Starting your own business is a tough process. One of the toughest aspects of starting a business for many people is actually starting. You know that you want to start your own business, but you haven’t taken any real steps towards getting a business started. Sure, you write down your ideas and discuss them with your friends. You read every book blog you can get your hands on. You’ve got a burning desire down, deep inside your being reminding you that you want to start your own business.

But you haven’t started it.

Still, others of you may have started creating a business, but you haven’t ever opened your doors for business. Some of you may have done this many times over.

The excuses are grand an innumerable:

  • “The economy turned and the business wouldn’t work today.”
  • “I don’t have enough experience to start a business.”
  • “I want to do more research.”
  • “Someone else must have the same idea and will do it better.”
  • “I’m only 25, who will listen to me?”
  • “There’s not enough time in the day.”
  • “I’m too busy with my job & hobbies.”

Give me any excuse you want; the excuse matters not. What matters is that you truly want to become an entrepreneur.

What’s Stopping You?

We all procrastinate. We just don’t all realize when or why we do it.

Let’s take a little trip back in time, to when you were in college (maybe you still are). You get assigned a 30-page research project due in two months, at the end of the semester. Immediately, your head is filled with ideas about how you could complete the project. On several occasions, you head to the library, intending to get started on the project. However, you spend the time surfing the internet, reading magazines, and ultimately getting little or no work done on the research project. Then, four days before the project is due, you panic, head to the library, pull two all-nighters, working without interruption, and handing the report in on time.

Many people “choose” to work like this. The stress of a deadline, they say, forces them to work and to focus. There are some benefits to deadlines (I wrote about them here), but what do you do when you don’t have a deadline? And when you do have a deadline, wouldn’t you like to work without the stress of working right up to a deadline?

Why We Procrastinate

The reason most of us procrastinate goes back to our childhood. Many of us are taught to “do our best” or even “be the best” at everything we do. Anything short of that is a failure. If you ever brought home a report card with five A’s and one C, only to be punished for the C, you know what I’m talking about. Or maybe you tried very hard but never received A’s and were never rewarded for your work. Regardless, if you were constantly given the feeling that you could have or should have done better, this applies to you.

This idea of “anything less than perfect is a failure” is internalized by many of us, as it is constantly reinforced through parenting and the structure of our schools and businesses. When “perfect” is the only option, failure is almost inevitable. To avoid failure, or at least feeling internally as though we’ve failed, we avoid starting the task in the first place. We fear that the ultimate outcome of the task or activity will be inadequate.

So much of our lives are defined by the work we do in business or school. Consequently, we often begin to consider our work products as an indication of our self-worth. This only serves to amplify our fears of failing because we look at less than perfect performances in school or work as an indication that we, as people, are less valuable than those people who do achieve A’s or make big sales.

Back to the research project. You ultimately decide that the consequences of not doing anything are worse than completing the project quickly and in a mediocre fashion. You may complete the project, and may even get an A, but you’re still hurting yourself.

Cramming for a test, pulling all-nighters to finish a project at the last minute, or winging a presentation all feed our procrastination. These actions are actually a defense mechanism, rather than a victorious completion of a task. When you wait until the last minute to complete the task, you know that you haven’t put out your best effort. Thus, should you receive a less than perfect grade or not make the sale, you can rest comfortably knowing that you could do better, so this failure is not representative of your actual self-worth.

How to Overcome Procrastination & Start a Business

Wannabe entrepreneurs seldom, if ever, have an impending deadline that forces them into entrepreneurship. Thus, they are never forced to put together a business. Instead, they delay the process of starting the business – indefinitely, in some cases.

Why does this happen? When we focus on the outcome of our efforts to build a business, we panic. You might put have a picture of a Ferrari on your desktop because it reminds you of the outcome you want: to make enough money to buy a Ferrari. Or maybe your goal is much simpler: building a business that generates enough money to live comfortably. These goals can actually hurt procrastinators, rather than help them. Procrastinators freeze because they fear that their efforts to create a business will fail in achieving their goals.

By all means, everyone should make goals, but procrastinators should approach achieving them differently. The procrastinator needs to focus on the activity of starting a business, rather than the outcome of their efforts.

