Never Get a ”Real„ Job (7 page)
Read Never Get a ”Real„ Job Online
Authors: Scott Gerber
THOSE WHO REINVENT THE WHEEL ARE DOOMED TO BE RUN OVER BY IT
Your idea is not original—not by a long shot. There’s a strong chance that someone with more funding, enhanced experience, and better contacts is doing the same thing as you right now. There’s also a strong probability that similar business ideas have gone down in flames before.
Don’t try to be original. You’re not that smart—and really, you don’t even need to be.
Originality will not skyrocket your bottom line or help you make a sale faster. In fact, quite the opposite—pushing products or services as “wholly original” or “totally unique” will force you into an unwinnable uphill battle. So-called original products unnecessarily complicate a simple business for the sake of making it appear more unique or sexy. This can lead to overblown pitches and a lack of consumer understanding or adoption. Just because you think something is a stroke of brilliance doesn’t mean it’s never been done before. I assure you that the world will be just fine without your solar powered flashlight, glass hammer, or waterproof towel.
Un
original, on the other hand, works. Unoriginal is profitable.
You don’t have to disrupt an entire industry to be successful. The vast majority of successful businesses produce products and services that are cheaper, faster, or better than some other guy. There is a reason that Hollywood continues to crank out crappy teen romance movies off the unoriginal assembly line. The proven formulas work (Any Bare-chested Male Model + Hillary Duff Look-alike + Vampires + Tweens = Cha Ching!).
Starting a sexy new business with an “original” revenue model is foolish and unproductive. Instead, use your branding and marketing strategies to distinguish your business from the competition. For example, a company called College Hunks Hauling Junk turned junk removal services into a unique, entertaining experience by having college jocks clean out homes. Starbucks turned the coffee shop into an assembly line with its own lingo.
Most successful businesses are based on ideas that have been executed before, or the derivatives of previously successful models. Learn from other businesses and adapt portions of their proven models to help you achieve sustainable success.
Seven Steps to Get Up and Running
Here are seven steps to turn your idea into a legal business.
1.
Amass a team of advisors
. The most important advisors are arguably your lawyer and an accountant. Find someone in your network of family or friends who is willing to accept a free lunch in exchange for letting you pick his or her brain about what you’ll need to know about starting a business and handling its finances. Make sure that you do your homework to verify this person’s qualifications. As your business grows, your advisors will be your first line of defense and will become indispensable members of your inner circle. Be careful not to take advantage of their time, but do ask all of the questions you need answered. Make it clear to them that they are investing in your growth, and you’ll be happy to hire them once your start-up begins generating revenue.2.
Choose a structure
. Consult with your lawyer and accountant about the most advantageous way to structure your business to protect it from liability, as well as the best approach for tax purposes. Ask them to lay out the pros and cons of each option based on the type of business you plan to start, how you plan to generate and receive income, and the city and state where you plan to incorporate.3.
Research permits or licenses
. Research your town, city, and state’s government Web sites to see if you will need any permits to operate your business. Some permits are free or relatively inexpensive, but others can cost a fortune. Know what you are getting into before you throw away money on incorporation.4.
Name your company
. Your company name will serve a vital role in your sales and marketing efforts. Later in the book, I offer you a few strategies about how to go about naming your company.5.
Incorporate with
LegalZoom.com
. This service is by far the most inexpensive and the easiest way to incorporate your business. However, keep in mind that you do
not
need to incorporate right away. If you lack the funds to do so, test out your idea as a freelancer and have customers pay you directly until you have the necessary funds to form a legal entity. The only thing to remember is that you won’t be able to open a business bank account or receive payments made out to your company name until you have been issued an EIN number by the government.6.
Open a bank account in a local bank
. I always suggest working with local banks rather than regional or conglomerate ones. Local banks are much more willing to invest time into building personal, long-term relationships with community business owners. Once you prove that you can generate revenue, being on a first-name basis with local bank representatives might help you secure credit lines and loans more easily.7.
Use
DocStoc.com
for agreement templates
. Before you even consider hiring a lawyer to draft any agreement from scratch, visit the document-sharing service
DocStoc.com
to see if free or inexpensive templates exist. This allows you to save a fortune by eliminating legal drafting fees and only having lawyers examine final drafts for approval.
WHAT DO YOU KNOW, ANYWAY?
There are many factors about which you’re unaware when you start a business. However, there are also several things you know for absolute certain—things that will help you to plan a solid starting point for your business.
Know who you are
. What do bleach companies with “green” product lines, fast-food companies promoting healthy exercise, and politicians kissing babies all have in common?
They’re all bad liars who insult your intelligence by masquerading as something they’re not.
