3 Steps To Startup Success
Here is a question from one of my newsletter readers:
“Hi Evan,My biggest problem for starting a business is capital or funding. And also due to that reason I am confused what to start first and when.
Currently I am working for one company which is in Automobile Transmission, but I want my own identity as an entrepreneur.
Could you suggest me some positive tips. I am eagerly waiting for your reply.
Thanking you.
Ashish”
Thanks for the question Ashish! The question is around raising capital but I’m going to take one step back and talk about how to get started as an entrepreneur and give yourself the best shot at success.
Step 1: Work To Learn
“The point here is to make your mistakes while working for someone else. They will teach you how the business works and you’ll learn about how be successful in the industry of your choice.”
If you’re going to work for someone else make sure that you’re learning from the experience. If your goal is to start a business related to automobile transmissions then you’re in the right place for now – if your passions lie somewhere else then look for a new job where you can learn about the industry.
The point here is to make your mistakes while working for someone else. They will teach you how the business works and you’ll learn about how be successful in the industry of your choice. Try to learn more about the business side of the company you’re working. Think about ways you can help the company grow beyond just the task you’ve been assigned. Your boss will certainly appreciate the extra support and you’ll gain an invaluable education.
You can work in any industry you want – make sure that you’re going to work for someone else that you’re going to learn from it.
Step 2: Start Part Time
“By starting off on a part time basis you can afford to experiment with ideas while still earning money from your job to pay your bills.”
To test your business idea, see if you can start it up on a part time basis. Create a business plan and then try to go out and get a customer for yourself – see if you can convince someone to pay you for what you’re offering. Then work around your job schedule to support your customers. The better service you can offer the more likely you’ll get referrals and your small business will grow. By starting off on a part time basis you can afford to experiment with ideas while still earning money from your job to pay your bills.
Once you’ve got a few customers, see if you can negotiate an arrangement at your job to reduce the number of hours you’re taking on or if you can work remotely on some days. Faced with the choice of having someone work less hours who is experienced and has been a valuable contributor to the company (see Step 1) versus finding someone brand new, your boss will likely grant your request.
Next, figure out how much money you need to support yourself – I mean really support yourself – bare bones. You’re not going to be living the high life but you’re not going to be starving either or out of a home. As soon as you’re able to consistently hit that income target from your business, you’re ready to quit your job and grow your company. You may take a short term pay cut but you’ve got enough to survive on and you’re working 100% for yourself now.
Step 3: Start a Service Business
“A service based business is a great way to start because the only cost is your time. You don’t have to worry about supplies, production, shipping, etc which all typically have high up front costs.”
There is no such thing as a startup company with too much startup capital – it’s just the nature of the game. Entrepreneurs never have enough money to start but you shouldn’t let that hold you back. The quickest answer is to take whatever product idea you had and turn it into a service. Take whatever you’re passionate about and find a way to trade your expertise in that subject for money.
A service based business is a great way to start because the only cost is your time. You don’t have to worry about supplies, production, shipping, etc which all typically have high up front costs. Get started by offering a service and as you build yourself up you can later on expand into products. Expanding will be easier because you’ll know your market better and you’ll have a collection of clients who are ready to buy from you. (Tip: make sure the customers you target for your service are the same customers who will eventually buy your product).
Back to Your Question
“Don’t let a lack of funding prevent you from starting your business!”
Your original question Ashish was about how to raise capital for your business idea. My best advice for where you’re at right now is to follow the 3 steps above so you won’t have to raise capital.
There are some businesses that genuinely do need to go for funding but in most cases you can bootstrap yourself up to having a company that will support yourself and more. Don’t let a lack of funding prevent you from starting your business!
Good luck Ashish!
PS – Get started today!
If anyone else has a suggestion for Ashish please leave a comment below.
Photo credit: ttstam
Great advice Evan….
The advice that Evan just gave is worth a small fortune. To have access to successful men like Evan is huge.
This is why I love this forum and website and why I love Evan, Ringo and the whole team.
You would have to pay consultants, accountants or lawyers a small fortune for the advice that you unselfishly get from Evan and the whole team.
