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Class is in session! Whether this is your first time coming across my blog or you've been around for awhile if you’re entrepreneurial minded, I think you’ll find this post enlightening. I teach business, among other things, and one of the biggest obstacles I run into is getting an aspiring entrepreneur to get past themselves. The mindset needed to effectively start, maintain and operate a business requires a certain frame of mind. You can’t think like an “employee” and be the “boss” of your own thing. It doesn't work. Employees wait around and follow instructions, bosses don’t have that luxury. So when we look at business there are 3 main areas that many inexperienced entrepreneurs fail at and they usually don’t even realize they’re doing them. Who am I fooling, even the “Big Boys” (well established companies) drop the ball on these sometimes. The difference is they have cushion. They can take a few losses and still carry on. As a small or home-based business, you don’t have a lot of room for mistakes. Enough pep talk, let’s get to it! You want to destroy your small or home-based business? This is how you do it. I guarantee this works – trust me. (1) Invest big money, even though you don’t have big money Why start small and slowly build up? That takes too long! If you ‘re going to succeed at destroying your business, you mind as well buy everything you need before you even see a dollar in profit. The key-word here is: over-extension. You don’t need a realistic budget! Better yet, take out a business loan from a bank and borrow money from your friends and family. That usually goes terribly since they won’t be seeing a return on their investment. Oh well, you have an image to live up to! You must look “professional” at all costs – no one needs to know you’re just getting your business started. Why not buy every single piece of equipment and software you can get your hands on? While you’re at it, invest in expensive business cards, brochures and a gorgeous website with all the bells and whistles. Why not throw in some personalized stationary and pens featuring your over-priced logo? Oh, trademark that logo too; we don’t want anyone taking it! Because well, you’re about to be a HUGE deal in your industry, aren't you? And wait, this IS the age of social media, right? So why not drop a few thousand on producing high quality videos that you can stick on your website and YouTube channel that no one is going to visit anyway because no one knows about you… yet! Let’s fix that though. Continue with the spending tsunami and invest in marketing and advertising. Let’s get our name and face out there. This is important because statistically, people don’t really pay that much attention to advertising anymore… but what do you care? We’re trying to destroy a business here, stay focused! You want your money to run dry so you can’t keep up with all the operating expenses of your business. These little expenses add up fast. And why not skip over paying all those taxes too? It’s easy when you don’t have the money to pay them anymore anyway. Brilliant! (2) Be Inconsistent Say you’ll do something and then don’t do it. Promise things and don’t deliver. Miss your appointments. Customers and clients hate this! It makes them feel unappreciated and breaks any future loyalty that they may give you. Change prices a lot. Have no standards of quality – let anything be good enough. Stop picking up your phone and being accessible, this how the “Big Boys” do it! You can hardly ever reach a person who’s REALLY in charge. Oh, and this is a good one! Don’t listen to their needs and wants – supply them with what you think is best for them. If they’re paying for your knowledge and expertise that’s fine, but you have to steamroll them over with YOU! It is your business after all. That’s a surefire bullet right there. You can’t miss with that one. Don’t accept any of their objections. (3) Create Problems A business, any business, should be carefully designed to solve problems. Every customer and every client spends money to have their problem solved, just like you do. So if you really want to destroy your business – create more problems than you solve. It’s easy! Make it difficult for customers to get what they paid for. Have your clients or customers wait waaayyy past the delivery time you gave them. Limit payment options. Charge a ridiculous amount more than your competition. Have a difficult to navigate website – or even better, don’t have a website at all (I take