Why you need your own company
2009-06-10
It was early 2008. I had agreed to sell my company - my sole obsession of the last 10 years. The paperwork was processing.
I hated having 85 employees. It had become a little hell. I needed to get away and clear my mind.
I went as far away as I could - to a hot-springs Shinto shrine on a volcano at the southern tip of Japan. (See video.)
I sat silently. I steamed. I soaked. I slept to the sounds of the sea.
I could not have been more relaxed. My head was empty.
For the first time in ten years, I had nothing I needed to do. No responsibilities. No plans.
What a relief, right? Can you imagine?
I brought along the great book Seeking Wisdom, and read in my peaceful Japanese ocean-facing room.
The book was great. Charlie Munger's thoughts on behavioral finance were brilliant and contrarian. This book was inspiring all kinds of entrepreneurial ideas that I wanted to try!
When I was at CD Baby, I'd be able to play with new ideas immediately. (“What if we had a $5 sale?” “What if I could co-op card swipers?” “What if I could go multi-lingual?”) Any time I had an idea, I'd be able to test it out within days.
But now, for the first time in 10 years, since I had no company, I couldn't test out these new ideas! All I could do was read, think, and maybe write about it. Damn!
Then I realized why I need to start a new company. Not for the money. Not because I'm “bored”. But because a company is a laboratory to try your ideas. (The word “laboratory” is defined as a room for research, experimentation or analysis. I think of it as a sandbox or playpen.)
Realizing this in my peaceful hot-springs, I caught a train back to Fukuoka, and jumped into action.
I started MuckWork so I could play with crowdsourcing while helping people get their boring work done.
I re-launched MusicThoughts to experiment with a fully multi-lingual site, and lang.pro to organize this translation work.
I set up Now Now Now as the incubator/holding company and an experiment in transparency.
And all of my education-based projects (Success Stories, Documentary, and Coaching), which I'm wrapping into one bigger scope soon.
And this made me happier than doing nothing. This isn't work, it's play. It's my place to try my ideas.
We all need some time off. A change of scene and pace. Silence and solace if we're stressed. Reckless adrenaline if we're in a rut.
But for those of us who think that an eternal escape from work would be paradise, don't forget that we all need a playground, and your own company is one of the best playgrounds of all.
“If you observe a really happy man you will find him building a boat, writing a symphony, educating his son, or looking for dinosaur eggs in the Gobi Desert.” - Australian psychiatrist W. Béran Wolfe
“Find a happy person, and you will find a project.” - Sonja Lyubomirsky
That's why I'm a composer! I love playing with notes and finding new combinations and seeing how people react to them, preferably in a deeply emotional way.
Thanks Derek - now I'm going to check out all the links. Hope you are inspired in your new laboratory.
TPR
I feel I have an obligation to organize what others cannot.
Agreed.
Spot on, Derek. I've always been the same - though without the company. i tend to just do stuff anyway and see what happens ...
Owning your own business is a lot like golf:
Proper Practice Golf:
Practice = lower scores
Business:
Incremental daily improvements = Freedom
Summary: You are responsible for your success ... no one else.
Your posts have become must read for me. Thanks for sharing your inspiring ideas with us. What was your inspiration for becoming the experimenter?
Thanks! Inspiration is always the ideas, and wanting to try them. -- Derek
I have all these new tech toys to play with, web cam,cd bunner,twitter,reverbnation, Im having a blast. Keep up the good thoughts sir.
Thanks for being here.
Your recent posts have been terrific. Keep writing.
Great post, you make an important point about always being involved with the things you're most passionate about. Key to happiness maybe?
Spot on!!!
Yours is the only BLOG I read almost daily... and learn from each time, without exception. You are inspirational, in the truest sense of the word... THANK YOU. *smile*
I can absolutely relate to this. Having the freedom to experiment with your own ideas is priceless.
Wow. Great observation. I always wondered what I would conclude if I ever had the time/money to take a vacation for an infinite amount of time. I think your observation answers that question perfectly!
Thanks!
Derek:
I couldn't agree with you more. And I am really happy/excited to read this as it was something similar that led me to form BetterLabs - to experiment and do things that are fun. All the best with your new company.
