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-====== How to Start a Million-Dollar Business for $25,000 #​1====== ​ 
-I've got it pretty darn good. I work only when I want to work. I can work anywhere in the world. I work with only people I like. I do only the kind of work I want to do. And I make a lot of money. ​ 
  
-If that isn't the definition of having it good, what is?  
- 
-I travel about three months out of every year. This past year, I was in England, France, Germany, Belgium, Spain, Nicaragua, and Argentina-not to mention New York, Washington, D.C., San Francisco, and Yellowstone National Park. When I travel, I take my computer with me. I spend half of the day visiting parks, shops, and museums and going to concerts, dance performances,​ and the theater. I spend the other half working on my computer. ​ 
- 
-And because my business interests are international,​ travel is largely first-class and paid for by one of the companies I consult with.  
- 
-My office is more a grown-up version of a boy's tree house than it is a workplace, complete with a personal gym, jujitsu room, billiard table, movie-screening room, and art studio. It is located 1.1 miles (an eight - minute jog) from my main home, which is in one of America'​s best cities, on the Atlantic Ocean in South Florida. ​ 
- 
-I take off early when I want to and come in late anytime I wish. I have eliminated all of the stress that used to characterize most of my workday. ​ 
- 
-And if I want to, I can do no work at all for six months or a year or forever. ​ 
- 
-In short, I am living the dream. ​ 
- 
-The purpose of all of this self-congratulatory talk is to tempt you to heed my advice. The reason I have this great life is due to one thing and one thing only: About 30 years ago, I decided to become an entrepreneur. ​ 
- 
-The most profitable thing I have ever done in my entire career of building wealth has been to invest in start-up businesses. Last time I checked, the returns I have enjoyed as an investor in small businesses have exceeded 25% per year.  
- 
-There was a time when people thought they could earn that kind of ROI in the stock market. That was a very stupid and very costly notion. ​ 
- 
-If you are a great investor, you can make 10-15% in the stock market. But you can make 10 percentage points more than that, on average, by starting and/or funding small businesses that you understand. ​ 
- 
-Start-up businesses have given me so much-a steady growth of income, a base of wealth that has doubled every three years, the opportunity to get involved in so many other, interesting investments,​ and a rich and stimulating business life.  
- 
-Although I sometimes grouse about working too hard, the truth is that I love starting new businesses. It's challenging,​ but it's also a great deal of fun. And when the business starts to work and the money starts flowing… well, it feels pretty damn good.  
- 
-Thirty years ago, my track record at starting new businesses was a very mixed bag. But these days, I am usually confident that the businesses will work. This kind of confidence comes from 25 years of accumulated experiences,​ good and bad, and learning from them.  
- 
-So if you were to ask me, "What is the absolute fastest way to become rich?" I'd have to answer: by starting a small business. ​ 
- 
-That's my answer. It doesn'​t mean it has to be your answer. You may not want to invest the time and energy that it takes to be a successful entrepreneur. You may be too timid. You may be too tired. You may lack the self-confidence to launch your own thing. But I'm hoping I can persuade you to consider this path. Because it is, as I said, the best way to become wealthy. ​ 
- 
-If investing in your own small business is not for you, then there are still plenty of other recommendations for you. You can look into stock, bond, options, precious metal, and so on. You won't be making 25% per year, but you'll do all right. ​ 
- 
-But if you are willing to become an entrepreneur-even a part-time entrepreneur-you will be amply rewarded. Not only can you double (or even triple) your money every three years, you can also enjoy the many other benefits of being your own boss:  
- 
-The freedom to choose your own schedule 
-The power to create your own products 
-The excitement of being fully challenged 
-The knowledge that you are providing an income for your employees. 
- 
-My friend Anna W. asked me to help her start a business based on her love of music. She'd been looking over her current retirement plan and figured out that if she keeps her present job and continues to increase her responsibility and her income, she will be able to have a comfortable retirement in 14 years (at age 67).  
- 
-That's not bad. Most people in her age bracket won't do that well.  
- 
-But if she puts her energy and resources into creating a successful business of her own, she can look forward to a much better return on her "​investment." ​ 
- 
-Anna is going to start her new business on the side, working evenings and weekends. She's going to find a partner to back her, develop her product, and take it to market. When we went over the numbers, it became clear to Anna that this secondary business-if it is successful (and I'm pretty sure it will be)-will allow her to achieve her retirement goals in five years instead of 14, while she is still relatively young. ​ 
- 
-At that point, she can do whatever she wants to do with the rest of her life.  
- 
-That's what a business can do for you.  
- 
-Think about your own financial situation. Are you okay as you are-or would it be helpful to triple your money every three years? ​ 
- 
-If you need that kind of way-above-average ROI in your life, you simply have to consider starting your own business. Don't quit your day job. Just get something going on the side. You don't have to invest a ton of money or work endless hours. You can do well starting small. ​ 
- 
-Here are five proven (and absolutely true, in my experience) secrets of highly successful entrepreneurs that will help turn you into a business-building genius. These are very general principles. I am just touching on them here. In later essays, I'll explain them in detail. ​ 
- 
-Secret No. 1: Don't Spend Too Much Time Planning ​ 
- 
-When you are entering a market, you don't know (and couldn'​t possibly understand) the hidden problems and challenges you will face. You won't understand those problems until you make a few mistakes. And you won't solve them (and go on to making a success of your new business) unless you are capable of changing directions quickly. ​ 
- 
-Most successful new businesses (probably 90% of them) end up following practices that are different than anticipated. That's why it doesn'​t pay to spend too much time and money planning. Do a reasonable amount of noodling. Figure out the big strokes and give yourself a bailout option. Then go for it. He who can adapt wins.  
- 
-Secret No. 2: Don't Spend Too Much Money  
- 
-The vast majority of business start-ups that succeed do so on limited budgets. Almost none of them have the benefit of venture capital funding. ​ 
- 
-The great majority of new businesses are hampered (and enhanced) by flying on empty. People involved in businesses that have limited funds must think harder, work harder, and (most importantly) sell harder. Their primary initial effort is to bring in the cash. And that's how it should be. There is only one thing that will surely stop any business in its tracks: a lack of cash flow. Ironically, limited capital usually means a quicker and stronger cash flow.  
- 
-Secret No. 3: Get Operational Fast  
- 
-The most common reason for new product/​project failures is wasting time getting ready. Between making overlong and expensive business plans, endlessly tinkering with the product, fooling around with focus groups, and second-guessing yourself, it's easy to let a good product/​project lose its steam. ​ 
- 
-Bootstrappers don't mind starting with a copycat idea targeted to a small market. Imitation saves the cost of market research-and the start-up entering a small market is unlikely to face competition from large, established companies. ​ 
- 
-Secret No. 4: Go for the Quick Cash First  
- 
-Contrary to what some business books may say, successful entrepreneurs are almost always those who take the fastest route to cash when launching a new venture. They do so because they don't have a choice. (See Secret No. 2.) After the cash starts coming in, they have the time and funds to improve the product, enhance customer service, and refine operations. ​ 
- 
-Keep in mind that the best-laid plans are often arrogant. You don't know for sure how to best serve the market. When launching a new business or product, figure out how you can get to breakeven fastest. This kind of thinking will force you to pay closer attention to the market. And the market is your master. ​ 
- 
-Secret No. 5: Forget About the Crack Team; You Are It  
- 
-Successful entrepreneurs don't hire experts to run their businesses. They figure it out for themselves. When it comes to making your new product/​project work, rely on nobody but yourself to make sure it gets done right. It may be stressful and time-consuming to do a lot of extra work, but it will pay in the long run. You will understand the project in an intimate, extremely valuable way.  
- 
-You should want to learn about how your business works from the bottom up. You should want to know how to buy the products and services you learn. You should want to understand how to hire the best people. And most of all, you should want to understand how to bring in new customers at an acceptable cost. This is the key to every successful start-up. ​ 
- 
-Having started hundreds of successful small businesses in my career, I am bold enough to think that I understand how the start-up and development process works. I outlined it all in my book Ready, Fire, Aim. In my humble opinion, it is the best book ever written about starting and growing an entrepreneurial business. ​ 
- 
-In future essays in this series, I will tell you everything I know about building and starting a successful business. That means, as a member of the Wealth Builders Club, you will learn all of the most important things you need to know to avoid costly mistakes and ensure your success as an entrepreneur. ​ 
- 
-I am going to share with you all of my secrets, such as:  
- 
-Why you shouldn'​t quit your job to start your business 
-The four basic types of business, and which one I think you should be in 
-The myth of the natural-born salesman 
-How to come up with tipping-point ideas 
-The handful of numbers you need to know to run your business 
-How to groom protégés to run your business for you so you can live your dreams. 
- 
-Take Action Now 
- 
-If you listen to what I tell you and make it a point to keep yourself informed and educated, I have to believe you will come out a big winner. ​ 
- 
-There are dozens, if not hundreds, of small businesses you could start this year. With the advent of the Internet market, there is virtually nothing you like to do that can't be turned into a business. ​ 
- 
-My success rate in business is probably 80-90% these days. The main reason is not that I know so much more than I used to (although I do) but that I'm much more reluctant to get into something I don't understand. ​ 
- 
-Make yourself a promise to devote a good part of your time this year to creating and/or developing a second stream of income. Allocate learning time every week. Develop a three-page business plan. Make at least one new contact every month-and use that contact to start your business. ​ 
- 
-No matter what type of side business you decide to start, assign to it a specific financial target each year, and reach that target by figuring out how much you have to accomplish every month to get there. Break those monthly targets down to weekly objectives and the weekly objectives down to daily tasks, just as I've detailed in my book, The Pledge, which I've sent you.  
- 
-But don't feel overwhelmed. I do not want you to quit your job and risk your life savings. I will show you how you can start slowly, from your home, investing only modest sums, working weekends or at night, and build your little business slowly until you can figure out the best products and how to sell them.  
- 
-Much of this you can get from reading my latest book, The Reluctant Entrepreneur. So read that, as well. But also read all of the essays in this series, too, since they will contain everything I've learned since writing that book. When that's done-and that should take about a year (maybe less)-you'​ll be ready to hop onto that 25% train. ​ 
- 
-I call it being a "​Chicken Entrepreneur,"​ and that will be what our next essay is all about. ​ 
- 
-To your wealth, ​ 
- 
-Mark  
- 
-======How to Start a Million-Dollar Business for $25,000 #2====== 
-When Mary Kay Ash retired from her job in 1963, she took her life savings, $5,000, and opened her own business. Boy, did it pay off! Mary Kay Cosmetics is now a billion-dollar company. ​ 
- 
-Or take Hugh Hefner. He financed Playboy with $8,000 in loans from 45 family members, friends, and other investors. Today, he's a mega-millionaire. (His famous mansion alone appraises at more than $45 million.) ​ 
- 
-Successful entrepreneurs like Ash and Hefner who risked all their money (and sometimes their family'​s money) to pursue dreams that others considered foolish get lots of press. And with good reason. Their stories are exciting and inspirational. But they are also misleading. ​ 
- 
-These risk-taking entrepreneurs are actually the exception. Most business builders succeed by taking a far more conservative approach. ​ 
- 
-In his book The Leap, Rick Smith uses Bill Gates as an example. Contrary to popular belief, Gates didn't drop out of Harvard, says Smith. He took a leave of absence-and relied on his parents'​ financial support-while he developed his programming skills and made the contacts that led to Microsoft. If it hadn't worked out, he could have gone back to finish school. ​ 
- 
-Closer to home for you, India has similar stories. You all know the remarkable story of Dhirubhai Ambani'​s beginnings with a spice business in a 350 sq ft. room. And now he's a multi-billionaire legend. ​ 
- 
-But do you know about Denise Huffton from Chennai who founded 'Dream Weaver'​ with her mother. She got the idea for making biodegradable garments while still at college, and today these products are being widely used for hospital patients. She started with Rs. 500 to buy some cloth and a sewing machine, and today has an annual turnover of 30 lacs, and is expanding overseas. ​ 
- 
-Flipkart started with an investment of 4 lac rupees and within five years grew into a $100 million-revenue operation. Unicel started in agarage and is now worth Rs. 100 Crores. ​ 
- 
-Google was a side project of two Stanford grad students. Michael Dell started what would become Dell Inc. in a University of Texas dorm room for just $1,000. Apple'​s first computers were hand-built in a garage and sold to local computer geeks. ​ 
- 
-Read the biographies of successful people, and you will discover the truth. Most of them started small and took modest, calculated risks. They were not reckless and brave, as the business magazines would have you believe. ​ 
- 
-The Only Business Start-up Strategy I Recommend 
- 
-Yes, starting your own business is the fastest and surest way to grow wealthy. But you don't have to-in fact, you shouldn'​t-risk everything to claim your slice of the entrepreneurial pie.  
- 
-I have started dozens of multimillion-dollar businesses. But I have never been willing to "bet the farm" on one.  
- 
-I want all the benefits that come from owning a business. But I refuse to risk my hard-earned money or time on an unproven idea. I want my cake. And I want to eat it too.  
- 
-That's why I call myself a "​chicken entrepreneur." ​ 
- 
-A chicken entrepreneur is somebody who keeps his day job while he gets his ideal career going in the evenings and on weekends. He is an entrepreneur because he is taking the initiative to start his own business. He is chicken because he's not willing to quit his job and lose the income. ​ 
- 
-I have done my best to promote this concept in all of the business and self-help books I have written, including my most recent book, The Reluctant Entrepreneur. My primary point has always been "You don't have to be a wild and crazy risk taker when starting a business." ​ 
- 
-Let me tell you about "Alan Silver."​ (I profiled him in my book Seven Years to Seven Figures.) Alan has a multimillion-dollar health supplement business. He does what he wants when he wants. He spends much of the winter skiing from his vacation home in Park City, Utah. And when he's back home in Florida, you can often find him on the golf course after doing a couple of hours of work in the morning. ​ 
- 
-He started as a chicken entrepreneur. ​ 
- 
-A friend of his, a newsletter publisher, was starting a publication on natural health. One day he mentioned to Alan, quite casually, that he was looking for someone to sell vitamins to his subscribers. ​ 
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-Alan, who had been selling office supplies for 15 years, stepped up. With his friend'​s help and mentorship, he started his own company with a very small initial investment. Mostly, he invested his time and energy. ​ 
- 
-The going was rough at the beginning. He didn't know anything about marketing, supplements,​ or the health industry. But he was willing to learn. Keeping his sales job while working on the new business meant 10-hour days. But it was worth it.  
