Should I start thinking about transitioning to an agency or a product-based business?

Deciding whether to transition to an agency or a product-based business is a big decision, and it's fantastic that you're considering your next steps thoughtfully. Here's a framework to help you think through this:

1. Assess Your Skill Set and Interests:
2. Think about where your strengths lie. Are you more skilled at providing a service, like consulting or design (which lends itself to an agency model), or are you drawn to creating scalable solutions or products?

3. Reflect on what excites you. Building a product might mean investing significant time upfront without immediate returns, whereas an agency could provide steadier, albeit more client-dependent, revenue.

4. Understand the Market Demand:

5. Research to identify any gaps or needs in the market that your potential business could fill. For product-based businesses, this could mean a novel solution to a common problem. For agencies, it might be a specialized service not widely offered.

6. Engage with potential customers or clients. For an agency, you might do this through networking or offering trial services. For a product, you could validate with a prototype or pilot.

7. Evaluate Your Tolerance for Risk:

8. Agencies can often provide more predictable cash flow in the near term, but they also involve managing client expectations and potentially dealing with a steady churn.

9. Product businesses, on the other hand, involve more upfront risk and investment. However, they can offer the tantalizing option of scaling revenue beyond the direct hours you put in once the product is successful.

10. Consider The Lifestyle You Want:

11. What's your vision for your work-life balance? Agencies can require intensive client management and might tie you to a schedule centered around client needs. Products might offer more flexible hours eventually but require intense periods of hustle to build and launch.

Reflecting on my own journey, I found that understanding what I wanted for my career and personal life was crucial. For example, when I transitioned away from the predictability of an engineering role, I initially toyed with agency-like client work for secure cash flow but soon realized building products aligned more with my my lifestyle aspirations.

At the end of the day, both paths require grit, persistence, and a willingness to adapt. Whichever path you choose, be prepared to Capture insights, Develop your offerings with creativity and care, and steadily Expose your business to the market. And remember, success doesn't have to look traditional; it can fit the lifestyle and impact you desire.