The top 7 things NOT to do when starting a business

7 ''NOTs'' to consider when starting a business

So I got a great question for one of my YouTube viewers emil

Love you guys wrote in to say Evan I've been watching your videos for a while now

I hope you enjoyed your trip to Asia. [I] did it was awesome

You can watch the videos. I've searched on Youtube on google, and I always get videos articles about what to do

I believe knowing what not to do is equally important usually all I get is generic tips which is don't grow too fast

But there are no concrete case studies, but when it comes to successful stories there are specific examples

I was thinking if maybe you can have videos or articles analyzing explaining

How businesses failed especially startups it would be great if you can use your influence to encourage

Entrepreneurs who have failed to share their stories with you. That way the mistake will only be made once, because we all will have learned from it.

Hopefully you consider my suggestion. Emil

This is for you [here] are the top 7 things not to do when starting the business?

Number one is pick the wrong business. A lot of companies fail, right?

80% + of companies fail in five years, a lot of it's because you picked the wrong business.

Your business just trying to make money, and if money is your only goal, you're not going to be successful.

You look at any entrepreneur who starts off and just trying to make money,

they rarely do, or if you look at the most successful

entrepreneurs of all time the big names of people who you would recognize: Oprah Winfrey, Bill Gates, Steve Jobs

whoever it is. Look at why they got started look at the early days of the reason for starting their business the number one is

never to make money okay, they want to have a positive impact they want to change the way something is done.

They want to mean something, but it's not just to make money now making money is important, okay?

I'm not saying start a charity you got to make money you got to be able to support [yourself] your family your community live the

Lifestyle you want money is going to be important. We're not throwing it away

But it's not the number [one] reason for starting this business you have to be [passionate] about what you're doing [and] too many entrepreneurs

Pick the wrong business number two is make the perfect plan so many entrepreneurs

Before they get started they want to have the perfect plan you gotta have it all lined out

It's got to be a hundred percent

Quick know exactly what you're going to do before you launch and and that holds you back, and this was me, okay?

My in my first real business retta saab the the biotech software company

I had I spent a whole summer making my plan right here's how we're going to grow here's exactly what we're going to do and

as soon as we launched

Everything changed because my plan was wrong my assumptions were wrong and so

To many entrepreneurs get focused on making the perfect plan

That they don't start that they hold themselves back the best thing you can do is

plan a little and start

Right when you get feedback and reaction and customers telling you what they like and don't like you'll have to adapt anyway

So get that feedback as soon as possible don't worry about making the perfect plan and don't wait

Until you have that perfect plan because so many people wait so long that they don't actually take any action at all they give up

On it because they can't figure out the perfect plan you will never have the perfect plan [at] the start so start

Number three is spend money so many entrepreneurs have

Great ways on [how] to spend money right if I gave you a million dollars you can find a million different ways to spend it

Not many entrepreneurs are great at making money, and so stop trying to think about how [to] spend money, okay?

You do not need a website you do not need an office you. Do not need a car

You [don't] need business cards

[you] don't need anything you need you and your hustle to get out there and start talking to customers

[stop] trying to figure out ways to spend money you do not need money to make money

You need to work you need the hustle you got to get out there and start talking to people

[it] takes your time, you got to invest your time, but don't start investing your money stop spending money

Until you're making some money number four is try to do it alone. [you] can't do this alone

You cannot do this just on your own you need people to [help] you and whether that's having

Volunteers or interns that I have when I started my first business whether it's having people who are working for you?

Part-time the first guy hired was for one hour a day to relieve some of the work off [of] me

Right [whether] that's having a mastermind group of people that you connect with I have one

I run here in Toronto where we meet every month to talk about our businesses and help each other out

[you] can't do this alone

you need to be able to talk to people how [people] help you and we're not spending money at the start right back to the

last point

We're not spending money on these people to start, but you can attract people to you

You can meet up with [the] mastermind group once a month. You can have volunteers or student interns helping you out

Hey, if you're saving for something important, you're going to have people coming to you

I can't tell you how many people want to volunteer

At my business because I'm trying to do something big and important you could start that way

But don't don't try to do everything yourself

Because running the business is a lot harder than one person can manage [and] if you want to do something big [you] want to have

a big impact

[you] want to change the world you want to have a huge you know meaning and also make a lot of money in the process

You need to be able to reach out and not do everything yourself

Number five is jump into the wrong partnership so many entrepreneurs

Jump in the partnership. Maybe you met somebody at a hackathon over the weekend you have this great business idea

And there's six of you starting up

Don't jump in the bed with the wrong partner and I get why you do it right you want to surround yourself with like-Minded

People who have complementary skill sets you're on board here's our big vision. Here's where we're going rah Rah, Rah here

We go and then when things get tough

That's when the partnership starts to crumble that's when a lot of fights start to happen being in the business partnership is

Just as important as being in a marriage right you got to think about these people as I'm [gonna] get married to this person

Can I live with that right you're you're seeing them?