that back, you need to keep up that image)! Don’t guarantee your work or your products. Don’t stand behind anything! Deny all accountability. In fact, if you really want to drive away customers, force them to pay upfront and then give them a monthly payment plan that they won't realize they've "signed" up for. They’ll bitch, moan and complain but hey, that's what you want, right? And when it’s all said and done, and they come back to get something corrected or fixed, make sure you let them know it was partially their fault it didn't go right to begin with. BAM! Works every time. Well that about wraps this up. This was how to destroy a business in the easiest way possible. If this is what you wanted to do with your business, you can thank me later. Until next time… Want more? Subscribe to the Uncommon Sense Adviser – Free news, early access to future books, discounts and answers to questions too controversial for the blog. Join now by clicking [HERE]. I’m careful with money – I didn't always manage it well, but I was careful. I've been that way ever since I can remember. Most people aren't though. I learned this the hard way. I've found the problem isn't always that people don’t value money; it’s just that they don’t watch what, goes where. They were never taught to budget. And let’s be honest, budgeting sucks! But this is a necessary life skill. Although I would hesitate to call this simple system budgeting, the model can be used to create one. So to be clear, this system is not budgeting, this is just simple money management and it’s EASY! Seriously, I've taught this to 14 and 15 year old's. All you need is some paper and a calculator – let’s go! Now imagine that you have two good old fashioned glass jars in front of you. One jar is labeled “EXPENSES” and the other jar is labeled “RESOURCES”. What we’re going to do is put money into these “glass jars”. Not in real life, just on paper. Once you set this system up – you won’t have to do it again. You will be able to add or subtract as your life situation changes. Also, you don’t need to calculate everything down to the penny (unless you absolutely want to. I don’t). We will be dealing in general ballpark figures. Again, just enough attention to detail so you know where your money is currently going, where it needs to go or where it's about to go. Be careful not to make this very simple system, over complicated. Yes you can get very detailed, but if you don’t have to, then I suggest you don’t. Now, here’s how this works: (1) Look at all your monthly expenses and write them down. This includes everything that you pay monthly. Below is just a general list to get your mind working. Take what you need – feel free to add and subtract from it. Again – try not to over complicate this. It will drive you nuts! Write down each category separately. *NOTE* To get an idea of what you spend per month, look at your last 3 bills and take the average (add the total of all 3 bills and then divide by 3). If you don’t know how much you spend per month on something, you must make an effort to carefully track it for one full month. Once you do this, you can set it and forget it. Again we just need ball park figures. Write down each category separately:
(2) Multiply each category by 12 for the 12 months in a year. This will give you an idea of how much you spend on each category per YEAR. Write these numbers down on a separate sheet of paper. (3) Add up ALL your 12 month (YEARLY) totals from step 2 – This total will be called “Expenses”. (4) Now you need to get a fairly accurate assessment of how much you bring in per YEAR in income. Do NOT count tax return money! When you have your total, write this down. This total will be called “Income”. (5) Take your “Income” from step 4 and subtract the yearly “Expenses” from step 3. Write this number down, circle it and put “RESOURCES” next to it. All this math is to give you a yearly overview of where your money is going. Sounds like a lot of work, doesn't it? Trust me, that was the hard part. The rest is easy. Since you know how much money you must spend per month to take care of all your bills (the totals from step 1) – any extra money for that MONTH, goes into the “RESOURCES Glass Jar”. 1 jar for “EXPENSES” and 1 jar for “RESOURCES”, remember? We’re keeping watch of our finances per MONTH (if weekly works better for you, then do it!). Now let’s focus on your “RESOURCES glass jar” (money that you have left over per month). Now, imaging we’re going to put 3 envelopes in this jar, each one with a different label.
