Young Entrepreneur Details His Progress in Business

[Mulsanne]

At the begining of the year I had compromised with myself that I would start a business before 2016 ends. After months of learning, anr reading I started walking in circles without any action. It was November already, only one month to my deadline (31/12/2016) and I had not started my business.


Turns out this is about to change. After some days talking with a special man, that will soon become my partner: My Father.


Talking to him made me realize that I had an opportunity right down my nose, all this time!
Yes, my father have a small business that I have never been involved to, and he has been stuck like that for 7 years. So instead of looking for a new idea to create a business from stratch, I started to think about ideas to reformulate and improve his business.

I presented to him some ideas to give the business new life but he was afraid to go big, because that would require a big investment and we had no certainty if it would work. I kept talking to him about changes we could make, investments that we could do, new ways of marketing that he is not aware… and today he finally agreed to give it a shot.

This thread will receive news about the progress.


So now, a little… INTRODUCTION


Myself

I already introduced myself in this thread: MINIMALISM: The Master Mindset (And why some people get it wrong, but a brief resume:

I’m 20 years old. Not a experienced entrepreneur. I have worked as a Realtor for more than 1 year and have been saving my commissions to this moment. For now, this is all we have to invest, so the first investment will be 100% mine.


The Business

I will not tell exactly what it is, but all you need to know is that it’s OldSchool. It’s not related to digital business (It’s not Blogging, Affiliate marketing, Selling on Amazon, Infoproducts, Copywritting...).

It’s a “teaching” business. We offer lessons and we need students. That’s all.

Of course I will use internet and social media for marketing but that’s not the source of my income. I will use it to reach people and attract clients.



That’s it for now, next post will have more details.

Hope it will help or inspire someone. I’m not a master entrepreneur, so If you can contribute, feel free to do so =) I will be happy to read critics and tips.

Have a Nice Day =)

 

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[kkompoti]

At the begining of the year I had compromised with myself that I would start a business before 2016 ends. After months of learning, anr reading I started walking in circles without any action. It was November already, only one month to my deadline (31/12/2016) and I had not started my business.
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Turns out this is about to change. After some days talking with a special man, that will soon become my partner: My Father.


Talking to him made me realize that I had an opportunity right down my nose, all this time!
Yes, my father have a small business that I have never been involved to, and he has been stuck like that for 7 years. So instead of looking for a new idea to create a business from stratch, I started to think about ideas to reformulate and improve his business.

what exactly have you done this past year? you watched inspirational videos? read inspirational books? went out for drinks? went on vacation? installed some inspirational apps on your phone maybe?

and after that you went back to your father? to become his social media and ads partner??why?

you have your own two feet to stand on.
you do not need your father.
mark my words on this one: when you will go and make a decision for the job, he will come back and bite you. he will want things to happen his way. and after that you will feel that there was another lost year in your life and your lost earned invested money and you will post back here with a new progress thread.
do you think that your father will understand what a ROI means? or what conversion rate will ads have?
help him out for free and ask for no money. he is your father. do you want to get in a fight with your father when you will be partners? do you really 100% know that this will not happen???
read in this forum about stories with partners and you will understand what i am telling you.

in your first post you were talking about laser focused mindset. what happened to that?

p.s. i like the minimalist approach you have though....
please forgive me for not understanding your enthusiasm..

 

[Mulsanne]

what exactly have you done this past year? you watched inspirational videos? read inspirational books? went out for drinks? went on vacation? installed some inspirational apps on your phone maybe?
and after that you went back to your father? to become his social media and ads partner??why?

Drinks? Vacation? No.
Inspirational Apps? Never knew it existed.

Before Reading TMF I never knew any of this existed. I had that "Minimalist" mindset that I talk about since my childhood but never knew that there is a word for that. Never knew nothing about digital business or anything about entrepreneurship. Discovered all that in 2016.

If I watched inspirational vídeos? One or two. Who didn't in their first days of discovering the fastlane?

I will not try to fake it and make it look like I have done something. I spent almost all my time reading about entrepreneurship and studying cases of succes.Trying to figure it out.
lNot very productive but even MJ spent some years Reading, working at MLM, driving limos, didn't he? Trying to figure it out before being actualy productive.


I understand your point, and I know you're not trying to be rude, but let's think about it:
You're suggesting me to ignore an oportunity just because I'll have my father as a partner?

