How Not To “Break Fast” Starting A Business – The Wealth Theory – Part 2
TechnologyStarting a business today is as easy as buying a Coca-Cola at 7-11. There are so many opportunities out there; it can drive you crazy and many look good.
However, I want to know the interesting part; It’s not the companies that fail.
-Nope-
There are vital parts to starting a business that are often overlooked because people are so excited to start “making money” from the visions they got from the brochure or website and maybe some testimonials where they heard about the millions that are . going to do. However, it is the “business plan”, not just their enthusiasm that will make them successful.
So again, it is the lack of a business plan that will lead to success that will make them fail, but not only that, there is much more.
Interestingly, though, within a typical business plan, a single component that is the number one contributor to failure in business today is omitted and it’s so simple you’ll probably shake your head and say, “man, how do I do it?” did I lose that?” ?”
So what is the number one reason why any business plan will actually be a plan to fail?
undercapitalization
Yes, that is correct; they run out of money before they are profitable. Furthermore, they only become profitable if they pick the right business in a growing market that will ultimately provide enough money to meet their goals.
So how do you properly plan to capitalize on your business in advance and earn the money you need to achieve all of your goals? Here are four principles to help you:
The first principle is to choose a business that financially satisfies your desires:
Well, first of all, I’m going to back up a bit; Even before you decide what business you’re going to do, you want to set your goals (3, 6, 12, 24, 60 month goals) you want to set what you want to achieve by being in business, otherwise you won’t have anything to plan for. Then go out and find a business that can provide that kind of goal achievement.
Now that you know what to measure your business by, if you’re not living up to your goals, find another business to do. Warning: if you decide to lower your goals to reach the maximum amount of money you can earn, you will not be satisfied with what you will do and the result will be failure.
Now that you know what you want and have the business that can produce the results you want to achieve your goals, you understand the first principle; choose a business that financially satisfies your desires.
If you make your business plan, after Set your goals, you will likely underestimate yourself and end up frustrated soon after starting, or you will not be motivated enough to work on the business with all your heart and guess what, you will fail.
The second principle is to understand all your costs:
Get a clear understanding of ALL start-up costs, your monthly expenses (including your living expenses, advertising, long distance, domain names, heat, rent, hydro, insurance, etc.) and make sure you include the costs of all products that you are going to represent because you can only convey enthusiasm when you talk about something that you have experienced yourself. After all, sales are what make businesses money, and the last four letters of enthusiasm stand for “I Am Sold Myself.” This will make a clear distinction between you and a competitor who has no genuine enthusiasm for your product and will make all the difference in your success.
Now that you’ve calculated all of your start-up and ongoing costs, make sure you have enough to run your business at 100% for at least six months or up to a year.
Understand that no worthwhile business will be an overnight success. While there are some (if that’s what you’re looking for, buy a lottery ticket), it’s certainly not the norm. For the rest of you, plan for success by having enough money in the bank for 6 months, up to a year of living and operating costs. When you do this, you will ensure your success because money is removed as a concern.
You probably need to finance your business start-up, most people do and the likely newcomer to the business doesn’t have an extra six figures sitting in the bank burning a hole in their pocket. Many people are barely getting by and want to start a business because they recognize that they won’t make it if they do it for someone else.
So where do you get the money to get started? Well, I like to use “other people’s money” to get me ahead in life; you don’t risk my money up front and borrowing costs are a business expense.
Here are some ideas: Take out a second mortgage on your home, or a home equity loan, or take out a line of credit, or get a co-signer, or borrow from your assets, or use credit cards with low or no interest. interest. , for six months. Whatever it takes to make this happen, make it happen, it will be the best peace of mind you will have if you know that all your costs are covered for six months to a year.
Again, being undercapitalized is the number one reason for business failure, if you don’t have access to capital for everything, your mind will be focused on finding money or making money in your business too early in the business building process and you will wither and die on the vine.
The Third Principle is to execute your plan.
The only way you should approach life or business is to persist without exception. Andy Andrews, author of “The Travelers Gift” does a great job of explaining the “without exception” part. This will allow you to find a way when there is no way.
Play to win versus play not to lose.
The Fourth Principle is to keep your hours and responsibilities low.
If you want to be smart; spend as little time as possible working on your business (20 – 25 hours per week maximum) and as much time as possible living your life; Starting a business that you can do from home (this is the type that is also most profitable), you can keep your startup costs low and be very lean and mean.
Going into a “traditional business” with typical overheads like office rent, clerks, accountants, etc. And guess what, you just bought yourself a job as a professional babysitter.
I really challenge you to dispel any thoughts that you need to do a “traditional business” to make a lot of money because I’ve done it and 70-80 hour workweeks really bite.
Whatever you choose to do, make sure you have a business that can achieve your goals, one where you can understand everything and all the costs before you dig too deep, one that will only take you 20-25 hours a week to manage and run. And above all, make sure you are properly capitalized and you have a great chance of succeeding beyond your expectations.
For the success of your business,
greg nicholl
Copyright 2006 – Nicholls Enterprises