How to Start a Location Independent Business: Services vs. Products


As more people seek location independence and the freedom to work from anywhere, the question of how to start a location independent business becomes increasingly relevant. In this blog post, we’ll explore the advantages and disadvantages of starting a service-based business compared to a product-based business, and provide guidance on which path is best suited for different situations.

The Appeal of Location Independence

Location independence offers numerous benefits, including the ability to live in a foreign country, potentially unlocking tax savings and time savings, and improving one’s financial situation. However, starting a location independent business can be a challenging endeavor, especially for those who are new to entrepreneurship or lack an existing income stream.

Service-Based Businesses: Lower Risk, Easier Profits

For those without an ongoing income, starting a service-based business is often the safer, more profitable choice. By selling your services directly, you can enjoy higher margins per sale and build relationships, expertise, and reputation more easily.

Pros of Service-Based Businesses:

  • Higher profit margins per sale
  • Easier to build relationships and reputation
  • More likely to provide ongoing income
  • Safer and more profitable for beginners

Cons of Service-Based Businesses:

  • Limited upside potential
  • Less freedom and scalability in the long run

Selling your services allows you to be profitable faster and reduce the risks associated with starting a new venture. With service-based businesses, you can offer ongoing support to clients, increasing the overall ticket size of each sale. This enables you to quickly generate income and fund the lifestyle you desire.

Product-Based Businesses: Greater Upside, Higher Risk

For those who already have an ongoing income, starting a product-based business may offer greater upside potential and more freedom. However, this path comes with its own set of challenges, such as higher competition, a steeper learning curve, and greater financial risk.

Pros of Product-Based Businesses:

  • Greater upside potential
  • More freedom and scalability
  • Potential for passive income

Cons of Product-Based Businesses:

  • Higher competition and steeper learning curve
  • Greater financial risk
  • Longer time to reach profitability

Product-based businesses, such as drop shipping or running an Amazon store, can be more difficult to achieve critical mass in terms of income. They often require significant upfront investment and can take longer to reach profitability.

Choosing the Right Path for Your Situation

When deciding which path to take, consider your current financial situation and risk tolerance. If you don’t have ongoing income, starting a service-based business is a safer, more profitable option. This approach allows you to build relationships, expertise, and reputation while minimizing risk.

On the other hand, if you have an existing income stream, pursuing a product-based business may offer greater upside potential and freedom. However, be prepared to invest time and money into learning the ropes and be patient as you work towards profitability.


In conclusion, choosing the right path for your location independent business depends on your personal circumstances and preferences. By considering your financial situation and risk tolerance, you can make an informed decision and set yourself up for success in your entrepreneurial journey. And remember, whichever path you choose, building relationships, expertise, and reputation will always be key to your long-term success.

Thomas Raynott

Thomas Raynott

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