- 
-Within six months, this side business had brought in more than $250,000 in sales. Alan reinvested most of the profits back into the business at first. But soon he was making enough to quit selling office supplies. And within a few years, he was bringing in $10 million annually. ​ 
- 
-And Alan isn't the only one. These are just some of the people I've personally mentored: ​ 
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-CF built her specialized physical-therapy business from zero to $90,000 in 15 months. ​ 
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-JJF's financial teaching program for children is paying him close to $100,000 per year after less than three years. ​ 
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-WC made $250,000 in less than 18 months-on top of his regular salary-by running a mail- order business I helped him with.  
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-PR built his health-product business to more than $20 million in six years (and became a multimillionaire doing so).  
- 
-KY's business pays her a very nice salary-plus,​ she shares $500,000 in profits from a career- counseling program that's less than 10 years old. 
- 
-It's Definitely Worth a Small Investment of Money  
-and a Large Investment of Time 
- 
-Having your own business is not the only way to get rich, but it is-far and away-the way that most people do it. Statistically speaking, it is your most likely road to success. It also gives you a chance to eventually become super-rich-to join the $50-million-plus club.  
- 
-Maybe you think that a small business built from your kitchen table won't amount to much. You'd be wrong. For example, I helped friends start American Writers and Artists Inc. (AWAI) and Early to Rise-now both multimillion-dollar publishing businesses-with less than $10,000 each.  
- 
-Every business, from your local landscaper to General Electric, started with that first sale.  
- 
-With each passing year, your business will grow-and that will give you greater cash flow and the potential for a bigger payout when you're ready to retire. ​ 
- 
-In two or three years, your side business should be big enough to hire you as the CEO. Then, and only then, can you quit your current job.  
- 
-Once you become CEO, things should really skyrocket. You'll be able to devote all your time and energy to this one single enterprise, and the benefits of all of that concentration will pay off.  
- 
-But maybe you don't want to be a multimillionaire business owner. Maybe you just want to work for yourself. If you are retired or unemployed, you can choose to do the work-and that way, you'll be both the owner of a microbusiness and its only employee. But you could also get a friend or relative to do the work, pay them a good salary, and still have a good second income. ​ 
- 
-Either way, you earn a good living, enjoy a great deal of independence,​ and-if you follow the advice we're going to give you-you can even get rich.  
- 
-Chicken entrepreneurs who start microbusinesses do it because they want to give up the routine of commuting to a 9-5 job and take on the fun of managing and growing their own little service enterprises. They can make decent money working on their own-often as much as they'd earn elsewhere as an employee -and they can choose their own hours, customers, work clothes, etc.  
- 
-But some of them find that there'​s also a way to make a microbusiness into a gold mine. Basically, here's how you do it...  
- 
-After investing a few years as the main employee of your microbusiness,​ you hire someone to replace you and pay him roughly 50-60% of what you were making. Now, instead of earning, say, 20 lac rupees per year, you'll earn about 10 lacs - but you'll be working only 10 hours per week.  
- 
-By adding other people to your pool... selling franchises, as it were... you can double, triple, or even quadruple your take-home pay without appreciably increasing your workload. ​ 
- 
-So you can turn a small amount of money into a lot.  
- 
-However, it's going to require a large investment of time. You will essentially be working two jobs, dedicating 50 hours or more to your day job, plus another 20 hours or more to your business. But it's worth it.  
- 
-For one thing, there is tremendous satisfaction in charting your own course and seeing it through. And when you begin to employ other people, and you will, you create wealth not just for yourself but for them, as well.  
- 
-Are You Ready? 
- 
-Right now, you're an employee, working for someone else. You have the security of a job with a predictable salary and benefits. But you want more. You want to be an entrepreneur,​ but you're afraid. You're not a risk taker. ​ 
- 
-That's what this How to Start a Million-Dollar Business for $25,000 series is all about. I'm going to teach you how to be a chicken entrepreneur-how to get from employee to employer without quitting your job, risking your life savings, and rolling the dice.  
- 
-You should now be ready to take your first step. In the coming essays, we are going to move at a pretty fast pace. The motivation shouldn'​t come from me; it needs to be in you for you to take the next step.  
- 
-It's your vision and action that will start you on the road to entrepreneurship. Are you ready? ​ 
- 
-Best,  
-Mark 
- 
-====== How to Start a Million-Dollar Business for $25,000 #3 ====== 
- 
-In my first How to Start a Million-Dollar Business essay, I told you that one of the fastest ways to become rich was to start your own business. Then I told you that if you wanted to start a business, you needed to be a "​chicken entrepreneur."​ What does that mean? It means you need to start small while you hold your current job.  
- 
-In these first few essays, I'm laying the groundwork that will take your business from a relative success to a true million-dollar business. Beginning with the next few essays, you are going to have to stretch yourself and make some very serious decisions. You'll also need a map to know which way to go.  
- 
-These are the principles that people have paid me thousands of dollars, and even relocated across the country, to learn. So, please, take them to heart if you are considering starting a business. ​ 
- 
-Whatever type of business you intend to start-whether it's landscaping or selling landscapes-all businesses fall into one of four categories: ​ 
- 
-Retail 
-Service 
-Wholesale 
-Manufacturing. 
- 
-You could call this an oversimplification,​ but the world of business does fall into these four categories. Each has its own pluses and minuses. ​ 
- 
-What About Retail? 
- 
-Retail is usually the first thing most people think of when they think of business. They think of restaurants and supermarkets,​ bookstores and movie theaters. The retail business often seems fun and easy. For that reason, it is very attractive. But the reality of working in the retail sector is usually very different. ​ 
- 
-There are several distinguishing features of retail that set it apart from the other business sectors in terms of how you might enjoy (or detest) the work experience: ​ 
- 
-Generally speaking, the retail business requires you to be in one place for regular periods of time. It does not allow for a great deal of flexibility in terms of hours or travel. ​ 
- 
-Being in the retail business in a serious way (serious enough to make a good living from it) means tethering yourself to a ball and chain. The ball is the store. The chain is your obligation to keep it running properly. ​ 
- 
-The most common problem retailers have is finding good people to sell the product and protect their merchandise. Finding, training, and managing retail workers is not something that can be done here and there on a hit-or-miss basis. ​ 
- 
-The retail business is heavily dependent on location. If the city you are in decides to do six months'​ worth of roadwork right in front of your store, you may go bankrupt waiting for them to finish. Your customers can find somewhere else to go, but you can't. You're chained to that location. ​ 
- 
-While this is going on, you still have to pay all of your bills, including rent, utilities, and employee expenses. You can boost sales with good marketing and sales strategies in the retail business (just as you can with any business), but you can't work miracles. The lion's share of your success will depend on walk-by traffic. ​ 
- 
-It's tough to get rich with retail. You can make a living, maybe even a good living, and you can enjoy yourself. But you can't get rich. The only retailers who are rich have thousands of retail operations. But they are not retailers themselves; they are marketers of retail operations. There is a big difference. ​ 
- 
-So if you (a) don't really like to spend time talking to people, (b) like to travel a lot, and (c) want to get super- rich, retail is probably a bad choice. 
- 
-The Service Industry 
- 
-The service industry, too, is something that quickly comes to mind when we think about business. Maybe you can start a call center. Or maybe you can hire a bunch of electricians and have them work for you.  
- 
-How much you can make depends on what service you provide. But the services that seem the most fun or glamorous usually pay the least. Why? Because of supply and demand. Plenty of bright people vying for a limited number of good positions. ​ 
- 
-Service businesses include everything from blue-collar hole digging... to middle-level technical work... to white-collar executive work... and, finally, the professions. ​ 
- 
-Yes, accountants and lawyers are service providers. So are plastic surgeons, speechwriters,​ and most entertainers. I include entertainers in this category, because they share the essential characteristic of the service sector: At the end of the day, they are charging for their time.  
- 
-Ask people who are undecided about a career what kind of work they want to do. You'll often hear "​something that involves working with people." ​ 
- 
-And that's what is good about the service business. You will, indeed, spend most of your time interacting with people. ​ 
- 
-Much of that time will be a lot of fun, in which your affability and social skills will come in handy. But some of that time will be stressful. Some of it will be downright disagreeable. ​ 
- 
-No matter how much of a "​people person"​ you may be, it's hard to enjoy yourself when some rich slob screams at you because he isn't happy with the color of the trampoline your event-planning service provided for his five-year-old'​s birthday party. ​ 
- 
-The lower ranks of the service sector are replete with high-stress,​ low-paying jobs. And the upper echelons don't pay as well as you might think in India. The average docor, for example, makes only about 10 lac rupees, so does the average lawyer. ​ 
- 
-As you can see, I'm not too hot on service-sector businesses. It seems to me that they offer a layer of fun and/or glamour but deliver lots of stressful hours at relatively modest pay.  
- 
-Service is a great entry-level business opportunity,​ because it's an easy industry to get into. If you make up your mind to do a great (not just good) job at a fair or cheaper-than-average rate, meet your deadlines, and keep your promises, you'll find yourself climbing to the top of the ladder in no time flat.  
- 
-As your business grows, you can gradually increase your fees. If you work hard to find good workers and offer them the chance to develop in their own right, your business will grow. Eventually, you won't be doing any of the actual service work yourself. You'll just develop new client relationships and renew old ones.  
- 
-Of course, the problem with the service industry goes hand in hand with its main advantage. It's so easy to get into that you will have lots of competition as your business grows. That competition will squeeze your prices, making profits tough to get and salaries low. This is especially true of the glamorous service industries such as travel and anything to do with the media. ​ 
- 
-The Wholesale Business 
- 
-Wholesale is a pretty good business, although it takes a while to develop. ​ 
- 
-["​Wholesale"​ relates to the sale of goods in large quantities, as for resale by a retailer.] ​ 
- 
-Today, the opportunity for wholesale is in China and Indonesia. Those countries can make anything made in western countries, at a fraction of the cost.  
- 
-But getting good, inexpensive products is only the beginning. ​ 
- 
-The tough part of wholesale is developing a customer list of retailers. And, unfortunately,​ your customers will eventually figure out that they can probably cut you out and buy directly from the manufacturer. ​ 
- 
-The secret is to develop unique products that others cannot duplicate. You won't be able to do this right off the bat. But over time, it's the way to go.  
- 
-Once you've developed your unique product, you'll need to sell it to retailers. This will involve going to trade shows, which can be expensive and time-consuming. ​ 
- 
-The top trade shows, for example, can cost thousands of rupees to attend. You will spend a lot of time talking with retailers and displaying your product, and you may end up with no cash-just a pile of orders to fill later. ​ 
- 
-Discouraging as it may seem, this is where you have the potential to make the big money. You could possibly take orders worth tens of thousands of rupees. (Remember, though, that you won't see the cash upfront. You'll receive payment for those orders over a long period of time.) ​ 
- 
-My Favorite Type of Business 
- 
-My favorite type of business is what I'm calling "​manufacturing."​ And in that general category, I include all sorts of things that you would not normally consider. I include, for example, publishing and the selling of natural products, nutritional products, and so on.  
- 
-Manufacturing,​ to me, is any industry in which you create the product and sell it directly to the end user.  
- 
-I love this type of business... It gives you complete control over the entire selling process-from inventing the product to closing the sale and even going back to the customer for more sales. ​ 
- 
-In this age of the Internet and globalization,​ manufacturing is a great business to be in. To create your product, you can use anyone the world over. And you can sell to the entire world, too.  
- 
-So if you don't know what you want to do but want to get wealthy while you figure things out, get into a business like manufacturing. ​ 
- 
-Action Step: It's time to take some action and decide what type of million-dollar business you will build. As I've said, I favor manufacturing,​ and I'm going to explain more in future essays. ​ 
- 
-For now, re-read what I told you about each type of business. Then decide which one you'll pursue. Finally, start making a list of all of your ideas. It's time to take action-and that's exactly what we will talk about in our next essay. ​ 
- 
-Best,  
-Mark 
- 
-====== How to Start a Million ­Dollar Business for $25,000 #4  ====== 
- 
-You're anxious to launch that business you've been thinking about for years. So what should you do first? Here's just a short list of advice I've found in the mainstream business press: ​ 
- 
-Check with your municipality to find out what permits you will need in order to operate a venture like yours. ​ 
- 
-Hire a lawyer to set up the legal structure for your business. Have him file all necessary documents with your local and state governments. ​ 
- 
-Find a great office space and fill it with furniture. ​ 
- 
-Protect yourself by registering your business name, logo, and slogan. ​ 
- 
-Print hundreds of business cards and brochures and hand them out at business functions and meetings. ​ 
- 
-Buy business insurance and "talk to an accountant"​ to make sure you're not missing anything. ​ 
- 
-Get a toll-free phone number (to give the impression that your business is much bigger than it really is). 
- 
-Does that feel right to you?  
- 
-I hope not.  
- 
-None of these legal, accounting, and operational issues are critical to your success. Handling all of them perfectly will not get your business off the ground. ​ 
- 
-By spending time and money on such issues, you delay doing the most important thing: finding out if you can sell your products at a profit. ​ 
- 
-Every business has two primary objectives: creating desirable products and selling them. Everything else is secondary. ​ 
- 
-The best way to get a new business started is to figure out how to test the validity of the business idea as quickly and as cheaply as possible. In other words, you have to figure out how to sell your products before your time, money, and patience run out.  
- 
-I cannot count how many new businesses I've seen fail because the entrepreneur did not understand this.  
- 
-When you are starting out, don't worry about getting everything perfect. There will be time for that later. Spend 80% of your time and money on testing your idea in the marketplace. For most businesses, there are many ways to do that without spending a fortune. ​ 
- 
-I talk in depth about this approach in my book Ready, Fire, Aim.  
- 
-Want to start a business selling diamond-studded collars for kitty cats? Fine. There are two ways to go about it:  
- 
-You can spend most of your time and money designing and manufacturing a line of such collars-and only then start to think about how you can sell them.  
- 
-You can make a dozen collars and go down to your local flea market or neighborhood pet shop and see if you can sell them. 
- 
-Most people start businesses the first way. That's why most businesses fail.  
- 
-But with the Ready, Fire, Aim approach, you devote 80% of your initial resources to discovering what I call your Optimal Selling Strategy (OSS) -the best way to acquire customers in a manner that creates cash flow.  
- 
-Cash flow is the lifeblood of a new business. With cash coming in, you will be able to rent an office, buy office furniture, hire a lawyer and an accountant, expand your marketing efforts, and keep coming up with new and better products. ​ 
- 
-With cash coming in the door every day, you won't have to worry about the problems that always arise in the natural course of business. You will be able to handle them as you go, devoting 20% of your time and money to getting them right. ​ 
- 
-Ready, Fire, Aim doesn'​t mean you are willing to be sloppy. Nor does it mean you are willing to sell second-rate products to your customers. On the contrary, Ready, Fire, Aim is the only truly practical way to keep your business growing. ​ 
- 
-Here, in a nutshell, is what I mean by Ready, Fire, Aim... ​ 
- 
-Ready: Get your product ready. Make it good enough to sell. Don't worry about making it perfect. There will be time enough for that later. ​ 
- 
-Fire: Start selling it. Sell it every way you can. Test different offers. Test different ad copy. Test different media. Keep testing until you discover a selling strategy that works-your OSS.  
