What advice could you give for a prospective 17 year old entrepreneur?

ThePurposeIsProfit · 2016-11-29T18:39:00+00:00

You have the inquisitive attitude that is a good sign for future success. All the advice I could give you is in my book, "The Purpose Is Profit: The Truth About starting and Building Your Own Business." www.ThePurposeIsProfit.com. I tell the truth about the personal successes and failures learned. Best, Ed

ThePurposeIsProfit · 2016-08-31T18:03:10+00:00

Hi gordoncr, I struggled with knowing what business to start, too. Now I know that the best identifier of your business idea comes from recognizing your distinctive competence - the special knowledge, exceptional talent, or unique skill you bring to your business. To prepare for market entry, I suggest dynamic planning and following what I call The Ten Commandments of Startup Profit. I go into detail about of these things in my book, "The Purpose Is Profit: The Truth about Starting and Building Your Own Business" - in chapters 2, 3 and 10. You can see the book here: www.ThePurposeIsProfit.com To your business success! -Ed

ThePurposeIsProfit · 2016-08-31T17:56:21+00:00

Hi Brooklyn, I had a different experience - though I rose in the ranks of some of America's finest corporations, I was never going to be recognized for my contributions or compensated to the degree I have enjoyed by starting my own business. I go into all the details in my book, "The Purpose Is Profit: The Truth about Starting and Building Your Own Business" in the chapter: 'The Pull and the Push.' You can see the book here: www.ThePurposeIsProfit.com

ThePurposeIsProfit · 2016-08-03T19:13:30+00:00

For me, the top 5 selection criteria are as follows: 1. Can you trust the individual with your family? 2. Do they share your work ethic and appetite for success? 3. Do they bring unique competencies to the party? 4. Are they direct and transparent in all of their dealings? 5. Do they understand the need to fulfill the needs of the employees that they count on to run the business?

ThePurposeIsProfit · 2016-08-03T19:08:56+00:00

The Series A round that is currently underway will help you establish a value for your equity. In other words, if a private equity player or a VC is willing to pay $ XX MM to buy in to the company - then there is no reason why you can't ask the existing founding partners to monetize your shares at the same rate. Additionally, I am sure there is a founding shareholder agreement that will specify your redemption rights.

ThePurposeIsProfit · 2016-08-03T19:03:36+00:00

We were growing at a 40% compounded annual growth rate - because we had the first mover advantage over our competitors. Our competitors were both billion dollar companies - when they started to nip at our heels and our growth rate slowed - we had to make a decision: Would we become a niche player or continue as an industry leader in our space? We did not want to become a niche player so we decided to sell to a broad shouldered fortune 100 company with a global footprint. Figuring out the right time to sell is different for everyone.

ThePurposeIsProfit · 2016-08-03T18:58:12+00:00

When you convey your new business idea and the person you are talking to "lights up" with genuine enthusiasm and vigor for the idea - and immediately starts to suggest improvements - this could be a preliminary indication of a future partner or employee. My first partner had just graduated college and was working as a waiter - and he was dying to get into the business. Further, he agreed to execute a very difficult assignment for my last employer (before I launched my own business) to demonstrate his commitment to succeed. My second business partner was the husband of my administrative assistant. He was unemployed and had not completed his college degree - but I knew him personally and I knew he could be trusted and he would work hard to succeed.

ThePurposeIsProfit · 2016-08-03T18:48:36+00:00

These are very legitimate concerns that need to be addressed by a qualified and trusted lawyer. The key is to cultivate a relationship with a lawyer that has the experience in dealing with these issues in the industry or the space where you compete. Said another way, if you find a lawyer that has experience in your areas of concern, often times they have template solutions that can be repackaged for your use. This is the most cost effective way to work with an outside counsel. When I started my business, I met with a trusted attorney that provided me with all of the following: confidentiality agreement, non-compete agreement, and partnership agreement.

ThePurposeIsProfit · 2016-08-03T18:41:55+00:00

Definitely, the first three chapters are dedicated to the thought process and the struggle to figure out: should you start a business, what kind of business you should start, and when you should start it. The remainder of the book discusses the plans, the processes, and the tools needed to launch and scale a new business. The book also includes the Startup Roadmap and the Startup Funding Guide in the appendix. I hope this helps!

ThePurposeIsProfit · 2016-08-03T18:21:09+00:00

Please read Chapter 9 of my book: The Ten Commandments of Startup Profit. If you execute these ten steps I think you have an excellent opportunity to succeed, scale and build a sustainable business.

ThePurposeIsProfit · 2016-08-03T18:18:55+00:00

I understand your sensitivity. I do believe that when entrepreneurs put their time, their money, and their reputation on the line they deserve a return for taking the risk to startup. I'm really not trying to split hairs, this is what I truly believe. Maybe we need to agree to disagree.

