A few things I've learned from starting a business

[Mr4213]

I came across some old notes of mine and one page stuck out to me.


"Successful entrepreneurs have to learn to practice systematic innovation. Successful entrepreneurs do not wait for a "bright idea" They go to work. Successful entrepreneurs do not look for the "biggie" the innovation that will change the world. The "big idea" the entrepreneur who starts with that idea can be guaranteed failure."


I took the above notes while reading a book. The author argued that you can take a systematic approach towards innovation and that it was actually a science. One of the better books, as far as practicality, that I have read. I have a lot of books, I’m going to have to dig around and find it so I can post the title and author. I can't recall it off the top of my head at the moment.


This is probably one of the most common mistakes people make when it comes to business. I've seen it on this forum a few times. I've personally seen many people do it. I have also done it. Sitting around waiting for your "idea"


By far one of the worst things you can do if you want to be an entrepreneur. Why? Because you will most likely never find that "perfect" idea. Instead you'll sit around and never start anything. I promise you wont be sitting somewhere and randomly go "Oh yep, that's the one!" Generally speaking you will not have an idea that is completely original or "new"


I had this idea but someone is already doing it? This is a pretty common situation. Not surprising either when you consider that its virtually impossible to have a completely original or "new" idea.


(@MJ DeMarco said in his book that its a common thing for people to have the same idea. The person that executes the best is the one who wins. Having an idea and doing nothing with it is worthless.)


When I first got serious about wanting to start a business I would do the same thing. Try to come up with a new idea or innovate something. Its as if I thought the perfect idea would just come to me. I had a few ideas I thought were great and "original" After a quick google search I would find dozens of similar products online. Then I would think "oh man its already being done. I guess I better find something else!" I would head back to the drawing board and waste countless more hours, days, weeks, months trying to "get my idea"


Generally speaking, it is a waste of time for you to try and come up with the "next big thing" It is far better to hit the ground running with a crappy idea than to sit and "come up with the next big thing" Even if the business failed, you'd learn so much by starting a business with a crappy idea. You won't learn anything if you sit in your house "thinking" Successful entrepreneurs go to work and execute. Wasting months or more of your time "looking for your idea" is not execution and will never result in success. The book I mentioned at the beginning of this thread argues that a systematic approach can be taken when it comes to innovation. Everyone has their opinion so I won’t try to argue one way or another. But I will say that from a broad perspective, its better to look for small improvements you can make to something, than to look for the world changing innovation.


If I would have stayed that course I never would have started a business. I would either have given up after "not finding a good idea" Or I would still be sitting in my room "thinking" You know where I got my idea? I didn't come up with some innovative or new business idea sitting in my room. I got my business idea while I was working for a company. One day I thought "You know what. I can do this and I can do it better. Instead of getting paid garbage money I can get paid what the owners make." Then I started executing. That's the important part.




(@MJ DeMarco actually mentions something similar in his book. To broadly sum it up he said you should get out and get exposure to different industries and jobs. The more exposure you have to different industries the higher your probability of finding an opportunity. And he is 110% right. If I never worked for the company I did at the time, I never would have started a business in that industry! You have to expose yourself to life if you want to increase your chances.)


The execution itself is generally far more important than the idea. A crappy idea executed correctly is better than a great idea executed poorly (something else @MJ DeMarco said in his book).


There is nothing "innovative" or "new" about my business. For the most part it is identical to the other companies in my industry. I do a few things differently and I focus on those things. People think you need some crazy spectacular idea to be successful and you don't. In actuality if you are trying to come up with some random crazy spectacular idea you are more likely to fail. Most of the time successful entrepreneurs are copying other business ideas (making some small improvements) and executing correctly. A PRIME example is real estate. MANY people have had huge success with real estate. What amazing idea did they have? What amazing innovation did they come up with? None. They just get out there and execute correctly. "Oh but you know...[place reason not to do it here]"

Here is another perfect example from right here in my city. Just like virtually every city, my city has many places that cut hair. Guess what a couple of entrepreneurs did? They created their own. They slapped a sports theme on it. Served beer, put TVS inside, had the employees wear ref costumes ect. They started just a few years ago. Now they have I think around 9 locations across my state. They made a few small improvements. They did not innovate their industry or change the world. I haven't tried before, but I'd almost bet my life that I can find other similar businesses in the United States that do the same sports theme idea. They probably weren't even the first people to have the idea. The crazy thing is, if we went back in time before they started. And I gave most people the same business plan, the same idea, the same market ect. They would still fail. Because the most important thing is the execution, not the idea. Ideas are worthless if they do not transmute themselves through execution into the real world. If you spend more time "thinking" than you do executing you won't be successful.


