As the world becomes increasingly connected, more and more people are embracing a digital nomad lifestyle. With the rise of technology innovation, easier internet accessibility, and the increasing need for remote work, digital nomad entrepreneurship is a progressively viable option for those looking to start their businesses.
This new way of working allows entrepreneurs to build their businesses while traveling the world. And it’s not just a passing trend — a recent study found that 24 million Americans plan to become digital nomads in the next 2-3 years.
This article will take an in-depth dive into this exciting lifestyle, exploring what you should know before starting a business while traveling, as well as some stories from entrepreneurs who have embraced digital nomadism and started successful businesses. Whether you’re considering taking your business global or already living a nomadic life, there is some essential information you need to know before embarking on your entrepreneurial journey.
Can entrepreneurs be digital nomads?
Many entrepreneurs find themselves pulled in different directions, often faced with choosing between their business and personal lives. However, it is possible to be a digital nomad and an entrepreneur simultaneously.
Many digital nomads are entrepreneurs who have found ways to combine their work and travel lifestyles. While this lifestyle certainly requires careful planning and organization, running a business while enjoying travel freedom is possible.
Many different types of businesses can be run by entrepreneurs who are also digital nomads. For example, freelance writing, graphic design, web development, social media management, and consulting are just a few jobs that entrepreneurs can do remotely.
And with the rise of online platforms like Upwork and Fiverr, it has never been easier to connect with clients and collaborators from around the globe. So, whether you’re looking to start your own business or seeking the flexibility to work from anywhere, there’s no reason why you can’t have both as a digital nomad entrepreneur.
While it might not be suitable for everyone, combining the digital nomad and entrepreneur lifestyles can be a great way to live a more fulfilling and exciting life. According to a recent study, 36% of digital nomads freelance for multiple companies, and 33% own their businesses. That being said, with careful planning, organization, and lots of dedication, it is possible to balance work and travel while still growing your business successfully.
Being a digital nomad and running a business
The barriers to entry for starting a digital nomad business are relatively low. You only need a laptop, an internet connection, and basic business skills. However, running a successful digital nomad business is not as simple as jumping on the next flight and setting up your computer in whatever coffee shop you find along the way.
Several unique challenges come with being a digital nomad entrepreneur. For one, it can be challenging to stay focused when there are so many distractions and logistics behind the scenes. But many successful digital nomads can maintain their work obstacles and love traveling with careful planning and a clear understanding of their goals. By following these tips, you can ensure that you make the most of both worlds.
Total Commitment
Being a digital nomad entrepreneur is not for the faint of heart. It takes a total commitment to your business and your startup company. When you’re constantly on the move, it can be challenging to maintain the same level of dedication that you would if you were in one place.
However, it’s essential to remember that your business is your lifeline. If you’re not committed to it, you won’t be able to succeed. There will inevitably be distractions when you’re traveling, but you must find ways to stay focused on your goals. If you can maintain hard work and dedication, you’ll be well on your way to success as a digital nomad entrepreneur.
Don’t do it alone
As anyone who has ever started a business knows, entrepreneurship is a demanding pursuit. Not only do you need to have a great idea, but you also need to be able to execute that idea and build a successful company. Doing all of this alone can be challenging, which is why many entrepreneurs embark on their journey with a partner or co-founder.
Having someone to bounce ideas off of, help with the day-to-day tasks, and share the ups and downs can make the journey much more manageable. And when you’re embracing digital nomad entrepreneurship, having a partner can be even more beneficial. Not only will they be able to help with the logistics of starting a business while traveling, but they can also provide an invaluable support system. So, considering taking the plunge into digital nomad entrepreneurship, it might help to do it with a partner.
Start saving money before you start
Before you quit your day job and set out on your digital nomad entrepreneurship journey, it’s essential to have a solid financial plan in place. Many would-be entrepreneurs, save up enough money to cover their basic living expenses for at least six months. This will give you a cushion to fall back on if your business doesn’t take off as quickly as you hoped, and it will also allow you to focus on your new venture without worrying about money.
Even if you’re confident that your business will be a success, it’s still a good idea to have some money saved up. After all, unforeseen expenses always seem to come up when you least expect them. By taking the time to save up before you start your digital nomad entrepreneurship journey, you’ll be setting yourself up for success from the very beginning.
Don’t count on cash flow at the beginning
When digital nomads embark on their entrepreneurship journey while traveling, they shouldn’t count on cash flow. While digital nomads average a monthly income of $4,500, it’s essential not to rely on that income initially for several reasons. When starting a business, there will always be lean times when profits are elusive, and you have to reinvest most of your earnings into the company.
Brian Davis and Deni Supplee, co-founders of SparkRental, were able to get through these tough early days by adjusting their living expenses and living very cheaply. This allowed them to plow their earnings back into the company without worrying about personal financial hardships. Because they didn’t have many expenses initially, they could also take on jobs with lower salaries than if they had multiple mouths to feed or expensive housing costs.
This is a common strategy for startups — founders often take significant pay cuts to make the business work in its early days. And it’s a strategy that has worked well for Brian and Deni, as their company is now thriving. So, if you’re thinking about starting a business, remember that you may have to make sacrifices in your personal life to make it happen. But it can pay off in the long run if you’re willing to put in the hard work and live frugally for a while.
