, do something that matters to you. Don’t forget an important step – Tell the people closest to you what you’re doing!
Fail Forward (Rename)
Okay, so you did the thing. You’re spending an hour a week doing something that challenges you, stimulates your mind, and awakens your senses. Maybe you even sold your services to a friend or a neighbor and now you’re thinking what’s next?
Pause on that! It’s time for a check-in a pulse check. How are you feeling? What have you learned from this process?
One of my clients revealed that they picked up a new hobby in painting. While they love painting, they cannot ever figure out how much paint to order for a project, over-ordering certain colors and not enough of others. They also revealed that the cleanup process is a nightmare.
One of the hardest parts of starting a business is figuring out “what do I do” and I didn’t even include the part about what do I do “well?” It’s also important to understand “what I do not like to do or am incapable of doing.”
Ultimately – Is this the thing that I want to do? Is this going to become my side hustle?
The nice thing about this question is that even if the answer is no, then worst case scenario you just found yourself a new hobby and that is absolutely a win!
Think about a side hustle as yourself as a kid working for the local fast food joint or mowing lawns in your neighborhood. This is not what’s going to get you to the promised land, but it can illuminate the path you take.
Let’s say then, that this is it. This is the thing you’re going to do to turn into your own little business. Before you create your business plan or start thinking about paying for ads, you have to do the foundational work. You need your why!
Start with Why
Before diving into the logistics, it’s essential to understand why you want to start a business. Your “why” is the driving force that will keep you motivated during tough times. Reflect on what you are passionate about, what problems you want to solve, and what impact you want to have on the world.
Once you have a clear “why,” it’s time to move forward with the three essential steps to starting your business.
Step 1: Coming Up with an Idea
Every successful business starts with a great idea. This could be something you’re passionate about, a solution to a problem you’ve noticed, or a way to improve an existing product or service. Here are some ways to brainstorm ideas:
- Identify Your Passions and Skills: Think about what you love doing and what you’re good at. Your business should align with your interests and expertise.
- Solve a Problem: Look for common problems or pain points that people face in their daily lives. A successful business often provides a solution to a widespread issue.
- Research Trends and Market Gaps: Stay updated with industry trends and identify gaps in the market where there is a demand but no sufficient supply.
Step 2: Researching the Impact of the Issue
Once you have an idea, the next step is to validate it by researching its potential impact. This involves understanding your target market, analyzing your competition, and assessing the feasibility of your idea.
- Identify Your Target Market: Determine who your potential customers are. Understand their needs, preferences, and behaviors.
- Analyze Your Competition: Look at existing businesses that offer similar products or services. Identify their strengths and weaknesses to find opportunities for differentiation.
- Conduct Feasibility Studies: Assess the practicality of your idea by evaluating factors like costs, resources, and potential challenges. This step will help you refine your idea and make necessary adjustments before moving forward.
Step 3: Creating a Basic Business Plan
With a validated idea, the next step is to create a basic business plan. This plan will serve as a roadmap for your business, outlining your goals, strategies, and action steps.
- Executive Summary: Provide a brief overview of your business idea, including your mission statement and what you aim to achieve.
- Business Description: Describe your business in detail, including the products or services you will offer and the value they will provide to customers.
- Market Analysis: Present your research on the industry, target market, and competition. Highlight any market opportunities you plan to leverage.
- Organization and Management: Outline your business structure and the roles of key team members.
- Marketing and Sales Strategy: Explain how you plan to attract and retain customers. This includes your marketing channels, pricing strategy, and sales approach.
- Financial Projections: Provide an overview of your expected revenue, expenses, and profitability. This section should include financial statements like income statements, cash flow statements, and balance sheets.
Small businesses are the backbone of the American economy. With 33.2 million small businesses employing 61.7 million people, they represent nearly half of the private sector workforce (Office of Advocacy) (U.S. Chamber of Commerce). This shows the significant role small businesses play in providing jobs, driving innovation, and contributing to economic growth.
Starting small and growing step by step, you can join the millions of small business owners who are shaping the future of our economy and enjoying the freedoms that come with entrepreneurship. So, take the leap, and start your journey towards entrepreneurial freedom today.