(1) Savings. (2) Fun – This includes entertainment, vacations, luxury items (jewelry, televisions, new mobile devices, etc.), etc. (3) Emergencies. I personally put around 50% into “Savings” then 25% into “Fun” and 25% into “Emergencies”. Planning on a vacation or thinking of buying that huge new flat screen? Put a little more in the “Fun” envelope every month. Don’t put it all in there, just a little extra. Easy, isn't it? Again this is my suggestion but do what works for you. You can also put this “RESOURCES” money toward starting a business or making an investment. But I highly recommend setting some of this money aside for emergencies. Cars break down; things around the house suddenly stop working, children get sick, the family dog chews up 5 pairs of your favorite shoes – you get the idea. Knowing where your money is going, and knowing you have some money set aside for savings and emergencies is very empowering. This can relieve some unnecessary stress in your life – trust me. Have any tips or tricks to help others? Please share by leaving a comment. Until next time. Want more? Subscribe to the Uncommon Sense Adviser – Free news, early access to future books, discounts and answers to questions too controversial for the blog. Join now by clicking [HERE] Spring is here! This is personally my favorite time of the year. It’s not too hot; nature feels alive and full of energy. Spring is also an excellent time to start a side hustle. What is a side hustle? It’s anything you do, apart from your 9-to-5 job, to bring in some extra income. Spring marks the beginning of what we call, “The Summer Stretch”. From spring, all the way until its back to school time (here in the states anyway), people are more inclined to spend money. Then at the end of summer, spending slows down and picks up again in October. These spending habits are generally accepted in the business World and Hustlers keep this in mind as well. There are summer blockbusters at the movies for a reason, after all. That’s some free business Game from yours truly. Anyway, moving on… So here is a list of 20 side hustles that are simple to start and can easily bring in a few extra hundred-dollars per month. And if you’re really ambitious, these can even be turned into full-fledged businesses if you want. These are in no particular order – Let’s get to it: (1) Photographer – Weddings, birthdays, special events, family reunions and the list goes on. Yes, you have to have skill, a good camera and lighting for certain shoots, but the rewards are well worth it. (2) Chef – From catering full events to maybe just baking desserts, if you feel you can throw down in the kitchen then get to it! If you work it right you can even deliver to office parks on a regular schedule. Heck, I’ve known Hustlers who only used to sell water, soda, fruit cups, cookies and cake slices. (3) Babysitter – If you’re stuck at home and love kids then why not? Day Cares make a killing. Now there are some legal things you have to keep in mind because you can’t grow too big – but in this day and time, this service is always needed. (4) Bookkeeper – If you’re already an accountant why not help local small businesses on the side? (5) Car Detailer – I’ve seen people hang out at do-it-yourself car washes and offer their services to fully detail cars. Interior, exterior, hand waxing and getting to all the little nooks and crannies. Depending on how good you are, three or four cars a day is all you need. (6) Dog Walker – Love animals? Then this one is easy. It’s all in the scheduling. Only a few hours a day and you’re set. And you’re getting paid while you exercise and enjoy the outdoors. (7) Event Planner/Wedding Planner – I honestly feel that some people are made for this style of work. You have to have vision, organization skills and a ton of patience but the rewards are worth it. (8) Hair Stylists/Barber – Self explanatory. A small group of loyal clients is all you need for consistent extra income. (9) Hauling/Mover – Have a truck? You can haul away unwanted junk or help people move. People are busy and relieving this burden is worth the price for them. And who knows, some of that “junk” may be valuable to someone else. (10) Yard Sale Organizer – Get a group of people together in your neighborhood and have everyone bring all their unwanted items to a huge yard sale. You can sell your own “junk” in the process and charge the “vendors” just a few dollars for your organization skills. Then branch out to other neighborhoods. (11) Interior Decorator – Add beauty and take away the stress of people who want to redecorate their home’s and condo’s. You really need solid people skills and a knack for design but this is easily doable as a side-hustle. (12) Landscaper/Gardener – Interior decorating not your thing? Then why not help beautify the outside? This side-hustle is very simple to expand. Office parks, hotels and apartment complexes need this service as well. (13) Fund-Raiser – If you have an inner passion to help others, you can put yourself in a position to help non-profit organizations raise more funds. Hint: non-profit organizations ALWAYS need more funds. (14) Painter – Outside or inside, spring and summer are the perfect times of year for this service. Provide quality work and word of mouth will expand your Hustle. Get with private real estate investors who flip houses and don’t have time to paint themselves. (15) Personal Trainer/Yoga Instructor – If you work-out often and are very knowledgeable about diet and nutrition then why not take all that knowledge and experience and bring in a little extra income? You only need a handful of clients for consistent revenue. (16) Free-lance Assistant – Here’s an