Monday, 7 September 2020

How To Start A Business From Scratch _ 8 Step To Follow

How To Start A Business From Scratch

In this article, we're going to talk about how to start a business from scratch in Eight simple easy to apply steps and things that no one else really talks about. So let's get to the Eight steps to starting a business from scratch

1. Sit Down And Write Out A List Of Your Strengths

One of the reasons that so many people start businesses and fail is they start businesses that are not in alignment with their strengths or talents. You should take an evening, sit down with a sheet of paper, write down all of your strengths, all of your attributes, all of your resources, all of your exceptional abilities and superpowers and write that down. 

2. Figure Out What Type Of Bussines Meshes Well With Your Strength

After you've written down your strengths, talents, and resources. The second thing is to figure out what type of business meshes well with your strengths. This means you'll have to go to the google machine and do a little research. 

3. Test The Concept 

Then, after you've done your research. The third step is to test the concept. Before you start investing a lot of money. Before you go hog wow. You want to test out your premise. Because in your mind, you can have a great business idea, you can have great content, until you put it in the marketplace you're just not going to know. This is why I advise you not to write a business plan, more so to write a set of goals, milestones, and accomplishments that you want to achieve, and then later after you have real marketplace data, then I want you to sit down and come up with your business plan because you'll be working with real numbers.

4.  Start Reaching Out To Friends And Family

See if you can get conversions and conversions is a fancy word for sales. Because I don't care how much you love your business, I don't care how much you think it is cool unless you're able to go ahead and get people to give you money, it's just not going to work. And this is why you need to do start with friends and family because this is a low cost to the freeway to jumpstart to get your business going to actually begin to set it up and to properly format your business for success.

5. Set Up Proper Banking And Proper Equity Or Entity Identity 

This is the most important thing. After you've done steps one, two, three, and four, and your business is showing signs that it would work. The fifth thing is I want you to go ahead and set up proper banking and proper equity or entity identity. What does this mean? Like you're going through steps one, two, three, and four, and the fourth step you're making money, you should have some revenue coming in. If you don't have revenue coming in you will not proceed to the fifth step. So the fourth step is to take some of this revenue, go ahead, and create yourself an LLC (Limited liability company) or preferably what I like to do is create an escrow holding company and create operating companies. But if this is your first rodeo, and you don't really know what you're going to do, you have no other business ideas. Just go ahead and set up that LLC, and then set up proper banking.

6. The Money Gets Absorbed Into Lifestyles Expenses

Why is this so important? You are not used to this new money, and immediately as soon as the money starts coming in, get your corporate identity, and your corporate banking, and start moving that money into that corporate banking before it becomes absorbed into your lifestyle. This is one of the things that kills so many promising entrepreneurs. I had a friend who had started a car wash business, he was making about $5,000 a month, and all of a sudden his girlfriend found places for that money to go. Essentially, it was like, he was working his car wash just to pay bills. He wasn't in a position to grow. I told him, look, you got to sit down and have a conversation with your girlfriend because she cannot be deciding where your money is going to be going because essentially, he was making this money, he went home, and said, hey, babe, I'm making this money, and she found places for it to go. 

This is one of the biggest dangers, one of the biggest reasons that businesses don't grow. Is the money gets absorbed into lifestyle expenses? There's a guy with a trucking youtube channel. Just trucking. They just started making some nice youtube revenue, what did they do? They went out and bought a brand new truck. This is the American way, essentially, we get more money, we can do more things, we can have more toys, and also, a word of advice. Never finance your toys. Always pay cash for your toys. I paid cash for my brand new car because it's a toy, it's a depreciating asset so I'm not going to pay any interest, I'm not going to have these problems down the road because it's already paid for, and you should always pay cash for your car, and you should have cash-producing assets so that they can give you the money to purchase your toys. You must tell yourself that all the money from the business is set aside from the business

7. Do Not Quit You're A Job

You're not going to quit your job. I know that there are many people on the internet that are showing you these amazing business models, they're showing you these amazing income statements, I was recently read an article, you know, this girl she had a hair Shopify store that was selling hair, and she literally makes one million dollars in five days. She did not start from scratch. She had been at it a while, and she got all her marketing, her customer identity, her customer base, and all this together. But you'll see that, and many people will go, oh, man, that's what I want, that's what I'm looking for, that's the ticket. But you don't realize how much work this woman put into her business. And this is one of the big seductive problems with the internet is you will see someone which will look like they went from absolutely nothing to an amazing amount of money just like that. This is a problem, and I'm gonna tell you something about yourself you didn't know. If you know that there is a way to do something without doing the hard work and the preparation. That will stick in your mind, and that will keep you from doing the hard work and the preparation. If you know what it can be done. That is enough to keep you from doing the things you need to do to be successful. Work smart. Don't work hard. 

Let's talk about this, we're starting the business from scratch, essentially, you have a baby business. It's a little baby, and all the money for that business should go into a separate business account so when you need money to grow the business there is money in that account to grow the business. And this is why you keep your job. Your job income is to support you. Your business income is to support the business so it can grow and keep getting bigger, and turn into a big board business, and start making you money. So That's how you start a business from scratch.

8. What Kind Of Business Should You Start?

There are many people who ask what kind of business should I start? And this is why I said, the first step, sit down and write out a list of your strengths, your talents, and your resources. Now, why is this important? If you do that, what's going to happen is you are going to create a business that's in alignment with your strong points. And your chances of success dramatically go up because you're doing a business that caters to your strengths. Many people start businesses that cater to their weaknesses. On the internet, I see stories of people who started businesses and they failed because they were just like, wow, that looks like a good business. Let me go do it. And with no real introspection, no real planning, no does this business model sit well with me as a person. 

When you pick the wrong business model, your enthusiasm won't be there, your energy won't be there, the get-up and go and hustle will not be there, it's just going to be such a hard push when you pick the wrong business. And this is what so many people do because they don't understand the process of how you should sit down and start your business because your business should come from your strong strength.

Let's go and give you an example;

Let's say you are a super friendly person, and let's say you have 10,000 friends. You're the kind of person everywhere you go you never meet a stranger, and you have this innate ability to connect with people, and people like you. Believe it or not, that is a superpower. Because if people like you, they will buy from you. You can get into real estate, you can get into sales, you can do anything because you are a people person, and if you're a people person, you like people, you enjoy people, people like you, you should start a business that's dealing with people, because that would be catering to your strengths, and your chances of success dramatically go up. One of the things that so many people have to understand is the power of knowing yourself. And there are many people who don't really know themselves and don't have a firm understanding of who they are as a person and how their personality intersects with the world at large. But like I said, that little example is just to give you a taste of a superpower and there are many people who have talents but because they don't think they're not special, they don't really appreciate their natural god-given talents which could be making them a lot of money. 

There was a guy named David Sedaris. Who had a wonderful way of telling stories? He turned this into a podcast and a series of books and became a millionaire. It can be just that simple. But you have to appreciate your talents, you have to appreciate yourself, and you have to understand what you are doing in relation to the world.

That is all I have for you. Now you learn how to start a business from scratch

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