The top 7 things NOT to do when starting a business

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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 I 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 Believe you guys liked this video. You want to see more you can subscribe to the channel? [thank] you so much for watching I’ll see you soon Hi, I’m [tourism] from my manager and chef calm and how might this new [Center] ethic subscribe? you

100 COMMENTS

  1. I’m gonna try to start a giant business that make small businesses for people to go to one is a tv,home phone,and internet businesses

  2. Hey this is great man. I found the right reason now, and the money is starting to come. Thanks this was great and you help me a lot. You and Grant Cardone, and Gary Vaynerchuck

  3. The only bit of advice I'd say I really disagree with here is when you said "you don't need a website".
    Don't get me wrong you don't need one to start your company and there are exception but in today's world if you want to grow and expand very nearly all areas most definitely require an online presence/website. You won't fail without one but you will be losing out on loads of potential growth. That being said you definitely don't need to throw a shit ton of money at a website to begin with, no. A simple site will do but existing online is very important.

  4. Top Seven Things NOT To Do When Starting A Business:
    1) 00:58 Pick the wrong business (Don't choose money over passion and happiness.)
    2) 1:59 Waste time over-planning (Don't over-plan. Instead jump in and improvise.)
    3) 3:07 Spend money (Focus on making money, not spending money; HUSTLE!)
    4) 3:53 Try to do it alone
    5) 5:10 Jump into the wrong partnership
    6) 6:38 Operate in a bubble (Don't mentally isolate yourself from new ideas.)
    7) 8:24 Start a product (Too expensive to begin for an entrepreneur's first effort.)
    10:20 Summary and closing.

  5. interesting video. # 7 not starting a business with a product shocked me because I believed investing in a small portion to make a product, then try sell the first 20 items & that'll give you an idea on how strong your need of your product is. A product is a small doorway so you dont ruin your reputation when dealing with "customers". I feel you would have more leeway with a product.
    I would like to stick to it depends on the type of product you manage that will determine your success. I plan to open a business in the near future, I'm taking my time right now due to financial barriers. My buddy Glenn does a service. it makes us money now. I feel bad im skilless right now;

  6. You need to be passionate about what you're doing not just wanting to make money…What if making money is my passion?🤔🤣

  7. 1. pick the wrong business, never look for money

    2. make the perfect plan, drag too much time

    3. Spend money too much

    4. try to do it alone

    5. jump into the wrong partner

    6. operate in a bubble, dont be closed minded, start explore

    7. startup product

  8. Chose the right business that's in line with your passion, hustle and prepare for the great results!!

  9. U need some to point you in the right direction. It's not what you know it's who you know. Don't get around negative people who shoot down your ideas for success. If they ain't doing anything to improve their life don't even hang out with them. Hey and bye. Most people I get help or get advice from are already successful in their work. Don't be afraid. U have to try. Believe in yourself, don't be lazy, pray, grind, research, make connections. If the connection ain't helping you on any level cut that ish off PERIOD. Peace and love guys. Good luck 😎🤩

  10. Usually when you guys say "I cant afford to have a beer w/friends" you have 100K in the bank. When I say it, my only friend left eats Greenies.

  11. Needed this !!!! I've been struggling to just get started and get my business off the ground and this video really helps. Thanks so much 😊

  12. I love the video Evan, but I don't agree with the 7th point. Especially if it has to do with a sensor based startup… These DONTS can sometimes hit people hard. And just to state it out, product based start-up work out really well…

  13. Agree with everything except #7 "Start a product". Microsoft, Apple, Google, Facebook… any big ones or any company that became successful, started with product, not with service. Service is easy to provide, but that is why it also faces steep competition and much more prone to fail. Services can be easily replicated by competitors, but a unique product can't. Hence, a good product has more potential for a company to succeed. Apple had excellent customer service back in the 90's; but If Steve Jobs didn't come up with good products like iphone or imac, Apple would be bankrupt long time back. START WITH A PRODUCT. A UNIQUE AND GOOD PRODUCT.

  14. Emil where do I start with the mistakes? Failures can bring success even if you just learn to get at it again.. And always lead with value that can change peoples lives. If you do that the money will come. This is a great video!

  15. 0:58 Number 1 – Pick the WRONG business ==> Instead pick your passion!
    2:00 Number 2 – Make the PERFECT plan ==> There is no PERFECT just start to Adapt and pivot if you need too!
    3:06 Number 3 – Spend money ==> Instead try guerrilla marketing and tactics
    3:54 Number 4 – Try to do it alone ==> Network instead
    5:11 Number 5 – Wrong partner ==> Better think before you jump!
    6:38 Number 6 – Operate in a bubble ==> Stay current with news around you
    8:25 Number 7 – Start a PRODUCT ==> Better start a service first!

  16. All the mistakes he's talking about I did when I started my first business. It was a recording studio and it was tough. I had people on my team that didn't give the business 100 percent. I myself gave up after two months. I will have another recording studio which will be successful because I learned from the first recording studio.

