Is Becoming a Digital Nomad Right For You?
Before you start your remote business, there are a few key areas you need to focus on. You will need to establish if there’s a demand for your digital nomad business services, look at potential benefits and pitfalls, understand how your business finances might look and ensure everything is in order.
In short, you need a business plan — here’s how to think about your potential nomadic new business.
1. Analyze Your Digital Nomad Business Idea to See If It’s a Good One
Think about your digital nomad business idea, the skills you have and whether you can transform your concept into products and services you can sell. You can start doing this by carrying out a SWOT analysis — look at your strengths, weaknesses, opportunities, and threats.
- — your skills, experience, expertise, insight and anything else that can drive business success. Review the skills section above and honestly evaluate your approach and whether you have the necessary strengths. <li “>
- — any areas where you lack skills and experience or you believe there may be an internal issue with your digital nomad business idea, products or services. It’s important to understand any potential weaknesses now so you can address them before starting a business and realizing you then need to get something in place.
- — areas where your digital nomad business can grow, get new customers or deliver products and services your clients are likely to need.
- — external threats from competitors, changing marketplaces, rules, and regulations.
A SWOT analysis is an excellent way to start thinking objectively about your business. Here’s a great guide and worksheet for performing your own SWOT analysis.
2. Do Market Research and Validate Your Digital Nomad Products and Services
Before you launch your digital nomad business, you need to understand if there’s a demand for what you’re selling. That means carrying out market research and “validating” your products and services. Here’s how to go about it:
- See if there are any market research reports for the particular type of business you’re running — do some internet searches to pull up market research documents, look at existing marketplaces and learn the opportunities in the space.
- Look at who your competitors are in the space — having competitors is a good thing as it shows there’s a market. Bear in mind that you will need to do something to separate yourself from all the other sellers — you must have a unique selling point, more on that next.
- Identify your business’s unique selling points (USPs) — these are the area that will set you apart from competitors and encourage customers to come to you. You might have better pricing, a higher-quality service, faster delivery or some other special feature.
- Validate your products and services — test if people will commit to spending real money on what you’re selling. See what the existing marketplaces are like and talk to others in the same situation as you.
- Get involved with business communities and discussion groups — ask questions about digital nomad businesses. You can find links to some excellent discussion groups later in the article.
3. Understand What Your Digital Nomad Customers are Looking For
To an end customer, it doesn’t matter if you’re a digital nomad business or not. Ultimately, they care about the things all customers do — expertise, price, quality, speed, trust, and communication.
- Expertise — if you’re an expert in your industry, chances are clients will pay top dollar to work with you, even if that’s halfway around the world.
- Price — your products and services should provide excellent value for money.
- Quality — whatever you sell should be fit-for-purpose and meet your customer’s needs.
- Speed — you should deliver products and services to the timescales your customers expect.
- Trust — you should be reliable, communicative, proactive and easy to do business with.
- Communication — trust is often built on really open, easy communication while you’re working remotely. Your clients should be able to get in touch with you quickly and easily online using tools such as email or Slack. This dissipates any ideas that you’re off galavanting every day instead of spending their money and time wisely.
4. Conduct Your Digital Nomad Business Model and Financial Projections
All businesses need a business model — the way you will generate sales, provide services and make money. Think about your business model now, because it’s better to have that in place so you can start acquiring customers and generating revenue from day one.
You will also need to look at financial projections for your digital nomad business. What are your expected sales and revenues? What is your profitability? How much money will you keep in the business to grow it? How much will you pay yourself and others? If you can, try to plan your revenue out for the next month, three months, year and two years. The main issue digital nomads face is with erratic cash flow — that’s why a good financial buffer and money in the bank is essential to success.
5. Write a Business Plan for Your Digital Nomad Business
Finally, you should put your business plan together. Business plans do vary slightly, but they should cover the following areas:
- An executive summary with the most important points from your business plan
- Your goals and what you hope to achieve with your digital nomad business
- A description of your business, background information and context
- A market analysis and likely demand
- An overview of how your business is structures
- Your business model
- How you will market and sell your offerings
- Financial projections, revenue, and profitability
We’ve got the perfect guide to writing your business plan.