FAQ About Starting And Building A Business (Part 4)
• When should I give up on my idea? When you can’t generate revenues, customers, interest, for two months.
• Why didn’t the VC or customer call back after we met yesterday and it was great? Because they hate you.
• Why didn’t the above call back after we met yesterday and it was great? “Yesterday” was like a split second ago for them and a lifetime for you. There’s the law of entrepreneurial relativity. Figure out what that means and live by it.
• Should I hire a professional CEO? No. Never.
• Should I hire a head of sales? No. The founder is the head of sales until at least $10 million in sales.
• My client called at 3 a.m. Should I tell him to respect boundaries? No. You no longer have any boundaries.
• I made a mistake. Should I tell the client? Yes. Tell him everything that
happened. You’re his partner. Not the guy that hides things and then lies about them.
• My investors want me to focus on one thing. Should I listen to them? No. Diversify in every way you can.
• I personally need money. Should I borrow from the business? Only if the business can survive for another six months no matter what happens.
• I just bought two companies. Should I put them under the same roof and start consolidating? No. Not for at least two years.
• Should I quit my job? No. Only if you have salary that can pay you for six months at your start-up. Aim to quit your job but don’t actually quit your job.
• What do I do when I have doubts? Ask your customers if your doubts are trustworthy.
• I have too much competition. What should I do? Competition is good. It shows you have a decent business model. Now simply outperform them.
• My wife/husband thinks I spend too much time on my start-up. What do I do? Divorce them or stop your business.
• I’m starting my business but I have relationship problems. What should I do? Get rid of your relationship.
• Should I expand geographically as quickly as possible? No. Get all the business you can in your local area. Travel takes up too much time.
• I undercharged. What should I do about it? Nothing, now. Charge the next client more.
• I have an idea for an app but don’t know how to execute. What should I do? Draw every screen and function. Then outsource someone to make the drawings look like they come from a real app. Then outsource the development of the app. Get a specific schedule. Micromanage the schedule.
• I want to buy a franchise in X. Is that a good idea? Only buy a franchise if it’s underperforming and you can figure out how to improve it. Don’t buy on future hopes, only on past mistakes.
• I want to buy a business in X. Is that a good idea? Rely on the three D’s: Death, Debt, Divorce. When someone dies, the heirs will sell a business cheap. When someone is in debt, they will sell a business cheap. When someone divorces, the couple usually has to sell a business cheap. Important: even if the industry trends are in your favor, you cannot predict the future. But you can use the past to help you get a deal. Always get a deal.
• I have a lot of website traffic but no revenues. What should I do? Sell your business. There’s only one Google. (Well, there’s two or three Googles, if you count Facebook and Twitter. But you’re not any of them).
• I have no traffic. How do I get traffic? Shut down your business.
• Should I hire a PR firm? No. Do guerilla marketing. Read Newsjacking and Trust Me, I’m Lying. PR firms screw up from beginning to the end. The first time I hired a PR firm, instead of sending me my contract they accidentally sent me their contract for Terry Bradshaw. He was paying $12,000 a month. Was it worth it for him?
• My competition is doing better than me across every metric. What should I do? Don’t be afraid to instantly shut down your business and start over if you can’t sell the business. Time is a horrible thing to waste.
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Good Luck Fam!!!