This is a great post. Thank you so much for sharing. I am now seriously working on financial independence and my goal is to be a full-time entertainer and entrepreneur focusing primarily on music recording and performing and the think tank Greater Good United for the purpose of bringing people together (philanthropists, entrepreneurs, nonprofits, etc.) to share ideas, resources, and help those in need, help to create jobs, etc. I also want to promote great health and wellness as well as charitable causes that are important to the service of 'the greater good.'
Yeah, I think we're all addicting to 'playing' and you make a good point, that we need that resource to make it happen. Thanks once again!
You made some great points. Collaboration is a natural process for any musician. I am literally at the edge of my seat waiting to see how your 'projects' pan out. I love having you as a resource and 'virtual' partner.
Just put in my notice to leave a government job so I'd have more time to be on the "playground".
Haddox Sound Consulting will launch within 11 days.
Thanks for keeping us posted. I find you inspiring and wise beyond your years.
Tom
You embody the Buddha Nature so well. You're a success because you don't look for success. You understand emptiness and wisdom.
This is so true. The true value of starting my own businesses was learning and growing as a person. Money comes and goes but knowledge, wisdom, and experiences lasts forever.
wow, bro.
great post
Great post, Derek. Charles Munger has always been an inspiration to me as well. Try "Overachievement" by John Eliot next time you're in a reading mood. Thanks for sharing all your insights.
-- Derek
Thanks for the recommendation. I just bought it!
i just started doing this myself. creativity is boundless when you control the clock, the money, and take the time to care for neither of them.
I am still at the beginning phases of my own company and was really thinking how much my possibilities have increased as compared to my past life as an employee. You've almost summarized my whole mind. Thanks a lot for this post.
May be you inspired with Forrest Gump movie, you are able to see the inner beauty of a human being, nice attitude. You Rock man..
That's very inspiring.
Seeing the company not as a goal, but as a helper, that takes away some pressure on "creative" people...
A shame we still don't have the tools to easiy start our own company, here in Europe (...and especially in France...)
Just because you live in France doesn't mean you need to start a French company. Incorporate in the British Virgin Islands, fast and cheap, set up a PayPal account, and a bank account at a big international bank like HSBC, and work with people remotely, worldwide. -- Derek
One question, though : how do you set up such laboratories?
Do you need to put in a lot of money, do you need to know the right people?...
For me, for the examples I gave, all I did was write a plan, set up a corporation, and start programming. It doesn't necessarily need money or people. Depends on what you're trying to do. But even if you think you need money and people, ask yourself again if there's something you can do to get it started by yourself, without. Then by the time you are trying to attract people (or money) you have something to show, instead of just talking about what might be. -- Derek
It sentiments a lot of my feelings too. Nonetheless, I'm yet to achieve one of those nirvana moments in the life of an entrepreneur.
Right on, Derek. Much of my work these days is also "play" or my "sandbox." Just love it.
It's amazing how far one gets with insouciance and playfulness, as opposed to up-tightness and anxiety.
As a composer and player, when I start to lose the playful spirit and become stressed and uptight, I take a break, walk away -- and come back later when I'm rested and relaxed.
LOVED the video of the hot-springs Shinto shrine in Japan. It was a little "vacation". Thanks!
Very interesting reading indeed, but you have to have resources in order to start your own company. In your case, you already had one; that's why you can afford (literally) to start all of those you mention.
Any tips for people who want to start a company but lack the initial investment?
It doesn't need to cost any money to start a company. I started CD Baby with $500, never took investors, and did it in my spare time for the first year until it grew. Things are a little slower and a little more difficult with no money, but that shouldn't stop you if you've got an idea you need to make happen. Just start. -- Derek
thanks for letting me participate on your thoughts. a very healthy attitude towards life...
Nice set of ideas with positive thinking.
I thought starting a company is easy but growing/maintaining would be difficult.
It would need some money, but a lot of connections from other business'/people who would buy your services. Wasn't that a problem for you with "CD Baby"?
Like learning to play an instrument or anything else, you could call it “difficult” or just “fun”. I started CD Baby with $500 and no connections while living in a forest on a 56k modem. Only 2 customers, and it grew slowly. Did it in my spare time for the first year. Didn't hire an employee until the 2nd year. But it was profitable and sustainable, and continued to grow. It didn't really take off until its 4th year. But none of this was a problem or difficult. Just fun. -- Derek
I agree entirely. Setting up a company on your own is an excellent move in the current economic conditions.
