How To Start A Business

Congrats! If you're reading this article you've already won. You're an independent thinker taking control of your life. And in many ways, running a business is not much different to how you run your own life.

You have a purpose — a mission, or at the very least you're driven by your passions in your personal life that give you reason to smile — just like in business.

## What does it take to start a business?

Here's the good news — starting a business is the easy part. You complete a few forms, set up a bank account, find a customer and you're officially "in business." In fact, you could do those things without leaving your day job. The hard part, and what most actually fear, is staying in and growing the business, and the work and risks associated with it.

Ask 100 business owners and you'll get 100 different answers. But what they all boil down to is: to be good at running a business you need to be outstanding at **People — Process — Product**. People buy from people and your people determine the value of your product. And of course, the process — the arbitrage, asset allocation and how you go about your business.

## What is an entrepreneur?

An "entrepreneur" used to be someone who didn't have a job. Nowadays it's on trend, and it seems everyone's repping the "entrepreneur" hashtag on social media.

## Should you start your own business?

Ask yourself — why do you want to start a business? Why wouldn't you just keep a secure low-stress job and put your money in a savings account, mutual fund, ETF, or other investment — and not take on all the energy-draining baggage that comes with running your own business?

## How much value are you adding to the world?

In business, you're paid a price for your product or service in proportion to the value you offer. That value is determined by how big a problem, or how many problems, you can solve.

The price is what customers pay — value is what they get. If you're solving a $10 problem, your product or service is valued at $10. If it's a $1 million problem, your product or service is valued at $1 million.

## Why do businesses fail?

As career entrepreneur Mark Cuban puts it — businesses fail for lack of brains or lack of effort.

## What are the most successful small businesses?

Traits of successful businesses: - They put their customers first - They're exceptionally good at the 3 P's: People, Process and Product - Have an intense focus on delivering value - Find ways to deliver even more value - Listen to their customers — not their critics - Can identify the arbitrage - Fast to hire, fast to fire — and hire the best and get out of their way - Don't run the race watching the rear-view mirror - Maintain a margin / safety buffer - Have a competitive advantage that acts as a moat around their castle - Manage their time - Don't rest on their laurels — always innovate and market - Love unconditionally — even when facing a loss - Understand and manage risk