So you want to run a business hey?
And make lots of money. 💰
I’ve been working for myself for 16 years, my own companies for the last 14.
Here are a few tips from what I’ve learnt to help you on your way.
Ps Reading this could offend you.
Your goal is to learn, not to love.
There’s a lot of ‘do what you love and then you’ll get paid for it.’
When starting out, don’t worry about that.
Just get started, your first business probably won’t be a home run.
Unless you are very lucky.
Not to completely discount doing what you love, it is possible. It’s just rare.
Can you make money playing XBox?
Sure you can. But very few people do, and there’s a whole lot of competition.
If there’s genuine demand for what you love, then maybe.
Do you know what you will love?
Making a shit ton of money.
Trust me it’s fun. It makes whatever you do easy to love.
I make a fortune from a business that I don’t even tell people about.
It’s horribly unsexy. Plus nobody believes me anyway.
Ideas are not businesses.
Lots of great business ideas make poor businesses.
I know, I started one 4 months ago that was one of my great ideas. 💡
My accountant of 16 years even said ‘this one is a winner’.
No stress. I just moved on.
Where did I go wrong?
The DEMAND wasn’t there.
We hit it hard, but it didn’t work. We moved on quickly.
We all make mistakes, it’s how quickly you adjust and move on that’s important.
We’ve shelved it, the timing isn’t right.
Maybe try again later.
Solve a problem.
People make the mistake of having an idea, then try to find customers.
Customers don’t give a shit about your idea. They only care about themselves.
Find a problem, then you know you have demand.
Then produce a solution for that problem.
Don’t mortgage the house to get started.
Start a side hustle whilst keeping your 9-5.
Lawrence King said it best;
Don’t think about leaving a job until
- you have 6mths emergency funds
- revenue 2x your expenses
- you know what you’re doing
Barrier to Entry - the ease with which someone can enter a market.
This is important, it goes both ways.
When starting out it’s ok to enter a business with a low barrier to entry.
It means low cost, low risk, low skill.
Perfect starter businesses.
Eg Being an affiliate. Brilliant place to learn the game.
But to build something successful, and super profitable you need a HIGH barrier to entry.
Warren Buffett loves businesses with a ‘moat’.
It’s hard for competitors to enter, this is good for you.
Systemize ➡️ Outsource ➡️ Scale
Systems - replicate at scale without being ‘in’ your business each day.
Document everything. It means you’ll operate more efficiently.
And if you want to sell, your sale price will be higher.
Buyers love systems.
Outsource - Focus on the important, have the rest done by others.
I have a team in the Philippines, effective and inexpensive.
I focus my time on the important parts of my business and the parts I enjoy.
Scale - Kind of obvious. Where the money is.
How big can your business get?
As they say, money isn’t everything. But it’s right up there with oxygen.
Most importantly it buys things we truly value;
👉 Time, choices, freedom.
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