4 Steps to Breaking out of Procrastination

  1. Break down the process of starting a business into small tasks which can be completed in an hour or less. You can focus on the process of completing the task rather than the fear of failing at your ultimate goal. There’s a ton of tools out there to help you structure larger tasks into small ones. A process which I have tried recently is the Pomodoro Technique.
  2. Focus on starting rather than completing. Tell yourself “I’m going to begin the task of choosing a domain name, then I’m going to begin the task of researching web designers, and then I’m going to begin the task of developing a budget.” Phrasing your tasks in this way implies open-ended opportunity, rather than a closed-ended task with an end result. You do this becuse the end result is the element of the task on which you can pass judgement. This approach may even help you enjoy the task, rather than making it feel as though you’re laboring towards a goal.
  3. Focus on the activity required to complete the task, rather than the outcome. If you need to write a blog post, focus your mind on the activity of writing. Don’t begin thinking about “what if this post goes viral?” “what if this post sparks tons of comments?” or “what if my readers hate this post?” Simply concentrate on putting words down on paper. A good way to get into this mindset is by visualization. Before starting a task, visualize yourself in the process of working – don’t focus on what it will look like when completed.
  4. Keep track of your starts. Every time you are able to begin a new task, write it down. At this time you can mark the previous task completed. Waiting to mark a completion until you start a new task helps your work continue flowing from one task to the next and moving you towards your ultimate goal.

I’ve implemented these strategies to great success in my own life. They will work for anyone, not just entrepreneurs or students. I hope that they help you out.

I don’t intend this to be a lesson on parenting and I’m not giving anyone reason to blame their parents. What I am pointing out is that to be successful adults, we must understand & alter the way that we operate.

(Image by gadl)

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Bear Grylls is truly location independent - Kinda makes all of your planning seem pretty dumb, huh?

Bear Grylls is truly location independent - Kinda makes all of your planning seem pretty dumb, huh?

(Note: I am not referring to any one blog or blogger anywhere in this post. This refers to an entire community of bloggers – location independent just happens to be the most commonly used term.)

This is a long post – but a very important one. Take the time necessary to read it!

In the last four months, I have established my “location independence.” Like many of you reading this, I learned of location independence, modern nomading, or whatever you’d like to call it (I’ll call it location independence in this post, but I am referring to ALL terms for it), via blogs. It sounded like an amazing way to live and I started pursuing this lifestyle.

Many have emailed me over the last couple of months asking questions about how to achieve location independence. Every single person was using bloggers’ experiences to model their ideal lifestyle. There’s a major problem with this, and at the risk of being excommunicated from the online community of location independents, I’m going to tell you about it.

Let me preempt the rest of my statements with this: I have not met most of the bloggers to whom I am referring, but I have read their writings – which is really all that matters, because that is the level of access most people have to these bloggers. I’ve also had somewhat extensive online interactions with others.

Many of the bloggers you read are literally the antithesis of location independence.

Many bloggers are simply transferring their “home” to a new location, not creating a lifestyle that is independent from a “home” location (yes, I am guilty of this – but I don’t scream about location independence from the rooftops either). Doesn’t it sound pretty ludicrous to be “location independent” but need to plan a relocation months in advance? If you are truly location independent, wouldn’t you be able to pick up everything and go to a new location today?

Relocations are simply a cop-out. Planning out a relocation to an exotic destination is not exhibiting location independence – it is exhibiting EXTREME LOCATION DEPENDENCE!!! These people are so attached to and dependent upon their home location that they cannot commit to moving to a new location. Rather than move, they do a temporary relocation.

I really don’t give a crap about these bloggers. But there are some great people out there (some of whom are close friends) who are trying to become location independent and are being lead down the wrong path by these bloggers.

Here’s a great example of how crazy this sounds: My girlfriend works for a large company that required her to relocate from Denver to Tucson with two weeks notice. In that amount of time, she completely moved her life to Tucson. On the other hand, there’s bloggers who are writing about their plans to become “location independent” for months. They are carefully planning everything, ensuring that they can replicate every aspect of “home” that they depend upon – while not actually letting go of their home, via renting it out or making arrangements to ensure that they can retain ownership when they leave.

