Having a side hustle isn’t a luxury anymore, it’s a necessity.
Today’s middle class is barely making it. Therefore thinking about your next business idea should be reality (like yesterday).
The main reason 80% of businesses fail within 5 years is because of its faulty foundation: you.
That’s not a knock of your skills or ideas, but your focus. After finishing reading The E Myth Revisited, Gerber emphasizes working on your business, not in it. Simply put, any business dependent on you to run it is destined to fail.
The only way to monetize your next idea is to systemize it. This is something I’m working on. I like being involved. I prefer to individualize customer interactions. I want to cater to people’s needs.
The problem there is the lack of a consistent experience. As much as we may loathe sales pitches, they are measurable. Standardizing a product or service provides branded expectations. When you think about it the best companies present clearly.
When an explanation is simple and easy to understand, a customer can decide whether to buy or not.
When an explanation is unclear, a customer leaves confused which results in a no.
The best example for systemizing your next idea are franchises. Starting at the model concept, processes and details are hammered out to a tee so it can be replicable at another location. Customers who visit any spot should experience a very similar encounter.
Another key factor in systemization is hiring others to help. This means people or outside systems (automation). Essentially this means delegating all the pieces you aren’t great at in order to grow the business.
It starts with the right mentality. Focus on developing the business to run itself. You won’t be able to afford all the help you need right away, but you should never defer from that plan. Most small business owners take shortcuts early on by doing everything which produces short-term gains, but in the long-run it’s not sustainable.
Ironically I’ve experienced this at a program level before where I put the right people in place and let it run like a well-oiled machine. It felt like everything was on “auto-pilot.” My goal is to implement this strategy with my next idea and where I’m finding it most helpful so far is in the early stages of discerning which ideas to pursue.
Some people’s goal is never to scale or sell a business and that’s ok. But what I’m learning is when you systemize your idea correctly, at least you’ll have that option because others see value in a predictable money making machine.