‘Hi guys, I have $500 to start a business, what do you guys suggest?”Anon on Facebook
I am always shocked by such postings on Facebook. It really baffles my mind, how anyone can write such a statement to people that they don’t know on a platform read by millions. Because my first thought is, are you trying to lose your money? My second thought is, did you steal that money that you want to waste? I am sorry to anyone who has ever posted this but as someone who has a special interest in start ups and venture capital, I really find it surprising that people take such a lazy approach to starting a business and still expect to succeed.
Let me tell you a hard truth. It is not a business, if it doesn’t have a plan. It is not a business, if it doesn’t have a mission and a vision. And its definitely not a business, if the leader lacks passion in it. If your business doesn’t have all the above, it is a hobby. Something that you are doing until you get bored and move on to the next thing.
When people tell you that business is hard, takes a lot of effort and perseverance, they are not lying. They are telling you the hard truth. Businesses have J-curves (initial slump due to more money going out and less coming in, and then an upward sloping curve once business is solid).
Now, let me tell you why I have a problem with the typical person who would write such a statement. For starters, business ideas that people suggest to you that they are successful in, does not mean that it will lead to the same success for you. They most likely have the passion, the time and are willing to do whatever needs to be done to be a success at it. Starting a business with the simple vision of making loads of money rarely leads to money making, it often leads to loss of money. Why? Because your fundamentals are wrong. I feel the fundamentals should always be;
- What is lacking in my sphere of influence or what problem is there?
- How can I solve the problem for people?
- How can I make money from it?
Once you have identified these, then we move on to the next step. Whats the next step? Subscribe to my mailing list and i will send it to you.