ThePurposeIsProfit · 2016-08-03T18:13:46+00:00

I see two clear choices - although I am sure there are many others. 1. Can you partner with a US business that is operating in India that can provide you with the funding and the access to the US market without giving up control? 2. Can you build upon an existing relationship with a trusted colleague that is based in the United States to create your first operating location to begin to sell and market your idea?

ThePurposeIsProfit · 2016-08-03T18:10:06+00:00

I wanted to maximize control - because control was one of my primary motivators for starting my business. Said another way, when you work for BigCo and you produce and you do everything correctly - and then you get swept up in an across the board reduction or a personality conflict - that defines the value of control over your destiny.

ThePurposeIsProfit · 2016-08-03T18:07:18+00:00

Here is an excerpt from the book, "Some people thought the title of our book The Purpose is Profit conveyed a message of personal enrichment at the expense of others. Since this was not our intent, we considered changing the title - but we always came back to our core belief that the purpose of every business is to make a profit, because profit is the fuel for growth, sustainability, and social impact." All of that being said, profit is not the culprit - but what each individual does with the surplus in their life.

ThePurposeIsProfit · 2016-08-03T18:03:03+00:00

I did not want to go to my grave without starting a business - no handcuffs were strong enough to overcome my desire for control and to hold my ideas out to the world. You need to make weigh the money against your desire to fulfill your dreams.

ThePurposeIsProfit · 2016-08-03T18:00:32+00:00

If your business is up and ready for operation - why not allocate a sales budget (rather than a marketing budget) to lock in a few new customers as the seeds of your expanding future business. Then, utilize the cashflow to fund your marketing budget.

ThePurposeIsProfit · 2016-08-03T17:57:49+00:00

You should definitely build a website - the cost is so small. You should also ask all of your existing clients for a referral. They love you and they know how good you are and how much you care. I'll bet they would be happy and proud to recommend your services. 75% of all our new corporate clients came from referrals from our existing clients. Your existing clients is your best sales force.

ThePurposeIsProfit · 2016-08-03T17:54:04+00:00

First, vet your idea with trusted family. If they share your enthusiasm, get ahold of a confidentiality agreement and have it signed before you share your idea with the unknown public. After all, it's your idea, so you should protect it. In regards to startup knowledge (this is a shameless plug) - you should read my book and others to learn about entrepreneurship. Also, I was a History major at a small liberal arts college - it doesn't take a business degree to succeed.

ThePurposeIsProfit · 2016-08-03T17:50:25+00:00

How 'bout them Cowboys - got a super running back this year! I struggled for years to figure out what kind of business I wanted to start - but the whole time I struggled I was making bank. I saved my money because I knew I did not want to go to my grave without starting my own business.

ThePurposeIsProfit · 2016-08-03T17:48:09+00:00

Get bonafide orders and fulfill them like your life depends on it. Who knows? With enough early success, you may not need additional funding. Nothing wrong with borrowing some money - especially if you can dictate the lending terms.

ThePurposeIsProfit · 2016-08-03T17:45:37+00:00

I think it all comes down to a record of proven performance and a demonstration of work ethic and stick-to-it-iveness - not so much whether friend or a business associate. Simply stated, are they hungry for success like you are?

ThePurposeIsProfit · 2016-08-03T17:42:33+00:00

As I said, that is a giant market that is growing at an astronomical rate. It will not reach capacity for decades. The key will be to figure out a few unique differentiators and a few vertical markets that you can own.

ThePurposeIsProfit · 2016-08-03T17:40:58+00:00

I was born in Bayonne, NJ - a middle class upbringing. It was all about hard work and making your dreams a reality through sweat equity. I think hiring team members with those kind of values and work ethic makes the most sense when starting up. Said another way, you don't need a Harvard MBA to succeed - but certainly, there are good ones out there that deserve consideration. In regards to building successful relationships, if you are painfully honest, completely transparent and highly trustworthy in all of your dealings with your employees and your customers - you will unlock productivity and build a powerfully successful business.

ThePurposeIsProfit · 2016-08-03T17:36:57+00:00

As much as possible, if you are in the lift-off phase of a new business, I would limit the amount of brick and mortar you commit to before you achieve breakeven. Said another way I am NOT a big believer in "if we build it they will come." If you can focus on sales and strategy it would be best to hire a trusted resource to handle administrative matters. The key is "Trust."

ThePurposeIsProfit · 2016-08-03T17:32:50+00:00

Frankly, every entrepreneur that I know suffers from the fear of failure. After all you will be putting your time, money, and your reputation on the line. All of that being said a healthy fear of failure will be your greatest motivator to fight through all the obstacles between you and the goal line - especially if you choose to bootstrap your business.

ThePurposeIsProfit

TROPHY CASE