It may be a simplistic view of start ups but I think there are two types. In no particular order, the first is the ‘big hit’ business. A ‘big hit’ is an exciting business where you expend the same amount of effort trying to attract one client as you would to attract hundreds. Examples include photographers with libraries, actors, authors and people who have developed a piece of software that can be sold on the internet. With these types of businesses you can make money whilst you sleep. It’s easy to add zeros to your income with no extra effort, you are not restricted by time in the day.

The downside is this kind of start up is only good if you are fundamentally successful. They are tougher to crack and could take a long time to be realised. They are extremely competitive and terribly hard. A few people will take a large share of the pie, leaving the rest in the shadows, contemplating their navel very often through no fault of their own. Ever seen a friend struggling with a business idea for years and years?

The ‘predictable’ business however, is quite the opposite. These types of businesses can only do so much in the day. Typically mediocre, these businesses are consultancies, restaurants, car mechanics, designers. You are paid by the day, or the hour, and you need to be present to deliver your service. Your income depends on your time and effort. It’s largely predictable work and you can only earn so much.

However, in this ‘predictable’ business, we start it expecting a ‘big hit’ scenario, an exciting event that will catapult us towards millionaire status and/or stardom. When, in fact, it probably ain’t going to happen. For most of us, if you have to be present to do your job, it’s unlikely to transpire and if it does, it will be after years of hard graft and continuous effort, driven by mundane and predictable work.

Which business should you start up? Well the ‘predictable’ one. Surprised? The ‘big hit’ start up is not the best thing to do, unless, of course, you are one of the lucky/fortunate ones who are successful but it’s extremely rare. It’s better to earn £30k/£40k/£50k per annum or whatever you do over five years with the odd mildy exciting event rather then hit the big time and earn £150k plus in the fifth year! It’s a hell of a lot less stressful too….