In a recent post I mentioned that — when asked by young, would-be entrepreneurs what type of business they should go into in order to be successful — I suggest they do something they love to do…which is also marketable.
While the famous saying, “Do what you love and the money will follow” is very inspiring and “feel-goody”, I believe it leaves out something very important: you’ve also got to be able to provide value that people need and/or want, and will pay for. Otherwise, it’s not a business; it’s a hobby. (See Carol Roth’s The Entrepreneur Equation.)
Of course, we all know people who earn a high income and bring great value to their customers and clients, but they despise their work. Every day for them is a struggle.
In my opinion, that is not a successful business.
Doing what you love is a very important start! However, we also all know people who love what they do but haven’t found a way to bring value to others in such a way that people will pay them for it.
Also not a successful business.
If someone were to ask me what I consider to be a successful business, I’d say there are three major parts:
1. You love what you do.
2. You provide great value to many people.
3. You make a healthy profit.
Note that both of the scenarios earlier in the post included either one or two of the above parts but not all three. In my opinion it takes all three to have a successful business.
What do you think?
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I love how you break”successful” down into its component parts, Bob. Number 3 doesn’t always come right away. I started out four years ago with Numbers 1 and 2 firmly in place. I knew the POTENTIAL of Number 3 was there. Because 1 and 2 were so strong, it helped me keep the vision and not get discouraged. At last the “healthy profit” part is starting to happen, and I’m so glad I stuck with it!
Bob,
A great post and wise counsel. I would add that sometimes, it is necessary, for a season, to work in a field doing something that you don’t necessarily love to get to a place where you can do what you love. Also, there are times where you start in a venture believing that you will enjoy it, and you learn that any job is still a job, and there are aspects of it that make it “not so fun”.
I feel incredibly blessed to be able to say that I love what I do, but to be honest, I didn’t start as a fundraising consultant because it was something I loved, I grew to love it and now wouldn’t change what I am doing!
Thanks for taking the time to post and sharing your wisdom.
Hola Bob!
Great reading and for me, very clarifying as I think many of us miss the second point, I think it is a constant that has to be count in everything we fo or service we offer in order to be sucessful.
Abrazo fuerte!!
Gracias, mi amiga. So glad you found it to be of value. Abrazo fuerte back at ya’! :-0
About that “love” thing…Now that I’ve expanded my business to focus on helping people’s marriages, I see one huge similarity between a winning business and winning marriage: We love out of commitment and decision, even when it gets hard! It’s not all love songs and rainbows, but it is all part of a love story. Relationships and business are beautiful arenas for self-development, delayed gratification and personal growth. And sometimes you hit a home run and get see fireworks!
Gina: WOW – what a terrific point of view and comparison. Thank you. Keep adding such great value to couples as YOU love what you do!
Great post! This is a very simple and effective formula/model.
I would offer one thought. As “many” can mean or infer a very large number, I would think of this as
#2: “provide great value to as few or many people that enable you to…
#3: Make a healthy profit.
In my business, we can serve and provide greater value, by limiting the the number of people we serve, as long as they are the appropriate people, and there are enough of them for #3.
In other words, “many” is a variable that must be defined by each business/person. We may desire to serve fewer, which will enable us to serve those who we do work with, better.
Brad: Thank you for your comments and I hear what you are saying. Indeed, if “many” are too many for you to provide exceptional value to those you serve, then certainly that is a major concern. I should have added an “all things being equal” disclaimer in that, while providing exceptional value is the foundational principle, increasing one’s income is also a matter of touching the lives of a greater number of people. In other words, “exceptional value, plus significant reach equals high compensation.” Really, it’s “semantics” only and I take full esponsibility for not being sure to clarify my meaning in my original post.
Steve, very well-said all around, my friend. Thank you for sharing with us!
Heather: Very true. Unlike in tales of fiction, profit doesn’t usually happen overnight. That’s one reason why it is so important to love what you do. If you enjoy it; if you are (dare I say) passionate about it, the chances are you will work longer and harder in order to do what it takes until it becomes profitable, as well. So glad you are now beginning to see it in your business. Huge contrats to you!
Bob! Great post! Love the simplicity. Understanding this concept when I started my own business 4 years ago, when the economy was a disaster and everyone was talking doom and gloom, was the one of the major reasons everything moved so well for me and continues to do so. At the time I was working as a full-time valet (part-time musician) and was making about 12-15k a year! Gulp! I started studying your books (Go-Giver, endless referrals, Go-Givers sell more) and blog, Randy’s books and blog, Larry Winget’s books, lived night and day with Jim Rohn’s Art of Exceptional Living, and went out and bought (and read! 🙂 ) all the books you all recommended, and within the first year I had quadrupled my income, and now we’re on target for a 250k year, I have two employees, a tv show in development, and am in the process of expanding into another city. Whew! But getting back to your post, the philosophy contained within the Go-Giver has been the fundamental philosophical structure behind everything I/we do at The Good Dog (my business) – and everything we do is colored and touched by it’s message. It’s truly amazing what happens when you apply the concept of today’s post! Thanks so much for being a big part of our success!
-Sean
Sean: WOWEE WOW. I think I’m going to have to print out your comments and read it whenever I need a lift. Thank you, my friend. (Did I mention, WOW!) 🙂
🙂 Thanks Bob!!! I say Wowee to myself every morning! Lol. And honestly, the best part is sharing this information with my employees, friends, clients and watching thm grow! I just feel SO blessed to finally know what I know, and to be able share it with and empower others is pretty close to magical. 🙂
Appreciate you!
-Sean
This is simple and profound. I had #1 and #2 down, but couldn’t allow the “Healthy Profit”, until I believed in the “great value” I offer. I love the way you lay out the thoughtful way to answer the question, “How do you know….?”
It’s been a while since I told you this, but it hasn’t been a while since I’ve thought of it: You have been the most encouraging man and teacher that I have ever had in my life. I am grateful beyond measure.
Amy: Between you and Sean, you’re giving me all these things I need to print out and read over again (but, don’t let that fool you; I’m loving it!) :-). Seriously, thank you very much. I take that greatly to heart!