The majority of us are conditioned to go to school, get good grades and get a good job. While the few are guided to go to school (if you want), get great grades and own great companies. The majority will follow the norm and spend 20% of their life in school, only to leave in heavy debt and competing in a job market which offers a means to survive, not thrive. While the few who dare to challenge themselves dive into developments and opportunities that unlock their survival shackles, entering this sought after position of freedom. Which route do you prefer? If you prefer survival shackles, you can leave this page (with our prayers for your success) now. If you prefer freedom, stay here for two more minutes and get some direction on how to develop your achievement plan.
You’re still here? Great. Let’s get started. When deciding on what business to create, most of us are not sure of what to do or how to being the process of developing the idea. When we finally get a sense of what we truly want to do, we find out that it is not realistic for us when considering our current liabilities and time affordability. For example, you want to open a restaurant. When examining all of the parts involved; locating a venue, leasing requirements, municipal administrative permits and compliance, consultation with contractors and architects for required design and improvements, equipment acquisition, inventory management, accounting, marketing and advertising and day to day operations, management and more … your current reality not permit the time and resources to tackle this checklist of items to be done. So, how do you get in the food business while still keeping yourself afloat until you become profitable? While still managing your real daily life operational needs such as basic living costs, getting to and from work and family matters? This is just an example of what may be involved in evaluating going into business for yourself.
Now let’s look at this from another perspective. The perspective of what you are actually able to do and do it without stressing yourself (or anyone around you). First, set up a “time” budget. This is a realistic accounting of any and all of your daily time demands. Working with a six day week, let’s presume the following: 8 hours per day for sleeping, 1 hour per day for personal hygiene, 1.5 hours per day for food prep and cooking, 8 hours per day for your current job (or school), 1.5 hours per day for transportation, 1 hour per day for miscellaneous items such as housework or whatever may come up that needs attention and let’s add another 1 hour per day for social interaction as needed. Add all of that up and you get 22 hours per day that is by default accounted for. This means that you have 2 hours per day, approximately 12 hours per week or 50 hours per month, that you can dedicate towards business development and or execution of such development. And, this 50 hours is a very disciplined 50 hours. No distractions, totally focused on achieving the goals of development and execution.
Now that you know that you have a collective 50 hours per month of time at your disposal, it is up to you to budget that time as needed in order to start your business. With consideration that most of us do not have the discipline (yet) to zoom in for 50 hours with devotion, let’s take off 50% of that time off the top and just throw it into what most are very likely going to do with it. That being, invest it into social media browsing (which gives you zero return on the time investment). Maybe an outing or two with friends of for dates. Or perhaps some extracurricular activities. However it is divided up and deployed, we are going to take off 25 hours per month. This now leave us with a very realistic 25 hours per month that we can dedicate time and effort into developing and or managing our business.
You have your time budget now. What can you come up with that you can develop and manage using 25 hours (or less) per month? This is a very realistic approach in determining what you will be able to do, commit to and actually operate without derailing your life. When looking at this from a development perspective, you will have 250 hours of focused time to develop your business idea. This can include diligence of all sorts that contribute towards your decision of moving forward with the idea. Just because the idea sounds good or makes you feel good about doing it, does not necessarily mean that it can be or will be profitable (or worth the effort). Diligence is a critical component of deciding to move forward or not. The example above with the restaurant provides a snapshot of items needed to open such a business. Each of those items requires “diligence” to get a thorough understanding of what is involved, albeit feasibility for success, related development costs, operational costs, total funds needed, relationships required, operational needs and more. All of these items require “diligence” and should be thoroughly examined prior to moving from step to step.
You have 25 hours a month (or whatever your personal time budget is), 250 hours a year to dedicate towards development. And, 25 hours a month thereafter to manage and operate whatever you develop. Of as you become profitable, this time budget will adjust to accommodate the scale of success. Generally, as you become profitable, you get to hire help, which in turn reduces your required hands on time. So, if you get set up and go into operations with your 25 hours a month invested, your profits will enable you to bring on additional team member(s). You then may only need to invest 20 hours a month (or less). Your reality as of now, is you can swing the bat and try to get on base with a 25 hour a month effort. Are you going to take a swing?
Bonus paragraph. Using the same example of getting in the food business. Now that we know that taking a position in a restaurant is very costly and far exceeds your time budget of 25 hours per month, we can still find an entry point into the food business. And, very possibly build up value along the way so when we do get our very own place, what we have been doing previously can contribute value to that place. Building on the above example: we are not going to get into a restaurant position. We are going to engage a few restaurants (chefs or commercial kitchens) and ask them if they can provide catering services for “your clients”. Surely some of them will welcome this opportunity to work with you. When they accept, you will then make an agreement to get a commission of approximately 10% for every contract (client or job) you bring them. Their position is doing any and all to accommodate the catering job, inclusive of acquiring material, food prep, cooking, plating and delivery. Your position is getting the client and possibly offering managing the service after the food is delivered (which is a billable line item). Using this approach, keeps you in touch with the food business, while simultaneously building up your relationships within the industry (providers and clients). You get paid handsomely while avoiding all of the liability of the heavy lifting. Your end is administrative and will very likely fit into your 25 hour per month time budget. Your time is spent getting clients (marketing and advertising your “food service business”) and managing the service providers you work with. Quick math; if a typical catering job is 100 people at $20/person (low end job), gross sales of $2,000, 60% off top for material and transportation efforts, leaving $800, the service provider does all the heavy lifting to prep and cook for 100 people, an easy 8 hour effort, generating perhaps $100/hour. Whereas you are getting a commission of $200 for your efforts, where your efforts may not even take an hour from start to finish. You are earning less than the provider but you have significantly less liability and workload. This model may be applied to man industries. Take a swing!
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