How to Start a Business

How to Start a Business

Many of us want to start our own businesses.
Public space is filled with reports of new ventures. But the reporting on entrepreneurship
is heavily skewed in one particular direction: towards people who have started new kinds
of businesses, pioneers who have pushed the boundaries of commerce by creating a wholly
original offering, usually through the help of an innovative piece of technology. The
new entrepreneurs might, for example, have invented an app for measuring and controlling
the humidity of clothes’ closets, or they might have come up with a tiny sensor that
can detect hunger in domestic animals or have built a social platform to connect people
planning a trip to Italy. This emphasis on novelty can leave us feeling that the chief
and correct way to become an entrepreneur is invariably going to be through radical,
technologically-based innovation. We may therefore, as we contemplate an entrepreneurial future,
ask ourselves (with increasing panic) what entirely unthought-of idea we might ourselves
come up with to propel us forward. In our frenzy, the answers we arrive at may start
to lean towards the implausible, the trite or the naive. But there is another path. Most
of the economy is made up of businesses doing stuff that people have always been doing or
have been doing for a very long time: making daily bread or shirts or trousers, teaching
languages or giving travellers a bed for the night, raising animals or fixing teeth. In
other words, most businesses operate in areas that economists call ‘mature’, sectors
where it’s rather hard to come in and make a surprising fortune. But that doesn’t mean
these sectors should be ignored. Far from it; there are a plethora of hugely meaningful
possibilities hiding for us in plain sight on account of one, perhaps surprising fact
about the economy: a majority of businesses don’t love what they do. We might make a
basic distinction between two kinds of businesses: – pragmatic businesses – businesses of
love. Pragmatic businesses are everywhere. They almost define for us what we think business
is in its essence. They know how to make their product or service with a sound degree of
competence, but there is a practical, unidealistic edge to the way they go about things. There
isn’t anything very powerful drawing them to their particular offering. They might easily
have been doing something else. They don’t care about the long-term; the business is
only a vehicle for an underlying financial purpose. One eye is always focused on how
to sell. If the owners didn’t have to work, they almost certainly wouldn’t. Such pragmatic
businesses may do fine, or even very well, for a long time, but the motivations are easy
enough to spot. A discerning eye can tell something crucial within minutes of walking
through the door: this is not being done with, or for, love. Pragmatic businesses dominate
the economy. One might say that over 85% of businesses fall into this category. But there
are parts of the economy, and they are heavily in the minority, where things are being done
very differently. Businesses of love produce many varied things, but there are underlying principles holding
them together. Here love means: – a total commitment to excellence of a given product
or service. – a desire to reinvest almost all profit into guaranteeing excellence. – a
focus on the long-term, because the business is – for its owners – the meaning of life.
There is no interest in selling the firm now, or perhaps ever. The dearest wish might be
to give it to someone you love, like your child.
© Flickr/cskk – love means you’d almost do it for free
– and don’t only because you need to live, you need to pay your employees and you want
the business to be able to last into the long term. The product or service is what you love
and you love it inordinately. Businesses of love are the sort where the owner has scoured
the world for the best kind of flour and wakes up excitedly at dawn to check on the progress
of each of the loaves; the aircraft factory where the workers think of every plane they
are building like a relative they will always care for; the stationery shop where notebooks
and paper are viewed as objects of beauty rather than utility; the travel agency that
won’t rest until it knows it clients have enjoyed their trips rather than just paid
for them; the sandwich store that views a fine avocado and chicken roll as one of the
authentic joys of a tricky life. Businesses run for love are not always successful in the standard financial sense of the term.
Some might just be returning a little over 3% a year. But for these enterprises, money
is only ever a means to a greater, more purposeful end. There are huge opportunities to hand
for any would-be entrepreneurs because most of the economy is in the hands of people who
don’t love what they are doing. Most law firms, dentists’ offices, hotels and bakeries
aren’t in it for love. They may be efficient and canny, but they are – ultimately – just
waiting to sell up. We don’t need to be very original to succeed, we don’t need
to have invented anything very new; we just need – to make sense of our lives and to
make an honest living along the way – to offer the world something we love a little
more intensely than most people do. . Thank you for commenting, liking and subscribing. Our book ‘A Job To Love’ is a practical guide to finding fulfilling work, to find out more, follow the link on your screen now.


