stevehopper.info

Your Digital Nomad business

This is your lifeline, probably your only source of income and the machine that feeds your wallet and enables further travelling and survival. Make sure to tailor your business for easy remote operation. The typical Digital Nomad business is to provide some non-physical remote service, so your accounting should not be too complicated. However, make absolutely sure you setup your company properly, with good administrative support, and according to all laws and regulations. There are many activities perfectly suited to run remotely – fighting with authorities is not one of them! Bear in mind that the Digital Nomad Lifestyle may be regarded as unorthodox or even slightly suspicious by certain people; one more reason to make sure everything is in perfect order administrative-wise.

A few words about revenue

Digital Nomads typically spend most of their time in low-cost countries, thus being able to survive on less income than in a highly developed country. Here are a few important things to consider when sketching out the budget for a Digital Nomad business:

Be prepared to face resistance towards remote work! Many managers want you to sit at your desk, on-site, where they can keep an eye on you
Clients in general pay much less for remote work than for corresponding on-site work
Local everyday life in a low-cost country may be inexpensive – just don’t forget that cost for international travel, SW licenses, Hardware, etc., remain the same no matter which country you’re in
Consider your vocational training, taking up new tools and methods, participation in conventions, trade fairs, off-line courses, etc.
Don’t forget to budget for medical and travel insurance for your staff (=YOURSELF!), accounting and auditing, visas and possible work permits, and perhaps legal assistance depending on where and how you setup your business
Consider provisions for retirement – no employer will do that for you as a Digital Nomad
It is far easier to “gear-down” to a low-cost/low-income lifestyle than what it is to “gear-up” to a high-cost/high-income lifestyle
Avoid the low-cost/low-income trap: It may be tempting to decrease work effort and income to a level where you have a comfortable day-to-day life in a low-cost country. However, returning to your home country (sometimes destiny calls… ) may become a real challenge unless you have arranged sufficient funds
Company Secretary or corresponding service

You will need a skilled and reliable agent to handle your business practicalities and administration; such as a physical address and maybe phone number for your business, mail forwarding, keeping track of statements and returns to hand in and when to do it, renewal of business license, accounting and auditing… The right support will give you the freedom to focus 100% on productive work and to develop your business – wrong support may cause unnecessary and extremely annoying pain and headache. Take your time and be meticulous who you hire!

Keep good track of your expenses, earnings, and receipts

This is important for any business! However, a Digital Nomad office is usually “located” in a suitcase or a backpack, daily operation is carried out from new sites in different corners of the world, and the whole operation must be able to pack/unpack easily and frequently. It is important to have a good and simple system for your papers and records, to conveniently bring them along while travelling. Scan everything regularly as a backup, and/or mail it to your company secretary (using assured mail!) now and then.

Responsive to clients

This too is valid for any business, but may turn out a challenge for the Digital Nomad. I found that email is the preferred means of communication, and I use out-of-office message when outside internet coverage. Give an estimate for when you will be reading email next time and don’t forget to specify what timezone you refer to. I use Skype and other internet voice services, but I avoid using them for the first few contacts with a new or prospective client, as the quality of service can be unreliable.

Data and account management, backup etc.

This is extra important for Digital Nomads as we are, per definition, mobile in our work. A laptop thrown around by a frequent traveller has a higher probability of a failure than it’s colleague in an office or home environment. Frequent traveling also makes for a higher risk of theft. Make sure you backup important data frequently and to multiple media, and to store different backup media in separate places – e.g. a small portable disk drive in your backpack AND a memory stick in your pocket. There is also the possibility of cloud storage. I do not use such personally, as it makes it impossible to work offline and I definitely prefer to keep data in my own hands.

You may consider to use some software service for your user ids and passwords.

Lean but orderly project administration

I recommend lean, simplistic yet efficient and orderly project administration for the Digital Nomad! I use my smartphone, GTasks and Google calendar to keep track of projects and client activities. I also follow a simple but bullet-proof process to handle RFQ:s and new projects.

Hardware and Software

This is not negotiable. If your smartphone gets stolen, your computer crashes or needs upgraded memory, or that new and lucrative project requires a certain software – there is not much of an option except buying whatever is needed. And you will be likely to find proper supply in the nearest big city, almost anywhere in the world. However, if you are in a country with a different character set (e.g most Asian countries) it may be difficult to find your old familiar keyboard. English keyboards are usually available, but be prepared to solve a few challenges in the language area. It could be worth mentioning that copy software does occur in certain places, so beware.

Company insurance

Assuming that you have already arranged insurance for your personal protection, it may be worthwhile to look into a company insurance too. To cover liability in case you make a mistake in your work, get your laptop with important confidential client information lost or stolen or hacked… Not easy to get, and may be horribly expensive, but at least worth looking into.

Starting an online business is an altogether complicated thing to do. Many have failed because of the inability to cope with the ups and downs, attributed to a lack of foresight and planning.

To have a better shot at success, here are 7 things you should not do:

1. Do your homework.

When starting an online business, preparation is crucial. Think of it like cooking: you start by preparing your ingredients. How do you decide on what ingredients to prepare? It’s through research.

Without doing any research, the consequences that await you are dire. Research who your customers will be, your product, and what people are willing to pay for your services. Give yourself a good start by preparing before the real business begins.

2. Plan with data

Do not plan unless you’ve done your research thoroughly and gathered data. You need to have sufficient data before you can even start to make out a plan. With data, you’ll be able to come up with a recipe for success that will likely work – and sell.

3. Worry about the money

Money is what sustains a business, and without it you’ll never be able to make your business stand up and. In business, there is always a chance that you’ll run out of money before you can even make a profit.

Plan out your financial goals in advance, don’t wait until it’s too late. Have a safety net or contingency plan already prepared in case something happens.

4. Setting the price right

Sometimes when you’re desperate in selling, you’ll set the price at a very low cost. This is something you must avoid, for this means the business is not working. Do not undervalue yourself. Set the necessary price to be able to make a decent, worthy profit.

5. Have a friendly, catchy domain name

Your domain or web address is an important tools for online businesses. Your customers’ first impression will rely heavily on how your website looks and works.

You must have a simple and clear navigation so that your customers can browse leisurely. Also, another important thing is to ensure the web hosting of your website. Choose a trustworthy host to avoid downtime.

6. Consider SEO and branding, and being active on social media.

Make your online business work by generating massive amounts of web traffic. Even if your product is great, without search engine optimization (SEO), it will be buried by thousands of websites. You must be active in major social media sites as well. This means advertising and cultivating brand awareness. Facebook and Pinterest are good places to start.

7. Value Customer service and experience.

Remember customers are looking a good buying experience as well a good product. Interact with them, and answer their questions promptly. That can be through chat, e-mail, telephone, or surveys. Make them feel welcome to share their concerns. In all likelihood, they will return to your website.