So you are suggesting me to look at this and say "Well, this looks like a pretty good idea. I can make a lot more Money than I'm doing right now, I will have control, and the entry is very hard but will be very easy for me. It's sad that will have to pass it and keep my lame job where I'm not making money, because my father would have to be my partner. Dammit, If only he was a total a stranger, that would be perfect"?

do you want to get in a fight with your father when you will be partners? do you really 100% know that this will not happen???
read in this forum about stories with partners and you will understand what i am telling you.

I know the stories. I also know the story about Algar, a company owned by Luiz Garcia, his father was the owner before him, and his gradfather the founder. They make 5 Billions per year.

Cacau Show, the biggest chocolate business in my country started with Alexandre Costa helping his mother selling easter eggs door to door.


Should I really smile and wave, and then let this pass alway?

p.s. i like the minimalist approach you have though....
please forgive me for not understanding your enthusiasm..

Thanks, I'm glad to read your post. Made me think about while repplying.
No need to forgive you., I'm not offended, you're taking your time to help me by giving your point of view. I will just thank you

 

[Mulsanne]

Getting Started​

As said in the Introduction, my father already has a running business. He pays a very cheap rent but his office is small and not appropriated. Yet he still managed to keep around 50 clients (maximum capacity of the office) for years.

I recreated his business in my mind, thought about what we could do to change it and how to scale it, etc… Long story short, I presented it to him and now I’ll be running it.


Our terms are:

I will be responsible for administration tasks, like: Finances, Marketing, Negotiations, Website, Social Media…

He will give the lessons, witch will require all his time and focus. He also is very influent; we will use it for network.




Does it Follow CENTS?
**Edited because of Davidla post**

Control: [7] Best part so far. I have full control of price, location, marketing, content, products, etc. I really don't think the partnership will be a big problem. BUT... I have a partner, so I cannot give at a 10/10. Not being the only owner will make things a little harder, but I think we are in the same page, and with the same goals. Let's see how it goes.

Entry: [10] Also very good. It’s hard to enter this market, you need years of experience to give this kind of lesson. Also you need expensive materials and a big space.

Need: [7] Since my father is running this business for years in his maximum clients capacity, I think I have mathematical proof.

Time: [2] At the beginning I will have to do the hard work. But if everything goes as I want, I will be detached from time in maybe 2 years from now.

Scale: [2] It’s scalable. Not easy because I will need competent and trustable people to do so, but it’s possible. Since scale plan will be probably Franchise, it's not the best part of the business.
I can't reach millions very fast, as a App for example. But after the firs years, things can grow exponentially.



Objetive and First Measures

My first intention is to reach a breakeven, by solving this problems:


Problem: Our current office has a very cheap rent, but it’s also stopping us from growing.

Solution: We already found a new place, much better but more expensive. Worth the investiment tho, since we can have a lot more clients simultaneously. Also looks more professional.

I already contacted the owner, after some negotiation he agreed to make it 20% cheaper. I will pay 2 months in advance. We will close the deal in the next week if everything goes right.



Problem: Since I have more space, I want to get more clients. My father never did much marketing.

Solution: We already have some clients, so it should be enough to pay the rent. Now I need to get more clients for profit. I will create a Website and different social medias in the next days.


That’s it for now.

Thank you for reading. Feel free to comment/criticize/help.

 

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[Davidla]

Hi Mulsanne,

I'm sure this experience will teach you a lot, and be a great beginning to your journey with entreprneurship. A few thoughts and ideas:

I think CENTS can be a tricky analysis if you just do a YES/NO. Personally, I like giving business ideas a 1 to 10 rank, and then I can compare them to one another (also get a total CENTS score for the business).

For example, in "Control" you said YES. But the truth is that you have a partner, which arguablly has the upper hand in the partnership as it is his existing business that you are joining. So personally I'd give this business a 3 or 4 in control compared to the same business I own with no partners etc..

Same for "Scale" - building spaceships can be scaled, but how much will this business get compared to selling software worldwide with 0 transaction costs? If you do want to reach scale, is franchising an option? Can you offer digital products?

It is ok if you don't score great on all CENTS..but it is better to have a clear picture that's not ideal and decide to go for it, than to paint a prettier picture and only later find out the flaws.

In regards to marketing..is there any way you can leverage your existing customers to get new ones? Referral program, incentives/discounts to bring in friends and family, etc? (hard to be more specific without details).

