Almost 10 years ago I started a home-based business called Live It Forward. It took three years of on-the-side hustle—15 to 20 hours a week—before I was able to quit my full-time job and give 100 percent focus to my lifestyle business. It took another 18 months of full-time hustle before it became clear that Live It Forward was going to make it on its own and become an actual business success. I’ve never stopped hustling and Live It Forward has grown in revenue every year except one.
People often ask me if there is a secret behind the success of Live It Forward. I’m not sure about any secrets, but there are some similarities between the business success of Live It Forward and the success experienced by other lifestyle entrepreneurs. In fact, here are three critical ingredients for experiencing success in any home-based business.
3 Key Ingredients for Home-Based Business Success
Passion. Can you imagine starting a home-based business without having passion for the business? I can’t! Launching a lifestyle business sounds like so much fun to most people because of the word “lifestyle,” but don’t be fooled. In the beginning, launching a lifestyle business requires an immense amount of hustle and sweat equity. Without passion for what you do and who you serve, you won’t have enough drive and ambition to make it through the grind of getting your business off the ground.
You see, passion creates both the spark needed to launch your home-based business and the fire needed to keep hustling even when business success seems far away. Passion generates both the enthusiasm and commitment you will need to live (and earn) it forward!
Skills. If you don’t have the skills to succeed in the line of work you choose, it doesn’t matter how passionate you are, your home-based business won’t get off the ground. Bottom line, you need the right set of skills to serve your potential customers if you want your business to succeed.
With that said, the great thing about skills is most skill sets can be developed. Just be careful to pick a skill set that match the way you are wired. For instance, you might be talented in math, but if you’re not detailed oriented, you’re going to have a hard time developing accounting skills. Could you succeed as a financial coach? Possibly. But as a CPA? Probably not.
The most effective tool I’ve found for matching your skills with your wiring is the DiSC Profile. Check out the DiSC resources and training providing by my friend Jill Davis. She’s understands the DiSC better than anyone I know.
Economic Model. Some of the best advice I received early on when starting my lifestyle business came from my friend and mentor Dan Miller of 48 Days. According to Dan, there are three legs to the stool of business success—passion, skills, and a solid economic model. If you’re missing any of the three legs, your business plan won’t work. And according to Dan, the leg most lifestyle entrepreneurs miss is the economic model.
Obviously, if you want to experience success in your home-based business, you need to figure out how to generate more revenue from your products and services than you spend in developing and marketing your products and services. In other words, you have to figure out how to make a profit. I know, this sounds elementary. Yet I’ve worked with hundreds of passionate, talented people who want to start a lifestyle business and almost to a person their #1 roadblock is their economic model.
Here’s a practically suggestion I believe will help you launch your home-based business. It’s something I have applied from day one that has made a huge difference in the success I’ve experienced. Determine today to do everything possible to develop expertise in the following two areas:
- First, become an expert in customer experience. In other words, work IN your business by learning everything you can about who you serve and how you can best serve them.
- Second, go a step further and also become an expert business person. In other words, work ON your business as well by learning everything you can about business, especially marketing and sales.
How can you go about becoming an expert in both? One way is to invest in both areas. For instance, for every book you read or course you take on developing expertise in your business, be sure to also read a book or take a course on what it takes to be a great a business person. In my case, I invest time and energy in becoming the best motivational speaker and lifestyle business coach I can be. But I also invest the same amount of time and energy on learning how to build the best speaking and coaching businesses I can build. Bottom line, when it comes to your lifestyle business success, invest just as much on the business as in the business.
Question: Which of the three key ingredients to business success do you struggle with most? Finding your passion? Developing your skills? Figuring out your economic model?