interesting one. As an entrepreneur myself, sometimes we get tired are wore out doing EVERYTHING in our business. It’s nice to have someone come by once or twice a week to do the things that we don’t want to spend much time on. (17) DJ – This used to be an expensive start-up. Now all you need is a laptop, microphone and a killer playlist (and maybe some great speakers). Keep the crowds moving and your clients will be satisfied. (18) Editor – If you’re the consummate book worm then this can be for you. Authors (me included) are generally pretty bad at editing our own work. Why not offer a helping hand? This requires some patience and above standard grammatical skills but there is some good money here. (19) Consultant – Consultation can be a thankless side hustle (I speak from experience). At first they love you and then they feel like they could have done it without you. But if you have skills in an area you can offer those. Business to Business, fashion and technology rule the day here. (20) Musical Instructor – From the classics such as guitar and piano all the way down to showing people how to use their digital music programs – you can easily carve a small niche for yourself. This only requires a few hours a week and can be started with very little money. This is far from a comprehensive list of everything that can be turned into a side hustle. This list should however, be enough to get your wheels spinning about how easy it can be to bring in some extra income. Just remember, side hustles are usually based off of a skill you have. They can also be doing something people don’t have time to do themselves, or don’t want to do. Until next time keep it moving and keep it simple in the process. Want more? Subscribe to the Uncommon Sense Adviser – Free news, early access to future books, discounts and answers to questions too controversial for the blog. Join now by clicking [HERE]. So you have an idea for a business. Great! Now what? Do you know the next step? A business idea is like a seed you plant into the ground. That seed still needs water and sunlight before it can grow. Many people (myself included when I first started) are under the assumption that to start a small business you need a lot. The truth is you only need a little. Now this isn't true of every small business idea, but nearly eight out of 10 small businesses don’t take that much to start. My first business, when I was 17, cost me all a little over three-hundred dollars to start. My second business ran me about the same. My third business was even less than that because I had a better idea of what I was doing. I was able to cut out everything I didn't need. I recently watched an interesting video on YouTube. It’s a video from billionaire Mark Cuban. In this interview he states that, “… only morons start a business on a bank loan.” Now, I’m nowhere nearly as successful as Mark Cuban but I know what he is saying is a fact. I've done it before. I’ll give you the video at the end of this post. Back to the point… Why is a bank loan so bad? I’ll tell you why. When you enter the Game of business the most important assets are (1) Your determination, (2) Business cash flow and (3) Your time. Now out of these three assets, which one can you control? Only number one, your determination. Business cash flow is out of your control to a large extent. And time, you can manage it but you cannot control it. All three are important but let’s look at business cash flow today. When you “put your foot down” into the Game of business you must realize that you are starting a race. In order to keep up and do well you need to train yourself like an athlete and prepare. This training involves the basic skill-sets you need before you even start. Everything from how to communicate, negotiate, sell, business ethics, record keeping, understanding marketing, advertising, etc. Once all of this is under your belt then you can actually compete and hit the starting line. When you take out a bank loan, you are not starting at the line with everyone else; you are starting waaayyy behind the starting line. You are losing before you even start. Why? Simple, because repaying a loan eats into your business profits. Any business that cannot maintain a positive business cash flow will eventually go out of business. A business needs some sort of cash flow in order to operate, don’t you agree? It’s almost like taking out a student loan. Even if you land that good paying job, your take home pay sucks because you owe someone else money. In business this is even worse because most businesses do not turn a profit their first year. Read that again. So if I already owe money and I am not making any money (or very little), I am increasing my chances of failure! Great way to compete in a race, isn't it? The truth is you really can start the majority of small businesses from nothing. Using part of your current paycheck, in fact. If you put up just 10% - 20% of your take home pay and invest it, you can use that to piece together your business. Baby-step by baby-step. Is it slow? It can be. Is this the most effective way? Not particularly. This does however, do one thing extremely well. It’s let’s you be at the starting line with everyone else in the race. You don’t owe anyone anything and all the profit you make is yours, not someone else’s! Faster profits mean faster business growth. Do you see my point? Let’s wrap this up. If you really want to understand the Game of business in the simplest way possible, check out my book, Unlocking the Small Business Game. Grab a FREE preview - Click Here. Until next time. Keep it moving and keep it simple in the process. |
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