Why would you rent somewhere when you can travel, explore and earn a handsome income at the same time? A few decades ago, it might have sounded like a crazy idea, but of course, not today. In any case, many entrepreneurs are now following their passion and roaming the world in the process. While Tim Ferriss is largely responsible for the rapid growth of the digital nomad scene, this is still early days for the digital nomad startup scene.
In fact, the CEO of Critix recently stated that 50% of the workforce would become remote by 2020. For this reason, entrepreneurs running startups or working as digital nomads will face greater competition in their chosen fields.
With this in mind, digital nomads will need to work smarter to strengthen their place in the market and the Tim Ferriss definitive guide to growing a startup for digital nomads will be an invaluable resource for those wanting to stay ahead of the competition.
Tim Ferriss on the Journey from Entrepreneur to Digital Startup Success
Modern digital entrepreneurs aim to achieve the same initial success as Tim Ferriss. But there are many reasons a startup might fall flat. For this reason, to achieve greater success, you have to make the most of certain tactics and techniques.
Tim Ferriss uses his show and podcasts about his path to success to help guide and advise other digital nomads and entrepreneurs.
In one of his podcasts about creative optimization with Chase Jarvis, Tim and Chase shared their experiences about creativity and efficiency. At one point, Jarvis asked Ferriss “Did you realize it would have been this ideal … when you initially began your mega-successful podcast?
But Ferriss refuted this notion and said that his passion was the only reason for getting started. In fact, he believes that passion is the main driver for business success.
On the other hand, this limitless exposure and liberty of decision-making can lead to irrational decisions. You see, digital nomads often become a part of the wild goose chase in terms of success and many beginners are not practical in the commercial or business world.
Simply put, Tim advises to businesspeople who are nomads to keep their goals simple in the long run, and remain focused on the quality of their product or service, and the importance of customer satisfaction.
Now, let’s take a look at the most important factors for achieving success for a digital startup:
1. Identify Your Skills and Strengths
According to a study by Buffer in 2018, 90% remote working class don’t want to switch over to traditional jobs. With more people working remotely during the COVID-19 pandemic, this number is bound to rise. In fact, working remotely might become the norm, even after the pandemic.
It’s true, first-time entrepreneurs need to perform an honest SWOT analysis for their potential business, for no business can penetrate a target market without this sort of planning.
A useful skill set and management of resources and time is critical for every entrepreneur and digital nomad. Needless to say, SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.
2. Adopt a Unique Business Approach
Tim Ferriss is like a godfather for digital nomads and people listen when he advises avoiding the conventional methods used to run a startup. Instead, the ideal approach to guarantee the swift growth of a remote business lies in its freedom which is why a practical business model is critical.
Tim Ferriss stated in one of his interviews with entrepreneur.com that every business needs a different model of operation. More specifically, a manufacturing company cannot replicate the business model of a service provider firm or any unrelated business.
3. Smart Management of Business
Tim Ferriss is a huge advocate of smart management of business for digital nomads. He openly admitted that virtual assistants managed 90% activities of the Kickstarter campaign for Soma.
In this regard, a digital nomad can turn the fortune of his business round by building a smart team of virtual assistants. Similarly, a remote entrepreneur has so many things on his plate that he or she cannot afford to be wasting time on performing the more mundane tasks of the business.
Recent studies show that virtual assistants take approximately fifteen vacations per year. Also remote workers are found to be more productive due to a flexible and comfortable schedule.
Since you can pay virtual assistants according to the number of tasks performed, this is more affordable than hiring a full-time employee whose full potential is not explored.
4. Paying Attention to the Return on Investment
According to the US Bureau of Census, 35,584 non-employer firms were operational in the US market in 2015. When entrepreneurs choose to work on their startups as digital nomads, they have the luxury to maintain their work hours and the income of a digital nomad depends on how well he materializes his goal. Tim has divided the million-dollar businesses into the following categories.
- Manufacturing companies
- Professional Service providers
- Real state business
- Companies based on creative ideas
- Personal service providers
Although the Kickstarter platform can help you gather the initial investment to give life to your idea, it doesn’t provide financial support to an ailing business. Tim encourages remote entrepreneurs to find a balance between income and cost of living.
Moral of the story: If you are earning more than your expenses, you are on the right track.
5. Competitive Rates for your Products and Services
Growth of a startup needs the right amount of investment to pace up the right things. Working as a digital nomad can expose you to uncertainties. For example, your expenses can spike due to travel expenses.