  17. it is crazy that the first reason is still giving me a hard time to settle. im in my early 20s and have worked with my dad who has multiple small businesses. he always tells me to not think of getting money as everything, same with my experience in college as i work to get my mechanical engineering degree. i've started a mobile detailing business not to only get money but to get experience as an entrepreneur first-hand and i gotta say when im out there working it feels great, for now. but it's the downtimes i have like when im looking up engineering jobs that makes me think how can i increase my incoming revenue, very good video thanks

  18. Hey Evan,
    What a perfect advice for a business woman like me who always failled in business🤕. Every single words of you i picked it all. And definitely i will apply to my very self😁 Bravo! Thanks a lot

  19. "You dont need money to make money" is some sort of joke right?? Stop spending money like os this for real???? Sure you might not need a company car {depending on the business} but you still need to spend!! Im sorry to say but suppliers dont accept passion and desire for inventory or raw materials. Not to mention the administrative side of things like registering your busines, complying with any regulations, insurance…. there are sooooo many recurring costs YOU ABSOLUTELY NEED MONEY TO MAKE MONEY

  20. Starting a business is a good decision; however, it can be challenging. It is not as simple as it looks. That's why you need a strong plan and a drive to see it through.

  21. It is interesting how different are business plans for different aspects of business. What i agree, is every business plan, no matter how perfect it is at the beginning, its different in actual life. Every entrepreneur should make his own decisions, but take into account other people experience.

  22. I just start my new business in services. I'm thinking to get partnership because i need someone to help me. But after i watching your video i change my mind i will do it alone. Thanks!

  23. This was very insightful and thought-provoking. I don't know your channel, so I don't know how much faith to put in your suggestions, but I will say that everything you said made me think critically about my business. While watching this, I realized I've made some mistakes and in fact I AM the one in my partnership who is holding us back, because I want the "Perfect Plan". I'm deathly scared of getting our first customer and not delivering the best experience possible, so I haven't made enough effort to reach out to customers. Thank you for making this video and good luck!

  24. My plan is genius…. a gym. Where everyone benefits for the better and it's a responsible and enjoyable hobby for true enthusiasts of science. Customers in this situation may become friends. I love fitness myself.

    I'm sick of losing money on useless things that kept me stranded in the same postition for the last 4 and a half years. 16 years old, 300 bucks every week at 7 an hour. 8 years later, 14 and hour, yet a similar check every week. Nothing has changed. What am I even doing? I don't even drink or smoke.

    HotWheels didn't work out at first.. but became the #1 most successful/bought toy EVER PRODUCED, because of all the other ideas also to go with it like tracks. "Play value". Workers. Ideas(Larry R. Wood, Ruth Handler, Elliot Handler, etc)

  25. I'm sorry but I don't agree with you 100%, money is a MAJOR part of starting a business. Having a website to represent your services or goods is important, it's what gets you out there especially in this day and age. It's worth the investment, along with a name that represents the services or goods you provide. I would say, the first thing to do is pick something people need, create a name over it protect it, then continue to advertise your services or goods to get sales! Sales come slowly, exposure is everything. I failed the first time I started my business, I came right back up and am now doing better. Gotta stick it through, everyone has a different vision.

  26. Hello Evan
    This was an amazing video.

    And I need a help as I am starting a startup
    What books I could read or courses I can take just to have the basic knowledge about starting a business.

    We have the idea and the vision bu we don't know how to go on the track.

  27. Um… big thanks to you for this. You just nailed home a point my mentor suggested and that I’ve been wrassselling with. Great vid!

  28. You should you really focus on the What To Do aspects which will cancel out the negatives.

    The two essential components of any business,
    A products and/or service,
    Customers to sell your product and/or service to.

    Research to the nth degree who exactly your customers and what they want then sell what they want to them.

    QQS as discussed by Napoleon Hill in his book Think & Grow Rich.
    Quantity, Quality and Spirit

  29. Im 18… im entering college but i want to start a business. I get scared since i have no idea how to plan it all out. But your advice number 2 assured me

  30. Who reads that fast! (7:54) hahaha. I’d have a MegaBrain if I could go through books like that.
    Great video, thanks for the advice.

    If anyone is still reading this. Please take care of your health while starting a business.

    – Rest
    – Drink water
    – Get a workout plan, make a workout plan
    Health is wealth 👍🏽

  31. I'm super happy that I ran into this video, because I was just at work a few hours ago and I said to my self I want to start my own business. but I have no skills or knowledge in the business area. So as soon as I got home I did lots of research on obtaining a sellers permit. or how i should launch my brand any feed back will be great.

  32. I like the enthusiasm, but I don't agree fully. You stated that "You don't need a website…" In this technological age, it would be impossible to be successful using only "hustle". Everyone searches businesses online. A website is crucial. Great content though.

  33. the number one top thing to do with your small business is to stay away from Google ads. They stole $57.79 from me and refused to give it back even though it was illegal and they said it was their own human error, and they will not let me speak to management

  34. hi ya i’m 14 and i want to start a business. i’ve been recommended to start up my own business for quite some time now from older people. they’ve offered donations to start me up. lol i dunno but i’m excited to start this soon

  35. I don't get it about starting product!if you're not thinking what is your product for starting business you can't make money…

  36. In the beginning of the video he talks about how money should not be the number 1 reason to start a business (I agree) and than the rest of the video is all about making money and how you should not spend any money until you make any money. I mean you have to put your money where your mouth is (called investment). He talks about not doing everything yourself,which means hiring people to do things for you,which means paying them, which means spending money. I am planning to start my own business and I am learning everything that my business requires for me to be successful I mean he talks about getting into wrong partnerships and doesn't wanna do everything himself and doesn't wanna spend money either.

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