I’m going to get into trouble writing this post. I think people might comment (in this post or privately by email) who will chastise me for suggesting this. I can predict the emails now.
But I’m here to tell you that they are wrong.
Regardless of what the experts tell you, start a business that offers a service.
Years ago, I started my business as a freelance writer. Although different aspects of my business changed (including what I wrote and who I wrote for), I always came back to the one key element: I provided a writing service for other people. It was my default position.
Later, I branched out into other things — selling infoproducts, writing ad-based or affiliate-based content, and more. But writing was always there, always funding that expansion and always putting food on the table.
I’m a big fan of starting a business by providing a service to other people. That service could include something you do (as in my case — writing — or perhaps it’s something else, like renovating houses or consulting on social media or being a plumber, etc.). If you find a group of people who want what you sell, and you market to that group effectively, you’ll always have work… and you’ll always have income. And if you ever want to make more money as a service provider, you can always increase how much you pitch and how much you charge. That’s true security as a business owner. There’s a very simple link between the work you do and the success you enjoy.
A service also makes you relevant and keeps you sharp. It keeps you in the game. It helps you establish and strengthen your position in the industry. It gives you a “laboratory” that you can experiment — see what works; see what doesn’t.
And no matter what happens, you can wake up and make money… and you’ll always have the confidence that more money is just a few phone calls away. (If you have the right service to the right group of people, of course).
Once you have a service established and in place, then you can extend to other monetization opportunities: Products, information, etc. These are awesome because they are “do-them-once-and-profit-continuously” opportunities. Often, they require a lot of work up-front but then can become serious profit generators in the future because the hard work is done initially and all you need to do after is market them.
And eventually, product sales might even outstrip your service sales so you get to the point where you don’t earn much money at all from services. And a lot of the gurus will tell you that starting with a product is the way to go because they can generate a lot of profit.
But I think you should start with a service. Find something you do well and provide it to a well-chosen market.
Products (whether physical products or infoproducts) are good to sell and can boost your income considerably. And products are often heavily promoted by the gurus as THE way to monetize your business. But here’s what they don’t tell you:
- Cost and effort: Products take a lot of work up-front to do well. Physical products may require that you pay for them to be imported or manufactured. Digital products require time spent in writing and design.
- Risk: Along with the effort, there’s a considerable amount of risk offering a product that is designed and created… but then turns out to be a dud.
- Income and timeline: Products are (often) not a windfall. They trickle money in — and sometimes it’s not a lot of money at all. Yes, you could eventually get to a point where your product business is bringing in decent cash from product sales but in the very beginning, you won’t be lighting cigars with $100 bills.
Now let’s compare those same factors with a services offering:
- Cost and effort: Services don’t need to be “created” so they take zero dollars to do. (You might point out that some services require costly tools or training. That’s a good point but I cover it in my next point)…
- Risk: If you offer a service and no one buys, you haven’t lost much. You can adjust your service to offer it to a group of people who do want it. Or if you want to make more money, you can offer different services. In other words, services are much more agile. (And as for the point about expensive tools, here’s what I think: If you have the tools required to do the job then you probably have the experience and skills necessary. If you don’t have the tools then find something else that you can do).
- Income and timeline: With services, you can potentially earn a good living right from day one. The more you sell your services, the more the money comes in. It’s fast and it’s relatively substantial (compared to the profit you earn from most products).
Once you start selling your services, don’t stop there. If services are the only thing you sell from now until you die then you run the risk of capping your income and burning yourself out. However, if you start with services and then start adding products or other “passive” monetization opportunities, you can grow your business further while always having that income from services.
The naysayers of this idea will point out that services limit you by taking your time and capping the amount of income you earn in an hour. It’s true that services pose that risk. However, I’ve seen enough people who dreamed of starting a business but couldn’t earn enough money from products to earn enough income when they needed it.
What I’m suggesting is not a popular recommendation, and it’s not surprising that products are hailed as the best business choice over services. But I think a lot of aspiring entrepreneurs could become actual entrepreneurs right now if they stopped trying to find the perfect product to sell and instead focused on the service they could offer.
If you aspire to start a business, think about what services you could provide. What could you do well that other people might be able to hire you for. Use that as your starting point, enjoy the fast income you can earn from it, and use that income to fund expansion into other monetization opportunities.