Make sure the idea or business model is not adversely affected by your nomadic lifestyle
As the world becomes increasingly digital, more and more people are finding that they can make a living without being tied to a single location. While this nomadic lifestyle has much appeal, it also comes with its barriers. For starters, it can be challenging to maintain a regular work schedule or to find reliable internet access when you’re constantly on the move.
Also, if you’re constantly moving around, it may not always be possible to build a reliable client base or meet in person with potential investors. Therefore, to be a successful digital nomad, consider how your lifestyle will affect your business. With good planning, organization, and resilience, you can ensure that your business won’t suffer from your wanderlust.
Jack Mann, founder and CEO of Vibes is a prime example of someone who has effectively balanced the demands of running a business with the challenges of a mobile lifestyle. “Work is an action, not a place,” he said. “Technology has allowed non-traditional working environments to thrive in an era when formal workspaces are becoming a thing of the past.” But it’s also a result of a life on the move. Mann said the transient, nomadic lifestyle has made him more disciplined with his time to strike a work-life balance.
As more and more people embrace the digital nomad lifestyle, it is being proven that success is possible if you are willing to put in the effort.
Adjust your nomadic lifestyle to your startup
Not having the traditional structure of a 9-to-5 job means you will need to manage your time effectively. Being comfortable with constant change and adapting to new environments quickly is a must. But perhaps the most crucial challenge is maintaining a healthy work-life balance. After all, the whole point of being a digital nomad is enjoying the freedom and flexibility of the lifestyle.
Use your nomadic lifestyle to leverage your startup
Entrepreneurs are often nomadic by nature, which can be a significant advantage when starting a new business. The ability to pick up and move at a moment’s notice gives entrepreneurs the freedom to search for opportunities wherever they may find them. In today’s globalized economy, there are opportunities to be discovered in almost every corner of the world. By leveraging their nomadic lifestyle, entrepreneurs can put themselves in a position to find these opportunities and seize them.
There are a few key ways that entrepreneurs can leverage their nomadic lifestyle to start a successful business, such as:
1. Use your flexibility to save on costs: One of the most significant advantages of being a digital nomad is that you can often reduce your living expenses by working from cheaper locations. If you’re willing to live in less expensive countries or regions, you can save monthly money.
You can use this extra cash to reinvest in your business or cover other important expenses.
2. Get closer to potential customers and investors: If you want to tap into new markets, it can be helpful to physically relocate to where your target audience is located. This will give you a better understanding of their needs and how your product or service can best meet them. Additionally, being near potential investors can make pitching your business and securing funding easier.
3. Build a global network of contacts: As a digital nomad, you’ll have the opportunity to meet people worldwide. These relationships can be beneficial both professionally and personally. You never know when one of your new contacts could introduce you to a valuable client or partner. Also, building a solid network will make finding co-working spaces, accommodation, and other resources easier as you travel.
4. Embrace the challenges: Though there are many benefits to being a digital nomad, it’s important to remember that this lifestyle comes with its own challenges. In particular, it can become burdensome to maintain a healthy work-life balance when you’re constantly on the move. Plus, working in different time zones can pose a barrier to staying organized and connected with your team. However, if you’re willing to embrace these challenges, they can help you grow as an entrepreneur.
Success stories
In today’s business world, people’s growing attraction to working remotely is no secret. And for a good reason — remote work offers several benefits, including greater flexibility, increased productivity, and an improved work-life balance.
For Marshall Mosher, founder & CEO at Vestigo, the benefits of remote work are especially evident. He explains, “When the recent pandemic cleared the office, this reality became even clearer. I traded my cubicle for a van to restore work-life balance, and I don’t think I’m alone. After two years of pandemic living, many entrepreneurs feel burned out, exhausted, and uninspired.
Remote living offers a solution, making work fit into my life instead of building my life around work.” Marshall has found that the digital nomad lifestyle suits him perfectly. He’s been able to trade his cubicle for a van and kitesurf while building his company. And most importantly, he’s happier and healthier than he was before.
Ever heard of Timothy Ferriss? His book “The Four Hour Work Week” has been a New York Times and Wall Street Journal Bestseller, translated into 35+ languages, and has turned him into a household name. But what many people don’t know about Tim is that his successes are primarily due to his focus on lifestyle design and embracing digital nomadism. This focus allowed him to create a multimillion-dollar business while maintaining a healthy work-life balance. And it’s this focus that continues to propel him towards even greater success.
In an increasingly chaotic world, Tim’s message of living a more intentional life is more relevant than ever. His ability to break down complex concepts and show people how to apply them to their own lives has made him one of the most sought-after speakers and thought leaders in the world today. There’s no doubt that Tim Ferriss is a force to be reckoned with, and it all started with his commitment to creating a lifestyle that worked for him.
Final thoughts
Digital nomads are a new breed of workers setting the trends for the future of work. Digital nomads are defined as people who use technology to perform their duties and who often work remotely, outside a traditional office setting.
According to a recent study, digital nomads work an average of 46 hours weekly. That’s 9 hours more than the global average. But even though they’re working longer hours, 85% are satisfied with their career choices and work. This can primarily be attributed to the flexibility and autonomy of this lifestyle. Being a digital nomad helps this group achieve a better work-life balance and allows for more pursuit of passions and interests.
At M Accelerator, we offer a variety of programs for entrepreneurs seeking to start businesses. Whether embracing the digital nomadic lifestyle or not, we can help you get your business. We offer mentorship, funding opportunities, and growth and networking opportunities that will help propel your business in the right direction. If you’re interested in learning more about our programs, please visit our website.
