The Consultant’s Mind – 3 Simple Businesses to Start with $0 Down

I first saw this topic header in Quora and it struck a deep chord within me.

While I understand the allure of starting a business and being a business owner in times of prosperity, 2020 isn’t exactly the right time to pitch this.

In fact, times has been so crazy within my businesses that I am literally experiencing a replay of 2008 during the 1st half of 2020 and a rapid acceleration into 2009 within the months of July and August.

This is not forgetting that August barely started.

Many of my contacts has been asking why I believe the parallels of 2020 and 2008 – 2009 is relevant. I have to briefly clarify that while the nature of crisis in 2008 – 2009 (Global Banking Crisis from Derivatives blow-off) is vastly different from 2020 – 2021 (Health pandemic from COVID-19) – the impact on the economy is the same.

What is the same?

The turn from prosperity to austerity.

In times of prosperity, we tend to spend more. Our expenditures on necessities and luxuries are funded by both cash and credit.

When austerity comes to visit – 1st World purchase considerations goes out of the window. In that light, starting a business during times of crisis could be particularly tricky. Especially so when there are “forced-into-circumstances” type of entrepreneurs.

How could job-seekers sustain their families and themselves financially while waiting for the next high paying job to come by their desk?

This is the question I seek to address in this article.

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We need to first understand that not everyone wants to start a business.

I believe that not everyone aims to be an entrepreneur and not everyone can be a business owner. That is okay and it is not the orientation of this article.

The key is this – What can we do in times of crisis to keep us going when the job market opportunities dries up?

What professional and personal experiences can we draw from and hopefully monetise in order to keep us going?

This article focuses on the possibilities of a Sole Proprietorship where there is no need to deals with employees and establishment of business systems. It is meant to be light and ready to go on Day 1.

Simple Business to Start # 1 – Knowledge Business

The cost of knowledge business is $0.

That is because someone else have previously foot the bill for our development. If we believe that we have a shot at the private tuition market, we have our parents to thank as they have financed our education for the 1st 20 years of our life.

If we think that we can coach professional domain-based knowledge such as Project Management Professional (PMP) and Certified Business Analyst Professional (CBAP) in a private learning institution – We might have our employers to thank as they decided to invest in our skill-sets.

In that light, and especially during difficult times like today – Most people would be thinking of up-skilling.

Is our professional domain in demand?

If it is, we have a shot.

Also, are our academic accolades still relevant?

Are we somehow a top student in certain disciplines in middle school / high school / varsity?

If we are – I bet there are tuition services that we can offer.

The education industry continues to chime along in times of crisis because we as a human species believe that education is the key to future success. While the purpose of this article is not about the education system and its effectiveness, the ability to offer services to parents and students in 2020 would provide a form of fixed income.

Try scouting within our neighbourhood.

Chances are there are some concerned parents waiting for your pitch.

Simple Business to Start # 2 – Services Business

Services business is easier to start compared to a product business.

In a product-based business, upfront capital commitment is almost certain. Product conceptualisation and development costs, go-to-market strategies and the runway required are costs that can be measured in terms of time and money.

The Sole Proprietor of 2020 who has family and financial commitments on their shoulders cannot afford the cash and wait.

It has to be revenue-possible from Day 1.

Services business works much better (Just One Man’s Opinion here, of course).

One form of service business is Sales Closing. Are we good at sales closing? If it is, we offer our services to the small businesses around our neighbourhood. During times of austerity where everyone is tightening their belts, all businesses are facing the common difficult issue of revenue mining.

Especially so for small businesses.

If we can help small business to close sales revenue, we can ask for a commission based on contract value materialised. This is a good deal as we are not labour cost to the small business. There is no salary incurred from their perspective.

Our services are transaction fees paid only when sales contracts are signed.

In that sense, our commercial interests are aligned and that the Sole Proprietor do not have to be concerned with operations and service delivery.

It’s a close and done.

Are you good at navigating and overcoming prospects’ / customers’ “NO”?

[This is an Episode that was streamed live previously on Linkedin where my Co-Founders of the BottomsUpPerspective show and myself spoke about overcoming the "No"]

Simple Business to Start # 3 –Social Media Business

Social Media today is big business.

In fact, it is a World in parallel to the one we are living in the physical domain.

I might be wrong about this and I believe I am not that far off – many businesses are saved during the 1st Half of 2020 when policymakers around the World embarked on lockdown of their respective economies.

These businesses are those who invested in their Social Media presence before 2020.

Today, many corporations are struggling with their Social Media marketing strategy. I remember a consultation session performed with an ex-client and there is this question at the end of the session which stumped me.

“Aldric, you mentioned that we should be posting multiple times a day on multiple platforms. We don’t believe in that. We think posting multiple times cannibalises the contents previously posted on the same day. What is your opinion?”

I always believed this is a funny question I have been getting on a recurring basis.

If we see ourselves as a business – We want the best chance at getting commercial opportunities daily.

If we have the skill-sets to create multiple posts daily, effectively engage with audiences online (targeted or general) and growing a following on behalf of the corporate entity – There is a strong need for your services.

Corporations need a Social Media presence.

And they just started.

That means we as individuals have a chance of freelancing.

As an example – Are you effective in building a following on Linkedin?

Can we offer that service for businesses?

[This is an Episode that was streamed live previously on Linkedin where my Co-Founders of the BottomsUpPerspective show and myself spoke about "Building A Following"]

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When I saw this question on Quora, I thought it deserved further elaboration on the possibilities that individuals could have, therefore decided to turn my initial brief response into an article.

What is important is the ability to fend for ourselves during extraordinary times such as 2020 – 2021.

While I do think that the impact on the Global Economy will be a long drawn one and it has only just started, there are many opportunities for Sole Proprietors out there.

The point is – Are we ready to pivot into the mindset of “Everything’s Possible”?

About the Author:

As a Consultant by training, I believe in making the complex simple. 

Because simplicity adds value. 

I do that through reflections (#ThrowbackSeries), building perspectives (#DecodedSeries) and understanding entrepreneurs (#ConversationWithEntrepreneurs). 

Simplicity helps us gain clarity, and clarity helps us to grow. 

And if we are not growing, then what’s the point of anything else?

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