Peter Fomum

21/03/2023

10 THINGS TO KNOW AS AN ENTREPRENEUR BEFORE STARTING A BUSINESS 💫💥💰

3. Start ideas for free.

People say all the time "I have an idea for a business". Maybe you need a small investment, it's normal. Let's say you're developing an app and you need to invest in the app, something like that happens, but a lot of people ask for insane amounts of money….500,000, 1,000,000…Oh it's to start my business. You can start businesses very cheaply if you do it the right way.
Let's go back to our example of the makeup company in lesson 2, If you start a makeup company in the traditional way, you need minimum 1,000,000. You need an office, you need logos, you need trademarks, you need stock, you need staff, you need Company Incorporation, you need tax and accountants, you need advertising budgets you need minimum 1,000,000+ to start this business but if you try the other way (hustler's style) whereby you make a website, put some pictures on there, pretend you got a whole bunch of stuff you ain't got and start getting money in, you can start this business for just 50,000 let's say for the website. 50k that's 950k difference. Now, the problem with this business is you're going to start getting money in and you're not going to have any way to fulfill the orders. But back to business lesson number one because you're a fast worker, because you're industrious, because you work with speed, you'll find a way to fulfill the orders. Hey listen!... Worst case you give them the money back….Worst case you refund them. But at least with this idea, you can test the viability of your plan and also, you're not in a hole. So let's assume both companies are bound to fail. With the hustler's style you've lost 50k but with the traditional style you've lost 1,000,000. Why risk all that money when you can do it cheap.

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Peter Fomum

28/02/2023

10 THINGS TO KNOW AS AN ENTREPRENEUR BEFORE STARTING A BUSINESS 💫💥💰

2. CASH IN
Most of you don’t know what a business is. Business is nothing else but “Money in”. It’s not money out, it’s not your accountant, it’s not your website, it’s not your Logo. A business is money getting into a bank. A drug dealer who has money coming into his pocket is more of a business man than somebody with a registered trade logo, a website and an accountant who is not getting paid. You own a business if you are getting paid, that’s what a business is. Cash is first! Your number 1 concern and priority should be “How do I get money in?” coupled with “Speed”. You don’t buy anything until people start paying you. The only thing that should be on your mind when starting a business should be;

a) How are you going to get paid?
b) How can people pay you?
c) How are you going to convince people to pay you?
Quick example: I ask someone “how would you start a makeup company?” and she goes… I’ll find some makeup, and then I’ll get a logo and I would get a trademark and I need stock… listen to all she is mentioning. In business we have two things; those that make us money and those that cost money. As a business, your primary concern is always making money and when most people want to start a business, all they think about is how to spend money. They go “uhh I need to find a makeup brand and find some makeup, I need to test it out and then get a logo and get some labels made and then get a warehouse and then get a website and blah blah blah… just how they are going to spend, spend and spend. Where is the “money in”? This is a business so where is the money? You are talking about spending money. As an Entrepreneur, you always have to be all about making money. I hear so many people say ‘I have a business’ and I ask ‘what have you got’? and they go oh I’ve got this and I have a registered trademark and I own this and you have the product blah blah blah and you think it’s important…you are not making any money, no one is paying you. It’s not a business if no one is paying you, it’s a business when people are paying you and until then, it’s just wastage of time. It’s much better to have “money in” right and “cost” wrong than the other way round. That is extremely important for you to know. If I were to start a makeup brand, I’ll do none of these(costs)zero. What I’ll do is I’ll create a website with makeup on it and prices and I’ll start advertising. Bang, now I’m making money, I’m getting orders. I don’t have any makeup, I don’t have a warehouse, I don’t have a logo or trademark I don’t have nothing but I’m making money. With money, you can fix the problems so when I get all the money in my bank, now I email everyone “hello, the product you ordered, the one you are interested in has such high demand that it was sold out so there will be a slight delay in the delivery of your product but we are going to give you one for free (a free gift). Thanks for being a valued customer.” Now this person is going to wait, they are going to be like “free gift, I’ll chill then and wait”. Now you have 3 or 4 weeks to find some makeup to send to them but at least you’ve got money in the bank, you’ve spent none of your own money or hardly any, you’ve got money coming in and now you have to find a way to fulfill the orders and that goes back to business lesson 1 SPEED now you’ve got to quickly find some makeup, find a logo, get it glued on them and get the makeup delivered to the customers but doing this makes more sense than the first method of buying stocks first and then you try to advertise and no one buys, then you’ve lost. But with my way, if I advertise and nobody buys, I haven’t lost anything anyway, who cares? No one wants my makeup, good thing I don’t have 200 boxes of it sitting in my room. When you want to start a business, your number one concern should be “how do I get money in?”.

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27/02/2023

10 THINGS TO KNOW AS AN ENTREPRENEUR BEFORE STARTING A BUSINESS 💫💥💰

Intro...

In your first ventures as an Entrepreneur, you’ll come across a lot of people who will tell you that you need to fail in order to succeed. This is a concept that has been made to look normal to the point where people start a venture with the thoughts of already failing which is bad because you need positivity in your daily life to strive forward as an Entrepreneur. This concept is true at times but you don’t necessarily need to fail if you can be smart and perspicacious enough to avoid such incidents. I believe you fail in a business when you lose money (Money which is the reason you started a business in the first place. You started a business because you want to make money, not lose money instead) but I believe that if you build a business from scratch without investing any money and it fails, you don’t really lose anything and this is an underrated hack to starting a business. The 60 guidelines I'll be sharing will show you how to develop a business by outsourcing the resources around you.

1- SPEED
Everything that needs to be done must be done fast. It doesn’t mean it has to be done cheap or s**t, it means it has to be done quickly and people seem to conflate the two that if you do something quickly, it must be terrible but that’s not the case, when you are getting lessons in martials arts you learn to kick, if your instructor says faster, you don’t degrade your kick and start kicking like an idiot but you do it quicker instead while maintaining the same level of energy you put in. In business, you can’t afford to be slow because while you are slacking off there is someone else somewhere doing exactly what you are doing consistently.
If I want a website and I go to someone to create one for me, it’s because I want it done as soon as possible. If I ask, how long will it take? He says 2 weeks. I say no, I want it done in 2 days. If he can’t move within my timeframe, I’m off to the next person. If I can learn how to create a website and actually create one all in 2 weeks, why would you need 2 weeks to create one with all your expertise? It makes no sense at all, it’s garbage and everyone is slow and being slow is deadly to a company for two reasons;
The faster you get things online, the faster you start making money. Now If you make money today because you were in a rush, let’s say you quickly pushed and you got it online because you want money, that’s one instance and another instance where it takes a week for you to get it online, that week of making money is gone, that money is lost. The longer you take to get something done, the less money you are going to make. If I start a company today till the end of my life and start another company next month till the end of my life, the one I start today has been running longer and is going to generate me more money. The quicker things are done, the more money is made.

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