Thread: Do You Have A Successful Entrepreneurial Premise?

Originally Posted by Russ H

One of my all-time favorite posts by MJ.

I go back and read it any time I'm developing something new for our business, to keep my focus.

-Russ H.

This is probably the 5'th time I'm reading this post - and I keep being amazed by how easy it is to get distracted to the "dark" side.

The project I'm working on right now passed the premise test, so it's on the right side.

I should start using some of these fridge/mirror posting techniques

Nice post and a must read for every new entrepreneurs.

Originally Posted by PhxMJ

Yup, Chapter 37: The Open Road. Here is the first sub-section of the chapter.

Just a heads up, in the actual book it is...

Chapter 36
Page 250

Judging by the date of MJ's post I quoted, the book wasn't finished yet, hence the different chapter number.

Originally Posted by Vagabond 007

Judging by the date of MJ's post I quoted, the book wasn't finished yet, hence the different chapter number.

Yes indeed! That was before the 1/2 dozen editors and slicing-n-dicing!

At this moment the hardest part for me was, not to do it for the money. I ve seen that when I struggle financially, it gets even harder not to look at clients only through the money perspective.

I have also started bussines on doing what I love. Well, there has been some success, but not to the extent to which I was hoping for. Anyway, the book gave me a lot of good insights on what I need to change and do different, this I already started implement in my thinking and actions.

My main vision now is to bring true value to the marketplace, really appreciate the customer, and maybe even make the world a better place. I also want to provide for those I love and generally be a benefit to my society.

Cheers to all you forum readers!

Great post.

To develop on:
"What business can I start with $200 and still make $5K per month?"

You can't start a business generating $5000/month with $200.

Let me tell you why. The $200 may be start-up costs. Fixed start-up costs.

But there are hidden costs also.

Let's say you want to launch a product on ClickBank. Most people say you can do it under $200.

The costs are:
-> CB account ~$40.
-> Domain ~$10.
-> Hosting ~$5 month.

Great. This has the potential of generating a million dollars next year. Or does it?

Next to this, there are the costs IN TIME OR MONEY of:
-> Copywriting, as a efficient sales letter is expensive.
-> SEO or affiliate marketing, as people won't come just because you want too.
-> Developing a good product (being a ghostwriter or hiring one).
-> Proofing your product, creating the design.
-> Customer support.
-> Legal.

Now, yes, I fully admit, you can launch a CB product under $100.

But you need to be a good marketer to do this. You need to bring skills to the job.

And those skills take time to learn. If we value our time at a modest $25/hour, to learn copywriting at an efficient level, you need at least 25 focused hours.

That's an extra $625 in costs just from point #1.

Even MJ, whose story is impressive but I've seen similar, so I know it's both realistic and possible, first spent hundreds of hours learning how to do all of those things and then actually create them.

Therefore, in reality, you don't start-up a business with $1000 and a rented laptop. You start it with 500 hours of specialized study on how to do it or experience and a small capital to ignite it.

That's the difference between the person that can launch a business successfully even if he's broke and the person with unlimited capital who can't make a buck. It's the unseen investment in skill and experience.

Agree?

Originally Posted by MJDeMarco

Do You Have a Successful Entrepreneurial Premise?

The most common mistake aspiring entrepreneurs make is to approach entrepreneurship with the wrong premise. You've heard the doom-and-gloom statistic that 90% of all new businesses fail in 5 years. While this stat is disheartening, it can empower you to become the minority 10% who don't fail by understanding why most do.

Quite frequently I read posts from people, albeit well-intended, with grandiose goals of making a fortune by starting a business. You've heard the countless questions repeated dozens of times:

• How can I make money starting a business?
• What business can I start with $200 and still make $5K per month?
• What home-based business can I start?
• I have a friend who manufacturers widgets; you think I can make money selling them?
• How can I make a passive income?
• What's a good product to sell on Ebay?
• What's the best business to start on a shoestring?

