- Lesson 1: Choose your business well
- Lesson 2: Make room for passion
- Lesson 3: Nothing Down
- Lesson 4: Dream big. Start small. Grows with experience
- Lesson 5: You have a boss
- Lesson 6: Satisfied customers are your best salesforce
- Lesson 7: New customers are more expensive than existing customers
- Lesson 8: Use leverage to grow by leaps and bounds
- Lesson 9: Ask for help
- Lesson 10: Be patient. Success takes time.
- Lesson 11: Experiment
- Lesson 12: Business decisions
- Lesson 13: Your business will never exceed you
- Lesson 14: Learn Learn Learn and apply Apply Apply
- Lesson 15: Innovate or perish
Lesson 1: Choose your business well
Common sense? Yep. Surprisingly, this is not a common practice. Not all companies are the same. The food business requires a lot of labor. The internet marketing business is research-intensive and technology-driven. The real estate business is driven by sales.
Do not leave your decision to chance. Choose your business well. Choose a business that best suits your skills and experience.
Lesson 2: Make room for passion
A friend of mine asked, “Is this business for sale a good deal or not?” I did not answer clearly. I just asked, “Is that your passion?” He smiled and said no. Case closed. I think business should be fun. If you’re not excited, chances are you’re going to have a hard time staying on and on during tough times. Life is short. Choose wisely.
Lesson 3: Nothing Down
The smaller the withdrawal at the beginning, the better.
My first costly mistake is spending a large chunk of my capital on office renovation. In start-ups, CASH is king. You may have to pay cash during the first 6 months of losing the operation.
Every expense must be planned. Use second-hand equipment if applicable. Delay purchases if you can until your sales justify your purchase. Save your cash. Remember, you cannot pay your employee’s salary with your credit card. This third lesson in entrepreneurship basics has propelled Chinese entrepreneurs to great success. It pays to be frugal.
Lesson 4: Dream big. Start small. Grows with experience
There is nothing wrong with starting big. However, when you are just starting out and still learning the ins and outs, your chance of blowing up your buggy account is high.
Start small. Test the waters. Don’t bet the whole farm. Don’t withdraw all your life savings and don’t use it as capital. Start small and grow with experience.
The formula for wealth is simple. Do a good deal. Systematize and eliminate in the equation. Then expand. You can do it over and over again. But first, you must start small as you learn the ropes.
Lesson 5: You have a boss
People become entrepreneurs to be their own boss. I have some news for you. You have a boss: your clients. You can hire them by buying them. They can fire you by buying from others. Know your clients. Serve them well.
This quote sums it up. “If you don’t take the time to take care of your clients, someone else will.” – Ken Blanchard
Lesson 6: Satisfied customers are your best salesforce
Have you seen a movie so well that you can’t help but share it with others? Have you seen a movie so boring that you told your friends not to watch? Your customers listen more to their friends. If you want them to find you, satisfy their friends. This can multiply your sales exponentially. The most effective marketing method is the word of mouth marketing and it is free.
Lesson 7: New customers are more expensive than existing customers
How much does advertising cost? From $ 5 to $ 500 per customer. How much does it cost to sell to the existing customer? $0. Existing customers are friendlier, while new customers are more critical. Check your repeat orders.
If you’re not selling to your existing loyal customers, you’re leaving big profits on the table.
Lesson 8: Use leverage to grow by leaps and bounds
I met a very successful entrepreneur in one of our family vacations in Palawan. He shared that a good businessman is someone who uses other people’s time (OPT), other people’s money (OPM), and other people’s skills (OPS).
You can also add other people’s contact (reference), other people’s ideas, and other people’s _______. You can fill in the blanks.
I like this quote from Harv Eker, “If I am not using commercial leverage, I am working very hard and earning very little.”
Lesson 9: Ask for help
You need a different set of skills to start a business and another set of skills to grow a business. Some exceptional people like Bill Gates are good at both. How do you compensate for your weakness? You can hire, can find a business partner, can find mentors.
Simply put, we all need help. The best entrepreneurs know when and where to find help.
Lesson 10: Be patient. Success takes time.
Tito Francis, the owner of a large hardware store, asked me a small question. “Why are you in a hurry?”
Business success like Rome is never built in a day. It takes time to grow your customer base. It takes time to build your brand. That is perfectly normal. Be patient. Enjoy the trip. And you know what, sometimes I’m starting to believe the fun is in the chase.
Patience is a virtue.
Lesson 11: Experiment
Here is the best part of being an entrepreneur. You have the freedom to request your new business ideas. You can do your new marketing campaign. Enter a new promotion. You can test your prices. You can start your loyalty program and apply your wildest marketing idea.
If you increase your net income, your new idea works. Keep doing it. If not, stop and try something else.
Lesson 12: Business decisions
There will be times when you will face a crossroads and you will not know where to go.
This is what you can do. Pray for it. Then check your motives. Make your decision on paper. Write the pros and cons. If it’s logical and ethical and if the loss is something you can live with, just do it. Just do it as long as you don’t bet the whole farm.
In the worst case, the deal goes wrong and you lose some money or opportunity, but you gain experience and wisdom.
Lesson 13: Your business will never exceed you
Whether you accept this truth or not, this is what happens. Your business cannot beat it. If you want to grow your business, work on your attitude, mindset, character, and skills.
How to grow? Read. Listen to audiotapes. Attend seminars. Connect with successful entrepreneurs and learn from others. Bring new strategic business teammates. Find mentors. You are limited by your own imagination.
Lesson 14: Learn Learn Learn and apply Apply Apply
Ideas are powerful. They can inspire you. Great ideas can solve problems. Great ideas can revolutionize your business. Learning is like an exercise. It’s no use once you stop doing it. Remember this: success is 80% mental and 20% skill.
Lesson 15: Innovate or perish
In business, if you stop growing, you just don’t stay where you are … you fall. The competition is very tough. Its competitors continue to improve. If it does not improve, you will be excluded from the competition.
These basic entrepreneurship concepts are simple. But if you apply them faithfully, the odds are in your favor. Make these basics of entrepreneurship practical. Apply these basic concepts of entrepreneurship in your business. You will be thankful that you did. Have a great day.