“The entrepreneur in us sees opportunities everywhere we
look, but many people see only problems everywhere they look. The
entrepreneur in us is more concerned with discriminating between
opportunities than he or she is with failing to see the opportunities.” –
Michael Gerber
But if you do think you’d like to be an entrepreneur, you will be
rewarded for it.
Not only can you double (or even triple) your money
every three years, you can also enjoy the many other benefits of being
your own boss:
- the freedom to choose your own schedule
- the power to create your own products
- the excitement of being fully challenged
- the knowledge that you are providing an income for your employees
My friend Anna W. asked me to help her start a business based on her
love of music.
She’d been looking over her current retirement plan, and
figured out that if she keeps her present job and continues to increase
her responsibility and her income, she will be able to have a
comfortable retirement in 14 years (at age 67).
That’s not bad. Most people in her age bracket won’t do that well.
But if she puts her energy and resources into creating a successful
business of her own, she can look forward to a much better return on her
“investment.”
Anna is going to start her new business on the side, working evenings
and weekends.
She’s going to find a partner to back her, develop her
product, and take it to market. When we went over the numbers, it became
clear to Anna that this secondary business – if it is successful (and
I’m pretty sure it will be) – will allow her to achieve her retirement
goals in five years instead of 14, while she is still relatively young.
At that point, she can do whatever she wants to do with the rest of her life.
That’s what a business can do for you.
Think about your own financial situation. Are you okay as you are –
or would it be helpful to triple your money every three years?
If you need that kind of way-above-average ROI in your life, you
simply have to consider starting your own business.
Don’t quit your day
job. Just get something going on the side. You don’t have to invest a
ton of money or work endless hours. You can do well starting small.
Here are five proven (and absolutely true, in my experience) secrets
of highly successful entrepreneurs that will help turn you into a
business-building genius.
Secret No. 1: Don’t spend too much time planning.
When you are entering a market, you don’t know (and couldn’t possibly
understand) the hidden problems and challenges you will face.
You won’t
understand those problems until you make a few mistakes.
And you won’t
solve them (and go on to making a success of your new business) unless
you are capable of changing directions quickly.
Most successful new businesses (probably 90 percent of them) end up
following practices that are different than anticipated.
That’s why it doesn't pay to spend too much time and money planning.
Do a reasonable
amount of noodling.
Figure out the big strokes and give yourself a
bail-out option. Then go for it.
He who can adapt wins.
Secret No. 2: Don’t spend too much money.
The vast majority of business start-ups that succeed do so on a
limited budget. Almost none of them have the benefit of venture-capital
funding.
The great majority of new businesses are hampered (and enhanced) by
flying on empty.
People involved in businesses that have limited funds
must think harder, work harder, and (most important) sell harder.
Their
primary initial effort is to bring in the cash. And that’s how it should
be.
There is only one thing that will surely stop any business in its
tracks – and that’s a lack of money. Ironically, limited capital usually
means a quicker and stronger cash flow.
Secret No. 3: Get operational fast.
The most common reason for new product/project failures is wasting
time getting ready.
Between making overlong and expensive business
plans, endlessly tinkering with the product, fooling around with focus
groups, and second-guessing yourself, it’s easy to let a good
product/project lose its steam.
Bootstrappers don’t mind starting with a copycat idea targeted to a
small market. Imitation saves the cost of market research – and the
start-up entering a small market is unlikely to face competition from
large, established companies.
Secret No. 4: Go for the quick cash first.
Contrary to what some business books tell you, successful
entrepreneurs admit that they take the fastest route to cash when
launching a new venture.
They do so because they don’t have a choice.
(See Secret No. 2.) After the cash starts coming in, they have the time
and funds to improve the product, enhance customer service, and refine
operations.
Keep in mind that the best-laid plans are often arrogant. You don’t
know for sure how to best serve the market.
When launching a new
business or product, figure out how you can get to breakeven fastest.
This kind of noodling will force you to pay closer attention to the
market.
Secret No. 5: Forget about the crack team; you are it.
Successful entrepreneurs don’t hire experts to run their businesses.
They figure it out for themselves.
When it comes to making your new
product/project work, rely on nobody but yourself to make sure it gets
done right.
It may be stressful and time-consuming to do a lot of extra
work, but it will pay in the long run. You will understand the project
in an intimate, extremely valuable way.
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