Who is more location independent??? My girlfriend is. She was able to transport her life to a new location in a matter of two weeks, not leaving apartments, homes, or storage units full of crap behind.

Maybe she should start a blog.

But these bloggers give me good advice!?!

Do they really? The majority of people I have spoken with who follow these bloggers are actually hurting their chances at location independence. Most of theses bloggers are giving you advice in order to get you to read their blog, buy their products, and click on their ads (you may notice that at this time, there’s no ads or items for sale on this blog). These bloggers are teaching readers to reinforce their location dependence by overloading you with information, leading you to over plan, and replicate their location dependence in the name of location independence.

Is reading another blog post going to improve your chances of becoming location independent? No – you’re going to spend valuable time reading someone else’s experience rather than creating your own.

Is buying another ebook going to give you the tools you need to become location independent? Absolutely not! You’re spending money on someone else’s opinions. Use that money to start up a new business or add it to your savings.

Recognize the bloggers for who they are

There’s a lot of travel junkies out there blogging under the guise of location independence. Many of these people have constructed their hobbies or, in some cases, their livelihoods from planning and blogging about their trips and relocations. If you plan on making trips & relocations a part of your lifestyle – and not your life – these people are likely leading you down the wrong path. You may wish to relocate to Melbourne, but maintain your training for triathlons, or keep knitting, or writing your novel.

Some people consider relocating or planning a trip stressful – others consider it a hobby. Which category do you fall into? Do the bloggers you read fall into the same category?

What location independent (and similar labels) are good for

Location independent labels become rallying cries. They allow people to form a community or tribe around an idea. This serves as a great way to create charity an camaraderie amongst people who identify with the idea (LIP Talent Exchange is a great example of this, as are certain free forums). However, people who wish to join this community can (and are) often become distracted by the leadership of community leaders (bloggers) and focus their efforts on activities that do not lead to achieving their dreams. Instead, they become lost in the community and the achievements of other community members. Remember that everything you read on the blogs is packaged to sell a product and to get you to keep visiting the blog – the story may not have happened exactly how they’re retelling it!

These labels have created a marketplace (much like supposed “minimalism” has) – but it’s mostly an artificial market. I have yet to read an ebook from a blogger in this space that teaches me how to travel and run my business, not to mention it seems every ebook repeats the same, useless information. Remember that these labels are created in order to sell you something.

Be honest with yourself – even if bloggers aren’t

Spend some time and think about this: the location independent person can go anywhere in the world and find a way to procure food, shelter, and clothing. The location dependent person needs to plan out where to store their crap, how to rent their home, find a location that has internet access, find accommodations in the new location that provide the comforts of home that they are used to, plan out cell phones, contingency plans, etc.

If you are taking your business with you, chances are you aren’t going to be location independent: you’ve got to replicate too much of your current location to make it work. If you’re willing to wash dishes in exchange for a humble meal & scrub floors and toilets in exchange for a roof over your head, you’re going to have a good shot of being location independent.

Remember that simply relocating isn’t location independence. If you need to keep your current home to be happy with temporarily moving somewhere else or travelling, recognize that as location dependence rather than deny it.

Get in the correct mindset

If you need to replicate your home, or even keep the one you have while you travel, don’t kid yourself and try to achieve location independence. You’re going to end up pursuing “location independent” activities that are expensive and unneccessary. Relocating to Buenos Aires for six months is a drastically different concept than becoming location independent and travelling the globe for six months. Know what you are comfortable with and focus on that outcome – you don’t need to be location independent to relocate.

Be your own leader

Lifestyle design isn’t something that someone else can do for you. Your lifestyle is based upon your personal needs, desires, and values (with the greatest emphasis on values). Figure out what it is that you want to achieve and focus on that goal. Everyone leads a different life and different values when planning their life. This is why bloggers choose generic terms like “location independence” rather than “relocating to Buenos Aires for 6 and 1/2 months with my girlfriend while keeping my home in Des Moines.”

If you’re plan is to relocate to Buenos Aires, focus on that plan and don’t get side tracked with location independence. Create your own path – following some bloggers’ lead is going to end up in your own failure.

