When starting a business, it can sometimes be difficult to know what to prioritize, and doing it yourself can be overwhelming. But there are strategies you can use to avoid common pitfalls.
My mission is to teach people how to monetize their passion. That’s what I did: I switched from living on food stamps to building two online businesses.
Today, I run a music blog, Recording Revolutionand a startup coaching company. I only work five hours a week from my home office and make $160,000 a month from passive income.
Here’s what I tell my 3,000 clients to think about in the first 30 days of starting a business:
1. Be clear about how you want to spend your time.
Many new business owners I meet know only one thing: how much money they want to make.
While it’s a great starting point, it’s not exhaustive. Your business should serve your life, not the other way around. So make sure it aligns with your hopes, dreams, and goals.
To get a sense of the kind of business and life you want, ask three questions:
- What does a perfect day look like to you? Don’t just think about your typical workday. Consider other life activities you want to fit into your day, like exercising or spending time with family.
- How many hours a week do you want to work? You don’t have to stick to the 40-hour work week standard. Knowing exactly how many hours you want to work will help you better prioritize tasks.
- How important is time off? Some people don’t care much about time off, as long as they love what they do. Others value extended breaks. In order for money to flow in when you’re not working, you need to have some kind of passive income.
2. Simplify your business model.
When I started my music education business, people told me I needed to test my sales pages, host launch parties, and pre-record a bunch of commercials to grow.
Instead of trying to do things that make no sense to me, I keep things simple and focus on three things: creating weekly content for my blog and YouTube channel, growing my email list from an audience there and promote the paid products I was created on that list.
If you’re just starting out, develop content around your expertise to grow your audience. It doesn’t have to be perfect. You can iterate and design new products based on what your customers want more of.
3. Cut out unnecessary daily tasks.
Identify which daily activities will make you more money. Don’t waste time or burn yourself focusing on unimportant tasks.
It can feel good to go to zero in your inbox or change the color of the buttons on your website, especially in the early days when you want to feel like you’ve reached your goal. But neither of those things will make you money.
Before you start a new task, ask yourself three questions:
- What is the expected outcome for performing this task?
- Does it lead to more money?
- Can I show a direct link between performing that task and earning income?
- How much does it cost to do this instead of the other?
4. Prioritize enjoyment.
People can tell if you’re doing something just for the money or that you really love what you do. That authenticity will connect you more deeply with your customers, and it will sustain you for the long haul.
You don’t want to burn out from spending all your time doing things that don’t make sense to you.
I always give my students this framework as they begin their entrepreneurial journey: Build a business around something you see yourself doing and loving in the next 10 years.
Graham Cochrane is the founder of The Recording Revolution and the author of “How to get paid for what you know.” He’s helped over 3,000 people start and improve their own businesses. Follow him on Instagram and Twitter.
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