Day 13 Challenge: 🚣 Not All business models are created equal

Warren Buffett once said:

"It’s not about how hard you row, it’s about what boat you’re in".

If you are in the wrong boat it doesn't matter how hard you paddle you will feel like you are paddling up stream.

I've 'rowed a few boats' (business models).

From having a Job > Freelancer > Dropship Business > Digital Agency > B2B SaaS. (Software as a Service)

Below are some observations of each model:

I started out as a:

𝗙𝗿𝗲𝗲𝗹𝗮𝗻𝗰𝗲𝗿

𝗣𝗿𝗼𝘀: low start up costs, easy to get up and earning

𝗖𝗼𝗻𝘀: often 'project' based or trading $$ for time. And you will hit a capacity wall pretty quick and easy to end up with a poorly paid job.

𝗗𝗿𝗼𝗽𝘀𝗵𝗶𝗽 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀

𝗣𝗿𝗼𝘀: low start up costs

𝗖𝗼𝗻𝘀: hard to find good suppliers / products, very competitive market. Peaked during covid.

𝗔𝗴𝗲𝗻𝗰𝘆 𝗺𝗼𝗱𝗲𝗹

𝗣𝗿𝗼𝘀: moderate start up costs, quick to start

𝗖𝗼𝗻𝘀: Hard to scale as labor costs can be hight and managing staff is difficult as you scale.

Often project based so you are only as good as your last project. Continually chasing new deals to make staff pay roll.

𝗕𝟮𝗕 𝗦𝗮𝗮𝗦 (Software as a Service)

𝗣𝗿𝗼𝘀: Stable recurring income, easier to scale. Less competition. Once you cover fixed costs is mostly profit.

𝗖𝗼𝗻𝘀: Expensive to set up (this can be a Pro), need to keep it up to date and relevant. It's never finished.

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