Who should you listen to?

For the most part, avoid “lifestyle design” bloggers who are hocking their own brand of location independence or other highly specific lifestyle brand. If you want to be able to relocate or even become location independent, chances are that you haven’t achieved this goal because you don’t have the money to do so. What’s the solution to this? Making more money! There are some fantastic resources out there for starting a business, automating a business, or expanding your existing business’s web presence. These resources do this without tempting you with delusions of location independence or traveling around the world.

Focus on specialists. There are travel blogs that can provide great travel information, as well as business blogs & ebooks that provide a wealth of information about how to get a business running. Put the two together in a way that works for your ideal lifestyle – rather than using a predefined formula from someone else.

I will be providing a list of fantastic business blogs and ebooks in an upcoming post. If there’s any that you think I’ve got to include, please mention them in the comments below.

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Update – From Hawai’i

by Brian on 24/11/2009

View from my hotel room in Waikiki on the island of O'ahu

View from my hotel room in Waikiki on the island of O'ahu

I’ve had very little time to update the blog lately. Over the last month I’ve been in London, Budapest, back to London, Denver, Tucson, LA, and now in Hawai’i. I’m sitting at the top floor of the Hilton Hawaiian Village with an amazing view of the beach and Diamond Head. I’m working on some very cool projects and Shortcut to China is coming along nicely – we’re starting up a new marketing campaign today.

So, I apologize for my absence, but I trust that you understand that I’ve been incredibly busy working on my businesses and traveling. There’s some very good stuff to come on this site very soon. I promise! In the meantime, be sure to share www.shortcuttochina.com with anyone you know who may want an internship in Beijing or Shanghai.

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My Favorite Quote

by Brian on 17/11/2009

This has long been my favorite quote ever. It’s simple and poignant. I’ve carried a copy of Tao #33 in my notebook for years.

Tao # 33Tao 33

He who knows men is clever;
He who knows himself has insight.
He who conquers men has force;
He who conquers himself is truly strong.

He who knows when he has got enough is rich,
And he who adheres assiduously to the path of Tao is a man of steady purpose
He who stays where he has found his true home endures long,
And he who dies but perishes not enjoys real longevity.

Tao Te Ching by Lao Tsu


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Objective Entrepreneurship

by Brian on 08/11/2009

Numbers

Getting Through the Rough Spots: Think Like an Investor

Over the last few weeks, I’ve received a handful of emails, many of which are from entrepreneurs who are facing the same problem: they have started their business, gotten off to a good start, but now they’ve stalled. They’re frustrated and are unsure how to proceed.

I’ve definitely been through this – in fact, I’m going through the same situation with Shortcut to China. Businesses will always go through rocky patches. At times it seems that your business is doomed to fail and there’s no end in sight. The most commonly repeated adage in these situations is “stick with it,” because things will inevitably get better. Obviously, there are many times when that advice is crap – your business is screwed so you should bail. But how do you know when you should bail?

Entrepreneurs can make a simple shift in their thinking to drastically impact the way they look at their business and the natural business cycle. The way of thinking can be summed up as: think of your business as you would a stock you own and your time as the currency invested in the stock. I know, I know; this seems terribly mundane, but hear me out.

Successful stock market investors are discaplined and objective. They decide at the outset of their investments at what point they will buy, sell or hold a stock. Investors who inevitably lose money are emotional and do not adhere to an investment plan. Investment plans needn’t be elaborate – often they are as simple as planning to sell the stock if it loses 20% of its value so as to limit losses.

Just like a stock, your business will inevitably experience undulations. Many entrepreneurs fail because they act the same way as emotional investors and don’t adhere to a predetermined plan.

What is invested?

The currency employed by stock investors is money. Entrepreneurs tend to invest both money and their time.

How is return measured?

Return is a relative measurement. An investment is generally regarded as successful if it is relatively more profitable than available alternatives. This means if stock XYZ performs better than the stock market as a whole, then it is considered  a good investment.