Tim Ferriss always advises setting a competitive price for the services and products. He believes that one should identify the true potential of their digital business. In an interview with Tony Robbins, Tim told the entrepreneurs to set their goals more clearly.
Lower Rates – For growing startups, charging lower rates for their premium services can be a marketing strategy to get more sales. However, Tim perceives it as a flawed approach to earn less income with more hard work.
Discount Sales – Using discount sales occasionally as a strategy to increase market share is not a bad idea. But constant low revenue generation halts the growth of any digital business. Low ROI over a more extended period can force a firm to exit from the market instead of growth.
The Cost of Joy – Tim Ferriss presented the Dreamline formula to determine the price of products and services for a digital nomad. In his best selling book 4-Hour Work Week, he emphasized that happiness should not be compromised to get income. Tim was one of the first entrepreneurs to add the cost of joy in the value of the product.
Takeaway: If you undervalue your service, you will have to more work for less income.
6. Knowing the Value of Your Fans and Friends
Tim Ferris is always quick to promote the idea of “1,000 True Fans” – the phenomenal article by Kevin Kelly. This fantastic piece of writing demonstrates a straightforward activity to increase the fan base.
In fact, Ferriss has given the credit of his prosperous business ventures to his loyal friends and fans on many occasions. He believes that if 1000 loyal fans can provide a back a new project, 10k or 100k fans can do even more for a remote business setup. Tim acknowledges that a loyal and sincere fan base is the main driving force behind all his achievements. That’s why he always stresses building little interactive communities for continuous feedback on services and products.
So, what is a true fan? When someone is continuously interested in your service and products and is ready to give a shout-out and feedback to your business, they are your true fan.
Entrepreneurs who own growing startups should start their community and interact with their participants regularly. You can interact with your fans on social media and other avenues to strengthen your bond with your fans.
Takeaway: It’s essential to turn fanbase into loyal supporters to grab growth opportunities.
7. Overcoming Funding Issues
Regardless of all the strategies to scale your business, you will need more money to finance the growth and development of your company. As a digital nomad, you have multiple options to generate finances for your company. You should always be ready to explore these options.
Crowdfunding is a fantastic strategy for digital nomads. For example, launching on Kickstarter can help you to expand and diversify your company. For this reason, Kick-starter offers distinct advantages for digital nomads.
That’s why Tim Ferriss ranks Kickstarter and crowdfunding platforms at the top of other financing options for growing startups. The most fantastic thing about crowdfunding is that the whole Kickstarter family helps you to achieve your Dreamline life.
8. Strategic Advice from the Experts
When a firm reaches an equilibrium point, its growth freezes. No matter how much resources and effort you input into your business, ROI will not increase.
Tim suggests that expert advice can help you out in this scenario. Experts diagnose the cause of the frozen growth of a firm. An expert proposes a solution to pace up commercial growth based on studies, analysis, researches, and their experience. Meanwhile, you could always look at your competitors and check how they are scaling the business in comparison with the growth of finances.
9. Explore other Income Sources
Digital nomads can devise a paid membership plan to earn some extra cash as a subscription fee. Your true fans will buy your subscription to keep themselves updated about your activities and products. Even so, Tim cautions not to overcharge your fans.
That being said, that monetization of content through Google Adsense and other advertisers can also contribute to your income.
10. Best Merger Options for a Startup
Once your business is back on track, achieving growth and prosperity, you can start your search for a business partner. Uber and Careem decided to merge their services for more significant growth opportunities. It’s not necessary to seek a global merger; instead, you can join hands with the local giants in a specific area.
11. Financial Assistance from Banks
You can always go for the option of financial loans from banks. Nevertheless, Tim emphasizes his followers to calculate the ROI on the loan amount. If debt financing doesn’t add value to your business, don’t go for it. For growing startups, the option of a bank loan depends on the rate of interest and an increase in profitability due to debt.
Takeaway: Tim believes that digital nomads must have some financial wild cards in hand to sustain them in any market. Either way, finance is everything and every business depends on having a good cash flow.
Tim Ferriss once quoted said, “Focus on being productive instead of busy” which clearly outlines the importance of time management and decision-making. Either way, growing a startup is a very precise process that requires the digital nomad to focus to make decisions to cover up any weakness and build the business according to their strengths.
Are you a digital nomad who just launched a startup or is in the process of building one? At Pressfarm we work with hundreds of entrepreneurs like you to create a PR and marketing strategy for their businesses or startups. Visit our pricing page for more details on our core services, including writing press releases, crafting guest posts and designing media kits. If you have any questions about our services, don’t hesitate to reach out through live chat.