I can tell you right now if your business is more likely to succeed, or fail.


Your ability to sell the product


That is all that matters above everything else. It is so simple but people make it so complex. You could have the worst product imaginable but know how to sell it and you'd be successful. @MJ DeMarco said if he knew how to sell dog poop he would (If I recall correctly he said that in an interview he did) If you are in the beginning stages and you find yourself making the mistake of "waiting for the perfect idea" stop. Stop thinking you’re going to get some amazing idea out of the blue. Stop thinking you are going to have the perfect idea and business plan pop into your head.


I have a very GO, GO, GO personality. I just wanted to GO. Did I have every little thing figured out? No. Did I run all these magical numbers and examine my market? No. Honestly I probably didn't do as much as I should have out of my own eagerness and impulsiveness. But I did one VERY important thing before I started. I validated it. Personally I believed it was a good idea and that I could do it. But you should never try to validate an idea to yourself. Once again, @MJ DeMarco says in his book the market does not care about you or what you want. Nor does it care if you “think” your idea is great. And guess what? You are not the market so it does not matter if you think the idea is amazing. The best way to validate a product is to sell it. I got sales and validated the idea. If you do nothing else before you start a business, validate the idea. I’m positive many business failures could have been avoided if the founder would have genuinely validated the idea first. @MJ DeMarco mentions in his book that you might want to start something in your city. Lets pretend a gym. But your city might not want a gym. Your city might want a new McDonalds for all you know.


Don't get so caught up in the industry or the product itself. Instead focus on this question "Can I sell this? If yes, how and why" Can you get customers? Yes? Then show me, go get sales and lets look at the numbers. Everything else is secondary to that. A favorite quote of mine by Mark Cuban is “sales cures all”


If you can't sell the product then that business is not viable for you. Once again, it doesn't matter what you sell. All that matters is that you can sell it. If you do not know how to sell to people then you need to learn or you are going to have a difficult time. Learning how to sell and communicate with people is critical for success and is never a waste of time when it comes to business. It also benefits you in other areas not related to business. Like social skills for example.


@MJ DeMarco argues that you don't have to love what you do to make money. Once again he is right. I have 0 passion for my industry. I never even considered it as a possibility. I hate my industry. But I love business and making money. So don't rule certain industries out just because you do not like the particular industry. Maybe you have some simple idea with no novelty. Who cares? Do it if you can sell it because I promise once you make money you will not care what it is. Remember the hair business I used as an example? That happens to be the place I cut my hair every week. One day I decided to strike up a conversation with the store manager and ask about the owners. She told me that they never cut hair once in their life.


On a final and unrelated note, I just wanted to genuinely thank @MJ DeMarco for the forum and the book he wrote. I can’t say that enough. Not only is this forum full of useful information and great people. It has also been a positive outlet for me during a difficult time in my life. I loved the book the first time I read it. But after I actually got into business I gained a new appreciation for the book the second time I read it. I can't recall one topic in that book that was not useful. I can't recall reading one thing and not agreeing with it. @MJ DeMarco changed the way I thought about business. @MJ DeMarco is a major influence on the entrepreneur I am today. If it was not for @MJ DeMarco and this forum I don't know if I ever would have started a business. I've read a lot of books and the list of books I'd recommend to people is very small. TMF is at the top of that list. Whenever I talk to anyone about business I ask them if they read TMF. If they haven't I tell them to read it (that's me giving free word of mouth marketing because @MJ DeMarco created a product that provided value to me. Which he also mentions in his book!) So once again, thank you @MJ DeMarco!

And I wanted to thank @Vigilante as well. When I first came to the forum I thought @Vigilante was just some random mod. After looking into his background it became obvious to me that he knows what he is talking about. You've provided value to me and many other people on this forum. So thank you @Vigilante

 

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[IrishSpring600]

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[Mr4213]

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