Investors measure the performance of a stock as a return on their investment of funds, whereas an entrepreneur must view their business from the point of view of the return on their investment of money and time. There is a third measure of success when running a business which is very extremely subjective: quality of life. To the greatest extent possible, you must attempt to quantify this element of running a business.

When to Buy

You buy a stock when you determine that it will provide the best return on your money. Likewise, you will start a business if you believe that the business will provide the best return on your money and time. You cannot let emotion get in the way of buying into a stock or starting a business. You’d never buy stock in a business that makes VHS tapes, because you know that technology is doomed to fail. Likewise, even if you are extremely passionate about producing VHS tapes, you must be objective and realize that you will not be able to start and run a profitable business producing VHS tapes.

When to Hold

When a stock loses value or the revenue from a business you’ve started slows down, you’ve got to ask yourself why this has occurred. You may want to hold onto your business or stock if you think the slowdown is only temporary. Is there a better option available for your investment? Could you shutdown your business and invest in a better, more profitable business? Is there any way to improve your business model to increase revenue? If not, you should hold on to your business and continue running it as is – but limit additional investment. Don’t dump large amounts of cash or time into your business.

When to Sell

There are many reasons why people hold when they should sell. Believe it or not, people develop an emotional attachment with the stocks they own. This attachment leads stock owners to treat their stock as much more than an investment, which it is not. I don’t think that it comes as much of a surprise that entrepreneurs become emotionally attached to their businesses, but that’s no excuse to remain indefatigably devoted to a dying business! When a stock’s value or a business’s revenue is plummeting with no end in sight, run! Investors should sell the stock and get their money out before they lose any more. Likewise, entrepreneurs should cease investment in their failing business. Many entrepreneurs can’t withdraw any money from their business (i.e. sell it to another person) so we’ll consider a “sale” in this instance to mean no longer investing time or money into the business.

Unlike the typical stock investor, there are two things that the entrepreneur can “sell.” The most obvious sale is the business itself. Entrepreneurs in this position stop working on their business entirely, winding it down until it no longer exists. On the other hand, maybe it’s not the business itself, but the business model which needs to be sold. The “sale” of your business model frees up entrepreneurial capital (time & money) to invest in a business model that provides a higher return. I’m using the “sale” of the business model generically – it could mean actually adopting a new approach to the business, purchasing a new piece of equipment, or anything else that materially changes the business.

Diversification

Investors in the stock market who have limited funds to invest, but an entrepreneur is given 24 hours each and every day that can be invested in a business. A slowdown in your business can be an excellent sign that you need to diversify your income. You can “hold” your current business, but focus your new investments (meaning your time) on a different source of income; effectively diversifying your income stream.

Double Down

In some cases, there may be a reason why a stock loses value but is still fundamentally a fantastic stock. In these cases, investors do what is called “doubling down,” meaning they invest more money in the stock at a lower cost. Doubling down increases an investor’s holdings in a stock but decreases his cost basis. For example, if you bought 100 shares of ABC stock at $100 and then you buy 100 more shares when the stock price dips to $50, you now own 200 shares for an average price of $75. This is a great way to get additional exposure to a great stock and make the average cost of your investment much more favorable.

If your business model is exceptional, and you think the decrease in your business’s revenue is temporary and out of your control, you may be able to double down. Many entrepreneurs cannot double the amount of time that they spend on their business. However, you may be able to use a slow down in your industry to hire other professionals at a discounted rate. Alternatively, equipment that can increase your productivity may also be significantly cheaper during a slowdown.

Bringing it all together

Before starting a business, or invest in a stock, you’ve got determine your investment parameters. If you’ve decided to sell a stock if it under performs against the S&P 500 index over three months, then you’d better stick to that plan or risk losing a lot of money. Entrepreneurs need to devise a plan as well. There’s many ways to do this, such as judging the success of your business based upon the amount of money made per hour or number of hours worked. It doesn’t matter what parameters you use, but you must identify them and they must be objectively measurable.

When faced with a slowdown, be objective when comparing your business’s current position to your investment goals and your alternative investments. Be honest with yourself about whether it’s time to sell or hold.

