Entrepreneurship 101: Creating A Business Idea

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The Art Of Changing Jobs

Most people have traits that prevent them from becoming an entrepreneur

Terrified of people or failing at basic social skills

  • Entrepreneurship is constant communication with dozens to hundreds of strangers

Continually desires to please others or make them happy

  • Your business can’t sustain itself if you can’t enforce boundaries with difficult people

Unwilling to make sacrifices for desires

  • A small business requires the same amount of maintenance as a baby

Hypersensitive to criticism, failure or obstacles

  • Most startups fail, and startups which succeed are rarely the first attempt

Desires creature comforts or luxuries

  • A small business will require more sacrifice than most entrepreneurs will expect

Unwilling to try new things like taxes, researching regulations or arguing with a supplier

  • Paying others for what you can do yourself prohibits the business from ever becoming profitable

Hates doing undesirable things without others telling them to

  • Most small business tasks are universally dull or tedious

Hates working for an employer and wants to be rich

  • A vision built on selfish intentions doesn’t inspire anyone else to follow it

Buried under tremendous personal debt without another income source

  • Starting a business must be intentional and will cost quite a bit of starting capital

Fear of change or the unknown

  • Outside of parenting, starting a new business is the most uncertain thing you can do

An entrepreneur must be strong and resilient

Running a business is one of the most potent self-improvement exercises ever

  • Your business will showcase every one of your weaknesses through the variety of duties and tasks

Never has problems with change

  • Continually seeking out new mentors to imitate and learn from
  • Asks probing and profound questions, even seemingly stupid ones, about absolutely everything
  • Frequently improving on existing ideas through creativity and innovation
  • Sees every obstacle or “no” as an opportunity to creatively work around

Barely affected by failures, rejection, and regrets

  • Unusually bold, confident, and courageous
  • Unafraid of raising money, which is often at least $75,000
  • Hears others’ views and criticisms but only listens to proven successes
  • Has proven success in multiple past endeavors
  • Sees weaknesses as hidden strengths

Patient to achieve from a strong belief in eventual results

  • Extremely persistent over a long period
  • Believes anything can be lucrative if appropriately pursued for five years
  • Meditates and slows down to look at large-scale effects
  • Highly ambitious at everything

Resents giving up on any ambition

  • Determined to prove something to themselves about themselves
  • Sees opportunities from all limitations and ignores unmanageable adverse problems
  • Highly ambitious, especially with risks

Practical-minded

  • Thinks more about currently available resources than adhering to methods or creating systems
  • Pays bills on time
  • Resents bureaucracy and unnecessary systems
  • Tries to understand things before jumping to conclusions
  • Focuses intensely on everything their mind is preoccupied with

Has no problem working alone

  • Willing to do anything, even long solitary hours, to finish a job

A great communicator and naturally charming

  • Openly communicates and desires openness, even on negative or controversial matters
  • Takes on leadership skills which inspire others to follow them

An entrepreneur has a unique worldview

Views both success and failure as temporary

Finds happiness in things which typically scare others

  • Loves new and original ideas, sensations, and experiences
  • Enjoys hard work, especially highly challenging work they can do very well

Loves risks from seeing them as necessary for rewards

  • Wants the freedom to control professional and personal life even with its risks
  • Loves opportunities to overcome, minimize or calculate risks
  • Thrilled by large scary things as challenges to attack and defeat
  • Prefers to thrive and fail by personal decisions over staying safe

Believes people, especially customers, matter more than things

  • Strong passion for changing lives around them
  • Focuses on others’ needs more than self-interests
  • Treats others how they want treatment
  • Expects greatness in self and others
  • Self-sacrifices to make others successful

Sees resources as a means to an end

  • Resources fuel the passion for creating more and making new things
  • Doesn’t see money as an end in itself