21 thoughts on “How to Start a Business”

  • The School of Life says:

    Thank you for watching and supporting our films. Did you know you can now download our free app from the IOS store here?

  • I love School of Life! I used to set up my ecommerce business which has given me the freedom to work from anywhere with wifi and to be my own boss. I highly recommend finding something you LOVE and the rest will fall into place(with a lot of blood, sweat, and tears)!

  • If you're considering starting a business, have started a business already, or are running one during the first 5 or 7 years of its existence, this post will be useful to you.

    I'll explain step by step the entire process in 10 crucial steps.

    The important thing is to complete EACH step completely before moving on to the next step.

    Your chances of success will truly be maximized if you complete each step successfully.

    On the other hand, missing one step will SIGNIFICANTLY increase your chances of FAILING.

    Interestingly, each step completed puts you in a DIFFERENT universe, one where your odds of success is significantly higher.

    For example, having a business plan (no matter how imperfect) will tend to increase by 10 or 20 percent your odds of success.

    So here are the steps:

    1. Do market research to figure out an unmet NEED. (No, don't try to CREATE a need. It's a common mistake to try to get people to need what you offer.)

    2. Clearly identify and define the TARGET MARKET.

    3. Create a product that fulfills that NEED for that TARGET MARKET. At this point, it's probably still a prototype so you want to put it in the hands of beta users and get detailed feedback on how to improve it.

    4. Develop the product until you have a functional product that you can charge money for. Doesn't really matter how little you charge.

    5. Recruit a team to help you to build the company. Offer equity or profit-sharing to team members.

    6. Write a business plan.

    7. Present the business plan to investors. Get feedback and/or investments.

    8. Create an actionable marketing/sales plan, including digital marketing.

    9. Recruit a digital marketing team and, if possible, pay for performance. That is, pay them commissions only, but be generous.

    10. Create a system (I'll provide one through ABI, my Artificial Business Intelligence) that helps you to collect information and data in real-time to properly manage your business.

    So friends, there you have it: the 10 super-strategic steps to build a business from scratch.

    These are the steps that, as a business consultant, I help entrepreneurs and startups go through.

    Anyone can do all these steps, but most people conveniently ignore them or deceive themselves by thinking, "Oh, I learn through action, I just want to try it out and see."

    No. You will fail.

    That's because business is a very TECHNICAL discipline, like engineering or dentistry.

    You must know what you're doing.

    Business is not a "social" activity where you network, chat with prospects, and hope to build a solid, positive-cashflow business.

    It's not even about digital marketing although it can amplify your business results IF you've got these ten steps in place.

    I hear of people who have lost $200,000 in business, or who wasted $20,000 hiring a publishing company to write their book — which, after I read it in a few minutes, seems NOT to fulfill any need for any particular market.

    It was just vanity publishing.

    Yes, it's good to learn from trial and error, but losing so much money BECAUSE one did not diligently go through the 10 steps above, seems pretty stupid.

    So we must be hard on ourselves and summon the courage to do the right things, one step at a time.

    Join Entrepreneur Academy for more guidance and resources:

  • Betania Burdick says:

    this was great… I guess I need to make sure all the new inspiring inventors better stop making new awesome things bc failure is inevitable.

  • Great video! The Promo team recently wrote a blog about evaluating business ideas that could be helpful to people looking for another resource related to this topic.
    Check it out here:
    Hope it helps and happy reading!

  • Very entertaining! But unlike the title, the video doesn't tell you how to start a business. I started my business for $115 and I talk about it in a video on my channel, check it out and let me know what you think.

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