- 
-Aim: Expand your customer base by focusing on your OSS. As your customer base grows, develop business procedures to accommodate that growth. Hire the best people you can to manage parts of your business and free up your time to test other products and services that you think your customers will buy.  
- 
-Testing is a very important part of the Ready, Fire, Aim process. ​ 
- 
-When we say we have "a great new product idea," what do we really mean? When I say it, I mean that I have a strong feeling that the product will sell well-that it will be a commercial success. ​ 
- 
-But the truth is, I have only a hunch about how well that idea will do. Experience has taught me that my hunches are often right... but not always. If I spend too much time and energy on ideas based on conjecture, what happens if my assumptions don't pan out?  
- 
-What happens is that it leaves me with nothing-no money or materials or energy-to start over again. The essence of entrepreneurship is the ability to try and fail and then try again. You can't do that if you blow your wad the first time you try.  
- 
-So here's what I do when I think I have a great business idea: I figure out how I can test that idea as quickly and as cheaply as possible. ​ 
- 
-Once I know that my idea has "​legs,"​ I can roll out a sales program. And once a successful sales program is under way, I can refine and improve the product. The truth is, I cannot perfect a product in isolation. I used to think I could, but experience has taught me the arrogance of that kind of thinking. ​ 
- 
-To get your products from good to great, you need feedback from your customers. The best customer feedback comes not from surveys or focus groups but from marketing results. You find out what your customers want to buy by selling to them. This keeps you in the Ready, Fire, Aim loop.  
- 
-If I had to pick one thing that has been most responsible for the success I've had in launching businesses, I'd have to say it was this Ready, Fire, Aim mentality. ​ 
- 
-It's something I believe in strongly. That's why I wince when I read the kind of "​expert"​ start-up advice I cited at the beginning of this essay. ​ 
- 
-Action Step: For details on this approach, read my book, Ready, Fire, Aim. To better the chances of having your business succeed, get familiar with this important process. ​ 
- 
-Best,  
-Mark 
- 
-====== How to Start a Million-Dollar Business for $25,000 #5 ====== 
-How to "​Aim"​ Your New Business 
- 
-Mark Ford, Founder, Common Sense Publishing Last month, I gave you my ready-fire-aim strategy for starting a new business. I said that for every entrepreneur who fails because of lack of preparation,​ nine never succeed because of too much of the same.  
- 
-In my view, the most important thing you can do to ensure your success is to spend 80% of your time, money, and thinking power on marketing in the first stage of your company'​s development. What you are trying to discover is what I call the "​optimum selling strategy"​- i.e., the most cost-effective way of bringing in qualified new customers. ​ 
- 
-The strategy, in short, is this:  
- 
-Ready: Find out as much as you possibly can about the marketing side of the industry you want to enter. If possible, get a job as an apprentice or intern in marketing. ​ 
- 
-Fire: Start the business and focus on discovering the optimum selling strategy. Don't worry about anything else until you've done that.  
- 
-Aim: After you are generating cash flow from sales, you can begin to aim your company. Then, and only then, should you do all of the smaller stuff, such as administrative,​ accounting, legal, office, and other issues. ​ 
- 
-But aiming is also about refining the product or service you are selling. One of the side effects of employing a ready-fire-aim strategy is that you will have made your first product without the benefit of exhaustive market studies. That's okay, because most market studies aren't worth the paper they are written on.  
- 
-The truth is you will never know exactly how your product should look and feel and work until you begin to get feedback from your customers-particularly,​ from your best customers. Then, and only then, can you make the necessary adjustments,​ augmentations,​ and refinements. ​ 
- 
-This is what happened when we started the Palm Beach Wealth Builders Club. It began when I got a letter from a PBL subscriber who said that, as much as he liked the investment advice in PBL, he didn't have the $20,000 in cash he needed to invest safely in that program. So we created a club for subscribers who were "not yet wealthy." ​ 
- 
-The original concept of the club was strong, and club members offered positive feedback from the beginning. But if you've been a member for any length of time, you know how many new programs, services, and reports we've added to it since the beginning. ​ 
- 
-In other words, we launched the club as soon as we felt "​ready,"​ knowing we were going to be "​aiming"​ it as time passed. ​ 
- 
-The following essay explains how this concept worked for someone who started a retail business. I enjoyed it. I hope you do too.  
- 
-Best,  
- 
-Mark  
-  
-The Shopkeeper Whose Customers Told Him  
-What Business He Was In 
-By Iris Bell 
- 
-Editor'​s Note: Iris Bell is a writer and graphic designer in New York City.  
- 
-Paco opened his general store on the main street of Brooklyn Heights in New York City without a preconceived idea of what his shop would feature. ​ 
- 
-When I visited it for the first time in 1967, he was selling everything from socks to toothpaste, to greeting cards. Its name, MiniMax, would work with whatever he decided to sell.  
- 
-If the socks had sold well, he might have tried bedroom slippers next and could have ended up with a shoe store. If the toothpaste had sold better, MiniMax might have been a drugstore and pharmacy. ​ 
- 
-But what his customers bought most were the greeting cards. When I first saw his shop, he had a sale to get rid of all the general merchandise. He'd set about expanding the greeting card area and over time tried out everything related to cards he could think of.  
- 
-He brought in some boxed luxury chocolates. They did well, so soon he gave over a section of his store to them. Then he tried ice cream cakes and regular cakes. Those, too, were a success. ​ 
- 
-He put out a few decorative candles, and when they sold quickly, he created one of the largest selections of them in the city. He offered some stuffed animals. They sold well, and he added more, from many manufacturers. ​ 
- 
-Taking Risks in the Search for More Business 
- 
-This was the MiniMax pattern of changing and growing that continued for decades. Most other shopkeepers would have decided they'd found a formula that worked and stopped experimenting with other kinds of merchandise. ​ 
- 
-Paco was always trying something new in a portion of his shop. Anything that didn't work made a quiet, quick exit. I can't remember the things that didn't make it. There were many, and they gave Paco the information he needed. He wasn't afraid of those as failures; he was just searching for what his customers wanted. ​ 
- 
-Paperback books appeared, grew to fill almost a third of the store, and then disappeared in favor of other merchandise. ​ 
- 
-His shop became the place to visit for invitations,​ napkins, etc., if you were giving a party. Paco featured every holiday season with special merchandise. For Christmas, he contacted craftspeople in the area and had them make ornaments just for his store. For collectors of ornaments, MiniMax was worth a trip from any place. ​ 
- 
-Card Shop to Gift Shop 
- 
-Paco began selling a few gift items, and soon he offered a wide selection. There were items such as candy dishes, clocks, salt and pepper shakers, pen holders, and wine glasses. The shop was small, and he knew there was a limit to the number of items he could display. ​ 
- 
-A Unique Display Plan 
- 
-He developed a new type of gift shop display that allowed him to offer hundreds of items yet not look crowded. His method was to put out only one of each item. All of the backup stock was in the basement. Another effect of this was that each item looked special, rather than being one of dozens just like it in a group. ​ 
- 
-He'd recently come from Cuba and had many younger nieces, nephews, and cousins who'd come here, too. He hired lots of them as clerks. ​ 
- 
-When a customer wanted a particular item, he or she would tell a clerk, who'd run downstairs and return with the item in a box. The clerk would open the box, inviting the customer to inspect it.  
- 
-Paco grouped these items in the display area by color... all of the silver and crystal items together... next to the black and white items... next to the red items, etc.  
- 
-Even though Paco had filled the shop with hundreds of items, they looked elegant in their artistic arrangements. Paco offered far more items than other gift shops, without the shop looking crowded. ​ 
- 
-Using a Prestigious Name 
- 
-Paco was selling the top greeting card line, Hallmark. He had a giant sign made for his storefront, featuring both Hallmark and MiniMax. When the Hallmark salesman visited, he told Paco that Hallmark allowed only the few Hallmark- owned shops to use the name on the sign and that he must take down the sign.  
- 
-MiniMax was a top seller of Hallmark cards, but that didn't give him the right to use the Hallmark name. Paco explained that he was sure featuring the Hallmark name on his sign helped him sell his high volume of cards. ​ 
- 
-Paco worked out a deal with the Hallmark corporation. Paco could keep the Hallmark name on his sign. In exchange, he'd welcome the groups of card shop owners Hallmark would fly to him from all over the U.S. He'd show them his method of displaying one of each gift item.  
- 
-To this day, all Hallmark shops display their Christmas ornaments this way. They feature one of each, with the stock of boxed ornaments tucked away.  
- 
-Ever­Changing Store Layout 
- 
-The shop layout at MiniMax was always changing, as Paco tried merchandise in different parts of the store, tried out different kinds of shelf systems, removed walls, etc.  
- 
-More Businesses 
- 
-When the shop next door became available, he rented it and opened a bakery specializing in birthday cakes and fine desserts. In time, he added a restaurant to the bakery in that space. ​ 
- 
-Then he turned a storage room in the back of the restaurant into a festive space he rented for both children'​s and grownups'​ parties. ​ 
- 
-Next, he created a glass-enclosed sidewalk cafe with a popular weekend brunch. ​ 
- 
-He filled the cafe with flourishing hanging plants. And in the back of the restaurant, Paco placed a piano for live entertainment in the evenings. ​ 
- 
-What would happen next... Would he begin selling potted plants and end up opening a flower shop... Would he add more musical performers and move into offering concerts? ​ 
- 
-Then Stillness 
- 
-Something even more unexpected happened... He sold the shop to a cousin. The cousin obviously wanted to play it safe and didn't change a thing from that moment on. MiniMax froze just as Paco left it. There were no new products, no new display counters, no new thinking. ​ 
- 
-The shop's heart and brain were gone, and of course, the business began to shrink. First, the restaurant and bakery closed. Later, the gift shop shrank, and the cousin sublet some of its space to other retailers selling cell phones and such.  
- 
-Watching the stillness settle over MiniMax was another way to appreciate the creativity of Paco, to be reminded of how unique MiniMax had been. The customers never again had a chance to "​vote"​ on new products. And now it's gone.  
- 
-Other Businesses in the MiniMax Model 
- 
-In the years since watching MiniMax flower, I've enjoyed watching the growth of a few other stores that weren'​t wedded to being any one type of business. These are two of my favorites. 
- 
-ABC Carpet in Manhattan had been a carpet store for three generations. The fourth generation was a young woman who enjoyed shopping for unique decorative household items when she vacationed around the world. ​ 
- 
-Her father suggested that on her next trip, instead of buying one of an item, she buy multiples of it. He gave her a sales table on one of the eight floors of carpets. ​ 
- 
-I first visited ABC Carpet a few years after that. By then, two whole floors were already selling only the daughter'​s unique decorative household items... not a carpet in sight. ​ 
- 
-Slowly, the daughter'​s merchandise took over the store until today, when only one floor sells carpets. Other parts have been rented to many houseware companies. ​ 
- 
-The shop has been renamed ABC Carpet & Home. ABC Carpet & Home's main floor once had a gourmet grocery, and at another time, there was a large area selling potted plants, but those are both gone. That's part of the correction that comes with this type of risk.  
- 
-Now part of the main floor has a stationer, jewelers, women'​s accessory shops, a bakery, and three restaurants,​ plus ever-changing shops on the balcony. ​ 
- 
-ABC Carpet & Home is alive and changing. The daughter married a man recognized as one of the greatest retailers of our time. They divorced, and he has a shop in L.A.  
- 
-Who'd have expected that an old-line carpet store would become the place to buy freshly made bread? ​ 
- 
-Eli Zabar'​s E.A.T. was a gourmet grocery store on Madison at 72nd Street in New York City. Ralph Lauren bought the building, and E.A.T. moved further up Madison, discovering a long-forgotten brick oven in its space. E.A.T.began baking some of the finest breads, then added a restaurant. ​ 
- 
-When the shop next door became available, Eli Zabar opened a children'​s gift and toy store there. ​ 
- 
-Going further uptown, he opened the Vinegar Factory grocery with a restaurant and a splendid florist. ​ 
- 
-At the west end of that block, he has a bakery, supplying bread to more than 1,000 shops and restaurants. He uses heat from the bakery to grow vegetables and herbs on the roof year-round. ​ 
- 
-Like MiniMax, all of his shops are continually changing, with different product mixes and different decor. Eli Zabar is giving his customers the chance to "​vote"​ on his tastes in many areas. ​ 
- 
-Who'd have expected that a shop once known for importing exotic cheeses would now also be the place to buy sweet stuffed animals and children'​s furniture? ​ 
- 
-These shops all seem sensible now because they exist, but they follow no historic pattern. Each grew from a series of experiments by a shop owner. ​ 
- 
-Each shop offered the public a chance to buy from a unique mix of products and got a big "​yes"​ in their cash registers for most of the items. Every visit promises surprises, because no one can predict what they might offer next.  
- 
-Copyright 2012 Iris Bell  
- 
-********************************************* ​ 
- 
-Editor'​s Note: 
- 
-When starting a business due-diligence is essential. That's the aiming process, so you know which direction to head in.  
- 
-But where many businesses falter is keeping up with diligence after the business is launched. 
- 
-Our context is changing rapidly, the market is fluid, and technology often becomes outdated before you've even had the chance to '​update your status'​. ​ 
- 
-When I was taking a class on entrepreneurship,​ a professor at the University of Pennsylvania once told us about a product he developed: an image search technology where big brands paid him big bucks to search the Internet for unauthorized use of their logos, and take legal action. ​ 
- 
-When Google Image Search was launched, suddenly his product was completely obsolete, because brands could now do what they were paying him to do, for free.  
- 
-He would have had to shut down overnight. But he did not. Because he had his finger on the pulse, he knew what was going on in the market, and had developed various related services to keep himself valuable and ahead of the curve. ​ 
- 
-So keep your ear tuned to what's going on around you. If you think 'okay I have a product now, it's fine as it is, let's just try to sell it', your product will stagnate over time.  
- 
-Whether its greeting cards, cameras (Kodak couldn'​t keep up with the digital age and now they are out of business) or social media (remember Orkut? Completely wiped out) if you're not moving ahead, then you will fall behind. ​ 
- 
-You need to keep changing, developing, innovating, to keep pace. The world keeps moving, and you must too.  
