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- Starting Your Own Business
When I decided to leave the military and science at the same time, I had no idea how to put a price tag on future work.
A friend offered to put me in touch with a large company who specialized in hiring former military to give me an idea of what I might be worth. Having no better method, I sent the guy my resume and agreed to meet over lunch.
He didn’t waste any time. He told me, “The first thing you have to do is prepare yourself that you won’t make as much money as you did when you worked for the government.”
I think my mouth actually hung open. I’d always been led to believe that contractors made a lot more money than government employees. My heart began to sink.
But he wasn’t done giving me advice. It got worse.
“The second thing you have to realize is that the longer you’ve been away from your government job, the less valuable you are.”
That’s when I got angry.
I realized he was looking to take advantage of my naivety. It’s possible I called him a “job pimp” inside my head. I imagined him trying to bill me out at whatever price he wanted while telling me my only value was in my fading connections.
If you’re anything like I was, you probably have some insecurities about your professional value. Worse, you tend to base your value on what you’re getting paid today, thinking only small fluctuations are possible. You tell yourself you’re lucky to have a job at all, that you have to choose between fulfillment and a decent salary.
And it’s just not true.
The solution isn’t to scope out salaries on glassdoor.com or hire a therapist. You need to start a business.
Now before you exclaim that you don’t have time to feed the dog, much less start a business, let me explain what I’m talking about. I’m not talking about growing an empire through hot-shot investors who are envisioning the next Google. I also don’t mean you should abruptly quit your job and hope your wild freedom fantasy comes true.
I’m talking about something easier and much more strategic.
You see, I think everyone (yes, even you) needs to start and run a side business at some point in their career. When? Why, whenever you feel stuck of course.
The point is not to keep the business forever (unless you discover you love it, like I did), but to use it to radically alter how you and others value your work.
Because absolutely nothing will help you see what you enjoy doing, what you’re good at, and what you’re worth better than entrepreneurship. Let me show you how it works, and introduce you to a brand new community I’m putting together to help you get started.
Reinventing your worth
Starting a small side business can pay enormous dividends while actually reducing your career risk. Here’s just a few of the benefits.
1. The safest & easiest career test-drive
When you’re dissatisfied at work, it’s easy to romanticize that anything and everything is better. This leads a lot of people to job hopping, only to discover the new job has some major issue too. Most people tell me it’s incredibly defeating.
The trick is to find a way to mimic a new job or career before you commit to it. A business can’t always replicate the experience of working in an office, particularly the culture of a specific company, but you can get valuable input on how you’ll like the work itself.
For example, think you eventually want to move from a technician role to that of a manager? Think about building a business that plays to your current skills, and then hire someone else (or a team) to actually do the work. Or if you think you want to change careers, let’s say moving from IT to marketing, a side business where you put together online marketing campaigns will let you see how you can leverage your current skills in a different way.
You’ll get great insights on how you like the work and how well you can perform it, along with more feedback than your boss ever gave you.
2. You see the big picture
In your current job, you’re probably a specialist and chances are, you’re taking a lot for granted. You get to focus on your little piece of the puzzle while the rest of the company worries about finding new clients, making them happy, all while serving the bottom line.
In a big company, it’s easy to become disconnected from the ultimate product or service that the company offers. Running your own business lets you close that gap. For me, it was a bit like suddenly becoming a superhero. I could see things that my former colleagues couldn’t because they were isolated and largely blind of what happened outside their department.
I remember attending a blogging conference and sharing some of my career ideas with a small business owner who had a unproductive employee. In 15 minutes, I’d given him some viable alternatives to firing her, creating a potentially huge win-win situation. He told me, “I’ve hired a lot of consultants to get to where I am today. You just gave me $2000 worth of good advice.”
Now that’s the kind of value I’m talking about.
If you’re looking to get promoted or move into a new field, this “big picture” perspective is what will set you apart from your competition.
3. It forces you to be brave
In my experience, there are few things that strike fear into the salaried employee’s heart like doing something new and solo. You’ve probably gotten comfortable with your work and the idea of taking on something you have zero experience with is overwhelming.
But if you want to make changes in your life, you need to be comfortable being uncomfortable. This is probably holding you back more than you realize. The great thing about a side business is that you can experiment with ideas and strategies with almost zero consequence. It’s like being in college again, where everything felt like all play, no responsibility. And that kind of freedom can be liberating.
4. You see yourself (and your value) from a different perspective
When I calculated my hourly wage as a government employee, it came to roughly $40/hour. When I got my first freelance gig, my customer asked what my rate was. I got flustered. I still had that darn contractor’s voice in my head.
So I looked at the average salary of people working in my new industry and used that. Now I was making $73/hour, but I didn’t feel good about it. At times it felt too high, other times it felt too low, but it always made me feel uncomfortable.
It wasn’t until I started my business as a career coach that I began using market forces to determine my value. What were people willing to pay me? How did the price differ with services provided?
It was eye-opening.
I was regularly getting work at the $200/hour range. Most of my clients told me this was very reasonable based on the value I was providing. So when I got my second big contract, I boldly asked for my new rate. I figured if ordinary people were willing to pay me that much, a company could certainly afford the same.
And they did. Within the space of 2 years, my business gave me the confidence to increase my average hourly rate 5-fold. It enabled me to work part-time and put almost $70,000 into savings in one year.
I had re-invented myself–not just to the outside world, but to myself.
The smart way to start a new business
Many of my No Regrets clients decide they want to experiment with entrepreneurship or want to use it as a test-drive for a different but still traditional career. They haven’t got the faintest idea how to get started, so they look for help from someone more experienced.
Unfortunately, they discover that many programs teaching you how to start a business are quite expensive ($1000 and up). This usually results in people abandoning the business idea or forking over a lot of money and feeling stressed about it. The latter is the path I took and I’m here to tell you it was really dumb (and unnecessary).
What many people don’t realize is that such courses set up a kind of co-dependency. You think you need someone to tell you what to do instead of just experimenting and having fun with it. You can actually become less confident with these reminders of what you don’t know. Again, I’ve lived it.
Starting a side business can be incredibly simple and easy if you dial down expectations and surround yourself with people going through the same process. If you look to your corporate friends to cheer you on, you’re going to find yourself discouraged. If you base your progress or success on someone who has years more experience, you’re going to feel depressed.
So I decided to start a community just for new entrepreneurs called the Bright Entrepreneurs Club. The idea is that you don’t need a guru to tell you what to do, you need a group that helps you build the confidence to play with ideas and take action. You need to hang around other smart and talented people, all of whom will experience the normal ups and downs of learning something new along with you.
If you’re interested in joining us, you can find out more here. We’ll be accepting beta group members through June 15.
But the real message I want people to take away is that you can start a side business without a lot of capital, education or big name partners. You don’t need to take over the world in the first 12 months, nor do you need to immediately replace your salary.
You just need a bit of courage to experiment, to grow, and to see you have so much more to offer than you ever imagined.
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