David Pike - The New Startup: A Modern Guide to Launching a Business Quickly and with Minimal Cost

The New Startup

A MODERN GUIDE TO LAUNCHING A BUSINESS QUICKLY AND WITH

MINIMAL COST

DAVID PIKE

Copyright 2018 by David Pike

All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission.

Published in the United States by Acacia Books.

Library of Congress Control Number 2017919110

ISBN 978-0-9997386-0-3 paperback

ISBN 978-0-9997386-1-0 hardcover

ISBN 978-0-9997386-2-7 ebook

Printed in the United States of America

For my parents, David and Anne,

who taught me that anything is possible.

For my wife Caroline,

who has supported me in all my endeavors.

Contents

Introduction

Do you want to become your own boss? Are you working in a cubicle counting down the hours until 5 oclock (or later) when you can leave the office? Are you unemployed trying to figure out what to do? Do you have a business idea but dont know where to start? Are you still searching for an idea but already know you are destined to run your own company? If any of these is the case, this book is for you. By purchasing this book, youve taken the first step to becoming an entrepreneur.

This book will provide you with a concrete step-by-step guide to starting your own business. There are many books available about entrepreneurship but they tend to be vague, outdated, and full of generic guidelines. How is this book different?

• Provides more concrete steps instead of anecdotal stories
• Introduces novel thinking and methodology including ideas such as: 1. A business plan is not a necessity; 2. Preliminary research and consumer testing is the most important factor for a business to succeed; 3. Failing isnt always a bad thing
• Highlights the latest tools you should be using including those introduced in the past year

Based on my personal experience of 10+ ventures, research from reading dozens of books on entrepreneurship, and conversations with hundreds of entrepreneurs, I will provide you with the steps and tools to start a successful business. This is the only startup book you will ever need to buy. It will teach you how to test an idea, turn it into a business with as little capital as possible, and ensure it succeeds. By following these steps, the odds of your business succeeding will exponentially increase.

Traditional jobs are no longer what they used to be. Gone are the days of spending 30 years at the same company. The current workforce tends to be more mobile; spending 23 years at one job, then moving on to the next. Prior to becoming an entrepreneur, I spent years in a cubicle working as a consultant. Frustrated by the lack of interesting work and the slow- moving bureaucracy of large corporations, I set out to create my own company. I wanted to work for myself while having a flexible lifestyle so I could travel around the world, have unique experiences, and meet new people. The entrepreneurial lifestyle is not for everyone. There is inherent risk involved with giving up the comfort of a 401(k) and a steady paycheck. The hours can be long, especially at the outset, but there is the opportunity to set your own hours, escape the cubicle and find a career that is more exciting and lucrative.

This book will help you launch a business with as little money as possible. When I was first contemplating entrepreneurship, I had so many ideas but did not know where to start or which idea to pursue. This book will help you generate and select the best business idea on which to launch your company. Next, it will teach you methods to de-risk your new business as much as possible to ensure that it succeeds. It will then provide you with an approach to properly structure and fund your business. Then, this book will teach you how to build a web presence, before finally laying out the best marketing strategies for your companys launch. Entrepreneurship is a journey, and youre about to take the first step. Ready? Lets start!

Chapter 1: Conduct Self-Assessment

As you embark down the entrepreneurial path, it is important to be realistic about who you are and what you want. There are many kinds of businesses you can start. Your personality and lifestyle might be more conducive to certain types of businesses than others. If you have difficulty generating business ideas, I provide a framework in the next chapter. But first here are some basic questions to ask yourself:

What type of business do you want to start?

You could consider starting a product business, a service business, or purchasing a franchise license. Product businesses include selling goods or information. You can create a new product or resell an existing product from a manufacturer. Some examples include selling clothing, selling access to a website, reselling electronics, etc. Service businesses make money by providing a service to customers. Some examples are a transportation company, business or social media consulting, dry cleaning pickup/drop-off service, etc. Some businesses, like restaurants, are a combination of service and product. You are providing customers with a serviceserving of food, preparation, cleanup, and ambience, while also providing a product (meals). A franchise is a license to sell a companys products in a particular area using that companys name. In exchange, you would pay the company a startup fee and annual licensing fees. Some franchises include McDonalds, Subway, Hertz, Ace Hardware, etc. I will not be focusing on franchises in this book as they typically require a large initial investment. My focus is on businesses you can launch quickly and effectively with low initial investment.

What is your current financial status and how much time can you commit to starting a business?

Do you have a full-time job? If so, think carefully before walking away. Strongly consider starting your first venture on the side. Dont quit until your profit covers at least 50% of your current income. The only downside of this approach is that you will have less time to spend on your business idea, and may work during lunch breaks, weeknights, and weekends. When you are starting your side venture, make sure to stay organized. Each night, create a list of tasks you want to accomplish the following day and draft emails that you can send during business hours the next day. For example, lets say you want to email potential partners or press contacts. Draft and save the emails at night and then send them during your lunch break the following day.

Do you have $100 or $10,000 to invest in your business?

No amount is too small. In the next few chapters, I will teach you a framework which reduces how much you need to invest while also reducing risk.

What are your strengths and weaknesses?

Everyone has different strengths and weaknesses. For example, lets say youre a master at operations, but need help with your sales and marketing. You can take classes to build up your skills in those areas. Or perhaps you dislike writing. You could contract a copywriter to draft your ads and press releases There are some qualities that are critical for every entrepreneur; ask yourself if you possess them: The first is organization. Starting a business inherently involves many moving parts, and you will need to stay organized. I use an online calendar religiously to keep track of my meetings and deadlines. Im also a strong proponent of to-do lists. Another essential quality is perseverance. There will be times when you want to give up and it seems like the odds are stacked against you. In times like these, you may need to dig deep and push on. When I was first looking for insurance for my trolley company, I approached every broker and carrier I could find. I was turned down by everyone. As I couldnt even register the vehicle without insurance, I was going to shut down the business (after I had taken out a loan and purchased the vehicle). I mentioned my problem to a friend who informed me that she had an insurance broker friend. I called up her contact, and he was able to place my policy within a few days. This experience reminded me to explore every possible avenue before giving up. Other critical traits include discipline and a strong work ethic. The hours might be long and the process of building a business can be frustrating with only a glimmer of light at the end of the tunnel, so its important to stay focused. Overall, its incredibly helpful to be passionate about your idea. If you are fundamentally excited about your product or service, youll inevitably find it easier to put in long hours, maintain focus and even generate enthusiasm in other members of your team. If you dont love your product/service, how do you expect customers to love it?