- 
-To your entrepreneurial journey, ​ 
- 
-Anisa Virji  
-Managing Editor, Wealth Builders Club  
- 
-====== How to Start a Million ­Dollar Business for $25,000 #6 ====== 
-We've covered a lot of ground so far in our "How to Start a Million-Dollar Business for $25,​000"​ series. In the first few essays, we discussed the benefits and challenges of entrepreneurship,​ how to ease into it without too much risk, and the four main types of businesses. ​ 
- 
-Recently, I told you about my "​Ready,​ Fire, Aim" concept- the importance of getting your business up and running, rather than wasting too much time trying to make everything perfect. ​ 
- 
-Today'​s essay is about your business idea and a common mistake many would-be entrepreneurs make.  
- 
-The Importance of the Idea 
- 
-It's hard to say which comes first-the desire to be an entrepreneur or the germ of an idea for a business. Obviously, you need both.  
- 
-The idea can come from anywhere. It can be the result of an experience you faced in the marketplace,​ or it can be something to do with a hobby or passion you have. And the two sides of the initial decision of what business to get into are this:  
- 
-First, you need to know a lot about the subject. When I say a lot, I mean you should be able to write a book about it. If not at first, then at least before you start investing in it.  
- 
-Second-and this is more important than you might think-you need to be interested in it. You are going to be married to this idea. You are going to be sacrificing time and investing resources into it. If the whole concept does not keenly and seriously absorb you, you won't last long. You won't be able to maintain the momentum it takes to go through the process of developing and running a multimillion-dollar business. ​ 
- 
-But if the idea excites you and you want to know everything you can about it, you'll be ready to dig in and put your time and money into it. You'll enjoy the process and, even more, you'll be gratified when your business serves a need in the market. ​ 
- 
-Now, let me stop right here and do a little balloon bursting. ​ 
- 
-If you've been scanning the entrepreneur news for long, you may be on the "do what you love" bandwagon. I'm all for having a passion for what you do, but only to a point. "Doing what you love" can be a big mistake, unless you keep it within certain guidelines. ​ 
- 
-Let me give you some caveats on deciding what your business will be...  
- 
-Separating Your Passion From the Reality of the Marketplace 
- 
-I can't stress this point enough. You might think the world will beat a path to your door to buy your product, especially since there'​s nothing else like it in the marketplace. You've got visions of selling your wares like hotcakes and watching the money roll in. No one's ever heard of your breakthrough idea, but once they do, they'​ll have to have it, right? ​ 
- 
-Not necessarily. If you're filling a true gap in the market, it might be true. But if your product doesn'​t already exist, there might be a good reason for it... no demand. ​ 
- 
-You must realize that if there is no demand for your product, you won't have any buyers. Entrepreneurship is not a case of "build it and they will come." No matter how passionate you are about your idea, the market, not you, decides what sells. ​ 
- 
-A prime example is the online grocery business that was called Webvan. Owner Louis Borders was already a successful entrepreneur (Borders bookstores),​ so he was able to attract a lot of startup capital. And because he was so sure of his idea, he spent it all on a distribution system of warehouses and delivery trucks. Then reality set in.  
- 
-People weren'​t as quick to change their shopping habits as Borders thought they would be. He had banked on the idea that people would choose convenience over time spent going to the grocery. And that they would pay not only full retail price but also a delivery charge. ​ 
- 
-That wasn't the case. If Borders had tested the market, he would have found that people like to shop for specials when they go grocery shopping. They also go to the market several times per week, because they often don't plan meals in advance. ​ 
- 
-One big delivery order at a premium price doesn'​t meet the customer'​s need. And then there'​s the fact that most people like to squeeze their own tomatoes before buying them... ​ 
- 
-Borders built it, but they didn't come. And with the profit margin in the grocery business being razor thin (he didn't have the power of volume buying on his side), the business tanked. When it closed, 2,000 people lost their jobs.  
- 
-As you can imagine, Borders has had a hard time living down this spectacular failure. It's easy to say in hindsight that he should have known better. But if you're ever going to learn from someone else's mistakes, this is a good one. It really drives home the point that you need to build your business slowly to minimize risk.  
- 
-You need to determine exactly what works-and what doesn'​t-before you blow all your capital. You need to make sure there'​s a place in the market-not just in your own mind-for your passion. ​ 
- 
-The Conceit of Outside Knowledge 
- 
-One of the most common mistakes made when choosing a business venture is thinking you know things you don'​t. ​ 
- 
-For instance, you might enjoy dining out. You eat at restaurants several times per week. In fact, you've dined at some of the finest eateries in the world on your travels. It seems only natural that your passion for great dining experiences and all the time you've spent in restaurants would lead to opening a restaurant of your own... ​ 
- 
-The problem with this thinking is that you are going on "​outside knowledge."​ Your experience, vast though it may be, has been as a customer, not as a business manager or owner. Your experience feels deep and certain. But it isn't. It's specious. And rather conceited. ​ 
- 
-I am not immune to this mistake myself. I once partnered in a restaurant because I had the hubris to think that my own dining history qualified me to run one. And a colleague, George, an architectural designer, almost helped me make it worse. ​ 
- 
-Like me, George thought he knew the restaurant business because he had spent many years frequenting fine dining establishments. When I gave George a tour of my place, he suggested doubling the size of the kitchen. My partners and I were keen on the idea because we also thought the kitchen was too small. ​ 
- 
-Fortunately,​ I got a couple of expert opinions. I hired two friends who had been running restaurants for years to do an analysis. Imagine my shock when their report showed that the present kitchen was fully capable of handling three times the traffic we expected to have!  
- 
-As proof, the report included a diagram of how to better organize the kitchen space. The map showed where every sink, stove, storage unit, and cooking pan should go. It boggled my mind because it was so counterintuitive to me. I'd based my own ideas on kitchens I knew-household kitchens. ​ 
- 
-But that's not how an industrial kitchen works. A restaurant kitchen equipped to produce 200 meals in three hours is a very different thing. It's not a family space; it's an assembly line. And it needs to be set up like one.  
- 
-That's a classic example of the conceit of outside knowledge, which is why I am no longer in the restaurant business. Just think of how many people have jumped into business simply because they think they understand something they do not.  
- 
-Typical businesses that fail due to this mistake include: 
- 
-Restaurants 
-Travel agencies 
-Vacation tour operations 
-Bed-and-breakfast enterprises 
-Art galleries 
-Gift shops 
-Antique stores 
-Bookstores 
-Coffee shops 
-Sports-related businesses. 
- 
-If you're tempted to start a business in a field you have never worked in, be aware that much of what you do in the beginning will likely be wrong. Ask yourself if you have the resources-human,​ capital, and emotional-to push the business forward after you suffer from your mistakes. ​ 
- 
-Thanks for all of the work you're doing and sharing your knowledge with others. Club member RS. 
- 
-There'​s no better foundation than building on what you know. You might be drawn to the rush of something new and exciting, but your chances of success decrease with every step you take away from what you're familiar with.  
- 
-If you want to be a successful entrepreneur,​ I say go for it. But do your homework and build on what you know.  
- 
-Next Steps 
- 
-To improve your chances of success, I want you to ask yourself the following questions. And be honest. It's better to discover that your business may not be right for you, or the market, earlier, rather than later. 
- 
-Is my business idea something I truly love? Can I spend 15 hours per day working on it? For the next 20 years? ​ 
- 
-What demand is my idea meeting in the marketplace?​ Am I sure someone else hasn't already had this idea? If they have, are they making money at it? If not, why? How will my idea be different from theirs? ​ 
- 
-What evidence do I have that anyone will actually spend money to buy my product or service? (Remember, just because you think you have a great idea doesn'​t mean anyone else will.) ​ 
- 
-Do I actually know the business I'm considering?​ (As was my case in my story above, just because you eat at nice restaurants doesn'​t mean you're able to run a nice restaurant.) 
- 
-I hope you won't rush your answers. Going through this process has helped me every time. I'm certain it will help you too.  
- 
-Best, Mark 
- 
-====== How to Start a Million­Dollar Business for $25,000 #7: Business Is Selling ====== 
-Today, we pick back up with our "How to Start a Million-Dollar Business for $25,​000"​ series. As you know, starting businesses or investing in people who are starting businesses is the primary reason for my wealth today. ​ 
- 
-If you want to become wealthy in seven years or less, you have to seriously consider starting a business. ​ 
- 
-In our last few essays, we covered the four main types of business, the importance of getting your business up and running (rather than trying to get it perfect), and, most recently, a common mistake many first-time entrepreneurs make: choosing a business that you think you know about when you don'​t. ​ 
- 
-I made this mistake personally. I partnered in opening a restaurant because I had the hubris to think that my own dining history qualified me to run one.  
- 
-Today, we're going to keep going in our series, discussing "​selling." ​ 
- 
-Just about anyone can start a business. But there'​s an important caveat - and it jumped to mind when I got an email from Lynn, who wants advice on starting a newsletter. She writes: 
- 
-I've worn many hats, juggled them off and on in my years as mother, grandmother,​ realtor, concessionaire,​ and artist retailer/​wholesaler. Love, divorce, custody issues, death, inheritance,​ bankruptcy, accidents, health issues, friendship, betrayal. ​ 
- 
-I've either been through it or carried someone through it.  
- 
-What I seem to do best is calm nerves and give good advice, to the point  
- 
-where it often interferes with other endeavors. I've seriously thought about copywriting/​ Internet ideas, but I'm wary of selling things. ​ 
- 
-It seems that, among family and friends, at least, I am the oracle of issues, the witchy­woman matriarch with the final answer. The trendy term "life coach" isn't quite it. I want to be like an email comforter. A listener of last resort. A sounding board. ​ 
- 
-It's the only thing I think I'm really quite good at. Could this be a business? 
- 
-Yes, it could be a business. But not if you are leery of selling. ​ 
- 
-Business is selling. You can't make money unless you sell something. As Robert Louis Stevenson said, "I find it useful to remember, everyone lives by selling something."​ So the first thing Lynn needs to determine is what it is she is going to sell. People will pay for comfort... but not if it's billed as comfort. Think about what therapists do. They charge pretty good money to give people comforting advice. ​ 
- 
-Yes, there are some who deliver discomfort, but they don't stay in business very long. People pay money to have their therapists make them feel good. If you've ever been in therapy with a good therapist, you already know that.  
- 
-I've been reading every email coming my way from Wealth Builders Club, especially the ones relating to How to Start a Million­Dollar Business for $25,000. Being a member of the club is a real lifeline! . Club member EF. 
-But if therapists said that they were in the business of comforting their clients, no one would take them seriously. And no one would pay them lots of money for this advice. ​ 
- 
-Rather than advertising what they are really selling, therapists advertise their methodology (Freudian, behaviorist,​ etc.). Or they sell the type of "​problems"​ they deal with (addiction, various disorders, etc.). ​ 
- 
-Since Lynn isn't a trained psychotherapist,​ she can't honestly advertise those sorts of things. So she will have to come up with her own ideas about why people get themselves into trouble and how they can find solutions. ​ 
- 
-These ideas will eventually form into a unified whole. This unified whole is what we call an "​intellectual franchise."​ That's what Lynn needs to develop. And then she needs to test it and see if it sells. ​ 
- 
-Remember, starting a business and making it a success is not just a matter of having a good idea. The idea has to be one that people will be happy to pay money for.  
- 
-So if you are in Lynn's position - looking to turn your idea into a profitable business - you have to become okay with selling. ​ 
- 
-How do you develop the skill of selling when you are "​wary"​ of selling, as Lynn puts it?  
- 
-The first step is to understand that there are really two kinds of selling: 
- 
-Pushing people (to buy things they don't want)  
- 
-Helping people (to select those things they do want to buy). 
- 
-Pushy salespeople - the telemarketer who calls while you're eating dinner, the broker who calls on the weekend with a "hot deal," the proverbial used - car salesman - love persuading you to do what you don't want to do.  
- 
-Such salespeople see selling as a kind of battle. They bully and beat you into submission. It's an ego game, and your acquiescence - even if you really do want the product - indicates submission. ​ 
- 
-Such salespeople should be tarred and feathered, run out of town, dunked, and pilloried. ​ 
- 
-They are the same people who delight in not letting you merge in traffic and cutting ahead of you in the supermarket line.  
- 
-Helpful salespeople are actually more common than their obnoxious cousins. ​ 
- 
-If you understand that the job of a salesperson is to solve a customer'​s problem or help him meet a need, selling won't seem so odious to you.  
- 
-Let's say your prospect'​s main concern is the future of his marriage. What you would do, in this case, is ask him questions and find out, in as much detail as you can, what his worries are. You're then in a great position to address each concern to explain how your product (in Lynn's case, her advice) can give him effective solutions. ​ 
- 
-By driving home the benefits of your product that the prospect cares about, you make a strong sales presentation. You are telling him exactly what he wants to hear.  
- 
-Remember - your prospect wants to be sold. As long as you help him understand how your product can help him achieve his desires or solve his problems, he will be prejudiced in your favor. You lose your prospect when you start talking about other things - product features that he doesn'​t really care about. ​ 
- 
-So don't sell him. Help him. Begin by finding out what he wants and needs. And then (if and only if you can really help him), make the strongest, most specific case you can. Convince him that with your help he'll achieve his desires and solve his problems. ​ 
- 
-Once you've figured out how to sell your product and have gotten over your distaste of selling, you need to start testing... preferably on the Internet. Don't spend a lot of money building your business or idea before you know it works. Keep testing until you find some way to position the product that catches on.  
- 
-And then, to grow your business, you will have to produce lots of products that tie into your initial business idea. And you'll need to send lots of sales letters to convince people to buy them.  
- 
-Does this sound like something you can do? If so, you are on your way!  
- 
-Your Optimum Selling Strategy 
- 
-You should know by now that selling is not optional for your business; it's essential. ​ 
- 
-When your business is just an idea, it is impossible to know with certainty what specific selling strategy will work best.  
- 
-Should you advertise on local radio programs? What about television? Should you buy space ads in local newspapers? How about Internet strategies such as pay-per-click advertising or search engine optimization? ​ 
- 
-These are questions you may be asking right now.  
- 
-To determine the optimum selling strategy for your business, you need to answer four questions: 
- 
-Where are you going to find your customers? ​ 
- 
-What product will you sell them first? ​ 
- 
-How much will you charge for it?  
- 
-How will you convince them to buy it? 
- 
-Four answers to four questions - very simple, or so it seems. There is a catch, though: You need to answer all four, not just some of them.  
- 
-Question #1: The first question every entrepreneur must ask is a question of location: "Where will I find my customers?" ​ 
- 
-My best advice will not stir or inspire you. It may even disappoint you. But it is my best advice: Do what everyone else is doing. I am a big believer in originality,​ but when it comes to answering most of the basic questions about selling your product (the four questions listed above), the best answer will always be this: Imitate the norm.  
