Starting With Nothing
Check out this video about entrepreneurship.
Honestly – that should be an inspiration to anyone at any age. I especially liked the one statement near the end where someone stated “So what if you fail! Even if you fail, you can still put it on your resume, college application essay or grad school essay.” The point is to keep learning and learn from your failures until you succeed. I think about all the jobs that are available just in the United States. Something like 80 percent of businesses are entrepreneurial businesses. That means that only 20 percent of the jobs out there are through big corporations.
You don’t even need a formal education to start a business.
Every great idea out there started with the idea popping into someone’s head. How many stories have you heard about people starting businesses in their garage?
You do need a plan though.
Going into business without direction is like trying to drive your car with your eyes closed. More than likely, you’ll end up crashing.
Where To Start
I’ve been in the real estate business now for several months. The first 2-3 months has been all about education. I’ve needed to learn a lot about the legal aspects of real estate, contracts, and a whole gambit of things to keep clients and myself protected. Getting started has been challenging too. How do I get the word out that this is what I’m doing now?
I just ran into someone this morning who I’ve known for about four years now. She noticed my nametag on my shirt stating which Broker I work with. She had no idea that I was in real estate now. That’s a problem. Obviously, I’m not doing enough to get the word out.
Saying I need to get the word out is different than having a plan on how to get the word out. What steps do I need to take in order for the word to get out to as many people as possible? I need a plan.
I also need to know what the competition is doing. Some real estate companies are more like Ponzi schemes than real estate companies. For them, it’s more about getting more and more people selling houses and paying the people above you a portion of your proceeds than watching out for the client. Others are more like family businesses. Still others are internet based with no education available for their agents. This can lead to severe legal ramifications.
Creating The Plan
A business plan does not have to be some elaborate document with graphs, maps, and other things. It can be that, or it could be something you wrote down on a piece of paper. Just keep in mind that the business plan is actually your plan on how you are going to get from starting to being successful.
I’ve had several businesses in my life. My first was a web development company in the late 1990’s. It failed miserably because I was already working somewhere full-time and expected the work to come to me. I never really had a plan for that. Without a plan, I effectively planned on failing.
Another business I started was in graphic design. That’s a tough racket to get into in the first place. I actually had a plan in place for that but got sidetracked and caught up with one client who had expectations that went against my plan. As a result, my plan failed as my clients business started having problems. I left that client but it was too late.
Now I am in real estate and although I am working with a well-established brokerage, I still need a plan. Here’s something you may not know. Every real estate agent out there is actually an independent contractor for the brokerage they work with. As an independent contractor, agents are self-employed and considered entrepreneurs. I have my own business in real estate and it needs to be treated that way. Since this is the case, a business plan for success is something I need to have if I am going to succeed.
Here is the step-by-step process to create a business plan that will work for you.
Step 1: What are your goals/objectives?
Pretty simple really. What is it you want to accomplish? Do you want to help the blind communicate with others better? Or maybe you want to design something that will help them see. Your plan does not always have to be that bold. Maybe it is designing an eating utensil that works better than a fork or spoon. Have you heard of a spork? You find them at a lot of fast food places. It looks mostly like a spoon but has ridges so it can also be used as a fork.
One of our daughters had a business editing translated documents from other languages. A company would hire her to take a document that had been previously translated to English from Korean as an example. She would go through and edit spelling and grammar. She did it while she was watching TV in the evening to make a few extra bucks.
The point is that if you have goals lined up for what you want to achieve, then you know where you are going. The next thing would be to figure out how to get there.
For several years, I have been teaching personal finance classes to people who have ended up homeless for one reason or another. The classes are based on a book I wrote about my own experiences with trying to dig out of debt. When I am teaching, the very first thing we cover is writing down goals. If it makes sense to do it with your personal finances, doesn’t it make even more sense if you are trying to start a business?
Step 2: How much money do you need to get started?
A good rule of thumb is to have 6-12 months of financing available to launch your business. But what if you don’t? Then what?
Well, you may have to be creative in generating some kind of income at first so that you have some funds for your real goals. Time takes time as they say. If you incorporate having to make some side money into your plan, you are still working on your plan.
Step 3: Marketing
There are a billion ways to market. Which one is best for you depends on your strengths. I have a colleague who strictly does postcard mailings. They spend thousands every year in postcards and stamps to get the word out about their business. I know another person who is heavy into video offers. Another does a lot with Facebook and other social networks.
What do you do if you don’t have a huge budget for marketing?
Work with your sphere of influence. Your family, friends, people at work, at your church, and your neighbors.
Ask for referrals. Offer some things for free such as white papers, brochures, and PDF files with information relevant to your business.
Hopefully, it can take some time to exhaust your sphere. By then, you could have referrals available.
Don’t give up. Keep going. It can take months up to a year before you start seeing real results. It will happen. Be consistent. Don’t stop. Just keep swimming.
Step 4: Update the plan
Your business plan is not a static document. It should be reviewed on a regular basis and updated as you accomplish some of your goals. It is a living document meaning that it should be changing and improving the longer you are in business. Update your goals regularly. Challenge yourself to reach further into your dream. Come up with new directions to spread your business. Drop the ideas that haven’t been working.
If you would like a custom form to set up a basic business plan, fill out this form and it will be on its way.