If you find yourself sitting around asking yourself these types of questions, your entrepreneurial premise more than likely will lead you into the 90% failure category. Why? An entrepreneurial premise predicated on money is like building a house on sand; it's likely to come crumbling down. Start with a weak foundation in any task and your odds of failure increase.

Fastlane Principle: Selfish premises do not make good, long-term business models.

Businesses should not be created to make money. Businesses should not be created to satisfy your desire to “do what you love”. No one cares about your selfish ideas about dreams and making money. The world doesn't care about your business, your desire to make money, and your dreams of owning a business “doing what you love”. Again, no one cares!

What people DO CARE about is what your business can do for them. How will your business help me? What's in it for me? Will it solve my problem? Make something easier? Provide me with shelter? Save me money? Educate me? Make me feel a certain way? Tell me why should I give your business money for your product or service?

The problem with new business owners is they create businesses based on the faulty premises; faulty premises that don't lead to profitable business.

“I need a new income stream”
“I’m an expert in [blank] so Ill do that"
“I read a book and it says to start a business”

Wrong. Wrong. And wrong.

Fastlane Principle: You begin to attract money when you STOP BEING SELFISH and turn your business focuses from the needs of yourself to the needs of other people.

Businesses don't attract money -- businesses that solve needs do. If your goal is to attract wealth ethically and with integrity, selfish motives, albeit a powerful motivator, won't serve you well to attract great wealth.

Money is a like a mischievous cat; if you chase it around the neighborhood, it eludes you-- hiding up a tree, behind the rose bush, or in the garden. However, if you ignore it and focus on what attracts the cat other than the cat itself, it will come to you and sit right in your lap.

The foundation of all highly successful business is the satisfaction of consumer needs as reflected by sales in the marketplace. The marketplace-- people, not you-- determine if your business is viable. If you sell 10,000,000 of Product XYZ, 10,000,000 people have voted that your product will help them, or satisfy one of their needs. People vote with their money.

Fastlane Principle: Focusing on the needs of others is the only entrepreneurial premise that improves your odds of business success.

Growing wealth germinates by solving needs on a massive scale, or in a highly impactual way. It could be as gigantic as starting a software company like Bill Gates or Larry Ellison, or something seemingly minute like putting a new spin on something old. If you own a website that services 10,000 people daily, you're making an impact. If you own real estate company that provides housing to 1,000 people, you're making an impact. Make a freaking impact!!

Is this an all-inclusive rule? No. Exceptions exist. Many profitable businesses are founded on greed -- however profit in the name of greed and selfish interest usually lands those companies on the television or in the Better Business Bureau complaint files. Consumer greed also exists and greedy business owners can serve this demographic well (The all too popular consumer mantra: "We want the best price" often ends up as a scam or services rendered poorly.)

The objective of this post is to increase your odds of business success. While you can chose to ignore this advice and continue moving forward with selfish interest, I'd speculate your failure odds are inline with the stats -- 90% -- whereas moving to an unselfish premise might increase it to 50%.

EXAMPLE
Joe was an expert in martial arts and he loved his craft. Following the advice of gurus, he set out to "do what he loved" and opened up a martial art studio. Within 10 months, his studio closed down as he could no longer support his family on his $21,000 year business profit.

Before starting, Joe was destined for failure due to a faulty entrepreneurial premise based on selfish needs: "I'm an expert in martial arts and love the art, therefore I should open a studio".

The correct premises are: Is there a need in my neighborhood for a martial art studio? What are current martial arts studios doing wrong? What are they doing that I could do better? What better services and value could I provide to the martial art student? What do I bring to the table to this community?

Had Joe analyzed and answered these questions first and foremost, his odds of business success would have increased dramatically.

My advice to aspiring business owners is this: Quit looking around for money-making opportunities -- instead, look around outside of yourself, stop being selfish, and help your fellow man solve their problems.

If you can make 1,000,000 people achieve any of the following:

1) Make them feel better
2) Help them solve a problem
3) Educate them
4) Make them look better (health, nutrition, clothing, makeup)
5) Give them security (housing, safety, health)
6) Arise a positive emotion (love, happiness, laughter, self-confidence)
7) Satisfy appetites of all kind, from basic (food) to the risqué (sexual).
8) Make things easier
9) Enhance their dreams and give hope

Do any of the above and I can guarantee you this: You will be worth millions.