- 
-So how do you find out where successful companies in your industry are sourcing customers? ​ 
- 
-It's relatively easy. Start by looking in all the likely places. If you were selling shoes, for example, tour the shoe shops, go to the bookstore and browse all the fashion magazines, and watch style-related shows on TV. Search online to see what websites, articles, or blogs you come across. When you do each, take note of the advertisers. ​ 
- 
-The best ad locations for your competitors will probably be the best locations for you too.  
- 
-Question #2: What product do you sell them first? ​ 
- 
-After figuring out where your customers are, selecting the right product to sell them is next. Starting with a single product in mind is usually a big mistake. ​ 
- 
-There are five simple steps to creating a product that can launch a business: 
- 
-Find out what products are currently hot in the market. ​ 
- 
-Determine if your product idea fits that trend. ​ 
- 
-If it does, you're set to go. If it doesn'​t,​ follow steps 4 and 5.  
- 
-Come up with me-too versions of several hot products. In essence, a "​me-too"​ version is just a copycat. It's your take, your spin, on the hot product. But it must... ​ 
- 
-Improve the hot product in some way by adding features or benefits the originals lack. 
- 
-Question #3: How much should you charge? ​ 
- 
-For every product, there is an optimal selling price. This is the price at which the selling campaign yields the greatest profits. The price you charge for your product has a major impact on sales - an impact that is third only to the media you use and the appeal of the product itself. ​ 
- 
-Your instruction is clear and more thorough than anything else I've read. Thank you for sharing your ideas and knowledge. I really enjoy the integrity and passion of your efforts. Keep up the great work. . Club member KK. 
-Choosing the price is fairly easy. You should start-as you did with media and product- by finding out what competitors are doing. ​ 
- 
-If your competitors'​ widgets sell for Rs. 500, consider selling yours for 500 too.  
- 
-Question #4: How will you persuade customers to buy your new product? ​ 
- 
-This requires more time and subtlety. ​ 
- 
-Finding out which media will work for you is quick and easy. But the copy platform, the actual sales message, is tougher. ​ 
- 
-When you are starting your business, you may have a few ideas about how to sell your product-what features and benefits to emphasize and what words to use. But the only way to find the best copy platform is by testing it.  
- 
-Whenever I work with a client to launch a new product, we test as many new media as we can at two or three different prices. And we use at least two completely different copy platforms. ​ 
- 
-As always, if you have little experience in crafting winning copy, a financially valuable skill, you can learn how by following the principles set out in the Accelerated Six-Figure program through AWAI. We wrote about copywriting and this great program here.  
- 
-In short, business is selling. You can't make money unless you sell something. And remember, the idea has to be one that people will be happy to pay money for.  
- 
-For those of you averse to "​selling,"​ keep my definition of selling in mind - that is, selling is "​helping people select things they already want to buy." It's not harassing people, as telemarketers do. Selling is easier once you adopt the mindset that you're helping people. ​ 
- 
-After you've accepted that to start a business you're a salesperson,​ your next step is to determine your optimum selling strategy, as I've outlined above. Do this by answering the four questions I identified. Don't skip any. Give them good thought. Going through this process provides an essential framework for your business. ​ 
- 
-Take the time to either write or type out your answers. Forcing yourself to do this - rather than just answering them in your mind - requires you to think through your answers more completely. The result is better answers. ​ 
- 
-Remember, "​now"​ is always the best time to start. ​ 
- 
-Best,  
-Mark 
- 
-====== How to Start a Million-Dollar Business for $25,000 #8: A Guide for Becoming a Marketing Genius ====== 
- 
-I got an email from a man I'll call J. His question is probably the most common one I get.  
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-J writes: ​ 
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-"I have been struggling with the idea of starting my own Internet-based business. I would like to start small with some proven methods and techniques and build from there. ​ 
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-"I do not have countless thousands of dollars to experiment with, nor do I have the luxury of being able to sit in front of my computer day in and day out. I need your help to get me started in the right direction with a system that will hopefully start generating some return fairly quickly. ​ 
- 
-"​Please help me make this the year I finally take the plunge and start achieving success!" ​ 
- 
-Introduction to Direct-Response Marketing 
- 
-If you are not an expert at direct marketing, you should become one before you spend a rupee on your new business. ​ 
- 
-Direct-response marketing means that you attempt to persuade your prospect to respond directly - in some specific way - to your sales effort. ​ 
- 
-Typically, direct-response marketing includes direct mail, direct advertising,​ freestanding inserts, direct radio, direct television, Internet advertising,​ and so on.  
- 
-Direct-response marketing differs dramatically from conventional advertising in that conventional advertising is primarily concerned with promoting awareness of and interest in a product or service. It does not attempt to stimulate a direct response. ​ 
- 
-Thank you for your informative,​ educational,​ and wealth-building articles. I have greatly enjoyed my subscription to the Wealth Builders Club. Club member LJ. 
-It takes a lot of talent to get someone to respond directly to your sales proposition. Since you don't have the advantage of personal contact, you must employ a battery of psychological techniques to substitute for the intimacy and personal power you could create in a one-on-one selling situation. ​ 
- 
-These psychological principles are the foundation of all selling, but they are easiest to understand (and most necessary to employ) when you are separated from your prospect by a television, computer, radio, or the postal service. And that's why I favor direct-response marketing. If you master that, you have the basis for mastering all other forms of selling. ​ 
- 
-The Skills You Need to Be a Direct Marketing Master 
- 
-To be a successful direct marketer, you need: 
- 
-A good understanding of why and how people buy things ​ 
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-The ability to make a big, tempting promise ​ 
- 
-The skill to show that promise as a picture, to advance it with propositions,​ and to support those propositions with proof  
- 
-The ability to distinguish between features and benefits. 
- 
-We are going to go through each of these quickly. Don't worry if you don't quite get them all. We will come back to them in the future, again and again. ​ 
- 
-Why People Buy Things - A Marketer'​s Perspective 
- 
-Let me put it as a fact: We buy most things not because we need them but because we want them.  
- 
-Sure. You buy food because you need to eat. But if you buy anything other than generic foodstuffs, you are paying extra money to satisfy your wants. ​ 
- 
-Housing? Yes, you need shelter. But you don't need that duplex you've had your eye on.  
- 
-Clothing? Loincloths went out years ago.  
- 
-Rule: The secret to selling is to create in your prospect a desire to buy that is so strong that it feels like a need.  
- 
-Here's how: 
- 
-To make a sale, you need to make a promise. And that promise has to relate to something your prospect wants. ​ 
- 
-If you owned a butcher shop, it wouldn'​t do much good to put a sign on your window that said, "Dead Cow Meat for Sale." If you were even dimly aware of the psychology of selling, you'd probably do something more like "Prime Choice Steak Now on Sale." ​ 
- 
-You've got to make a promise. And the promise should be big enough and strong enough to attract a lukewarm prospect. Remember, success happens at the margins. It is easy to sell to those who are predisposed to buy what you're selling. It is impossible to sell to those who are steadfast against it.  
- 
-The difference between mediocrity and success lies in between-in selling to those who are neither pre-sold nor dead set against it - the people in the margin. ​ 
- 
-To make your promise vivid, transform it into a picture. ​ 
- 
-If, for example, you were selling chocolate cake, you might want to show your prospect a picture of the cake itself, with a slice overturned and a nice tall glass of milk or cup of coffee on the side.  
- 
-If you were selling something more complicated than cake (such as membership in a music club), you would need to create a subtler, more sophisticated picture (one in which the prospect sees himself enjoying and benefiting from the music). ​ 
- 
-To advance your selling effort, you need to make certain propositions or claims. ​ 
- 
-If cake were the product, you might claim that it is light and sweet or thick and creamy. ​ 
- 
-You would then need to support such claims with proof. ​ 
- 
-Perhaps you make your cake with only natural ingredients or that it won the food critics award for delectability,​ etc. 
- 
-People Buy Things for Emotional Reasons 
- 
-To sell things, you need to stimulate those emotions. ​ 
- 
-To stimulate your prospect'​s feelings, present not the features of the product/​service,​ but its benefits. Tell your prospect how the product/​service will help him. Show him how that will happen. ​ 
- 
-I am really enjoying the issues I am receiving from you guys. Club member TM. 
-For example, the features of a particular sports car might include power steering, an oversized engine, and an advanced breaking system. The benefits would be the ability to take a tight corner, to hit 60 miles per hour in five seconds, and to stop on a dime.  
- 
-By focusing on what's in it for the prospective driver - and not what's in the car itself - you can evoke the deeper feelings (I want to be seen as powerful, sexy, wealthy) needed to make the sale.  
- 
-How to Create Your First Advertising Campaign 
- 
-There must be a Compelling Idea.  
- 
-The Compelling Idea for an advertising campaign comes from your product'​s unique selling proposition (USP). If the USP is strong, the Compelling Idea will be strong too.  
- 
-Then there'​s the Big Promise. ​ 
- 
-The Big Promise comes from the Compelling Idea. If the Compelling Idea is the right kind of Compelling Idea, it will have a Big Promise contained within it.  
- 
-You base your specific marketing scheme on that Big Promise. If the Big Promise is big enough, you won't have any trouble coming up with dozens of claims that will excite your potential customers and persuade them to buy your product. ​ 
- 
-Here's a checklist to walk yourself through the process: 
- 
-Make a list of every feature of your product that you can think of.  
- 
-Make a separate list of every possible benefit those features can provide. ​ 
- 
-Identify a rising trend in your market - a trend that is just beginning. ​ 
- 
-Ask yourself: "Which of my product benefits could tie into that trend?" ​ 
- 
-Identify those benefits as potential USPs.  
- 
-By talking to experienced industry professionals and interviewing potential customers, find out which of your potential USPs are the strongest. ​ 
- 
-For each of those strong USPs, create a Compelling Idea.  
- 
-For each of those Compelling Ideas, create one or several headlines that express a Big Promise. ​ 
- 
-Working with a copywriter, make a list of claims for your product, including proof of those claims. ​ 
- 
-Get at least two versions of the advertisement written - each version expressing a different copy approach - and test them.  
- 
-Take the version that works best, and make that the basis of all your sales and marketing efforts. 
- 
-As you roll out an advertising campaign, make plans to start the process again so you can keep your selling ahead of the market. ​ 
- 
-Best,  
-Mark 
- 
-====== How to Start a Million-Dollar Business for $25,000 #9: Innovate or Die ====== 
-In 1982, members of the pop band Tommy Tutone wrote "​Jenny,"​ a song about a guy desperately trying to get in touch with a girl named, of course, Jenny. ​ 
- 
-It was at the top of the music charts for 40 weeks and made the band members rich and famous. At least for a while. ​ 
- 
-A couple of years - and a failed follow-up album - later, the lead singer was making a living as a software engineer, while his band mates were reduced to playing in bars. The band's problem? They never wrote another hit song - not even a remotely popular one.  
- 
-In musical history terms, Tommy Tutone was a one-hit wonder. ​ 
- 
-[A one-hit wonder is a person or act known mainly for only a single success.] ​ 
- 
-In the world of entrepreneurship,​ we have one-hit wonders too. In fact, they are probably more common among entrepreneurs than they are in the music industry. ​ 
- 
-Tomima Edmark, a Dallas entrepreneur,​ is a good example. He released the Topsy Tail hairstyling gadget to widespread acclaim in 1992. Despite several attempts, he never produced another hit product. ​ 
- 
-Other famous one-hit wonders include Victoria Secret'​s founder Roy Raymond, who went bankrupt after founding a failed children'​s clothing line.  
- 
-Are You a One-Hit Wonder? 
- 
-The thing about being a one-hit wonder is that you don't feel like you are one while it's happening. You feel like a big success. You've created or sold a product and it's doing really well. Your business is growing. You are making plenty of money. It feels like you are living the dream. But then, suddenly, you lose everything. ​ 
- 
-One-hit wonders often fail because they put all of their eggs in one basket. They have the wrong idea about how to build a business. They'​ve seen movies and read books that depict one-hit wonders - people getting rich and living happily ever after because of a single invention or product - and they buy into it.  
- 
-Business in the real world doesn'​t work that way. To develop a thriving business, you must produce new products and advertising campaigns all the time. You have to put the people and processes in place to continuously produce more and more. You can't stop or even rest just because you've had a single success. ​ 
- 
-I wanted to thank Mr. Ford for his amazing essays! I feel a HUGE change already in my mindset and I have managed to take some action as well. Please thank Mr. Ford for sharing his knowledge, and I look forward to his future insights and instructions. Club member Salman H. 
-You have to recognize that things change as time passes. If you are still trying to sell yesterday'​s products tomorrow, after things have changed, you will be slammed so hard you won't know what hit you.  
- 
-I've not done any formal research on this, but I'd bet that most "​successful"​ businesspeople are one-hit wonders, either actual or in waiting. ​ 
- 
-I can think of a half-dozen people I know- including a few friends of mine-who are running one-hit wonder enterprises. They are happy as can be because they are making money and keeping busy.  
- 
-But when I look at their businesses, even from the outside, I can see the writing on the wall: Sooner or later, their one product, promotional scheme, or market will change, and their businesses won't have any way to adjust to it.  
- 
-At first, sales will slow gradually. And they will respond by cutting costs and laying people off. "​Things will turn around soon," they'​ll tell themselves. But things won't turn around, and their profits will disappear. Eventually, they will close down their businesses and wonder what went wrong. ​ 
- 
-Are You in Danger? 
- 
-Your business may be working fine right now. But if you have too many business assets in one basket, you may be a one-hit wonder in waiting. Ask yourself the following questions: 
- 
-How many products do I sell right now?  
- 
-How many new products have I sold since I began? ​ 
- 
-How many new products have I sold per year since I began? ​ 
- 
-How many new products have I sold in the last three years? ​ 
- 
-How big was my production budget three years ago?  
- 
-How big is it today? ​ 
- 
-How big was my marketing budget three years ago?  
- 
-How big is it today? 
- 
-It should be easy to pinpoint where you're at. The more products you have and the more growth you've experienced,​ the further you are from being a one-hit wonder. ​ 
- 
-The problem with the one-hit mindset is that it can't imagine good things going bad. It has no capacity to understand the universal principle of entropy - everything naturally disintegrates. ​ 
- 
-The one-hit mind believes it deserves any success enjoyed. Perhaps it's even divinely given, and therefore destined to last a lifetime. The one-hit-wonder mind refuses to see that its great product or promotion will likely be a thing of the past one day. So it will not prepare for that by inventing or creating another. ​ 
- 
-The one-hit wonder problem affects most businesses in Stage One and Stage Two of their growth. (If you've read Ready, Fire, Aim, you know that means when they'​re making from zero to $10 million in revenue.) To get beyond that threshold, and thus beyond the risk of being a one-hit wonder, you have to focus on two things: innovation and speed. ​ 
- 
-As I said in Ready, Fire, Aim:  
- 
-It probably took you several years to produce and market your first product. To take your company to the next level, you will have to move much faster - at least twice as fast as you are comfortable moving right now.  