But always do your research. Speak to people who have set up companies and, if you can, to those in your sector. Thoroughly check out your competition and how you might fit in.
Ask yourself if you have the necessary skills yet. Are you prepared to work the long ours inevitably needed to get your start-up off the ground.
And remember, fortune favours the bold.
"But for those of us who think that an eternal escape from work would be paradise, don’t forget that we all need a playground,"
Man, I so agree with this, but it is getting to the point where you can *have* your own playground that is hard. would love to get there!
Fantastic idea, it is the entrepreneurs obvious secret..i.e start up a whole load of projects and companies and the one that works out...well that one makes you famous!
Great post. I have just recently gone through the exact transformation as you did.
I just sold a large Real Estate company, and am now starting over. I'm having the time of my life and the freedom I feel is unreal.
I love being able to get an idea and implement it in a few days and then see it blossom into a "good idea".
Ive been working with a good friend who recently met you in Vegas at Jeff Adams event. Needless to say a lot of things you shared with him are being implemented daily. Thanks for all the good info you provide!
Thanks for being you,
Sean Malarkey
Inspirational! After 10 years in the workforce I recently came to the conclusion that everyone should own a microbusiness, even if they have a day job. I recently started a microbusiness and just earned my first $100 in revenue. On to the next hundred!
This was exactly the advice I needed to hear at exactly the time I needed to hear it as I work hard to make my art a sustainable income. I sometimes get bogged down in the administrative aspects and forget the joy of the laboratory. Excellent words of wisdom, Derek!
hay Derek,
you bring live , creativity, inspiration to us all
Steve
Derek,
I only wish I was at the point in which I could experiment. Too many ideas(probably 10 a day)and still trying to make a living. I know I will get there and am get very excited when I vision it. I was just thinking yesterday how nice it would be to have an orchard in my back yard with various fruits that I can pick when I want and roaming below them a few peacocks to set the mood. Ahhh, good stuff.
So true... before starting nicetoga.com and working at a big corp I had little in the way of a creative business outlet. Ideas often hit road blocks, politics, and took forever to implement if you could make it that far (very unentrepreneurial). You can see why as a company grows it looses its entrepreneurial spirit. Now having my own business my only limits are myself, money, and time. I can quickly take ideas and make them real, which is one of the best feelings there is... creation.
The last company I started was a cdr duplication co. It didn't last long. I had 3 jobs in 6 mos. and 1 returning customer. On top of that it was boring. It was something that was recommended to me by some music business teachers as a "solid" business. Whatever. My last business before that was a 5 piece Rock band that I worked on with 1 partner and a revolving cast of characters for 3 years. It ended up being a money pit and a big headache but for awhile it was fun. My lessons learned, I am now putting together my latest venture, a 2 piece Rock N Roll band for which I've been writing material and doing research for 5 years, starting around the time my Dad died. Right now I'm making the 1st album on credit at my friends' studio, having done my preproduction at home on my four track. I think this business will be a lot of fun, and as it consists of the fewest number of moving parts( myself and 1 sideman) it has a lot less potential to break down and cause stress. It also is a very economically sound project, costing so little to maintain, there is a good potential for profit. All that said, I must admit I don't really care if it makes any money. I'm putting together this venture to satisfy other needs. I write songs and I want other people to hear them- that's why I'm making a record, that's why I'm putting together a band. The resulting record label,booking agency,merch. co I will also be putting together are entirely about making money. Thanks so much for all the free marketing advice, Derek. I intend to put a lot of it to use one day soon. Oh yeah, welcome back.
Sweet. I totally see owning my own company in a new light. Thanks.
Derek, this was just beautiful.
Well done!
True. We are educated to obey too much. Then when there is a need to be creative we can't because we don't have a context to experiment. We suddenly realize don't *own* that degree of freedom.
What Derek posted here clarifies a path to that important freedom.
This world'll be better with more millionaires with this mindset.
I feel the same way. I have done a lot of pet projects over the years that I believe have allowed me to think objectively and test my theories and beliefs. It is a very therapeutical way of living. It's also extremely rewarding to be able to create and also help people in return. I love life!!!!
A guiding favorite of mine since childhood...says it all:
The Road Not Taken
Robert Frost
Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth
Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same
And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.
I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.
