Difficulty in Starting a Business

Hey everyone. Today I'm going to share with you the most important knowledge that I've accumulated from starting 9 different companies, reading 59 books on business and personal development, and most importantly successfully breaking $2,000,000 in yearly revenue. My goal is that if even 1 person reads this and it gives them the confidence to get started I will have contributed positively to somebodies life, and that brings me joy. Now let's go. # Pick a business model This is the easiest part to get hung up on, the way I've conquered this obstacle is by realizing I don't have to reinvent the wheel. There are thousands of profitable business models in the world and if you truly want to live the dream of financial freedom and break the chains of the 9-5 you can very simply pick one and replicate it. Remember “good artists borrow, great artists steal.” **Okay, but how do I pick one? There are so many that it's hard to choose!** Don't worry I got you, choice paralysis is real, we all get it. *Here are the 3 variables you need to be investigating and doing the math around in order to pick the right business for you.* Variable #1 **- Cost to start up AKA barrier to entry:** This variable is identified by simply imagining what would go into starting this business. *What are the costs associated with those things?* Imagine you were starting a meal prep business, you would need the right kitchen equipment, plastic containers, the food itself, and the transportation to bring it to the clients. Investigate how much these things would cost you and total it up, the number you land on is the Barrier to Entry Cost, write this down. Variable #2 **- Skills needed to be successful in this industry:** Some businesses require experts, while others can utilize high school students at minimum wage. If you are already an expert in a field it may be easier to build something you are comfortable with but it's absolutely not a requirement. Out of the 7 companies I have built I was only fluent in 1 and my most successful I knew nothing about. Figure out which skills are needed and do some thinking, do you have access to people with these skills? Can you hire people with these skills? Can you learn these skills in a day on youtube? Typically the lower the skill needed the more simple a business will be and trust me you want simple because once you start doing millions in revenue the headaches will pile up. Variable #3 **- How long will it take to get this business operational?** You would be surprised how quickly you can start *most* businesses. In a matter of 2 weeks I had people calling my phone for my biggest company and all it took were some street signs. Do some thinking on how long it will take for you to buy all the necessary equipment and get that phone to ring. Do you need a website? Do you need equipment or a product that will take months to develop or get to you? I highly recommend starting with a business model that can be operational in under a month, I say this because in order to withstand the punches that the business world will throw at you it helps to see tangible progress. When you spend 6 months in R&D it's tough to stay motivated. # Personal tips for choosing your FIRST business model 1. Don't start a business where you will need to raise money to be successful, chances are if you are reading this it's not happening. The people that successfully raise money typically have rich parents or already have a track record of success. Choose a model you have close to enough cash to fund yourself. (My businesses had barrier-to-entry costs ranging from as low as 1k to as high as 22k) 2. Choose a model that doesn't require full-time experts, these people cost a lot of money to employ and they typically don't want the risk of working with a pre-cash flow business. 3. Choose a model that you can spin up in a couple of weeks to a month. By now you should have a couple of assets in your head, which model you like, the things you need and how much they cost, and which skills you will need to hire for or know yourself to be successful. # NOW WHAT? Now we build. Depending on your model you will have 1 or more of the following. Google Listing and Website. Google listing you can make yourself but unless you're experienced in web development and digital product marketing 100% do not do this yourself, it is a colossal waste of time and it will hurt your ability to make the phone ring because it will take months and months of iterating in order for it to be halfway decent. Hire someone to build a website for you, there are services that do it for a $300 startup fee and $100 a month. DON'T BUILD YOUR OWN SITE. With the website/google listing live we now focus on sales and in order to do that we need to make the phone ring AKA drive leads. Depending on the industry you choose these are the magic tools that will bring you money. **GOOGLE PAY PER CLICK -** I can't stress this enough, it works. 99% of industries can utilize google PPC, Meal prep? PPC, Cleaning service? PPC, E-comm? PPC, Sex toys? ALSO PPC. (I spend roughly 5k a month on PPC, it's magic.) **AVERAGE SETUP COST $800** **Facebook Ads and Instagram ads -** Known your target audience before spending money here, does your audience live on these platforms? Does your industry fit on a social media platform where people are probably watching cat videos? **AVERAGE SETUP COST $600** **Angi's list and other contractor platforms -** The leads can be hit or miss but they absolutely will make your phone ring. **AVERAGE SETUP COST $350 MONTHLY** **Upwork and other freelance platforms -** Lower quality leads but a great way to cut your teeth in an industry. **SETUP COST FREE** **YARD SIGNS (Zip tied to telephone poles) -** I've used this in several of my businesses and it has driven hundreds of thousands of revenue, (Legal disclaimer I don't know the rules of your area, but in mine certain towns call us and say it's not allowed and others leave them up or take them down themselves) **you can get 50 signs for roughly $500 from your local sign maker.