How has your father been getting clients all these years?

 

[Mulsanne]

Hi Mulsanne,

I'm sure this experience will teach you a lot, and be a great beginning to your journey with entreprneurship. A few thoughts and ideas:

I think CENTS can be a tricky analysis if you just do a YES/NO. Personally, I like giving business ideas a 1 to 10 rank, and then I can compare them to one another (also get a total CENTS score for the business).

For example, in "Control" you said YES. But the truth is that you have a partner, which arguablly has the upper hand in the partnership as it is his existing business that you are joining. So personally I'd give this business a 3 or 4 in control compared to the same business I own with no partners etc..

Same for "Scale" - building spaceships can be scaled, but how much will this business get compared to selling software worldwide with 0 transaction costs? If you do want to reach scale, is franchising an option? Can you offer digital products?

It is ok if you don't score great on all CENTS..but it is better to have a clear picture that's not ideal and decide to go for it, than to paint a prettier picture and only later find out the flaws.

Man! Thank you for this.

That's why I love this forum, people are smart and share very good ideas.

You're right. I should not use think of CENTS as a YES/NO, it's not very accurate. Because of that I'll Edit the original post after posting this.

In regards to marketing..is there any way you can leverage your existing customers to get new ones? Referral program, incentives/discounts to bring in friends and family, etc? (hard to be more specific without details).

How has your father been getting clients all these years?

Yes, there is several ways to leverage existing custumers. For now I have just a gross idea, witch is very basic (Any client that brings another client will have an discount or prize). I'm still thinking about the details.

Also, I have an idea to sell optional products to the current custumers, witch may increse my income with current clients.


Until now, my father has getting clients by mouth to mouth, and because he offer gold value. He also knows lots of people, and it's very influent in my region, not only my city.

He did some marketing, but nothing that I would consider very effective. I think almost all of his clients came to him because of friend indication.


Thanks again for your post! I know it's hard to help if you don't have the details. Maybe I'll be more specific about the business afterwards, so people like you can undestand better and contribute as you did.

 

[458]

At the begining of the year I had compromised with myself that I would start a business before 2016 ends. After months of learning, anr reading I started walking in circles without any action. It was November already, only one month to my deadline (31/12/2016) and I had not started my business.


Turns out this is about to change. After some days talking with a special man, that will soon become my partner: My Father.


Talking to him made me realize that I had an opportunity right down my nose, all this time!
Yes, my father have a small business that I have never been involved to, and he has been stuck like that for 7 years. So instead of looking for a new idea to create a business from stratch, I started to think about ideas to reformulate and improve his business.

I presented to him some ideas to give the business new life but he was afraid to go big, because that would require a big investment and we had no certainty if it would work. I kept talking to him about changes we could make, investments that we could do, new ways of marketing that he is not aware… and today he finally agreed to give it a shot.

This thread will receive news about the progress.


So now, a little… INTRODUCTION


Myself

I already introduced myself in this thread: MINIMALISM: The Master Mindset (And why some people get it wrong, but a brief resume:

I’m 20 years old. Not a experienced entrepreneur. I have worked as a Realtor for more than 1 year and have been saving my commissions to this moment. For now, this is all we have to invest, so the first investment will be 100% mine.


The Business

I will not tell exactly what it is, but all you need to know is that it’s OldSchool. It’s not related to digital business (It’s not Blogging, Affiliate marketing, Selling on Amazon, Infoproducts, Copywritting...).

It’s a “teaching” business. We offer lessons and we need students. That’s all.

Of course I will use internet and social media for marketing but that’s not the source of my income. I will use it to reach people and attract clients.



That’s it for now, next post will have more details.

Hope it will help or inspire someone. I’m not a master entrepreneur, so If you can contribute, feel free to do so =) I will be happy to read critics and tips.

Have a Nice Day =)

Teaching should be left to the masters of some industry or trade that they have been in for a good amount of time. To just go into teaching as a young person with little experience is what we call a guru, someone that is basically a fraud.

 

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[AllenCrawley]

I think CENTS can be a tricky analysis if you just do a YES/NO. Personally, I like giving business ideas a 1 to 10 rank, and then I can compare them to one another (also get a total CENTS score for the business).

You're right. I should not use think of CENTS as a YES/NO, it's not very accurate. Because of that I'll Edit the original post after posting this.