- 
-I'm talking about increasing the velocity of innovation. This includes the time it takes to brainstorm, develop, test, and produce new products. In Chapter 10, I talked about how you can get better at coming up with good ideas. But I also pointed out that if you don't execute good ideas quickly, they will degenerate over time.  
- 
-Innovation matters. And so does speed. Combined, they give your business extraordinary growing power. 
- 
-Make Your Business Success Eternal With Double-Barreled Innovation 
- 
-No matter what size your business is, there are only two ways to keep it growing. 
- 
-Increase revenues with sustaining innovations - by continually improving the products you are currently producing. ​ 
- 
-Use disruptive innovations to create a new market, expand an existing one, or move into a different price category. 
- 
-Sustaining innovations are perhaps the easiest to produce because their need is apparent. (For example, a microprocessor that enables computers to operate faster or a laptop battery that lasts longer.) Plus, the technology comes from existing research. ​ 
- 
-Apple does a fine job of sustaining innovations. That is one reason its customers are so cult-like in their loyalty. ​ 
- 
-But Apple made its greatest stride with the iPhone - a disruptive innovation. Disruptive in that it provides much more than cellphone users were used to at a comparatively miniscule price. When launched, the iPhone ate up huge bites of the market. ​ 
- 
-Improving your products incrementally will keep them fresh in the minds of your customers. That means continued renewals and back-end sales. But if you can introduce new products to the market - then you have the opportunity to double or triple your revenues in a matter of months. ​ 
- 
-I have enjoyed reading and thinking about how to apply many of the essays. I'm no longer trying to "swing for the fences"​ and wasting money by investing foolishly. ​ 
- 
-So many "​investment advisors"​ hype up enormous returns or guide people to use newsletters based on an annual scorecard. What you are giving us are guidance, direction, and tools so we can improve our life. Thank you!  
-Club member AM. 
-Initially, disruptive innovations perform poorly compared to established products. But because they are often cheaper, simpler, and more convenient, they can create new markets. ​ 
- 
-When the transistor radio came out in the 1950s, it had very poor fidelity. Therefore, it couldn'​t compete with the market for stereo systems: adults. But its portability and low price made it enormously popular with teenagers. ​ 
- 
-You want sustaining innovations so you can hold on to your existing customers. And you want disruptive innovations so you can expand and eventually dominate your market. ​ 
- 
-Every smart businessperson wants both.  
- 
-For your business to succeed, you need two parallel processes: one that allows for sustained improvements and another that gets you into different markets. ​ 
- 
-Both processes start in your head.  
- 
-For one thing, you must recognize that coming up with incremental improvements is entirely different from creating something radically new.  
- 
-You may need two sets of people and procedures to do both well.  
- 
-If you run a new product idea through the regular channels, it will no longer be innovative by the time everyone has finished "​polishing"​ it. It will be just another modification of what you are already doing. ​ 
- 
-Most senior executives I know claim they care about product improvement,​ but they don't walk their talk. Their first response to suggested improvements is to worry about the costs - in terms of money, manpower, and time.  
- 
-To create incremental improvement,​ you have to believe that it will pay off. Eventually. That's psychological. ​ 
- 
-And to create an environment in which disruptive innovation flourishes, you must recognize any sizable growth will come from ideas that are far afield. This is difficult for most entrepreneurs. And with good reason. They base their success on what has worked for them in the past. Not on moving into the unknown. ​ 
- 
-Your first step is an internal one: Make a commitment to innovation, both sustained and disruptive. ​ 
- 
-The next step is a matter of communication. You must persuade your key people to believe in both types of innovation. You must give them a vision and inspire them to achieve it.  
- 
-Your third step is implementation. You need two separate systems. Your core team can handle incremental improvements. But the radical ideas - those will probably have to be developed on the side. (I like to bring in copywriters and marketers from other industries to brainstorm disruptive innovations.) ​ 
- 
-Ultimately, whether or not you keep the two processes separate doesn'​t matter. What matters is that you become a business of "​making things new," as Ezra Pound once said.  
- 
-Your customers - like all customers - are always on the lookout for new and better. If you don't provide it for them, your competitors will.  
- 
-Best,  
-Mark 
- 
-====== How to Start a Million-Dollar Business for $25,000 #10: The Economics of Customer Service ====== 
-Thirty years ago, I worked for a brilliant businessman who in every aspect but one was terrific. He was fun to work with, and he was a natural-born salesman. ​ 
- 
-The only trouble: He didn't believe in "​customer service." ​ 
- 
-Our business grew because of his management and marketing skills. We kept the overhead low and created compelling marketing campaigns that sold our products at deeply discounted prices. ​ 
- 
-This man taught me tons about how to bring in new customers with cheap pricing and strong promises. He also, inadvertently,​ taught me the problems with running a business that way.  
- 
-We were able to launch one successful product after another - and make good money from those launches. But we never developed a community of really happy and loyal customers - the way Apple has, for example - so we always had to keep selling our products to new prospects. ​ 
- 
-Excellence in marketing will generate vital cash flow. And having the ability to spot and seize product trends will help your business grow. Being a good negotiator will keep your costs low, and excellence in management will limit costly mistakes. ​ 
- 
-You should acquire all of those skills if you want to build a profitable business. But to develop a business that will grow more easily as the years go by, you must devote yourself unrestrictedly to providing your customers not only with quality products but also with excellent customer service. ​ 
- 
-By "​excellent customer service,"​ I don't mean just picking up the phone on the second ring and smiling when you speak to customers. I mean having a genuine commitment to developing a long-term relationship with the customer, one that optimizes your profits by optimizing his experience with you.  
- 
-The Challenge for Start­up Entrepreneurs 
- 
-Everyone believes in excellent customer service - at least, in theory. The problem is that improving the service you provide your customers is expensive. And when you are a fledgling business, you may feel you can't afford that extra cost.  
- 
-But my experience has taught me that you can't afford not to provide excellent service. ​ 
- 
-If you are going to commit your business to excellence, sooner or later you will have to charge more money to compensate for the additional costs. And when you do raise your prices, you will get complaints from some of your customers. ​ 
- 
-Nevertheless,​ many of them will stay with you because they value quality. Others will leave in search of the next cheapest option. ​ 
- 
-Don't worry about the customers who leave. They are not the ones you want to keep. To build a big, profitable, long-term business, you have to keep upgrading your customers along with your products and service. ​ 
- 
-You're not aiming for the greatest amount of customers possible, but a good number of customers who appreciate and are willing to pay for the excellence you will continue to give them.  
- 
-And you will do that by following a rule I call "​incremental augmentation."​ I'll tell you why you must follow the rule of augmentation,​ but first, let me tell you about incremental degradation. ​ 
- 
-How to Prevent Incremental Degradation 
- 
-I can't wait for these next essays from Mark. The things that bring me the greatest joy are free and can't be delegated (exercise, reading, visiting hospitals with my dog, etc.). Subscriber SM. 
-One of the first things I did upon taking on AP as a client was call his customer service line and pretended to be a customer. The phone rang eight times before someone picked up.  
- 
-Then someone put on me hold. Then that someone answered by saying, "​What?" ​ 
- 
-This was an $8 million company. ​ 
- 
-I postponed any marketing discussions while I revamped AP's entire customer service process. ​ 
- 
-I replaced most of the staff with better-educated,​ more articulate, and more conscientious workers. I introduced a training program. I implemented automated monitoring and reporting systems. And I established progressively higher standards for everything from call waiting through problem solving. ​ 
- 
-Within six months, service went from embarrassing to best in show. Then I hired a very good manager to continue the program. With her in place, I was able to do the job AP hired me to do: improve marketing and increase sales. ​ 
- 
-I wish that were the end of the story. It is not. About four years later, a colleague, in the midst of a conversation about something else, made a comment about how everyone in the industry believed that AP's customer service was "a joke." ​ 
- 
-I was shocked. And when I checked into it, I was floored. The person I'd hired had left.  
- 
-And the top-notch operation I had worked so hard to set up was back to providing horrendously bad service. ​ 
- 
-Nothing had gone dramatically wrong. The new customer service manager had been given my guidelines but wasn't as careful about implementing them. The college-educated people I'd hired had moved up in the company and been replaced with less-qualified people. Other standards were relaxed - just a bit - to save money. ​ 
- 
-Your newsletter is one that I always take time to read. As I read some of your responses to questions asked, I can't help but smile knowing that you are honest in your actions. Thank you for not only the wealth advice but also the honesty in your actions and answers. It is very refreshing indeed. Subscriber RM. 
-It was a classic case of incremental degradation. Physicists call this "​entropy"​ - the natural tendency of things in the universe to move from order to disorder. ​ 
- 
-It is true of all aspects of business (and life). But none as surely and with more damaging consequences as customer service. Unless you constantly strive to improve service all the time, it will degenerate. Not in leaps and bounds but in small, sometimes imperceptible degrees. Only after several years will the difference be obvious. ​ 
- 
-To combat incremental degradation in your organization,​ you must make an active and sustained effort. The best way to do this, as I mentioned before, is to initiate a culture of incremental augmentation. ​ 
- 
-The Rule of Incremental Augmentation 
- 
-The rule of incremental augmentation states that you must consistently improve your products and services in every way. You don't have to begin with the best overall product/​service in the marketplace. (If it's a competitive market and you are a beginner, it is doubtful that you can.)  
- 
-But you do have to find one aspect of your product/​service that you can excel at. Market that. After it catches on, go on to something else that your customers will appreciate. Never allow yourself to think that your product/​service is as good as it needs to be.  
- 
-Always be asking yourself, "How can I make this better?"​ Good is not good enough. You want your customers to be more than happy with everything they buy from you. A customer who is more than happy will recommend your products and come back for more.  
- 
-Incremental augmentation is an ongoing process. It involves regularly upgrading your products by a small degree, even when there is no evidence that your customers are in any way unhappy. ​ 
- 
-The main rule is: Improve your products as often as you can.  
- 
-Implementing Excellence 
- 
-So... how do you put incremental augmentation to work for your business? ​ 
- 
-My clients usually spend a few days outside the office each year in order to take an objective look at their businesses - sometimes with the help of consultants or even customers. They identify the aspects of product quality and customer service that they do well and those that they don't do well.  
- 
-Then they brainstorm to "​imagine"​ how they could improve both the things they do best and the things they do badly. ​ 
- 
-Think about your business. What is your greatest strength in terms of product quality and customer service? What is your greatest weakness? ​ 
- 
-How could you make one substantial improvement in each of those categories by the end of the year?  
- 
-One significant improvement in your greatest strength and one significant improvement in your greatest weakness - that's plenty to accomplish in one year.  
- 
-Make the improvement and advertise it. Sell it to your customers and sell it to prospects. Make the added value clear. And charge more for it. But explain why.  
- 
-Yes, some customers will balk at the slightly higher pricing. But your best customers - the ones who will make your business soar - will be happy to pay the price. ​ 
- 
-As I said, you can get a business started by discounting. But if you stay in that market, you will have a hard time getting any traction with your business. By sticking exclusively to bargain basement prices, you will attract primarily bargain hunters. And they will quit you as quickly as they came to you.  
- 
-A discounted offer is like a tightly knotted fishnet. Cast it into the ocean, and it will bring up lots of fish. But most of those fish will be too small to eat. Throw away the little guys while you weave yourself a better net. Then the really good fishing will be easy.  
- 
-Best,  
-Mark 
- 
-====== How to Start a Million­-Dollar Business for $25,000 #11: Find Your Superstar Employee ====== 
-How do you attract the best possible people to your business? How do you snag that rare person who can help you grow and improve your company? How do you find someone capable of doing what you do... when you don't want to do it anymore? ​ 
- 
-Ask successful business owners what accounts for their success, and at or near the top of their lists, you will find "the right people."​ And with good reason. ​ 
- 
-The difference between an ordinary employee and a star performer is the difference between smoke signals and email. And finding a superstar - someone who can eventually take the burden off your shoulders-is like striking gold.  
- 
-In my business career, I've been lucky enough to find a few superstars. And they have made a big difference. When you get one, everything afterward is easy. He will learn your secrets faster than you can explain them. He will take on any challenge. He will figure out solutions before he tells you problems. And most importantly,​ he will share your enthusiasm (maybe exceed it) and vision. ​ 
- 
- 
-Thank you for the courage to be so honest. Your words of encouragement are just what I needed! We all need a good dose of personal responsibility in this country. Subscriber SB. 
-Right now, I am working with several superstars. Each is single-handedly running a business for my partners and me. We provide input, but casually and occasionally. These entrepreneurs produce about $30 million in revenues at 10%-plus nets. That spells happiness. ​ 
- 
-I was a superstar once, for a gentleman with the initials JSN. Through his careful tutoring, we were able to take a start-up marketing business and grow it to $65 million in about seven years. His son became our superstar and helped us grow larger - doubling it in three years. ​ 
- 
-The Secret of Finding Your Superstar 
- 
-You can and should find yourself a superstar. You need someone to help you succeed and take some (or eventually all) of the burden from you.  
- 
-Getting a superstar is a three-step process. First, you have to find someone as good or better than you. Second, you have to make him a very generous deal. And third, you must teach him everything you know.  
- 
-We'll talk about partnering and mentoring some other time. Today, let's discuss what you should be doing right now... hunting for your star performer. ​ 
- 
-There are so many difficulties in finding a superstar. The most obvious is availability. ​ 
- 
-Like good spouses, superstars are few and far between. Don't let scarcity tempt you to accept second best. You cannot make an ordinary person extraordinary. It will eat up all your time and end in failure. ​ 
- 
-Start your search now. Go to industry meetings. Place ads. Talk to people. Even if you can't yet afford another salary, start looking. ​ 
- 
-When you meet someone who seems great, strike up a friendship. Find out as much as you can about him. Show interest. Follow his career. Offer to help. When the time is right, drop hints. "If you ever want to do such and such... give me a call." Say it every time you see him. The message will get through. ​ 
- 
-Don't Expect Every Seed to Sprout 
- 
-Do this with anyone who seems great. Keep at it. One day, an opportunity will present itself, and you will have not just one but several highly qualified candidates. Select and hire the best.  
- 
-Work with him closely for several months until you've seen what he can do. If he has the potential you're looking for, it will become apparent. Invite him to share your future. ​ 
- 
-Some people try to retain superstars as employees. They figure they will pay less, risk less, and get just as much from them by giving them just enough to keep them happy. This is a big mistake. ​ 
- 
-Superstars are rare birds. If they don't know their worth when you hire them, they will soon enough. It's much smarter (and cheaper in the long run) to treat them like partners-in-training the moment you recognize their potential. ​ 
- 
-It doesn'​t matter where you are in your business-building process - even if you work freelance or are only just dreaming about starting your own business - you need to start looking for your superstar right now.  