How many hours of the day right you're seeing them probably more than you're going to see your husband or wife during the week?

So [you] have to be someone who has the same?

Values as you and the best way to try that [out] is to [start] working together on small projects before jumping together into the partnership

Work on one small project together

See if you guys get along [see] if you work well together see if you share that same vision see if you share the same

Values, it's so much more than just having complementary skill sets right if you're the business guy you need a coder

You don't just bring on any coder who can who can program what you need right?

then give them shares in your business has to be somebody who you [can] get married to and

Work with for the [rest] of your life potentially, right?

It's got to be that important so don't just jump into the wrong partnerships number six is operate in a bubble

so many [entrepreneurs] and myself included

We try to figure everything out ourselves

And I wasn't investing in [myself]. I wasn't learning to try to get better. [I] remember with my first business

[I] was earning [300] dollars a month and and surviving on Beans and

Struggling and and trying to put up a good face for my friends because I was supposed to be the guy

Making it big and doing well, but meanwhile I tried everything I knew I was failing [I] couldn't afford anything

I couldn't afford a night out to have beer with my friends and

The strategy that saved me was was [modeling] success and and looking from the strategies of bill [gates]

And how we started Microsoft applying that to my company?

And that helped me start to grow and if I never look at what made bill gates successful


call it wouldn't have been able to make my company be successful because I actually told my partner that I quit like I was so

Stressed out. I was so tired of not making any money

That that [I] wanted to quit and do something that I felt that would would be meaningful and and I would feel valued in

So I was operating the bubble

And you can't operate in the bubble you have to bust through right?

Whatever your comfort zone is you got to be able to bust through that to become the entrepreneur that you can truly become?

So that's model success learning from others watching videos reading books stretching your comfort zone stretching your knowledge Zone

Stretching the the safe environment [that] you have for yourself

to become a better entrepreneur

and every single big break up having my business career has been because I've taken my limiting beliefs and smashed it and

expanded them a little bit more and expand them and

Expand them [and] believe [that] I could do more and learn from others to to accomplish those things and model strategies and mall success

So stop operating in a bubble and number seven is startup product. This is a bit of a controversial one, but

Big fan of product startups the main reason comes back to the money issue, right?

I want you to get profitable as soon as possible

I want cash in your hand as soon as possible and the problem with product companies

Are you spend a lot of money at the start right you have to invest into product into inventory and so many

companies entrepreneurs

[start] [up] invest a lot you know they put a lot on the line

They [may] you know take out another mortgage on their on their house

They may pull out money from their retirement savings

To launch into this product and then they end up with all of this inventory sitting in their garage

In their basement that they can't sell and so many product companies fail

Because they picked the wrong product and it's so much easier to start in a [service-based] business

Because you're not investing anything except your time

You don't need to invest any money into a service based business except your time

And what that does is allows you to get close to [your] customers?

Allows you to refine [your] message allows you to find your service because the service you go in thinking

You're going to do is not the service that you end up actually

Doing it will change right go back to the point about planning it will change and it's so much easier to be

flexible in a service based business to figure out what your offer is going to be and

Then launch into [a] product right get some cocktail coming in get that

Mortgage bill and that electricity bill paid off from your service based business. [it's] harder the scale of service

It's much easier to scale Park

That's why it's so attractive right you want to trade time for money you want to build a huge empire?

That's why building a product but start with the service to get the cash

She'll coming in to get you close to the customers to get you understanding what it is that [people] want?

You have a base of people that sell your product to you. Have an income stream coming and support you then launch your product

dominate the world

So I'm not a fan of starting with a product so in summary the top seven things not to do when start in the business

Number one pick the wrong business number two make the perfect plan number three spend money number four try to do it alone

number five jump into the wrong partner number six operating the bubble number seven start a product and

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