Many business guides for the new or aspiring entrepreneur tell you to start with what you are “passionate” about.
But how important is “passion” really when starting a new business? Is the owner of the dry cleaners on the corner really passionate about clean clothes? Does the convenience store owner dream about stacking boxes of soda?
Passion (what you enjoy doing) is only one of the trifecta of ingredients for a successful startup. The other two are skills (what are you good at?) and financials (what will make money?).
So, yes, passion is important. As a solo business owner, there won’t be anyone to tell you to get back to work. You’ll need to be self-motivated, even when things are going badly and/or you don’t enjoy the specific task that needs doing. It’s much easier to be self-motivated when you are passionate about what your business stands for, or really enjoy the topic or focus of your business.
But passion certainly isn’t everything. I may be passionate about opera, but if I can’t sing and I can’t think of any way to monetize it, then it’s not going to make for a good business.
Ideally, a good lifestyle business idea should be a combination of:
- activities that you really enjoy, or a mission that you’re passionate about,
- skills that differentiate you from your competition (or that you can learn to do better), and
- opportunities to earn money in a scaleable way.
The word “scaleable” is important in that last bullet, particularly for a solo business. I’ll be writing more about it in another post. “Scaleable” earnings mean that the business can grow even with a limited amount of resources (time, money) that you’re able to put into it. Non-scaleable earnings are things like one-on-one hourly consulting work (dollars per hour of your time) since there’s always going to be a cap on how much you can charge on an hourly basis, and how many hours you’re able to bill out on a weekly basis.
Some people may refer to “passive income”, but the truth is that growing a business is never passive, so I prefer to use the term “scaleable income”.