Tag: $100 startup

The $100 Startup – Chapter Three: Follow Your Passion… Maybe

screenplay

Some books deserve a closer read. One of these is The $100 Startup by Chris Guillebeau.

I’m a writer. I’ve written screenplays, short stories and even several novels. Writing and (more recently) photography are my passions. I’ve followed my muse, as much as I could afford to.

But make a living at my passions? I had the dream of being a Hollywood screenwriter until I actually visited LA. And I’d love a book deal but the publishing world is in disarray these days. And the dream of being a professional photographer is undermined by countless photographers (including, at times, me) willing to work for free.

Besides, I really do like working on web sites. I love the immediacy and creativity of web publishing.

The idea that there must be some way to combine my writing, photography and web skills into some sort of coherent business is why I bought The $100 Startup.

In chapter three, Guillebeau addresses the artist within all of us, the countless people who have wanted to turn their hobbies into money-making operations.

The key is to find the overlap between your passion and the what people will pay for. He puts it in this somewhat clunky formula:

(Passion + skill) -> (problem + marketplace) = opportunity.

The best example comes from Guillebeau’s own life. I first started reading his blog during his quest to visit every country in the world. Did he get paid for this? No. He gets paid through related services, like his books and guides. As Guillebeau expains:

…you don’t get paid for your hobby itself; you get paid for helping other people pursue the hobby or something indirectly related to it.

Another example is Benny Lewis. He loved learning new languages and discovered that total immersion was key to picking up a new tongue. He learned seven languages in just two years. Pushed by his friends, he developed Speak from Day One (check out the insane video).

But how do you determine what the market will pay for? A tough question, but Guillebeau offers a checklist. You need a hobby that you’re passionate about. And have other people asked you for help with this hobby? Are they willing to pay for your expertise? These questions will be explored in greater detail in chapter six.

Remember, too, the admonition from chapter two that business success comes from helping people. So, how do you use your skills in a way that helps people?

art jamzThis chapter has a lot of relevance for artists and other creative types. Not everyone wants to turn their art into a business, however. It’s one thing to take photos that you enjoy; quite another to try to sell them at a farmer’s market. Guillebeau underestimates the difficulties people may have in exposing their art to the cruelties of the marketplace.

If you decide to turn your passion into a business, choose wisely and have a thick skin.

Local Examples

I have a couple of inspiring examples of my own, people I know in Washington who have turned their passion into businesses.

  • Jon Gann created the DC Shorts Film Festival, with a desire to put on a show. Now in its ninth year, it was named as “one of 25 festivals worth an entry fee” by Moviemaker Magazine. Jon created DC Shorts because he believed that filmmakers deserved to be treated better.
  • Everyone loves stories about ex-lawyers doing something other than law, like Philippa Hughes of the Pink Line Project, a local web site covering the arts.
  • Julianne Brienza has the occasionally impossible task of running the Capital Fringe Festival every year. This Montanan has successfully brought oddball theater to serious Washington.

Full disclosure: I’ve worked with all of these people and they’re all awesome.

Bonus

Artists are at war with themselves. Creating art is making something imperfect, that’s not going to match the perfect vision in your head. On Writer’s Block is an excellent little book on overcoming this hurdle as is Do The Work.

Reading this chapter, I was reminded of Do What You Love and The Money Will Follow. Sounds like flippant advice in these dour economic times but the book’s message is that what you’re passionate about, you will do better than anyone else.

A nice companion to this chapter would be The Art of Possibility. It’s a beautiful little book about envisioning your future.

The $100 Startup – Chapter Two: Give Them the Fish

fish tank

Some books deserve a closer read. One of these is The $100 Startup by Chris Guillebeau.

In the first chapter, Guillebeau set the stage, like a good novelist would. He brought out his main characters (unexpected entrepreneurs) and introduced his theme: building a microbusiness.

Now, in this second chapter, we get into the work of figuring out what kind of business is best for you.

But, first, a parable, one we’re all familiar with.

Give a man a fish and he’ll eat for a day. Teach a man to fish and he’ll eat for a lifetime.

Yes, but when you go out to eat you don’t want to catch, clean and cook your own fish. You just want the fish. Give the customer what they want, instead of what you think they need.

This point is illustrated by the story of the V6 Ranch, which looks like loads of fun. This dude ranch offers more than just horse rides, they give their stressed Californian guests the chance to “escape and be someone else.”

Across the country, Kelly Newsome brings serenity to uptight Washingtonians through her yoga practice. As an ex-lawyer, she understands the pressure of the rat race better than anyone.

These two businesses understand that value means helping people. It is not about a long list of features – horse rides, yoga classes – but instead the value of the business comes from benefits. A meal by campfire is a feature; the feeling of relaxation you get is a benefit. Customers want benefits not features.

Focus on benefits when considering ideas for your own $100 startup.

Guillebeau illustrates this further with an example from his own business. He developed a product called Travel Ninja, based upon his round-the-world adventures. It was a detailed explanation of how to earn frequent flyer miles and book your own travel. It flopped. Customers were overwhelmed by the complexities of the offer. They didn’t want to know how the airline mileage system worked; they just wanted to be told what to do to get the best deals. He refined his product and developed the Travel Hacking Cartel, a simple guide to rapidly earning frequent flyer miles.

Honing in on what people actually want is key. Customers didn’t want to learn the ins and outs of the airline biz, like Guillebeau had. Instead, they wanted to travel to the places of their dreams. People aren’t attracted by features (detailed knowledge of airline programs) they just want the benefit (a memorable week in Bali).

The chapter closes with the story of Brooke Snow, a lifestyle photographer in Utah. I know a lot of talented photographers. With everyone a photographer these days, it’s a brutal business but Snow has differentiated herself by teaching classes online. This “professor of meaningful creativity” teaches courses on technique and storytelling, all of which are sold out. She shares her trade secrets, overcoming the fear that she was training the competition.

In the words of Guillebeau:

When all else fails, ask how you can help people more.

Give people what they want. Give them the fish!

For More Information

Have the dream of being a wedding photographer? My friend Mary Kate McKenna offers a reality check.

Are there too many yoga studios?

Another way to look at features vs benefits is in the recent Mad Men episode on Jaguar. Rather than pitching features in their ad (leather seats, British engineering), the team comes up a persuasive line that is all benefits, “At last, something beautiful you can truly own.” It’s about the emotional experience of owning a Jaguar.

Next: Follow Your Passion… Maybe.