Misleading business pitches and phony gestures are not going to fool anybody. Authenticity is vital to your success. The only result of trying to be something you’re not is attaining a reputation as a snake oil salesperson or con artist. It can also wreak havoc on your start-up by causing you to lose consumer confidence faster than you can give a wink, click your tongue, point your imaginary hand gun, and sleazily say, “Trust me.”
Don’t try to be everything to everyone, or you’ll end up being nothing to anyone. If you’re a
Star Trek
–obsessed tech geek, wear Vulcan ears to meet your computer repair appointments. If you’re a beach bum numbers guy, wear shades and flip-flops to your bookkeeping gigs.
Be true to yourself and own who you are. Customers need to trust, like, respect, and relate to you. You’re already launching a start-up with little to no credibility, so avoid adding kindle to the fire by giving people a reason to question your integrity.
Know what you have
. Manufacturing plants, delivery trucks, or acres of available land. You’ve got none of it. And although you might have a whole lot of nothing, at the same time you do have a little bit of
something
.
So what do you have?
When you brainstorm about what your starting point will be, you’re better off only taking into account what you own or have access to through your network
before
making any purchases. What resources, tools, and services do you and your immediate friends, family, and contacts have at your fingertips? Can you use your mom’s car for deliveries? Does one of your friends own a Crock-Pot and a set of good knives for cooking your specialty?
You’ll be surprised to find that you have access to quite a few resources; you just have to do a bit of legwork. Steer clear of business ideas that require resources that aren’t in your back pocket; this will undoubtedly hamper your ability to get your start-up off the ground. Be thorough in your analysis and don’t overlook anything. You never know how important something is until you suddenly don’t have it.
Know what you do. Do what you know. Know that you can do it
. I always enjoy reading fiction—also known as 90 percent of all start-up how-to books and articles. The dreamscapes they paint always seem to have a knack for happy endings and glamorized brainstorming techniques.
Let your talents be your guide.
Transform your passions into profits.
Turn your hobbies into a business.
Do what makes you happy.
This is lovey-dovey utopian nonsense. Of course, you should never do something that you don’t love to do. Duh. Thanks Sherlock. Disagreeing with these statements is the equivalent of saying that the sky is red or it’s 95 degrees in Antarctica year-round.
Passions are vitally important, but passions won’t pay your bills or enable you to make a living. Although it’s important to love what you do—because you may well be doing it for the rest of your life—you still need to be able to turn these passions into companies that are capable of generating immediate revenue. These treatise-writing academics often fail to mention any of the following four key points that need to be considered when developing your business concept:
1.
Not all hobbies are meant to become the backbone of your entrepreneurial efforts
. Some hobbies are just that—hobbies. Knowing how to knit doesn’t automatically mean it’s a great idea to open a yarn shop. Hobbies can’t just become businesses because they are fun or put a smile on your face; they must be easily transformed into a valuable and profitable simple service or product. Don’t allow yourself to fabricate a fantasy world around becoming a professional Lego builder.2.
Even if you love something, you have to actually be able to
do
what you love
. And not just decently or okay either. You have to have expertise and be able to execute with absolute precision. Great, you enjoy skiing. If you suck at the sport, starting a ski school to train aspiring athletes for black diamonds probably isn’t the best idea. Before you attempt to turn a hobby into a profitable enterprise, be honest with yourself about what your actual talents are—not what you think they are or what you’d like them to be.3.
Just because
you
love your hobbies and passions, doesn’t mean others will, too
. You need to make sure that your passion-turned-business provides something of value to others. Just because you want to sell it, doesn’t mean anyone will buy it. Will your product help someone solve a problem? Does your service improve upon an existing service? Can it really help anyone do anything? Be realistic and down-to-earth in your assessment. If no one loves what you love, it’s time to find something that people actually care about.4.
Even if you love what you do and can do what you love, you need to make sure you
can
do it yourself—at least at the outset
. You won’t be able to hire an in-house team to execute; you need to be a one-person marching band on steroids. If you can’t produce the product or provide the service with your own two hands, how do you plan to get started? You might love fixing cars or building custom furniture, but if your business can’t get off the ground with you—and
only
you—don’t even think you’ll be avoiding a “real” job anytime soon.
Know what you want
. No, you’re not a fortune-teller. You can’t see what’s coming a month from now, let alone 10 years—and you shouldn’t try. But it’s important with any venture that you consider your long-term objectives from the beginning, and develop a plan with those goals in mind. Are you building a company to pass down to your children, or one that you plan to sell to the highest bidder as quickly as possible? Do you want to build the business on your own back, or eventually attract outside capital from angel investors or venture capitalists? Though these objectives will change, it’s always a smart idea to set goals to keep you on track, play a strong role in your decision making, and motivate you to achieve milestones.