So, the next time you hear yourself trolling around for opportunities to make you money, sit back and ask yourself this ...

"What do I have to offer the world?"

Offer the world something of value and the money will be close behind.

MJ

I have heard these principles a thousand times and explained a thousand different ways but it is amazing how a slight little twist makes the difference between a total aha moment, and just more motivational stuff that goes in one ear and out the other.

I have been trying to design a business model that teaches people to play guitar and sing at the same time. My approach has been totally selfish. I was trying to design it so that the work would be completely passive income once my website was up and running. The problem is that people need help with the specific songs they are having trouble with, and not just having a method that will allow them to figure it out fo themselves.

To truly impact these people I will have to take on each student on a case by case basis and solve their specific problems. This involves an entirely different business model. I can still create a stream of passive income by employing several employees to coach these students, but the personal attention is the key ingredient to making this work. I have been busting my brains trying to figure out a way to avoid having to do this, but when you explain it as being selfish all of the sudden everything makes sense.

You rock!!!!!!!!

The challenge is for anyone starting a business is the belief that it will be instantly successful and make someone a millionaire overnight. Create a business plan. Know why you are starting this...what is your core value for doing this (besides income). Who is your audience? By when can you expect to see ROI? Are you capitalized well enough? do you have other income streams to sustain you? What resources do you need to make this successful?.....

Thank you MJ. I'm almost done with the book, and for me it's almost the only money book I will ever need lol.
Just kidding, but the book does set the CORRECT foundation to get to the millions of dollars.

You have caused an impact over here, all the way from Panama City, Latin America.

Cheers,

Abe.

Thanks, that was a great post. I think we all focus on wanting to make money in he beginning before ever learning that if we fulfill someone else's needs, the money will follow.

Hi MJ!!

That's really a great post. It's rather a must read!!!

[LINK REMOVED BY MODERATOR]

This is one of the best posts I've read on building a successful business. No one quite tells it like MJ.

MJ, you certainly lead by example. I loved your book and it's clear that you wrote it to serve a basic need. I'll admit I started my business for all the wrong reasons - now having read your book, I'm much better off. I always chose event over process and I took a major beating during the meltdown. i wouldn't have lost my hair, weight and mind if I had this information earlier. Your book should be made mandatory reading in all business schools.

Originally Posted by MJDeMarco

Do You Have a Successful Entrepreneurial Premise?

The most common mistake aspiring entrepreneurs make is to approach entrepreneurship with the wrong premise. You've heard the doom-and-gloom statistic that 90% of all new businesses fail in 5 years. While this stat is disheartening, it can empower you to become the minority 10% who don't fail by understanding why most do.

Quite frequently I read posts from people, albeit well-intended, with grandiose goals of making a fortune by starting a business. You've heard the countless questions repeated dozens of times:

• How can I make money starting a business?
• What business can I start with $200 and still make $5K per month?
• What home-based business can I start?
• I have a friend who manufacturers widgets; you think I can make money selling them?
• How can I make a passive income?
• What's a good product to sell on Ebay?
• What's the best business to start on a shoestring?

If you find yourself sitting around asking yourself these types of questions, your entrepreneurial premise more than likely will lead you into the 90% failure category. Why? An entrepreneurial premise predicated on money is like building a house on sand; it's likely to come crumbling down. Start with a weak foundation in any task and your odds of failure increase.

Fastlane Principle: Selfish premises do not make good, long-term business models.

Businesses should not be created to make money. Businesses should not be created to satisfy your desire to “do what you love”. No one cares about your selfish ideas about dreams and making money. The world doesn't care about your business, your desire to make money, and your dreams of owning a business “doing what you love”. Again, no one cares!

What people DO CARE about is what your business can do for them. How will your business help me? What's in it for me? Will it solve my problem? Make something easier? Provide me with shelter? Save me money? Educate me? Make me feel a certain way? Tell me why should I give your business money for your product or service?