I just bought Evans new Ebook. I’m from the old school I like to TOUCH my books and the things I read. Evans EBook “How to write a Business plan” is $97.
My first thought was $97 ??? For What???
A book you can’t touch and i even have to spend more money and more time printing it if i wanted to hold it in my hands.
Then reality hit me . . .
Last year I paid my accountant a deposit …A DEPOSIT . . . of $2500 to help my team put together a business plan for the Banks and Factors.
We owed more money after because our thoughts were not on paper and we had to meet and think continuously. The hours add up.
I just started to read Evans book. What I can tell you now,is that it is a very reasonable price, actually a cheap price, for two reasons
1-Evan Carmichael and the people he has access to and who he has learned from. His advice is from experience and “hands on” knowledge. You cannot put a price on what Evan has to offer.
2-This will encourage you to think and get your thoughts straight. He lays out the process and advice in a very easy to follow structure.
Between the information on http://www.evancarmichael.com , the men and women on this forum , Evan’s new EBook,you should be able to layout your Success road map easily and most certainly in an affordable manner.
You can’t fail with this kind of support. I have over 30 years of experience building large apparel manufacturing companies. I know. I’ve been there and done that.
Buy the book . . Use it . . Then reach out to us all and we’ll be there for you.
Glad you like it Barry! Thanks for the kind words!
You’re welcome but they are true words… when i finish i’ll let you know more
Thanks Barry – I wouldn’t expect anything else from you!
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RT @tweetmeme 3 Steps To Startup Success Here is a question from one of my newsletter readers: ̶.. http://short.to/1lnj1
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3 Steps To Startup Success: I have over 30 years of experience building large apparel manufacturing companies. I k… http://bit.ly/ansWST
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:D / :twisted:
Evan, thanks for sharing these 3 tips. I’ve one question to ask Ashish: what sort of business would you want to start and how much capital do you need? Evan is right, a service based business is great for you, it can be started with low start-up costs by making a personal investment. Further, here is a US.Gov link Tips for Getting Your Small Business Loan Request Approved (Even in Today’s Economy). I hope this helps you a lot.
3 Steps to Startup Success: Learn first, start small, and focus on service. http://ow.ly/1lpMj
I have recently joined this forum and this is my first post. The forum is really good to for any new entrepreneur or planning to start new business. The tips shared by Evan is really good. I would also like to thank peter for suggestion regarding loan for small business entrepreneur. There is one more option and that is franchise. I think franchise has a different benefits if person don’t want to take any risk.
Hi Evan, I have recently started a girl-powered website, thevalentinegirl.com,which is dedicated to healthy living for young girls. This is a totally new area for me considering I previously owned a janitorial company. We are officially launching our site on June 1st. During this time I want to make sure that we are doing everything correct and are taking full advantage of our free resources, Facebook and Twitter. We have also started a fundraiser to increase awareness and raise capitol for legalities and our apparel brand. I know the opportunities are endless with the new idea, however, I continue to question the direction I should be going in. I am constantly reverting to my business plan but seen to be going in circles.
Any suggestions?
Thanks so much,
Kelly Jones
Great to hear from you and thank you for commenting! Would you be ok if I created a separate blog post to give you some advice?
That’s a great advice Evan, seeing you work for it and just to help others to be successful also in their career or business venture. I will be needing your help also about making some extra income here online. I have been working online about this business but my concern is traffic to my website.
Do you have particular software you used to make your business rank in google? anything that might help boost my site?..
Thanks in advance and have a wonderful day.
Julius,
moreincomemoney.com
Hi Julius – sorry, I don’t use automated software to help me rank but you can check out my SEO University posts: http://www.evancarmichael.com/blog/tag/seo-university/ – Good luck!
This is an awesome article.This will be helpful to many that are in to this kind of business.I will make use of many tips which will help me to start a new business.Great job.
Wonderful advice, thanks so much Evan. This is just what I wanted to hear!
Francisco
Absolutely great article! All of your points are good. I made a research on this subject and discovered that a lot of blogs agreed to your ideas. I am very glad I am able to read this article. Thank you for posting.