The hot topic is the lifestyle that is location independent.
After the pandemic wreaked havoc in our lives, a lot of people began pondering their true desires.
Location independence does not necessarily imply constant travel, also known as being a digital nomad.
Digital Nomads vs Location Independent Entrepreneurs
The terms location independent entrepreneurs and digital nomads are often used interchangeably, but not all location independent entrepreneurs are necessarily digital nomads.
A digital nomad is someone who travels without a permanent base and earns an income digitally.
There is a wide range of people, such as remote employees, solopreneurs, and other entrepreneurs.
A location independent entrepreneur, on the other hand, has the ability to run their business from any location, even if they have a permanent base. This means they have the freedom to move around if desired.
Becoming location independent is possible even without owning an online business, which is a popular choice.
This lifestyle can also be chosen by traditional business owners who have the ability to manage their activities remotely.
Benefits of location independent entrepreneurship
The reason behind the popularity of this lifestyle is as follows:
- A balance between a completely stationary lifestyle and a nomadic lifestyle.
- Freedom to move around as you please.
- Create a schedule that suits you.
Challenges of location independent entrepreneurship
However, what you see on social media is not always as glamorous as it appears.
- It takes effort like with any business or lifestyle.
- A travel lifestyle can get expensive, depending on the locations you choose.
- It’s not easy to follow a routine, especially if you are managing a traditional business across time differences.
- Connectivity issues can pop up in different destinations.
Three types of location independent careers
Generally, most jobs or ways that enable a person to work from any location can be classified into one of three categories.
Freelancers
A freelancer, who is self-employed, provides services for multiple clients instead of being employed by a specific employer. In many cases, they exchange their time or completed tasks for payment.
As an entrepreneur, I operate this website as a standalone business. Additionally, I engage in writing for different publications on finance and travel, placing me in the freelancer category.
Not all entrepreneurs are freelancers, but most freelancers can be considered entrepreneurs.
Entrepreneurs
When an entrepreneur starts a business or develops a product, it is to satisfy a necessity or address a void in a specific market. As an entrepreneur, you have the autonomy to make all decisions and act as your own superior.
Entrepreneurs who desire location independence typically fall into three categories: creators of products or technology, importers/exporters, or innovators of business concepts that can be effectively marketed online.
Telecommuters
Telecommuters, who have the flexibility to work from home or on the road, are individuals working for a boss but carrying out their tasks using their computers.
A distinguishing factor of telecommuting is the requirement of being accessible during specific hours in order to maintain communication with the office, which is not applicable to all telecommuting roles but is still quite prevalent.
Location independent career myths
Having a career that allows you to work from any location is undeniably freeing. The absence of a fixed work schedule and physical workspace grants you the flexibility to work from anywhere. However, this concept is not as simple as it seems. In this chapter, I debunk six myths and misconceptions about location independent careers in order to provide you with a clearer understanding of this lifestyle before you make the decision to pursue it.
1. You Can Work From Anywhere
In the strictest sense, this statement is not accurate. Your choice of work location depends on several factors, including the availability of power and an internet connection. If you wish to travel across the Sahara desert or spend time in the Amazon jungles, you will face difficulties in completing your work.
2. There’s No Overhead
While there are notable savings in overhead costs such as not having to rent office space or endure lengthy commutes, a location independent business still incurs some overhead expenses.
3. An Internet Connection is All That Matters
It is true, but there is one condition: only a fast internet connection is important. Some colleagues of mine wanted to spend time in India and they chose where to stay based on the location with the fastest internet connection. Bangalore won this search. Therefore, instead of living in more picturesque areas of India, they lived in the average city of Bangalore. Further information on this will be discussed in Chapter 7.
4. You Can Work Whenever You Want
If you have clients/customers/bosses in different time zones, you should be ready to stay awake late at night, wake up early in the morning, or do both. In certain situations, your decision on where to be might rely on these working hours.
Even if you don’t have to please clients, you still have limitations on when you can work. If your business relies on social media promotions, you will need to be online almost every day, despite the availability of scheduling apps for post management.
5. You Can Work on the Beach
Before embarking on their journey, every location independent entrepreneur dreams of sitting on the beach with their laptop next to them and a fancy tropical drink in hand. However, there are three major issues with this picturesque idea:
- Sand gets everywhere. Sand and computers are not friends.
- Sea salt in the air wreaks havoc with electronics.
- There’s a serious lack of power outlets on beaches.
6. Your Office is Wherever You Are
When I began traveling full-time, I believed in this theory. I tried out different ideal “workspaces” that were convenient. I worked in bed, on couches, in coffee shops, and in different places where I used my lap as a makeshift desk. The outcome? It was not only challenging for me to focus in certain environments, which affected my productivity, but my body also experienced the negative effects of these ergonomically unfriendly improvised workspaces.
How to start a location independent business?
Congratulations on deciding that location independent entrepreneurship is the right path for you!
Following that, you need to commence your location independent business and strategize your lifestyle.
Here are some suggested steps to rephrase the text while maintaining the same meaning: 1. Firstly, consider thinking in a sequential manner. 2. Proceed by restructuring the following text without any additional information or omission of existing information.
1. Identify what you want from your business and life (goals)?
Are you interested in traveling more, having additional free time, pursuing your passions, or being in control of your own work?
Take the time to understand the reason behind your strong desire for this.
When the road gets bumpy, that is what will keep you going.
2. Create a business you love – to operate from anywhere.
Whether you are location independent or not, it is crucial to choose a business that you are passionate about in order to find enjoyment in your work (for the most part, at least!).
If your business idea allows you to operate from any place in the world, then it is considered a location independent business.
3. Create a business plan.
If you find the idea of creating a thorough business plan overwhelming, create a concise one instead.
In his book “The $100 Startup”, Chris Guillebeau provided a one-page business plan and a one-page promotion plan to share with readers.
If you are being held back due to a lack of money, I recommend reading “The $100 Startup”. This book provides numerous examples of businesses that were launched with either less than $100 or $1,000 in startup expenses, along with guidance on how to proceed.
4. Where will you set up your business?
Even if you have the ability to work from anywhere, it is still necessary to formally establish your business in a specific jurisdiction.
It is important to conduct research to find a suitable location that is both beneficial for your business and simplifies administrative tasks.
For reliable assistance regarding taxes and legal issues, it is advisable to seek professional advice. It should be noted that tax laws are intricate, making this topic consistently difficult for me to comprehend.
It is preferable to begin correctly and understand your responsibilities rather than confront complications down the line.
5. Where do you want to live in the foreseeable future?
Once we made the decision to adopt a flexible lifestyle, we chose a specific location to serve as our base, at least temporarily.
Having a base will assist you in concentrating on launching a business.
However, every individual has their own unique way of approaching tasks and completing work.
If you frequently change locations, it is important to know your initial or initial few destinations in advance. This will assist you in organizing your transition to a lifestyle with location independence.
Make sure to thoroughly check the visa and other regulations, particularly any health-related limitations, for the destinations you are considering.
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