What's your vision?
There was a boat docked in a tiny Greek village. A man in a business suit complimented the Greek fisherman on the quality of his fish and asked how long it took him to catch them.
‘Not very long,' answered the fisherman.
‘But then, why didn't you stay out longer and catch more?' asked the businessman.
The fisherman explained that his small catch was sufficient to meet his needs and those of his family.
The businessman asked, ‘But what do you do with the rest of your time?'
‘I sleep late, fish a little, play with my children and take a nap with my wife. In the evenings, I go into the village to see my friends, have a few glasses of ouzo, sing a few songs and dance all night … I have a full life.'
The man interrupted, ‘Sir, I have an MBA and can help you. You should fish more, and with the proceeds buy a bigger boat. In no time you could have several boats and eventually you would have a fleet. Then, instead of selling your catch to the middleman, you could sell directly to the consumers. You can then leave this little village and move to Athens, London or even New York City! From there you can direct your huge enterprise'.
‘How long would that take?' asked the fisherman.
‘Twenty, perhaps 25 years,' replied the man.
‘And after that?'
‘Afterwards? That's when it gets really interesting,' answered the businessman, laughing. ‘When your business gets really big, you can start selling online to an international audience, launch an IPO and make millions!'
‘Millions? Really? And after that?'
‘After that you'll be able to retire, live in a tiny village near the coast, sleep late, fish a little, play with your children and take a nap with your wife. In the evenings, you can go into the village to see your friends, have a few glasses of ouzo, sing a few songs and dance all night … you can have a full life.'
What do you want? Easy to ask. Hard to answer.
Do you want a home-based business that fits in around the school pick-up hours, that delivers the income level you need and that gives you the freedom to do as you please, when you please, with whom you please?
Do you want a multimillion-dollar, publicly listed start-up that gets you on the cover of the BRW magazine Rich List edition, sees you jetsetting around the world and provides a glittering lifestyle to match?
Maybe you've already got a successful business and you just want to incorporate some smart online strategies that will increase your revenue without increasing your costs.
Whatever your vision for creating an online business, what's important is that you understand why you're doing it and what you want from it.
Make a decision: lifestyle vs equity
Many men go fishing all of their lives without knowing that it is not fish they are after.
Henry David Thoreau
The Greek fisherman referenced in the opening story certainly knew what he wanted.
In online terms, he had what's known as a ‘lifestyle business'.
Conventionally speaking, lifestyle businesses typically have limited scalability and potential for growth because such growth would destroy the lifestyle for which their owner-managers set them up. But for those who want to live a certain lifestyle — one that fits in with their family, that enables them to live near the beach (and drink ouzo for lunch and have a siesta with their wives) — or who just want to create a part-time income while they work full time elsewhere, then a lifestyle business is a fantastic and not-to-be-scoffed-at objective.
This of course is in contrast to an equity or growth business, where the owner intends to build real assets with a tangible value that can be bought and sold either as shares or as the entire business. Success to a business owner of this nature would be defined as the increase in value of the business over time.
These are very different scenarios. ‘Equity' or ‘lifestyle' is a fundamental decision you need to make when you're starting out.
What's important is that you do it consciously. I built my online business unconsciously. I didn't have a plan and I wasn't working to a system that would guarantee an outcome. Reflecting on the interviews I conducted with the entrepreneurs for this book, I can see that some of them (but certainly not all) did not have a vision for their business at the outset either.
At some point, however, each entrepreneur had to make a decision: to invest in the business and grow — hire staff, seek investors, rent premises and dig in for the long haul — or to acknowledge it's a lifestyle business and be happy with the level of income that generates.
If you're contemplating going into business with a partner, determine whether you would both answer the same way. Neither is good or bad. It's just, which one is for you?
Like the Greek fisherman, know your outcome before you begin.
What's the best business model for you?
Do you want a lifestyle business or a growth business?
Paul Greenberg, co-founder of Deals Direct, Australia's first online department store, has this to say:
Kylie Bartlett, author of the best-selling book Friends with Benefits, has a very clear vision for her business.
Matt Barrie, co-founder of the world's biggest outsourcing marketplace, Freelancer (www.freelancer.com), has a very different viewpoint.
Tip
Think big. If you fail, you've still got a chance of succeeding.
Getting clear about the sort of business you want to run is one of the first steps towards creating a successful online business.