Here's a great thread on evaluating the commandments for a business:
https://www.thefastlaneforum.com/community/threads/does-what-you-do-make-cents.71375/

 

[Mulsanne]

Teaching should be left to the masters of some industry or trade that they have been in for a good amount of time. To just go into teaching as a young person with little experience is what we call a guru, someone that is basically a fraud.

My father have 25 years of experience, and more than 10 years of teaching. I have 12 years of experience, and I could be teaching if I wanted to.

But I'll not be involved with the lessons and I made it very clear. Read the entire post if you want to call anyone a fraud.

Here's a great thread on evaluating the commandments for a business:
https://www.thefastlaneforum.com/community/threads/does-what-you-do-make-cents.71375/

Thanks! Very usefull.

 

[kkompoti]

Dammit, If only he was a total a stranger, that would be perfect"?

i never said that. i said stand on your own two feet. Business partners in general are very difficult thing..

Should I really smile and wave, and then let this pass alway?

In my opinion yes, and only for the shake of the good relationship.

Also i did a small web search and came out with the following:
1.- family owned business are a huge deal in your country
http://www.campdenfb.com/article/infographic-brazilian-family-businesses

2.- Some tips for you:
https://www.entrepreneur.com/article/225613
http://www.bbc.com/news/business-21412761
http://www.bizpenguin.com/think-twice-before-you-partner-with-a-family-member-1184/

And some tips from me:
- make a great logo and company branding (use sites with freelancers to do that with a good price)
- take a interior designer to make the place wonderful(nice colours on the walls, screens etc.)
- find at least one more person to have as teacher
- find a good looking secretary for the front desk
the above will really help with the franchise option.

and one question:
- when you say

Time: [2] At the beginning I will have to do the hard work. But if everything goes as I want, I will be detached from time in maybe 2 years from now.

you mean that only you will detach from time or your father as well?

i am really trying to help. Please read the above tips links.

 

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[Mulsanne]

i never said that. i said stand on your own two feet. Business partners in general are very difficult thing.

I know. But I'll take the risk.
I will give a special attention to our relationship as partners, and detail everything at this thread the PROS and CONS of being involved in business with family.

Also i did a small web search and came out with the following:
1.- family owned business are a huge deal in your country

Yes it is. I don't think it's the best way to do it, but if you find an opportunity I don't see why not to try it.
And thank you for spending your time searching and help me. Rep +

And some tips from me:
- make a great logo and company branding (use sites with freelancers to do that with a good price)
- take a interior designer to make the place wonderful(nice colours on the walls, screens etc.)
- find at least one more person to have as teacher
- find a good looking secretary for the front desk
the above will really help with the franchise option.

Thank you again!

Very usefull tips! I didn't thought about a interior designer.
There is no way I can hire one right now, but I will definitly look for someone after we reach at least a breakeven. Thank you!

you mean that only you will detach from time or your father as well?

i am really trying to help. Please read the above tips links.

Both of us.
But when I say "Detached" I mean that the business will be working for it's own. Doesn't mean I will stop working.

Thank you for your attention! Loved your post

 

[Mulsanne]

Quick Update
​

There is a video of MJ where he talks about taking action. During the last days, something he says at that video has been stuck in my mind.

He says something like "If you know the purpose of your business, the correct actions to take become cristal clear".

We took a lot of decisions this week, one after another, that became cristal clear after we started the business. Here is a little resume.



Important to say that tomorrow is my last day as a Realtor.
I quit my job last week, and could have left the company since that day, but I compromised with them that I would stay until december 23, so they have time to adjust their schedule.

After that, we...:

• Rent the new place, and got even better conditions. In the first post I said I would pay 2 months in advance, but I paid just a guarantee (not sure if that's the word), and will start to pay the rent only in february.

• Fixed some problems (A doorlock was broken, walls had ugly stickers from previous tenant, etc...)

• Got a desk.

• Ordered the products we're gonna sell. Will be finished soon.

• Prepared the space to receive the lessons, with everything we need. Some things we had from de previous place, some things we bought new.

• Got an artist that will cover one wall with a beaultiful art for FREE. He's a long time friend of us, very talented and is one of our clients as well. Agreed to make the art as we want.

On the next days we will repaint the walls, and make some little datails on the decoration. But the place is like 70% ready.

After this, our focus goes entirely to marketing. Our first goal is to double our current clients.
We have 50 payings clients now, goal is to reach 100 as soon as possible.


We open at january 2.