Entrepreneurs often have similar lifestyles

Loves sports, especially team or extreme sports

Loves traveling to original and exotic places

Typically self-taught and not much college education

Often heavily focused in whatever they’re doing

  • Willing to trade four years of arduous work for forty years of freedom

Often young, for several reasons

  • Less afraid of uncertainty from how life commitments usually create less risk
  • Not embittered about the corporate world yet
  • More frequently thinks of new ideas and entertains seemingly silly things
  • More creatively and energetically pursues goals

Spends free time learning, absorbing information or mastering a fun skill

Many disciplines parallel an entrepreneur’s

Creative performance fields like musicians and actors

Professional writers, especially fiction writers

Media professionals and public speakers

Running a nonprofit organization or church

Running an established company

Startups usually fail for a few specific reasons

90% of startups fail in the first five years for the same reasons

  1. Not enough money to fund the business idea
    • The company might never be profitable
    • The company may grow too fast and implode on itself
  2. Inadequate necessary skills to start or maintain the business
    • The market doesn’t need the product (42% of failures)
    • The marketing environment might not be ready for the product
  3. The owner doesn’t have enough vision to see where the business is going

Startup issues arise for many reasons

  • The business owner doesn’t have a sufficient network
  • The owner’s personality isn’t visionary or dedicated enough
  • The business idea cost much more money to start than original expectations

A great startup has a meaningful purpose behind it

A. Hold to a vision transcending personal interests

Look at smaller projects, not grand ambitions

Look at ideas you keep revisiting

  • If you enjoy thinking about the idea, you may have a good business idea

Ask your friends about what they think of your idea

  • Expose your idea as soon as possible to other people to get feedback and discover if your idea is viable

Focus on what potential customers value

  • Don’t do what you love as much as what you know brings value to others
  • Consider whether your business idea has a market easy enough to start into

Don’t worry too much about making money

  • You can monetize anything if you’re willing to learn how

Your vision should adhere to the Golden Circle

  1. WHY you do what you do and what you believe
  2. HOW you do it
  3. WHAT product you make

Your vision must be driven by passion and tethered to reality

  • Find the right vision through prior experience and what others need
  • A business is only a promising venture if it can eventually scale and work independently of its owner
  • You are the most passionate about your business, and nobody will share your level of enthusiasm

Prepare to sacrifice everything for your vision

  • Friends and family won’t likely support the vision, at least at first
  • You won’t have vacations or extra money for a long time
  • You’ll spend less time with family, friends or recreation
  • You must continuously share your vision with persuasion and charm to build a network
  • Create an “us versus them” attitude about your new ventures
    • Treat affiliates and friends with closeness and camaraderie
    • Treat competitors as enemies to either convert or subdue
  • A business must affect millions to make millions

You can prevent most common and extreme mistakes by finding a mentor

  • Mentors give you guidance about what not to do, what to focus on, and how other people think

Your vision is necessary to endure the enormous scope of work you’ll have to do

  • Every idea in your organization will come from your vision

B. Plan how to attain your goals

Keep adjusting your plan to conform with reality and stay productive

An Internet business can avoid many startup costs

Consider any skills and talents you can use

Fear inhibits decision-making skills, so never make plans out of fear

Include everyone who might be involved in the planning process, since they’re the ones who will help make it happen

Gather as many resources as possible while planning and learn the basics of everything relevant

  • Look for reliable online resources
  • Find trade-specific whitepapers and sources for other ones
  • Network with professionals in different specializations who can provide input and guidance

Take extra time for the planning stage

  • Every part of planning now saves plenty of work and issues later
  • While planning, newly observed risks may seem impossible and you might need to change your strategy
  • An ineffective plan isn’t a waste of time and is part of the creative process

C. Look for ways to improve your business idea while planning

Network with others to gain experience from mentors, investors, and consultants

  • Offer company equity if you’d greatly benefit from someone who is hesitant to be your mentor

A business owner must learn many disciplines where they had no prior experience

  • Always seek more feedback to improve yourself, the business, and the product
  • Delegate everything you can to more skilled and capable workers

D. Create a formalized business plan

Your business plan will sell the business idea to investors, lenders, and other potential stakeholders

Capture every single idea for your business in the business plan

Next: Creating A Business Plan