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How To Start A Small Business That Makes Money

Kris Krohn here with Limitless TV and today we’re talking about how to start your very own business. And if you listen I’m gonna share with you two of my favorite bonus rules of how I invent a business before I start it to make sure that by the time I’m committed to it it’s gonna do everything that I wanted to. When it comes to starting a small business it is amazing to me how many individuals over complicate it. They think I need a logo, I need a website, I need business cards, I need marketing, I need this, I need that, I need a secretary I need an office space. When you’re starting a business and you were just talking about a home grown out of your home business, you don’t need any of those things. In fact I’m gonna share with you the one thing that’s gonna save you massive amounts of time and it’ll make a difference on whether you should even start it in the first place and it all comes down to what I call a test. A what? a test. Now there’s a first generation of testing and then a second generation of testing and I’m gonna break both of these down for you. First generation testing means I’ve got an idea, I want to start a business, and here’s the bottom line, you have no flippin idea whether your idea is good or not until the market agrees with you in a certain amount of volume that it’s good. So don’t waste your time building logos and websites and getting incorporated unless you’ve done these first three simple first generation steps. Step 1, test your idea without logo. With out website, without spending money. That’s really what I’m sharing with you is do a test. Number two, make money. I did a test, I put the word out on the street, and then number 2 I’m gonna try to make money. And then number 3 if I make enough money I’m gonna incorporate. Most people do it backwards. I’m gonna start a corporation like an LLC S corp, sole proprietorship, whatever. So I’m going to start my business and then I am gonna go out there and build tools and websites and everything and then I’m gonna see if I can make money. Don’t do that. Here’s my bonus for you, I have been an entrepreneur for the last fifteen years and having started dozens and dozens and dozens of businesses, I will tell you now that my number one rule in starting a business is first generation testing based on this idea, can I make money in 30 days? can you make money in 30 days with your idea without putting all the? pieces in place that you think you need In other words, you got to have a way of testing whether your idea is any good or not. Now here’s what’s cool about my 30-day testing model, I have an idea I think that I could make $2,000 a month, $10,000 a month, whatever It is, if I think that I can make money I need to do a test and your first test out of the gate, you’re gonna be your least polished state but you’re also gonna have your warmest market to test on. They’re gonna balance out pretty well and here’s what I’m looking for, if my test can yield half of the results that I anticipate, I’m gonna incorporate move on to second generation testing. I’m gonna actually choose to start a business at that point. Can I tell you how often I is an entrepreneur have had an idea that I thought was great? I talked to my yes men and women about it and they’re like, yes boss it’s great it’s awesome and I go to the market and guess what? I just fall flat on my face. And you know what I’ve done? I’ve often given myself 90 days for a test, I produce a tiny little fraction of what I hope they would and then I work on it for another 90 days and I test it and I get a little bit more out of it and a year later I’m like, freaked! I put in this time this money this effort this energy and this idea I hate to say it but I need to divorce you because this is no good, you suck, you stink. That’s the reality of being an entrepreneur often is that our ideas that we think are good doesn’t exactly aligned with what the market does. So what I’m doing in this first part of the video here that I want to share with you is you got to have a real quick and easy fast way 30-day way of testing your ideas and if the market grabs hold of it and if you actually start generating money, now you’ve caught a tiger by the tail and you know where to put your time and energy on round 2 second generation testing. We’ve just finished our first generation test and good news, hahaha! the business idea was good, its sound, it’s making money. So I’m going to double down, I’m gonna invest in it, I’m gonna systematize it all of that great stuff which means I’m ready to move on to level number two, second generation workings. You know what that’s called? That’s called cloning. What is it? It’s cloning. And let me tell you about cloning I will not get into a business that requires me personally to be the one to make it run forever. If the business is a good idea, then I should be able to train people that are better and smarter and brighter than me to run and operate daily hands-on management. Phase two second generation is always about leverage. It’s about what? It’s about leverage. So when I say cloning, I mean to clone me right out of the business. I got a friend right now he’s uh he owns a mr. appliance and he’s got the most successful one in right now I think the entire country and next month he’s going off to convention with hundreds of other franchisees that are gonna ask him questions, how did you do it? And one of his secrets to his success was starting in the business, proving the business, being able to do the business, and then cloning himself. Friends, this is the one thing that most people miss in business, you get so lost in being in the business that you’re actually not working on the business. Do you understand the difference? There’s a world of a difference between getting lost in it and working on it. Owners work on businesses, employees work in businesses. Are you the owner or are you the employee? If you’ve done first one generation and you’ve tested it and you know that it is promising, now you need to do test after test after test to create a system. But once that system is in place you get to move on to the end in mind. You want to start a successful business? it ends with you cloning yourself so that you can either sell the business to someone else for a profit or hang on to the business and manage the people or hire a manager, better yet who manages the people that lets it all go. And having dozens of businesses, I will tell you this is the only way I’ll do business. So here are my two bonuses at the end of this video. For phase one generation, a 30 day test. If I can’t get it to produce what it needs to I’m out. Second generation test, if I can’t be cloned I’m out. If those two things don’t happen I don’t get into the business and you might save yourself years of hardship and heartache by just learning these two lessons right now. I sure hope you’ve enjoyed today’s video. If you’re not already, become a subscriber. Click the link and I’ll send you more videos like this to help you learn everything you need to know to take your life to the next level