The Number 1 Mistake That New Entrepreneurs Make
There’s one big thing that matters in business, but this one thing is the biggest thing that mostly all new entrepreneurs seem to forget.
You want to know what that one thing is? It’s money!
A business is only considered a business when it’s capable of generating income. Or to better put it, profit. But yet, most new entrepreneurs have no idea how to actually make money.
In fact, they don’t even consider thinking about it.
Instead, they only focus on the stuff that everyone else is doing:
- programming & tech skills
- growth hacking
- multi-level marketing
- + many more
If you aren’t sure on how to generate money, none of these things have value at all. They are only considered “support” structures which can help you run your business, but in themselves they are not a business.
I mean yeah, if you’re in the business of blogging, then you obviously need the skills of copy-writing if you want to make money.
But not if you run any other type of business.
Having blogging skills certainly helps you market your products and services, but that’s all. Plus, you can just as well outsource this part to someone else, who can honestly do it much better than you can in most cases.
After all, that’s what a business is all about. You focus on your core capabilities, and outsource the rest.
You need to learn how to make money!
Even if you already know how you want to make money with your biz long-term, don’t focus on that in the very beginning, especially if you haven’t learned yet how to generate income.
Start out by doing something completely different. Something that will make you even just a little bit of money NOW.
But make sure you are treating this task like a business, not a job.
One of the best places to start is booking one of Garrett Schultz’s “Income Growth” coaching services. He’ll talk to you about your situation and structure a plan for you to start multiplying your income as quickly as possible.
Essentially, in this way, you are forced to stick to a plan of creating passive income for yourself, which will continue to create revenue for you without your own active involvement in the process.
And that’s the definition of a business, isn’t it?
A business is any kind of system consisting of elements which work together, and which generate revenue on a regular basis. Without any particular person’s active involvement in the process.
This could be anything, really.
For example, you could start with a drop-shipping business (which Garrett Schultz from above will talk about with you). Here, you essentially list third-party owned products on your platform. You then purchase- and ship the product once a customer orders comes in.
You can start such a business with hardly any upfront costs at all, and it is pure practice when it comes to selling stuff online.
And yes, your blogging and marketing skills might actually help you here to sell some more products on the long-term.
But they certainly are not the skill to have.
So when can “blogging” turn into an actual business?
So let’s just say that you are passionate about writing and you actually want to turn your blogging skills into a business. You have done your homework and learned how to set up a system that generates revenue on a regular basis.
How do you turn that into a business?
Well, it would actually start with you blogging for other people. But that’s not a business, that’s just freelancing.
At this point, you are essentially trading our own time for money. It is just that you are not a full-time employee. Instead, you are finding new clients on a regular basis and working for them.
But then, what happens when you suddenly hire five people who are doing the writing work for you?
You are providing them with a system on producing content of the same quality like the one you produce (using guidelines, policies, training etc.), and you have one person who is doing the quality assurance part of it.
Plus, you have other people involved who are taking care of other aspects of the business, including things like customer acquisition, administrative work and so on and so forth.
Congratulations, you now have a business that actually exists around the thing you love so much …. blogging.
It’s just that at this point, you yourself as the owner of the business, certainly do not have to do any of the blogging work yourself anymore.
Do you get the point?
To become an entrepreneur, you essentially only need one skill. And that skill is to set up a system which is capable of generating money for you even in your absence.
Of course, there is an unlimited number of ways to generate such a system.
So what is a business idea, really?
An idea is essentially one of these unlimited ways of generating a business system. But then again, without the practical skills of turning this idea into a system that functions, the idea itself is worthless.
You see, the problem is that due to the start-up hype of today, young entrepreneurs are trying to set up incredibly complex systems.
For example, systems which are revolutionizing whole industries such as the taxi industry (yes, I’m talking about Uber here).
But these same entrepreneurs haven’t even learned how to set up the most simple of business systems yet (e.g. a lemonade stand). God, most of them haven’t even learned how to generate one dollar through real, automated business-processes.
Somebody tell me, how is that supposed to be a realistic goal?
I know that youthful passion, energy and drive make up for much.
But it is simply unrealistic to expect that a lot of people will succeed to create complex business systems, when they aren’t even able to create simple one’s which generate a basic level of income for them.
My question is, why do we keep encouraging young entrepreneurs to build incredibly difficult start-up projects from scratch, instead of suggesting them to practice by turning simple business models into reality first?
Get out there and practice
Do yourself a favor and learn how to set up business systems that generate money for you before you do anything else.
Not only will this experience help you tremendously in setting up your ‘dream’ business later on, but it will also solve the main problem that most young entrepreneurs of today have.
Yes, that’s right. I’m talking about the problem that these young entrepreneurs are constantly broke.
Sorry, but you are not an entrepreneur if you are not making any money from your ‘business’.
I would even go as far as to claim that a start-up which has $3,000,000 in investment money, but still does not make any revenue, still can not be considered a business.
Because it still doesn’t fulfill the definition of a business.
It still didn’t succeed at building a system which generates revenue.
And if that start-up fails to create such a business system and make some real money, then eventually it will die. Even if its slow death takes 10 years, because it is constantly getting pumped up by more investment money.
Business is all about money. Never forget that.
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