Friday, April 18, 2008

Micro-Business Simplicity

Simplicity isnt only a key value for your personal life-- its also key to success as a micro-entrepreneur.

For many years, I hoped to start my own business. I dreamt of leaving my wage slave jobs and becoming financially independent.

At these times, I'd run out and buy business books and magazines. I even went to the Small Business Development Center, talked to an advisor, and took classes.

BIG mistake. The net result of those classes was this-- I became absolutely convinced that I wasn't a "businessman". Of course, I already had deeply negative ideas about business-- based on the behavior of typical companies and their employees.

In the typical business class or book, you will be overwhelmed by boring and pointless details. They'll drown you in legal jargon about sole proprietorships, partnerships, corporations, limited liability companies.

Even worse, they'll try to teach you accounting. For people like me (and probably you), accounting is just about the most soul-sucking, boring, tedious subject there is (right along with taxes... which they'll also try to teach you).

Here is a valuable secret that I finally learned... a secret that has led to my financial independence: none of that stuff is necessary.

Until you have money coming in, you don't need accounting, and you really don't need to worry about legal structures.

As a beginning entrepreneur, you need only to focus on a few simple principles:
1. Do/Make something cool, interesting, or remarkable to sell (ie. a product or service you are passionate about)
2. Find ways to tell people about your cool-thing, and convince them to try it (ie. marketing)
3. Never go into debt-- make more than you spend, from month 1 (ie. cash flow)

That's it. Forget the rest. A year later, after you've quit your job and have plenty of money rolling in-- you can pay an accountant to straighten out all the legalities and finances and taxes. Cause the truth is, without something cool to sell, and a way to tell people about it-- you won't have any need for accounting!

Don't demoralize yourself with all those lifeless "entrepreneur" books & magazines. Rather, focus on your passions and skills.... and learn everything you can about reaching people (marketing). More on this to come.........

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