The problem with new business owners is they create businesses based on the faulty premises; faulty premises that don't lead to profitable business.

“I need a new income stream”
“I’m an expert in [blank] so Ill do that"
“I read a book and it says to start a business”

Wrong. Wrong. And wrong.

Fastlane Principle: You begin to attract money when you STOP BEING SELFISH and turn your business focuses from the needs of yourself to the needs of other people.

Businesses don't attract money -- businesses that solve needs do. If your goal is to attract wealth ethically and with integrity, selfish motives, albeit a powerful motivator, won't serve you well to attract great wealth.

Money is a like a mischievous cat; if you chase it around the neighborhood, it eludes you-- hiding up a tree, behind the rose bush, or in the garden. However, if you ignore it and focus on what attracts the cat other than the cat itself, it will come to you and sit right in your lap.

The foundation of all highly successful business is the satisfaction of consumer needs as reflected by sales in the marketplace. The marketplace-- people, not you-- determine if your business is viable. If you sell 10,000,000 of Product XYZ, 10,000,000 people have voted that your product will help them, or satisfy one of their needs. People vote with their money.

Fastlane Principle: Focusing on the needs of others is the only entrepreneurial premise that improves your odds of business success.

Growing wealth germinates by solving needs on a massive scale, or in a highly impactual way. It could be as gigantic as starting a software company like Bill Gates or Larry Ellison, or something seemingly minute like putting a new spin on something old. If you own a website that services 10,000 people daily, you're making an impact. If you own real estate company that provides housing to 1,000 people, you're making an impact. Make a freaking impact!!

Is this an all-inclusive rule? No. Exceptions exist. Many profitable businesses are founded on greed -- however profit in the name of greed and selfish interest usually lands those companies on the television or in the Better Business Bureau complaint files. Consumer greed also exists and greedy business owners can serve this demographic well (The all too popular consumer mantra: "We want the best price" often ends up as a scam or services rendered poorly.)

The objective of this post is to increase your odds of business success. While you can chose to ignore this advice and continue moving forward with selfish interest, I'd speculate your failure odds are inline with the stats -- 90% -- whereas moving to an unselfish premise might increase it to 50%.

EXAMPLE
Joe was an expert in martial arts and he loved his craft. Following the advice of gurus, he set out to "do what he loved" and opened up a martial art studio. Within 10 months, his studio closed down as he could no longer support his family on his $21,000 year business profit.

Before starting, Joe was destined for failure due to a faulty entrepreneurial premise based on selfish needs: "I'm an expert in martial arts and love the art, therefore I should open a studio".

The correct premises are: Is there a need in my neighborhood for a martial art studio? What are current martial arts studios doing wrong? What are they doing that I could do better? What better services and value could I provide to the martial art student? What do I bring to the table to this community?

Had Joe analyzed and answered these questions first and foremost, his odds of business success would have increased dramatically.

My advice to aspiring business owners is this: Quit looking around for money-making opportunities -- instead, look around outside of yourself, stop being selfish, and help your fellow man solve their problems.

If you can make 1,000,000 people achieve any of the following:

1) Make them feel better
2) Help them solve a problem
3) Educate them
4) Make them look better (health, nutrition, clothing, makeup)
5) Give them security (housing, safety, health)
6) Arise a positive emotion (love, happiness, laughter, self-confidence)
7) Satisfy appetites of all kind, from basic (food) to the risqué (sexual).
8) Make things easier
9) Enhance their dreams and give hope

Do any of the above and I can guarantee you this: You will be worth millions.

So, the next time you hear yourself trolling around for opportunities to make you money, sit back and ask yourself this ...

"What do I have to offer the world?"

Offer the world something of value and the money will be close behind.

MJ

GREAT stuff MJ. Really hits the nail on the head.

simply the best!!!!!!! Thank u so much

MJ what you do here is EPIC. You are like the Yoda of success

Thanks MJ its really amazing post.