Image by Krissyho

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Lessons Learned From 2 Weeks Abroad

by Brian on 29/10/2009

Cheese Merchant in Borough Market

Cheese Merchant in Borough Market

I’m currently sitting in my quiet hostel in Budapest. Two weeks ago, I arrived in London in order to pursue an effort to take my location independence the next level. London was awesome and I got to see many parts of the city which I’d never before seen. I also was able to take in the Fulham v Roma football match and to see Billy Elliot at the Victoria Palace Theater in the West End. Now in Budapest, I’ve settled into a quiet and clean hostel near Nyugati pàlyaudvar Station.

Although it hasn’t been a terribly long trip at this point, I have learned a few personal lessons so far. These may or may not resonate with other people.

  1. My time is more valuable when I travel. When I’m sitting at home in front of my computer, it’s easy to get sucked into time-wasting activities, like checking Twitter updates, reading countless blogs, or cruising Facebook. When I’m in a foreign country, I’d like to have the time to experience it. As a result I’ve really focused on how to optimize my time when I sit down in front of my computer to work. (This relates to #2 and #5)
  2. Cash flow can be stressful when travelling. When you’ve got an irregular income for which you are 100% responsible, it tends to be at the front of your mind most of the time. In order to make sure that I am maintaining and growing my income stream, I prioritize those activities which will immediately result in income. Next in line of priority is activities which will eventually lead to income, and lastly are those activities which probably will never lead to income, but are nice additions to my business.
  3. Travelling alone clearly puts a stress on relationships. Keeping in touch and maintaining my relationships with those who are not with me has been an enlightening experience. Certain relationships cease entirely when you are not physically present, while others seem to flourish. Other strong relationships, such as that with my girlfriend, become stronger as our relationship is required to adapt to the distance between us.
  4. Taking care of my health creates additional challenges when travelling. It’s very easy to take up an entire day sightseeing, and totally blow off working out. It’s also really tempting to eat fish and chips everyday and wash it down with several beers. I know that I can fall into these routines, so after a week of less than healthful activities, I wrote out a list of do’s and don’ts for me to follow. (Do wake up every morning at 8 and go running; don’t eat fried food more than once per week)
  5. In the States, I am used to an “always-on” internet connection on both my computer and my iPhone. When travelling, it can be tough to find an internet connection, and when you do, it may be in a noisy restaurant or cafe. However, I’ve been surprised at how easy it is to find free internet in Budapest versus London. Because of the difficulty of finding internet, I’ve come to appreciate online versus offline working. Typically, when I sit down to do work on the computer, I spend time checking email and Twitter before getting started; this isn’t an option when you’re not connected to the internet! I’ve been able to be more productive by simply not connecting to the internet until I’ve completed those tasks which are best done offline, without distractions.

Whether I decide to continue traveling or to stay put in the States for a while, these lessons will prove valuable. I hope to maintain, and increase, my level of productivity and focus on my health as I go forward. These are things that will ultimately determine my ability to be successful as an entrepreneur – which is a higher priority to me than being location independent.

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Are You Treating Entrepreneurship Like A Diet?

October 22, 2009

Yesterday, I met up with some friends at a pub here in London. As we were ordering our meals, a chap named Teddy who was sitting with us ordered fish and chips. Teddy was easily 30 pounds overweight and it was obvious that he was slightly embarrassed by his meal choice, as everyone else had [...]

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Find That Elusive Start-Up Idea: Create A Process Using Someone Else’s Idea

October 19, 2009

Since I quit my job to run my own business, old classmates from my undergraduate and graduate business programs are coming out of the woodwork to contact me. They all want to know how I “did it.” I think the majority of business students long to own their own business and to be their own [...]

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10 Things I Learned From Working For An Asshole

October 17, 2009

One day at one of my previous jobs, my boss called me into his office. One of our biggest competitors had fired one of their top producers, whom we’ll call Fred. My boss had decided to hire Fred, but he first wanted make sure that he could count on me to work as this Fred’s [...]

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My 1st Big Location Independent Adventure!

October 14, 2009

This morning I embarked upon one of the larger journeys of my life – a five week relocation to Europe. After quitting my job three weeks ago to run my own business, I decided that I would put my location independence to the test. I arrive in London tomorrow morning. My brother lives in London [...]

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