SpeedReader Summaries - The $100 Startup by Chris Guillebeau: Summary and Analysis

Please note that this is an UNOFFICIAL summary and analysis. This summary and analysis is not affiliated, authorized, approved, licensed, or endorsed by the subject books author or publisher.

Introduction

I N The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future , author Chris Guillebeau examines the steps taken by hundreds of successful business owners who have built and grown their startups with very small investments (often less than $100). He focuses on the most useful and interesting case studies, delving into the journey of the business owner from small startup to prosperous business to complete financial freedom and flexibility.

What makes this book so useful? The people Guillebeau interviews are regular people with no specialized skills, little capital, and little to no business experience. He takes what he learns from these peopletheir mistakes, successes, and tipsand compiles the information into an actionable, easy-to-read guide. His message is both simple and inspiring: you dont need an MBA to launch your very own startup. You just need to figure out what it is that people want, give them that thing, and find a way to get paid for it.

C HRIS GUILLEBEAU IS an entrepreneur, blogger, speaker, and the New York Times bestselling author of several books, including The $100 Startup , The Happiness of Pursuit , and The Art of Non-Conformity . He has also authored non-fiction guides on travel and small business under the brand Unconventional Guides. He is the organizer of the annual World Domination Summit in Portland, Oregon. Learn more about Chris at ChrisGuillebeau.com.

Please note that the book youre reading right now is not meant to be a substitute for The $100 Startup but, instead, a supplement. We recommend using it to quickly refresh yourself on the key principles found in Guillebeaus book and to bolster your understanding of the material with the analysis, discussion questions, and additional resources we provide.

1. Micro-Entrepreneurship

M ICROBUSINESSES, OR businesses run by just one person, have been around as long as business itself. Theres nothing new about a person having a business idea and then acting on that idea. What is new, however, is the speed and ease with which a person can start a business, reach their customer base, and earn far more money than they had anticipated. Taking an idea to execution these days can take just weeks (or even days) and as little as $100.

And its not simply the intellectually elite or the technologically savvy who are doing it. Its regular peoplestay-at-home-moms, retirees, people who already have full-time jobs and are looking for extra income, anyone who dreams of living life on his or her own terms. Its a revolutionpeople are leaving passionless jobs to follow their dreams. Theyre designing new lives based on freedom and flexibility, not on punching in and out at a job that drains, instead of feeds, their souls.

Guillebeaus book is a compilation of case studies of a group of business owner participants in his entrepreneurship workshops who met certain criteria. Those criteria: (1) the micro-entrepreneur built a business based on something that they were personally enthusiastic about; (2) the business required very little in startup costs; (3) the business brought in at least $50,000 in net profit; (4) running the business required skills that could be acquired by any regular person; and (5) the business employed fewer than five people and started with only one or two people.

SpeedReader Notes

Its certainly true that anyone can create a startup. You dont need an MBA, tons of cash, a haggle of investors, or a commercial space. We do note, however, that your startup will struggle unless you have a good deal of practical experience in your chosen field. So, while you may be passionate about canning jellies, for example, if you know nothing about the mechanics of preparing your canned jellies for shipping, of complying with regulations and health codes, or of safely storing your goods prior to shipment, you could be in for a rough start.

We recommend spending as much time as you need researching, investigating, and studying your startup interest before diving in. If you can get some practical experience by finding a job in the field, even better. Just make sure you know what youre getting into beforehand. And dont be discouraged if you run into more challenges than you expected. Anything worth doing will have risks and barriers to entryotherwise everyone would do it. With enough energy, drive, planning, and care, youll be off to a good start.

You should also be very honest with yourself about your personality type and work style. Not everyone is suited to be an entrepreneur, even a micro-entrepreneur. Here are some questions to ask yourself:

Are you a disciplined self-starter? Many entrepreneurs know from experience that a successful business, particularly a side business, does not come from working a 40-hour week, at least at first. Ask yourself whether you have the discipline, drive, and spare time to make sacrifices to get your startup going.

Can you envision where your business is going to be a year from now? A business that doesnt survive isnt a business, its a project. If you cant imagine where your business will be in a year or five years, it may be that your idea isnt sustainable.

Are you comfortable with risk? Starting a business will always involve you using your resources, whether its time and/or money. It could be that you wont get a return on those resources anytime soon. Are you comfortable with that?

Are you a thinker AND a doer? A micro-entreprener has to be both the brains and the brawn of the business. This is a big responsibility and requires someone who is very self-reliant.

Further Reading

• An Entrepreneurship Assessment
• 50 Signs You Need to Start Your Own Business