What would be your advice to those trying to start their business amidst the ongoing crisis? What I’m about to share with you, literally cost me tens of millions of dollars to learn.
And here’s the lesson, that you want to be optimistic when it comes to your vision, but you want to be pessimistic when it comes to your business model.
What I mean by that when it comes to your vision, where you want to be, where you want to go, where you see yourself.
You want to be optimistic that knowing that you’re going to get there, that you’re going to be okay, that you have the confidence within yourself, that you’re going to accomplish those goals.
There is a saying that a smart person learns from his own mistakes, but a truly wise person learns from the mistakes of others.
Most business owners, entrepreneurs, get into a business like yourself. You want to start a business, maybe during COVID-19, but without proper skills and proper training.
The first question I have for you is what qualifies you to execute this idea? Why you? Why now?
What could you bring to the marketplace that it’s not there right now? Why should people buy from you? What is your unique selling proposition?
What could you bring to the marketplace that is different from everybody else? Where is the blue ocean in this? Why should your prospects buy from you versus buying from your competitors?
Who are your competitors? Do you know What do they sell? Do you know how they sell it? Have you done your due diligence? Assuming you’ve done all of them and I know you haven’t.
Going out there to the marketplace. So then how are you going to put your offer in front of the right audience?
What is going to be your offer? What is your front end offer? What’s a backend offer? What is your recurrent offer? Oh, I’m just going to do some advertising.
How weird I’m going to do Facebook advertising. How much do you know about Facebook advertising? Right? Do you know how to write an email sequence?
Oh, I’m just going to hire some people. Okay, Do you know how to hire people? How to hire fire and interview them? How do you know that they are doing a good job? Do you know how to put systems in place?
How do you structure your share structure? Right? How much capital you should raise? Where do you go find that funding and that capital?
How do you build your team? And if you cannot answer these questions, details like this, you’re not ready to start your business. It’s that simple. And I’m not telling you this to make you feel bad, to crush your dreams.
They don’t even know what skill sets they need in order to make a business work. Do you know how to start? How to run, how to grow a business? What skill sets do you need?
Do you know how to read financial statements? Right? Are you financially literate? Can you work long hours? I mean, long hours.
Can you give up your vacations and holidays for years to focus on your business? Are you willing to pay the price? Can you manage your emotions well?
The ups and downs of entrepreneurship. Do you deal with rejections Well? I mean, with rejection after rejection after rejection. Are you okay working alone without anyone believing in you around you?
Can you handle the stress, the anxiety, the uncertainty of owning a business? Are you okay working for years without getting paid?
And even if you do your very best and you grind and you work for years, are you okay Knowing that even you give your very best, your very, very best that your chances of success are less than 10%?
It is just tough, tough, hard work. It’s Is very taxing on you and your family. Financially, emotionally, physically, spiritually. Most people don’t know what they are getting themselves into. And I know it’s not pleasant, but I’m not here to tell you what you want to hear.
I’m here to tell you what you need to hear as a mentor coming from me to you.
Now, if you do want to start your business during this global crisis, here’s one of the most important lessons I could share with you. And this is how I look at the trend as well.
You have to understand the concept of the domino effect. Meaning doesn’t matter what you want to start. It doesn’t matter what needs in the marketplace you want to fulfill.
You have to look at okay, with the Coronavirus, it is affecting a lot of industries directly. It may not affect the business that you want to get into, but you have to look at, does it affect the business that you want to serve? Let me give an example.
So if the hotel industry is being affected, if you are selling meat to the restaurants, well, if that is being affected, who are they doing business with? Who are they buying from? Think about that, around them. Okay.
Maybe restaurants will get affected and they will buy less meat. Okay. You might think, well, I don’t serve really. I don’t really sell to the hotels, but you do because this,
How this would lead to another lead to another lead to another so directly, it may not affect you, but indirectly it will affect whatever business you want to start.
I could go on and on and on you look at that. There is a whole lot of business, you don’t want to get into because those businesses are going down. Those businesses are on a decline.
You don’t want to serve those businesses and you don’t want to serve the businesses, around those businesses. It’s very, very difficult to fight that trend. Be optimistic when it comes to your vision, but be very pessimistic be very critical.
It will save you years of headaches and just years of mistakes that you don’t have to make those mistakes think very, very carefully, right?
Most of the problems in our lives started off as a good idea. We thought, Hey, that’s a good idea. I could do that five years into it.