Adversity breeds entrepreneurship - Noodleconomics and the rise of Internet businesses

Yesterday, I talked about adversity pushing some of us to go out on our own and consider entrepreneurship seriously for the first time. TIME magazine did a story this week about Internet business start-ups. The article highlighted several companies that started with great ideas, and, for less than $10K, had their businesses up and running. Access to the Internet has helped level the entrepreneurial playing field by opening it up to those of us who aren’t necessarily well connected or well financed.

If you choose the entrepreneurial route, don’t expect to get rich quick. In fact, don’t expect to get “just doing ok” quick. Time magazine refers to it as Noodleconomics. It’s based on the term Ramen Profitable, coined by Silicon Valley start-up investor, Paul Graham. It’s used to define a start-up that is self sustaining and can make just enough profit to keep its owner(s) alive on instant noodles while it gets off the ground.

Entrepreneurship isn’t for the faint hearted. There’s no guarantee of success and, if you’re doing it right, the hours will be longer and more varied than when you worked for someone else. That said, the ability to access the Internet from almost anywhere, and at a relatively low cost, has opened a wide array of possibilities for potential entrepreneurs. Websites like Godaddy and 1and1 make owning a domain name as inexpensive as $10 per year. Wordpress, Joomla and Blogger are only three of the free publishing platforms that allow you to set up a website in a matter of minutes. Consultants, freelancers and graphic designers are just a few of the independent contractors drumming up business on the web.

Before venturing out into entrepreneurial waters, you’ve got to do an honest assessment, asking yourself some very important questions:
1. Do I have the requisite skills and knowledge to get this thing off the ground? If not, who do I know that does? - Will they be willing to help me, and can I barter with them? You’d be surprised at how effective bartering is. Our group of entrepreneurs includes graphic designers, writers and two former TV producers. During our monthly meetings, we make arrangements to barter services. It’s a great way to get things done when the finances just aren’t there yet.

2. Am I willing to put in longer hours than I’ve ever put in before? – When I say long hours, I mean long hours – up at 6am, to bed at 1am…if at all. If you’re already doing that for someone else, why not do it for yourself?

3. Can I afford to do this right now? – What does it cost to sustain you and your family? Have you done your Noodleconomics? Be practical and run the numbers. Don’t wait until you’re at the end of the money before you realize you should have waited a little longer.

4. Can I afford not to? – For me the answer was clear. I didn't want to spend the next 30 years of my career waiting for a layoff or cowering from verbally abusive bosses. And, as job fair lines continued to wrap around buildings, I felt like I’d been there and done that one time too many.

Let’s be clear, I’m not suggesting anyone quit their job to jump into entrepreneurship. I’m not even suggesting that if you’re one of the many who’ve recently been laid off that you give up looking for a new job. Everyone’s situation is unique, with its own set of pros and cons. In order to determine whether or not entrepreneurship is right for you, you’ve got to at least consider it. This might be the perfect time to do just that.

To read the Time magazine article on Internet businesses, click here. For tales from my pre-entrepreneur days, visit www.reallybadboss.com.