PJ "Patti" Grimes, Founder/Host/Co-Producer/Writer, The Backstage Gourmet Radio Show ("Where Great Green Cuisine Meets Great Global Music"), www.healthylife.net, every Monday, 1-2 p.m. Pacific Time
Sharing our ideas makes our heart sing. What makes your heart sing?
This is a very cool article! Even when your company is the only way for you to survive, a scope for experimentation is something that makes all the toil worth it. I started a company with a strength of two people, but from all the places I have worked at, I have picked up good stuff - be it HR policy, work policy or quality policy and written a mission statement of our target!!
If we achieve all that, it would have become a successful enterprise in our eyes anyways.
I really like the "laboratory" concept of business ownership. As a star employee for twenty-plus-years, my few months of unemployment have proven to be very liberating. Now I need to start building my lab!
Thanks Derek, you've just given me an idea to create a group at my ning site for songwriters, music poducers and the like to get together to come and produce their ideas and create. I like coming up with new idea's and I like helping others.
"Each One That Teach One"
Derek,Hi and thanks as always for being so inspiring. I totally agree with you and the others' that have posted their thoughts and ideas. I need some help with getting my project going and don't know where else to go. I sing classic country but don't have a band and don't know how or where to get one. Can you help me? I'm really serious. Thank you
Shirley Brown
just found you, love it, what, where is the shinto hotspring in southern japan, nina nanda
my laboratory is life.
every day every moment
It's not just ideas, for me it's all about people.
my exchanges,my work, inspiring others to see & use their vision, and live in the energy of lOVE.
Hey Derek, love your vision,and totally intrigued by who you must be.
Hi Derek and other "commentators":
I appreciate people like you who are high-minded creators, storytellers and life-explorers. That is who I BE, too. For me, Life is a love story, a love song that I craft daily.
And Derek, you are one of the few people whose e-mails I read completely and soak up. Big thanks for for inspiring questions, action and living. Have fun everyone!
I recently starting working for a new company after 4.5 years with my first employer (straight out of college). In the beginning I was happy at my first job... but eventually got bored and downright hated it by the end. Now I'm at a four-year-old technology-based company with a young workforce who understands that happy workers are productive workers. We are free to express our individuality and encouraged to try new things. Reading this post really hit home. Thanks for the warm, fuzzy feelings.
Yes I agree. The problem for many people out there I suspect is that, unlike Derek, they fail to put the ideas to the test(setup a laboritory) and are often paralised by a combination of fear, procrastination and security. Hats off to those who back thier ideas enough to give them a try.
nd downright hated it by the end. Now I'm at a four-year-old technology-based company with a young workforce who understands that happy workers are productive woclarinet repairs
lem for many people out there I suspect is that, unlike Derek, they fail to put the ideas to the test(setup a laboritory) and are often paralised by a combination of fear, procclarinet repairs
Just discovered your website. Looks really great (in an inspiring kind of way). Am starting my own businesses. The advice that you are offering is really valuable to someone like me. best, Patrick
It's funny how a bit of time to reflect and refresh our minds brings new realisations. I've never really looked at things in that way but now you mention it, it's true. I guess it's all about remember that there is fun in our work during times of stress.
Running a business specialising in stellar pans, the day to day running can get on top of you. I guess a few days away will always help.
Great blog, first time I've come accross it and I have to say it has hit home with my current situation with stress from running my own company. This helps me take a step back and look at things from a new perspective.
I always make a point of taking a long time out once a year in order to be able to reflect on my progress and readjust my plans. Always a good idea.
I'd love to start my own company selling beads. I just don't know where to start. It seems like what I want to do would take so much capital.
Any advice?
Nice thoughts. I agree that one has to change things in the life, try new ideas make new mistakes and experiment with new challenges. Challenges do not come looking for u maybe u have to look for them, or if thinks become stagnant you take action and you break in order to build something new, possible better. And if you do not succeed it doesn’t matter you try again and you keep trying and trying and even if you never succeed (unlikely if u really try) at least u tried and saw life from different angles learning and having so many different and new experiences.
Let me be concise:
ThankX!
Very inspirational! I really like the sharing idea, it can work combined with other models.
I love the quotes at the end. I realize i'm happy only when I have a great project to work on.
I love the internet; I randomly found this article through a contact on Twitter and this post is exactly how I approach work. Thank you Derek for articulating!
@derek..thank you for sharing your knowledge and experience with us. You are a great inspiration. Please keep us the good work and keep the rest like us ..enlightened.