Tip#1: Most people have no idea what running a business involves
There are some truths associated with being in business that many people don’t want to face. Being in business isn’t fun. It is a job. Some people want to run away to “business land” where there is an infinite amount of money, and infinite time to play. That place doesn’t exist. So I would say to laypeople that being in business is not a fantasy, but a hard reality. You have to handle yourself and your monetary goals on a daily basis. The results of your business efforts can be seen in the bottom-line. If you don’t get results, you have to try something different. It is that simple. This means that you have to be bold enough to continuously experiment with your business to produce income. Now let’s dive deeper.
Tip # 2: Exercise Your Money Muscles Everyday
There are many people who call themselves businesspeople. Most people aren’t. You need spendable cash to make an organization run. If there is no revenue, you don’t have a business. You need money to make an effort viable. Employees work for cash, not good will. So what do you do to get started? I always ask a person to start small. Go out and do one thing that makes some money each day. Small or large actions count equally. Even if you make a dollar, you are accomplishing the simple goal. One condition is that you can’t spend anything. This keeps you from clouding your judgment with arithmetic errors. Do this for 90 days. At the end, count up all of your efforts. This will prove one thing – it is possible to make money without any investment. The final caveat is that you can’t take a conventional job to accomplish this task. When you count up your total income at the end of 90 days, you should take this money and invest it in phase 2.
Tip # 3: Choosing a service or goods business is a key part of your quest
In phase 2, you will sit down and make the capital decision – service or goods based business. I would tend to recommend a service because services are cheap to run, and they have flexibility in pricing and service level. There is room for mistakes in this business so a beginner is not going to lose his shirt starting out with a service business.
Tip # 4: Practical Application Is Everything
Many of my friends started out with something simple like buying a buffer and doing floors at night in local stores. They worked as independent contractors under the control of a local janitorial service. This is the best way to grow in earnest business acumen. If you can make money with nothing, you can really move with an infusion of cash. I would recommend this tactic for 1 – 2 years. By the time you finish you will be a polished business owner, and the term newbie will no longer be appropriate.
Tip #5: Rinse and Repeat
The more you use these tactics, the better you will get at them. The final part is to diversify your business. The more moving parts to the business portfolio, the more money that pours in. Most businesses aren’t evergreen. Most will stop producing cash without some effort from you at some point. But the more you “plant seeds” (create initiatives) the more income will come to you. Eventually you will diversify with both goods and services and then things will really get interesting. You now have the core principles in building your business from nothing. Literally thousands of people started just this way. There is no room for shyness, incompetence and weakness. Building your own business requires an intelligent design and ruthless execution and nothing less. Take these tips and go build something great!
Rich Dad, Poor Dad (1/1/2010)