Ground Report

Each entrepreneur has a goal in mind when they start their business. Some want to conquer the world, while others want to turn their passion into purpose. But they all share a desire to grow an idea into an income that will support their lifestyle.

Those lifestyle needs may differ between entrepreneurs. Yet few get into the game so they can return to a standard 9-to-5. Entrepreneurs and startup founders want to be the ones who break free from the mold and accomplish their dreams. Even so, scaling a business isn’t as breezy as taking a whirlwind Mediterranean cruise.

However, you can learn how to build and scale your business well enough to create the lifestyle you want. And you don’t need an army to help you scale over the imaginary wall standing in your way. Yes, it will take tons of work, thoughtful planning and rethinking your perception of what it means to be a successful entrepreneur. Let’s explore how to scale your business idea to match your lifestyle goals.    

Watch the Bottom Line

Why do 20% of businesses fold in the first year? Money problems are one of the top drivers of failures to launch. With a traditional startup, insufficient cash flow usually stems from a lack of funding and poor forecasting. But when you start a business to fund your lifestyle, you don’t always need to woo venture capitalists.

As a solopreneur, you’re using your skills and sharing your knowledge with others. You might create online courses, start video blogging, or become a social media consultant. Your initial startup costs might only include an internet connection, software, and office supplies, though business is rarely that simple. Nonetheless, your business operates with a bottom line that only gets more complex as you scale.         

Scaling doesn’t necessarily mean initial meteoric growth. Your business growth will likely be small and gradual, such as taking on one new client or diversifying your income streams. But doing more can mean spending more – that’s growth, not scaling – and just spending more may not pay off and can get you into trouble if you’re not paying attention. Before investing in additional tools or resources, make sure they provide efficiencies that offset their cost. Ideally, aim to fund those investments with one of your business’s passive revenue sources, like digital content or rental property.

Create Passive Income

A stereotype of entrepreneurs shows them slaving away, “clocking in” for 80-to-100-hour workweeks. Does this sound like the ideal life to you? Probably not. You want to work to live, not the other way around. 

It doesn’t mean you’re not willing to put in the effort. But the point of working for yourself is to have the freedom to enjoy what life offers outside the office. When scaled with strategic thought, passive income helps you get there. For example, you might write and sell an e-book with helpful tips a target audience wants to read. Like a Hollywood producer who creates a blockbuster movie, you do the hard work once, and it keeps generating profits.

Businesses built on your talents and market needs can create enough passive income so you avoid overextending yourself. As LifestyleInvestor Justin Donald notes, “We all begin our work histories because we need the cash. We start out as teenagers, and it’s fantastic to have our own jingle in our pocket that isn’t related to mom and dad.” But now Justin Donald focuses on “having enough money to live on and having enough extra money for a job-optional life.”  

Learn How Money Works

You can’t pay attention to your company’s bottom line without knowing how money works, even if you’re a one-person show. Read everything you can about the ways a single dollar can multiply. You also want to build up your knowledge about ways to maximize your resources.

Successfully scaling a business comes down to pacing and making the most profitable use of the resources you have. Ask yourself what makes the most sense. Should you allocate money to an investment with a 5% annual yield or 15% one? The answer may seem obvious, but you also want to consider risk.

What if those yields aren’t a sure thing? Say you have a 10% probability of a total loss with the first investment and a 70% chance with the second. Suddenly, the investment with only a 5% yield looks better. Take the same approach when it’s time to scale your business. Consider whether your next move will continue to fund or jeopardize your lifestyle.

Connect With the Right People

You rarely learn everything you must know in a classroom. Hands-on experience can sometimes teach you more than a book, and every entrepreneur benefits from teachers. Mentors can show you the ropes, including how to avoid common mistakes while scaling your business.

Maybe it’s not such a great idea for you to expand your real estate investments by flipping houses. Well, at least it’s not in neighborhoods where sprucing up homes means you might be setting the bar (and price) too high. A well-seasoned, well-trusted mentor can help you not make pitfalls in the areas where you don’t have enough experience. Someone who’s done it before will warn you about potential pitfalls and show you profitable strategies. For instance, it may be better for you to become a landlord with the help of a property management company instead.  

Connecting with like-minded people can also present partnership opportunities. You might find someone you can trust to scale your side hustle into your main gig. They may have the resources and expertise to take your business to the next level. You can also connect with people who know the finance world well and what it takes to maximize passive income potential. Surrounding yourself with others who share your ambitions will keep you in the right mindset.   

Work a Little to Live a Lot

You started your business because you wanted the freedom to be your own boss, do meaningful work, and eventually fund your lifestyle. Now it’s time to scale so you can live the life you want without a traditional job. You can be successful if you lay the groundwork wisely. Steward your resources, make your money work smarter, and ask for help from those who’ve walked the road you want to travel – and found success.