** those 50 signs could stay up for 10 years and drive you significant revenue. (Vista print signs are much cheaper quality than something you would get locally, if you want the sign to last years, don't skimp on the $50 you would save) The equation is simple - How much does it cost to create 1 customer using X ad platform, and how much profit does 1 customer on average bring your business? if the profit created is higher than the cost to acquire the customer then it is a successful marketing strategy and you can dump thousands into it and consistently make a profit. **Okay but what if I don't know how to set up google PPC or Facebook ads?** NO PROBLEM I DONT EITHER! Here's where the special sauce comes in, listen carefully. When you don't know something, but you need it in order to build the business do this exactly. 1. Go to Upwork or a similar site 2. Create a detailed, simple, and KIND job posting that shows that you mean business and are serious about hiring for this position. 3. Book calls with as many experts as you possibly can (I personally just put my phone number on the listing and open the floodgates because the scheduling process can be annoying) 4. Talk to ATLEAST 6 experts describing what you need to accomplish and asking them specifically how they would go about accomplishing it if you were to hire them. (Ask as many questions as you possibly can) 5. Use your best judgment to choose the highest-value contractor to achieve your goal. 6. PROFIT? No, but really, I use this process probably 8 times a year, by speaking with experts for hours on end who are trying to win your business they will give you all the insight you need to have a working knowledge of a subject. Don't be afraid of the hourly rate they have, it usually ends up being a lot less hours than you would think DISCLAIMER: Freelance websites have a lot of low-quality contractors, DO NOT hire someone until you've talked to 6 people, you need to find the diamond in the rough. (Trust me they are there, I have found some incredible partners who I still have on retainer to this day) Examples of hires I have made through freelance websites Web development, Graphics Design, Drawing up a sales contract, SEO, Fashion Designer, Logo Maker. \*\*Okay so now we a website/google listing and leads coming in, whats next?\*\*Fulfill the orders!! Sell those shirts, cook those meals, cut those lawns, develop those websites, WHATEVER IT IS JUST DO IT! There is a 100% chance you will make mistakes and clients will get mad at you, welcome to the business world. Stand behind your work and make it right, don't do shady shit. I promise this is one of the most rewarding things you can do with your life, when done right it can pay you far more than any job would and more importantly give you your time back! Imagine only working 5 hours a week (From your cell phone) and getting paid 30k a month. That's only possible by owning your own business. Don't stop pushing, don't let the punches knock you out. Take what you deserve and never settle. # Managing Your Cash Flow You can have $1M in sales and still go bankrupt if your bank account hits zero on rent day. This is the "boring" stuff that separates the amateurs from the $1M+ founders. **The "Net-30" Trap:** If you’re doing B2B (business-to-business), many clients won't pay you for 30, 60, or even 90 days. If you have to pay your contractors *today* but don't get paid for two months, you are effectively a bank lending money to your clients. Always try to get a **50% deposit upfront** or use "Progress Payments." Never finance a client's project with your own rent money. **The "Profit vs. Cash" Reality:** Profit is what’s left on paper. Cash is what’s in the bank. You need a "War Chest" of at least 3 months of operating expenses. As soon as you make your first $5,000, don't buy a watch. Put it in a high-yield savings account. That is your "Stay in the Game" fund for when Google Ads gets expensive or a client disputes a charge. **Automate Your Accounting:** Spend the $30/month on software like QuickBooks or Xero immediately. If you wait until tax season to "figure out your numbers," you’ve already lost. You need to see your **burn rate** (how much you spend monthly) in real-time. # Final general tips DO NOT try to do everything yourself, you are definitely not the best person to be doing it and you will kill yourself in the process. Bad end product and not sustainable, hire 1099 experts. Launch before you're ready, do not try to make everything perfect, do not try to dot all your i's and cross all your T's it will never happen. The learning is in the doing, its in the mistakes, its in the mad clients. Outsource as much of the business as you can, find no-contract partners to do everything you don't know how to do. Example - I have an accounting partner, ($300 a month) a tax strategist partner ($2500 a quarter) an SEO partner ($1700 a month) a google PPC partner ($300 a month) a content creation partner ($800 a month) It is better to be at the higher end of industry pricing for whatever market you are in, higher cost = higher margins and less headaches because it requires fewer customers. And oddly enough its the smaller customers that are the neediest. Remember to pay yourself first, never under any circumstances be the least paid person in the business. It is far too easy to get in the habit of oh ill make money next year. No make a profitable business now or go work for someone. Build a rock-solid foundation that lines your pocket and doesn't require 80 hours of your time a week. Well guys that's about all the writing I have in me, there is definitely more I wanted to include but its almost 5am where I'm currently living. I'm starting a discord for people who want help getting started (Think lists of softwares, people i trust in different industries ect) all 100% free just trying to give back to a community that I love so much. Send me a PM if you would like to be apart of it Good luck out there.