- 
-Teach Your Employees to Mentor One Another 
- 
-If you spend a lot of time training your employees, you may be making a big mistake. ​ 
- 
-Your primary job is to build your business. That includes teaching people what you know. But if you devote too much time to it, your business will suffer. ​ 
- 
-Here's a better way: Teach your best employees what you know. And then, teach them how to teach it to new employees. ​ 
- 
-Not only does this free up your valuable time, but it also establishes an automatic mentoring system. ​ 
- 
-And that provides additional benefits: 
- 
-Every new employee has someone with experience to turn to for advice. ​ 
- 
-The mentor feels responsible for the new employee'​s performance- and they both learn that responsibility is best when shared. ​ 
- 
-For a while at least, a separate pair of eyes will be carefully reviewing the work of every new employee. This should result in fewer mistakes that they'​ll need to fix later. 
- 
-The mentor will probably rise to a higher level of commitment and dedication to the business. He'll take himself and his job more seriously. ​ 
- 
-Flexibility Is Key 
- 
-A flexible working environment will allow all of your best people to work at their best for you. 
- 
-To make your dream come true, you need different types of people. You need analytical people to make your operations run smoothly, entrepreneurial people to spur new growth, and creative people to make your marketing succeed. ​ 
- 
-Each of these types likes a different type of working environment. ​ 
- 
-Analytical people need good training, regular feedback, and the authority to make their systems work.  
- 
-Entrepreneurial people need coaching on "the big picture,"​ the resources to get their work done, and plenty of freedom (but also clearly demarcated boundaries). ​ 
- 
-Creative people need protection from the bureaucracy,​ kudos when they succeed, and support and guidance from mentors they can trust. ​ 
- 
-If you are running a small enterprise, you are probably doing a lot of this yourself. As your business gets bigger, you need to pay attention to the structure of things so that no single atmosphere takes over for all your employees. ​ 
- 
-This is also a critical concern when choosing profit-center managers. You don't want them to narrow the working environment to the one that works best for them. Coach analytical managers in providing marketers and business builders with the freedoms they need. Teach creative and entrepreneurial managers that their operational people need rational processes and discipline. ​ 
- 
-Now go find your next superstar employee. ​ 
- 
-Best,  
-Mark 
- 
-====== How to Start a Million-Dollar Business for $25,000 #12: Overcome Difficult Business Challenges ====== 
-My friend Bernard opened a furniture shop shortly after he immigrated to Boca Raton, Florida from Manchester, England in the early 1980s. That's when I met him. I was shopping for an armoire for our bedroom. Most of the nice ones I'd seen were priced above $500. He had a half dozen of the same quality for only $195. I asked him how he was able to do it. With a twinkle in his eye, he said, "​It'​s not that my prices are good. It's the other prices that are bad." ​ 
- 
-Since then I've bought at least $50,000 worth of furniture from him. And I've seen his business grow from a single shop to a network of wholesale, retail, and manufacturing facilities from here to China. ​ 
- 
-Today, I want to focus on a technique he uses that has allowed him to become very successful and, at the same time, very well liked. And keep in mind that he's in a competitive industry where people are knocking off one another (and suing one another) as automatically as they sneeze. ​ 
- 
- 
-The Awesome Power of a Light Touch 
- 
-Bernard is an affable guy. He always seems happy to see you. He asks about your family, business, and friends. He is happy to talk about his life too, if you ask him. And when he does, it is always positive and amusing. ​ 
- 
-Bernard has a wonderful sense of humour. He is always lighthearted. He is never mean - more Jerry Seinfeld than Larry David. And, like Jerry Seinfeld, he makes you feel that you are in on his joke.  
- 
-This combination of congeniality and wit is used to make quick friends with customers, employees, and colleagues. The unsaid theme of his humour is that the business you are doing with him is not all that serious. "​Let'​s make a deal," he seems to be saying, "but let's make it fun." ​ 
- 
-If you tell Bernard you think the price of a particular antique table is high, he won't argue the point, he'll make a joke of it. "For a person of your wealth,"​ he might say, "it is chicken feed!" ​ 
- 
-If you ask him if he can deliver it on Friday, he'll say, "​Friday of what month?"​ In doing business with Bernard, you can never forget that fighting or fretting about most things simply doesn'​t make sense. ​ 
- 
-Bernard has even used this skill to do something I wouldn'​t think could be done in business. ​ 
- 
-It took place in High Point, North Carolina, at the annual trade show for furniture wholesalers. A colleague of his who had made a fortune selling designer-brand tables and chairs was furious when he saw that Bernard was selling what appeared to be the very same designer products at a fraction of the price. ​ 
- 
-When he stormed into Bernard'​s office to accuse him of knocking him off, Bernard smiled and acknowledged that he had been doing just that. He pointed out that he had done it legally. And then he suggested to the irate wholesaler that he start buying his furniture from Bernard. ​ 
- 
-"I don't know how he did it," the wholesaler told me, "but he made me feel that what he had done wasn't such a bad thing after all. And somehow he got me laughing. I realized that I wanted to be able to enjoy business the way Bernard does. So I forgave him on the spot, and we have been doing business with one another ever since." ​ 
- 
-I do not have the skill that Bernard has, but I have been studying his technique for many years. Here are some of the things I've noticed: 
- 
-He greets you with a smile. 
-He insists on personal chitchat before talking business. 
-He never seems to care whether he makes a deal or not. 
-He doesn'​t bargain. 
-He doesn'​t push. 
-He doesn'​t lie. 
- 
-It is that last one that I find particularly remarkable. In a business that is as competitive as furniture sales, fabricating stories about the value of goods is as common as discount tags.  
- 
-But Bernard never tells you anything but the truth about his products, how he has them made, and what he pays for them. He is confident that he provides very good value because, coming from Asia as they do, his goods are always priced below the competition. But if you prefer to buy from his competitors,​ he doesn'​t seem to mind in the least. ​ 
- 
-And when Bernard has a tough message to deliver (if, for example, he is dissatisfied with the performance of a vendor or an employee), he doesn'​t sugarcoat the truth. Instead of shying away from difficult discussions,​ he seeks them out. He seems to know that he has the power to straighten out problems quickly using his finely tuned sense of humour. ​ 
- 
-He does what George Bernard Shaw said he always tried to do: Take the trouble to think of the right thing to say, and then say it "with the utmost levity." ​ 
- 
-This is very powerful, when you think about. When confronted with a difficult or awkward business situation, we usually feel that the prudent thing to do is to say nothing. But saying nothing conveys nothing. The fraud is not unmasked. The foolishness is not sanctioned. The reprobate is not reproached. ​ 
- 
-Bernard'​s way of communicating - his wit and lightheartedness - is not something one would normally think of as having anything to do with business, wealth building, or personal achievement. ​ 
- 
-But Bernard uses it every day to handle all sorts of problems and accomplish his objectives. ​ 
- 
-When it comes to interpersonal communications,​ Bernard'​s approach can work wonders for you, too. It can: 
- 
-Dismantle tension 
-Create intimacy 
-Defuse anger 
-Eviscerate quibbling differences 
-Aid in the formation of trust, and 
-Help form deep and lasting relationships 
- 
-How to Use Humour in Business 
- 
-The ability to tell jokes is often thought to be a useful business skill. In actuality, it demonstrates nothing except that you have the capacity to be trivial - to memorize a remark or anecdote and retell it for the amusement of others. ​ 
- 
-And if joking is bad, punning is worse. A punster'​s only attribute is a remarkable lack of embarrassment. He is willing to verbalize inanities that others have the sense to keep to themselves. ​ 
- 
-By contrast, true humour involves wit, requires intelligence,​ and draws from an appreciation of the absurdity and pathos of life.  
- 
-Humour is funny. Joking is, at best, amusing. And punning? Spare me.  
- 
-Leo C. Rosten was speaking about wit when he said that humour is "the subtlest and chanciest of literary forms. It is not accidental that there are a thousand novelists, essayists, poets, or journalists for each humourist. It is a long, long time between James Thurbers." ​ 
- 
-If you are interested in these distinctions between wit, joking, and punning, I can recommend a great movie to you. It is titled Ridicule. ​ 
- 
-It is a French film about a rural doctor who goes to Paris to raise money for his practice during the reign of Louis XVI. But to get the ear of the king, he must first educate himself in the many levels of humour that were popular in France at the time.  
- 
-At the climactic moment, he is in the king's garden, hoping the king might pass by. Sure enough, the king and his secretary come along. The king greets him, and the doctor replies with a witticism. ​ 
- 
-The king looks perplexed. He turns to his advisor and asks, "Was that a jeu de mot or a double entendre?"​ The advisor considers it carefully and says, "It was a jeu de mot." ​ 
- 
-The king laughs loudly and the audience sighs in relief, knowing our hero has just accomplished his mission. ​ 
- 
-Enjoy Your Work, Including the Bumps 
- 
-If you don't right now have the power to put people at ease with humour, you can develop it by doing as my friend Bernard does: Greet each person with a smile. Ask about something personal before discussing business. And try to maintain a lighthearted attitude - especially if the conversation is difficult. ​ 
- 
-With practice, Bernard'​s technique will eventually become second nature to you. That may take some time. (I am still practicing after many years.) But along the way, you will find that you will be able to do business with less stress and more enjoyment. ​ 
- 
-Humourless businesspeople inevitably become upset when they encounter obstacles or setbacks. They are like wagons without springs, as Henry Ward Beecher said, "​jolted by every pebble in the road." What's worse, they are often unhappy even after they achieve their goals. ​ 
- 
-But with lightheartedness and humour, you can deal with disappointments and surprises with equanimity and even optimism. ​ 
- 
-Best,  
-Mark 
- 
-====== How to Start a Million-Dollar Business for $25,000 #13: The Ten Commandments for Success ====== 
-"I come from a poor family. I want to start a business and make money to help them. But when I see successful businesspeople depicted on TV and in the movies, it seems like lying and cheating people is the way to go. I'm worried. Is that what I'm going to have to do?" ​ 
- 
-This question was posed just after I had given a presentation on entrepreneurship to a group of MBA candidates at Florida Atlantic University. I was momentarily startled by the question. I was sure I hadn't said anything that suggested success in business required a cut-throat approach. ​ 
- 
-Still, the question was understandable. When movies depict business and businesspeople,​ it is more often than not in a negative light. And when the stock brokers, the banking community, and the insurance industry screw their clients - as they'​ve done so notoriously - how could any young person think any differently? ​ 
- 
-So I told the young people in my audience what I'm about to tell you today. ​ 
- 
-It is definitely not necessary to be bad to be good in business. But the path to business success - and this is especially true for small businesses - is booby-trapped with temptations to do the wrong thing. ​ 
- 
-I have been starting and growing businesses ever since I was a teenager, and was never tempted to violate my conscience until I went to work for a South-Florida direct-marketing company when I was in my early thirties. ​ 
- 
-During my time there, I accomplished a lot that I am still proud of. But I also got involved with a few marketing schemes that were misleading. These got me into regulatory trouble and cost me a lot of money. ​ 
- 
-Looking back at it now, I feel foolish to have allowed myself to act that way. The projects that made the most money in the long run were the good ones. The flim-flam stuff was only good for short-term money. I could have done better had I walked a narrower line.  
- 
-Most of the successful businesspeople I know are honest men and women who treat their colleagues, vendors, and customers as they would like to be treated themselves. But there are a good number who do cut corners now and then. And there are a few who are bad - who seem to derive pleasure from causing others harm.  
- 
-I've known direct-mail marketers who bargained with their printers and letter shops to provide service at below cost simply because they knew these guys needed to keep their staffs employed. ​ 
- 
-I've known owners of profitable businesses who paid lower-level employees minimum wage simply because they could get away with it.  
- 
-I once worked with a man who refused to pay me my equity in a business when I wanted to get out simply because he knew I wouldn'​t sue him.  
- 
-I once worked with a consultant who slandered my client on the Internet as a way to generate business for himself - then had the nerve to teach his dirty trick to people who bought his largely plagiarized marketing program. ​ 
- 
-The list is endless... ​ 
- 
-These rotten apples prove that you can become successful by being ruthless. But if you look at their lives, you can see that their path is not easier, faster, or emotionally satisfying in the end. When you grow your business by being devious, your character is tainted by your actions. You become jealous of your competitors,​ distrustful of your employees, and suspicious of almost everyone you deal with because you assume they think the way you think. As time goes by, you find yourself spending most of your time fighting to stay in business. It's a miserable way to get rich.  
- 
-My experience tells me that ruthlessness is not an essential component of entrepreneurial success. Success is always a product of... 
- 
- 
-Hard work 
-Long hours 
-The ability to focus 
-Marketing know-how 
-The will to carry on when faced with any obstacle 
- 
-Machiavellian business tactics are self-defeating. All those people you suckered will remember you. In their own quiet but powerful ways, they will do whatever they can to see you punished. That may mean anything from ignoring your next sales effort to denouncing you on the Internet to reporting you to the authorities - even to blowing your head off.  
- 
-Wise businesspeople understand that the trust and loyalty they'​ve earned will pave golden paths of opportunity. With each passing year, every dollar will come more easily because of all the relationships they have developed along the way.  
- 
-The dozens of "​good"​ businesspeople I work with these days are open and honest in their dealings, generous with their time and knowledge, and always willing to share in areas of mutual interest. ​ 
- 
-EP is a great example. We started working together about 15 years ago on some large-scale,​ residential real-estate projects.I knew nothing about that business at the time. He could have easily taken advantage of me in a hundred different ways. Instead, his deals were fair - even generous. He never made a dollar until I made one first. And when one of his deals went bad, he put in a big part of his personal savings to bail out me and the other investors. ​ 
- 
-When he calls me to say "​I'​ve got a project you might be interested in," I never hesitate to invest. I don't ask to see a business plan and prospectus. I just say "How much do you need?" 
- 
-And I'm not the only one who has this level of trust in him. He has established relationships a group of wealthy investors who are all eager to work with him - even in today'​s difficult markets. ​ 
- 
-A few years ago, I loaned one of my Jiu Jitsu instructors $5,000. He was embarrassed when he asked for it, but he needed the money - and I really wanted to help him out. He paid me back every dollar, insisting on paying me interest too. So when he came to me recently and asked for advice on a business he wanted to start, I was happy to give it to him - and to invest a considerable amount of money in the business as well.  
- 
-Donald Trump presents himself as a very tough businessman. And I'm sure he drives a hard bargain. But I don't think he's ruthless. I've heard from people who've worked with him that his deals are generally fair - and although he can be a bit pompous, his business demeanor is usually measured and respectful. ​ 
- 
-I have written about Bill Bonner before. Of all the clients I've had, he is one of the most impressive in terms of the way he treats people. In more than 14 years of working with him, I've never heard him say a bad word about anyone. And I've never heard anyone say a bad word about him.  
