Here are four things I wish I knew before starting businesses that would have helped me tremendously. #business #entrepreneurship
How to Systematically Attack Target Customers in Masses
The first thing I want to know when starting a business is if I have a large potential audience. I want to be able to walk into a restaurant and twenty-five percent of the people in there want what I have to offer them.
Grow Your Core Business Before Expanding Into Other Areas that May Entice You
Your core business is the one that makes you the most money. It pays your mortgage. Being enticed into other areas will take away your time and attention from your core business too soon.
Look for a High Margin Business With a Competitive Advantage at Very Little Cost
This is why I love service companies. For my car-detailing business, instead of taking the car away for days, we brought all the equipment including water to the customer and detailed the car right there. That was a competitive advantage.
For my home service company, I only hired people with ten years experience. That was a massive differentiated that didn’t cost me any extra money.
Until You Have Massive Cash Reserves, You’re an Employee
It took me a while to figure this out. Early on there was maybe enough to cover my paycheck and some expenses but now we keep a huge amount in reserves to last us years. This comes in handy during times like 2008 or in the case of the pandemic.
If you can’t accumulate cash reserves, you can’t scale.
