Welcome to The Bruce Show… the show where all your marketing, advertising, and business needs have never know joy as much as they do when you watch… this show!
Today we’re talking about:
5 Steps to starting your own business:
Today is a business based episode and we’re going to talk about how to start your own business…
STEP 1: Have an awesome product/service people want!
What makes it awesome?
First: Your product/service is awesome because… it fulfills a consumers an unmet need or want.
For example, think about Gatorade. According to Wikipedia… which is never wrong… Following a request from Florida Gators football head coach Ray Graves, Gatorade was created to help athletes by acting as a replacement for body fluids lost during physical exertion. Florida gators head football coach Ray Graves had a need to replenish his atheletes and the product Gatorade fulfilled that.
2nd:Your product/service is awesome because… it uniquely improves an existing product offering.
Think of the first iphone, before it came out the Motorola Razr flip phone was the highest selling phone on the market. By today’s iphone standards, the razr is a dinosaur…
3rd: Your product/service is awesome because… NO ONE ELSE IS DOING IT!
Some of my own biggest business flops happened because I didn’t realized someone already provided the product or service I wanted to get into. It’s not impossible to jump into if someone else is doing it – but if you jump into the same arena make sure the competition is doing it 99% wrong, or …. like the iphone… make darn sure your product brings something new to the table
Fourth: Your product/service is awesome because…There is a market for it.
I had a client that made a custom part for a specific type of BMW engines. When he became a client he made it sound like his part was for all bmw engines. This was not the case. It was a custom tool made to work on only 10,000 engines. The tool could really only fetch roughly $40-50 retail and since car engines are depreciating products, the market of 10,000 was shrinking daily. The costs for making the custom tool were very large and even if the client sold 5000 tools (capturing 50% of the market)… the costs for molds, engineering, and operations far exceeded the revenue that would ever be made. My recommendation for this client was to not move forward with his custom tool. Make sure your market is large enough to justify offering your product or service.
Step 2: Reflect inward
Yes, this is not a drill. Being a small business owner means being a leader, it means wearing multiple hats, and it means never giving up and working insanely late hours. Most don’t have it in them to go through the grueling punishment starting a new business creates.
So take some time to reflect, ask if you’re willing to go the extra mile. And when you think you’ve reached your limits, ask yourself if you have the ability to push beyond them. Because right when you think you’ve reached your limits, your small business will push you much further.
STEP 3: ASK QUESTIONS: PUT YOUR ANSWERS DOWN ON PAPER!
Most How to start your business how to articles out there call this the “Creating a business plan phase.” But I’m here to simplify it for you.
Ask yourself all the pertinent questions you would think a banker or loan officer might ask you about this new business you’re creating.
- Details what the business is.
- How will the business be structured?
- What is your product or service?
- How do you provide your product or service to your customers?
- Who are your target customers?
- How/where do they purchase your product/service?
- Who are your competitors?
- Will you have a retail location? Need to rent building space? All online?
- What is needed to get the business off the ground?
- Who are the key staff needed? What is their background?
- What are your start up expenses? Yearly operating expenses?
- When do you expect to turn a profit? What are your sales forecast for 1,3,5 years out
- And speaking of profit, how do you plan to bring your product/service to market?
- And so on, and so forth.
I’ll provide a list of all the questions you should fill out. Once you fill out these questions, google business plan templates and literally… fill in the blanks.
Step 4: Register your business – Make it legit.
It’s not crazy to have gone through this whole process and not even picked a name for your product and/or business… although you may have already named the business in the last step… most of the best products don’t even have names until it’s time to register them.
First: Pick the of the business and name for your product. For example, think of Microsoft and their operating system Microsoft Windows. Windows is the name of the product, Microsoft the company.
[pic, dba]Second: register an ABN (assumed business name) also known as a DBA (doing business as) with your state small business association. Simply google “Register dba in insert your state name here…”
Third: Register the business entity.
Depending on your line of work, this is where you may need legal help. Go back to the last step and look at how you structured your business. If you’re product and business are simple, you may only need to be a [pic]sole proprietor, and 9 times out of 10, registering your ABN or DBA with your local state is enough as you’ll file your business taxes with your social security number.
However, if you’re business requires partners, investors, or other means of limiting or spreading risk across the business, you’ll want to register as a partnership, LLC, single member llc, S-corp, b-corp, or a full blown Corporation. This requires registration with the federal government to receive an EIN. [pic]EIN stands for Employee Identification Number.
I recommend contacting a lawyer because there are agreements between partners(whose going to get what) or specific declarations (like articles of incorporation) that need to be filed with the government. Lawyers provide insights into what those specific requirements exist as they very state by state, and industry to industry.
NEXT, speaking of lawyers, and all the different industries in total existence… you may have additional fees, bonds, or licensing required.
For example, if you run a food truck, you’ll need city permits and health inspections done regularly. If you’re providing a construction service you may need insurance and bonds… know what is needed for your company at a local, regional, and national level.
Final option note: as part of making the business legit and registering it is securing your financing. If you’re opening an ecommerce website or providing a service your start-up costs might not be that large, but if financing is part of getting your business off the ground, make sure that is secured to complete this step.
Step 5 – open for business
Part of step 3 is coming up with how you are going to “Go to market” which is a fancy/not-so-fancy way of saying launch your business.
What you put down on paper is your “strategy”
When you answered the question “How are you going to bring your product/service to market?” and the subsequent questions that followed… this is your go to market strategy.
Now execute on it.
[pic] Next, monitor your success… plan to be flexible and change with the wants and needs of your customers. Research, plan, determine success, implement plan, monitor, revise… rinse and repeat.
[pic] execute maintenance and continued marketing and business development efforts
Work harder than you’ve ever worked before, be flexible and change with your business demands, be a great leader (not a dictator), but a great leader.
Go forth, and conquer.
These are the 5 steps in creating your own business!
Quote of the Day:
Comes from Arnold Schwarzenegger – He gave at a commencement speech at Stanford university years ago:
“The six rules of life.
#1 – Trust yourself
#2 – Break the rules
#3 – Don’t be afraid to fail.
#4 – Ignore the naysayers.
#5 – Work your butt off
#6 – Give something back, contribute in this world”
View the mashup video of his speech. Very inspirational.
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My professional linked in: https://www.linkedin.com/in/jeremybriley
The Perfect Pitch – Jon Steele (on amazon)
# of the day:
We’ll check out How to create your own digital strategy to boost that new company you created!