- 
-Treating people fairly is like putting money in the bank and collecting compound interest. As the years go by, your account will grow gradually larger and then, suddenly, it will get huge. When that happens, you can enjoy continued success without working very hard because you will have banked so much good will.  
- 
-One caveat: Treating people well and fairly works for 95% of those you come in contact with. As for the other 5% - well, there'​s not much you can do except try to avoid them in the first place. ​ 
- 
-So before you go into business with anyone (an employee, a colleague, a vendor - anyone), get to know him on a personal basis. Meet him. Ask questions. Ask for references. Check them. If you feel at all concerned that you might be dealing with one of the rotten few, take a pass.  
- 
-Over the years, I've become a better businessman because I've been influenced by people of good character who were kind enough to give me lots of good advice. Among the things I've learned, I recommend the following "​commandments"​ to you:  
- 
-The Ten Commandments of Doing "​Good"​ in Business 
- 
-The customer is always right. Even when he is wrong. ​ 
- 
-Don't promise what you know you can't deliver. ​ 
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-Honor your verbal contracts with the same seriousness as you honor written agreements. ​ 
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-When negotiating,​ always aim for a deal that is as good for your partner as it is for you.  
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-If a deal turns out badly for your partner but stays good for you, change it to be fair to him.  
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-Always pay your employees as much as or more than they are worth - or, if that is impossible, as much as you can afford to pay them, with the promise of making it up to them later. ​ 
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-Share your business wisdom with everyone, including your competitors. ​ 
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-Never engage in gossip. Speak as if the person you are speaking about will find out what you are saying. (Because he will.) ​ 
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-Never take advantage of your vendors simply because you can. Your goal should be to compensate them fairly, even if it means paying them more than the market demands. ​ 
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-Never engage in recriminations and try to avoid litigation. In the long run, it is better to be cheated rather than become the cheater. 
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-Best,  
-Mark 
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-====== How to Start a Million-Dollar Business for $25,000 #14 Franchises: Buying Into Proven Success Formulas ====== 
-A popular business opportunity is to own and operate a franchise. ​ 
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-In franchising,​ companies decide to expand by selling licenses to individuals or other businesses. A franchisor is the company selling these licenses. ​ 
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-The license holders, called franchisees,​ operate a branch of the franchisor'​s business. The individual franchisees own these locations-stores,​ offices, or restaurants-not the franchisor company. ​ 
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-As a franchise license owner, you can own and operate your own business. The restriction is that you must follow the franchisor'​s operational requirements. ​ 
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-To maintain their reputation and brand image, franchisors keep strict control over their franchise owners. Retail locations must conform to the company'​s corporate guidelines. The individual locations must follow operational procedures specified by the franchisor. ​ 
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-The franchisee must buy his supplies, raw materials, and products from the franchisor. They are forbidden to sell other brands; if they do, they'​ll face severe consequences. ​ 
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-Not long ago, I walked into a local Baskin­Robbins and was shocked to see them selling Hershey'​s ice cream. The following week, the store was shut down and shuttered. Lesson: Don't violate your franchise agreement, even in a minor way, even once. If you get caught, penalties are swift and severe. ​ 
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-There are several thousand companies selling franchises of their business today. ​ 
-Franchising is in its infancy in India which had its first International Exhibition just a few years ago in 2009. It is, however, one of the biggest franchising markets because of its large and entrepreneurial population. ​ 
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-For A.S., buying a franchise met her desire to be the boss. She says, "With my own business, I have the advantage of having my own time and my own terms." ​ 
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-G.C. was a pizza delivery driver at a Domino'​s until he saved up enough money to buy three of his own locations. He now earns over a hundred thousand per year in personal income. ​ 
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-**Is Owning a Franchise for You?** 
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-When Mark began writing essays for the Wealth Builders Club, he promised to show you dozens of ways to generate more cash. A tall order, for sure. To make good on that promise, Mark and his team brainstormed for months. Owning a franchise has passed our litmus test because it has some unbeatable advantages... ​ 
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-//First: Anyone should be able to do it (it's easy and simple to understand).// ​ 
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-A huge advantage of buying an established franchise is that it is a "​done­for­you"​ business launch.You do not have to reinvent the wheel. Someone else has already thought out and tested the business. The franchisor provides detailed operations manuals you can follow line­by­ line to ensure success. You just paint by the numbers and follow directions. ​ 
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-Franchises dramatically reduce your chances of failure. That's because the franchisor has already proven the business concept at other locations. ​ 
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-When you open a restaurant, risks are high because you don't know if local residents will like the food or ambiance. But if you open a McDonald'​s,​ you know in advance that consumers like and buy McDonald'​s food.  
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-These franchise businesses don't take a rocket scientist to run. They are restaurants,​ retail stores, or service businesses such as tax preparation services or hair salons - usually nothing too complex. ​ 
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-//Second: You can have a home office that you operate out of, when you are not on-site.// ​ 
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-You can have a home office and work there part of the time. But in most situations you must be on­site to manage and supervise. ​ 
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-Franchise businesses are typically retail locations or offices outside your home. Ideally, the location has heavy car or foot traffic. And your storefront has maximum visibility. ​ 
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-You can also reduce your time on site by hiring someone competent and trustworthy to manage the franchise for you. If you can't afford to do that yet, then you will be there many hours each week as the manager. ​ 
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-//Third: You can choose to work part­time or on the weekends.// ​ 
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-As we just noted, franchise owners who work either alongside employees doing the manual labor or as the general manager will work full­time. ​ 
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-Again, the only way to reduce your hours is to hire others to do the work. Many owners do this. You can even hire a manager so that your franchise makes money with minimal labor on your part.  
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-//Fourth: The opportunity should not require a tremendous amount of start­up capital.// ​ 
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-Now, you probably think it costs a fortune to own a franchise business. And some do. Among the most expensive are jewelry brands which can cost you in the crores. ​ 
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-Fortunately,​ there are also many options that you can find for under a lac rupees of investment as well. Besides restaurants,​ many other franchise opportunities don't require a building or space. So you can get in for considerably less.  
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-Steve Marr, a consultant who helps match aspiring entrepreneurs with the right franchise, says:  
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-A common question is, "What is an affordable franchise?"​ I use the loose definition of an investment between $10,​000­60,​000 (Rs 6 - 36 lac) cash. A franchise investment may cost more, but with good credit and 30­40% down, the rest can be financed. ​ 
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-Some franchisors consider the owner'​s salary as part of the startup-others do not. When I work with a client, I avoid stating what they can expect to make, for legal reasons. I do help them develop their own understanding on the likely profit. I look at earnings over time. Most franchises require 6­12 months to make a profit. Franchisors,​ afraid of lawsuits, often do not publish what a franchise will make.  
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-This includes the owner'​s salary and profit. The owner must understand they will need to build multiple units to grow a large income. ​ 
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-//And fifth: You should be able to make 100% RoI in a year// ​ 
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-It takes a few years for your business to stabilize and start turning a profit. But if you choose carefully your franchise business should start making returns of upwards of a 100% in a year.  
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-Additionally,​ as the franchise owner, you also build equity in the business. And when you become successful, not only can you make more money, but you can hire someone else to be the manager. This will significantly reduce your own hours. Another way to increase your earnings is to expand beyond owning just one franchise location. For example, E.B. owns 61 McDonald'​s franchises that earn an estimated $135 million annually. 
-One of the biggest overall advantages of owning a franchise is that you are buying into an existing operation. It comes with a proven business formula and an established brand. ​ 
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-You probably have heard the often­cited statistic that only one out of four start­up small businesses remain in operation after five years. ​ 
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-By comparison, after five years, nine out of 10 franchise businesses are still around. ​ 
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-**Who Buys Franchise Licenses?** 
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-Who is most likely to buy a franchise? Steve Marr again: ​ 
-I would divide this into three camps. The first is full­time owners and operators. They will want to follow a passion. They may not have thought of a business, but unless they can see themselves doing the work and filling a role they won't want to move forward. ​ 
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-Full­time operators will be working in the business every day. If they don't want to do janitorial, they won't, even if they could make money. If a candidate can't see himself doing furniture repair, they will pass.  
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-Executive type businesses are the second category. The owner works on the business, not in it. They market, manage staff, and do accounting. This group may be interested in several ideas, like a maid business, handyman service, or home care.  
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-Those in this group are likely open to several ideas. Their passion is more management than the actual business. They still need to develop an interest in the business to be successful, but they are open to different ideas. ​ 
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-The third group is passive owners who want to invest cash for a return. They are very interested in the rate of return. Again, they may not be interested in some businesses, but they usually will get interested in those that can generate a good return. The focus is on the return first, the business type second. 
-It's important to know which category you fall into. If you are going to be working in the business full­time, you will be happier buying a franchise whose products you actually like. If you are going to be a hands­off owner, that is not as important. ​ 
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-**Find the Franchise That's Righst, ​ 
-Bob Bly 
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-====== How to Start a Million Dollar Business for $25,000 #36:10 Dumb Ways to Start a Business (and Waste a Ton of Money at the Same Time) ====== 
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-Entrepreneurship is based on selling. You test the market with a product you think will sell well. If it does, you keep selling. If it doesn'​t,​ you try something else. 
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-This approach lent its name to my best-seller:​ Ready, Fire, Aim. The main idea is that to start and grow a small business you must develop a pragmatic, action-oriented mentality. Rather than spend too much time and money refining theoretical ideas, you develop a prototype quickly and then see if the market will buy it. 
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-As I said in the book, for every business that fails because of poor planning there are a dozen that never get off the ground because of too much planning. 
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-The Ready, Fire, Aim approach obviously doesn'​t apply to surgical procedures and rocket science. But it will be very useful for 90 percent of the new-business ideas you are likely to come up with. 
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-Want to start a business selling diamond-studded collars for kitty cats? Fine. There are two ways to go about that: 
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-You can spend most of your time and money manufacturing a line of such collars - and only after that is done, start to think about how you can sell it. 
-You can make a single collar and go down to the local flea market or your neighbourhood pet shop and see if you can find a customer for it. 
-Most people start businesses the first way. That's why most businesses fail. 
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-But with the Ready, Fire, Aim approach, you devote 80 percent of your initial resources to discovering an efficient way to sell the product. Once you have done that, you have found the key to successfully market it. With that key in your pocket, you don't have to worry about all the other problems that will arise in the natural course of business. You won't have to worry, because you will be able to create the one thing that can solve almost every business problem: cash flow. 
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-Here, in a nutshell, is what I mean by Ready, Fire, Aim: 
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-Ready: Get your product idea ready. Make it good enough to sell. Don't worry about making it perfect. There will be time enough for that later. 
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-Fire: Start selling it. Sell it every way you can. Test different offers. Test different ad copy. Test different media. Keep testing until you discover something that works. This is your Optimum Selling Strategy (OSS). 
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-Aim: Expand your customer base by focusing on your OSS. As your customer base grows, develop business procedures to accommodate that growth. Hire the best people you can to manage your business. Discover, through "​back-end"​ marketing tests, other products and services that your customers will buy. Use those discoveries to refine and perfect a fast-selling line. As this back-end business flushes cash into your company, invest a good deal of that cash into front-end marketing. 
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-That is the cycle of a successful start-up venture. 
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-Ready, Fire, Aim doesn'​t mean you are willing to be sloppy. Nor does it mean you are willing to sell second-rate products to your customers. 
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-On the contrary, Ready, Fire, Aim is the only truly practical way to find out what your market really wants from you. 
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-And for a small business, Ready, Fire, Aim is the best way to get from good to great. 
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-Think of it this way: 
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-When we say we have "a great new product idea," what do we really mean? 
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-When I say that, I mean I have a strong feeling that the product will sell well - that it will be a big, commercial success. 
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-But the truth is, I have only a hunch about how well my idea will do. Experience has taught me that my hunches are often right... but not always. If I spend too much time and energy preparing a business based on a hunch, what happens if the hunch doesn'​t pan out? 
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-What happens is that I'm left with nothing - no money or materials or energy - to start over again. The essence of entrepreneurship is the ability to try and fail and then try again. You can't do that if you blow your wad the first time you try. 
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-So nowadays when I get the feeling that I have a great idea, I figure out how I can test that idea as quickly and as cheaply as possible. 
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-Once I know the idea has "​legs"​ then I can roll out a sales program. And once a successful sales program is underway, I can refine and improve the product. 
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-The truth is, I can never perfect a product in isolation. I used to think I could, but, once again, experience has taught me the arrogance of that kind of thinking. 
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-To get from good to great, you need the help of superstar employees and, most of all, feedback from your customers. The best customer feedback comes not from surveys or focus groups but from marketing results. Find out what your customers want by selling things to them. This gets you back into the Ready, Fire, Aim loop. 
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-If I had to pick one thing - one characteristic or quality of my work that is most responsible for the success I've had launching businesses - I'd have to say it was this Ready, Fire, Aim approach. It's something I believe in strongly. That's why I wince when I read the start-up advice of so many "​experts"​ who advocate feel-good busywork over selling. 
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-I was hoping that when Ready, Fire, Aim was published we'd see no more foolishness of this type in the business press. But here's just a short list of the misguided (and even ridiculous) advice I've read since my book came out: 
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-Create an instant-impact message that describes the chief benefit of your business. Put it on business cards and brochures, which you should hand out at business functions and meetings. 
-Find a great office space and fill it with furniture. 
-Take a field trip to discover how your product or service will satisfy people'​s desires. 
-Protect your "great ideas" by registering your business name, logo, and slogan. 
-Create a paper trail - tracking all meeting dates, attendees, and discussions. 
-Consult a lawyer and obtain his or her advice on how to best protect your business and make sure you set up the right legal structure. 
-Check with your municipal authority to make sure "they permit a venture like yours" to work out of the home. 
-Buy business insurance and "talk to an accountant or attorney"​ to make sure you're not missing anything. 
-Get a toll-free phone number (to give the impression that your business is much bigger than it is). 
-Do these things before you find out whether your product can sell, and your business is practically guaranteed to fail. 
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-Again, here's my advice for starting a business: 
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-As soon as possible, get the product ready to test. 
-Test it as aggressively and creatively as you can. Spend 80 percent of your initial resources discovering the most cost-effective way to make the first sale (your "​Optimum Selling Strategy"​). 
-Refine and adjust your sales process as market conditions change. At the same time, gradually develop business procedures to service your customers and improve your products according to your customers'​ buying preferences. 
million-dollar-business.1528984741.txt.gz · Last modified: 2018/06/14 19:29 by 171.60.242.59