So many people in entertainment are trying to change their business to make things work now. I wrote about the two ways to do this, but neither of them are actually about changing. They’re about starting new businesses. The problem many of us have is that we didn’t start our first business well. We were young and broke and it didn’t matter.
Now, we have responsibilities like mortgages and bookies that demand payment. We can’t jump in with no business plan and see what happens.
For most things you might want to do now, there’s no template for a business plan that will work. This is why you need to thrash now!
“Thrashing” means using a lot of your resources to solve problems.
Imagine setting up a burger restaurant, then a year down the road, you realize that it’s not profitable and it’s not heading toward being profitable and you’re killing a bunch of people with food poisoning. Then, it’s time to thrash wildly through every aspect of your business and figure out all the systems that are causing these problems.
Thrashing this late in the burger game is really expensive because you’ll be rebuilding systems, firing people, maybe fire whole departments full of people, redesigning your kitchens, changing your prices, marketing to a new customer base, etc.
So, you thrash at the beginning. Experiment at the top when it’s way cheaper.
Before you get started making a new website for your zoom show or whatever, figure out if zoom shows are going to pay off. Figure out if you’re going to want to be doing zoom shows in a year. Poke around now. Experiment a lot.
This is expensive, too, but not as expensive as thrashing later
The thrashing is coming. Are you going to thrash or get thrashed? I recommend to my consulting clients that you set up a sandbox for yourself. Three months maybe good for you to develop an idea; and really pursue all the possible business models, audiences, contingency plans, and fulfillingness of that plan.
Sticking to the concept for a while will help you push thru and really find the rough spots. It will help you not feel like you have to hustle on other things during that period. It will help you go thru some of the hurdles before they happen. It will also give you a chance to …
Prove that the model works with actual income
Having a thrash period means committing to not worrying about money during that time. Your whole goal is to find a badass business you can step up and dive in.
Some of the basic indicators
If you’re solo, figuring out expenses can be easier. Basically, you’re looking for…
- do people want what I’m offering?
- how much money do I have to make?
- how much will it take for me to acquire customers?
- how much are people willing to spend for my offering?
- will I be able to get enough customers, paying enough, using the time and other resources I have to run the business at some point?
- will my business have the potential to make more than that so that I can scale the business or hire people to replace me (if that’s what I want)
It will be proven when you want to invest.
The way you know the business model is proven is when it’s ready for an investor. That investor is you. Do you see how you’re going to make a bunch of money in the next 6 months? The profit margins are so wide and wonderful that you’re going to be rolling in it? You would invest half of your annual salary in this business because it’s such a sure thing with so much upside if it works?
You are going to be investing your time in this thing, so you better thrash enough so you’re gung ho!