Go Fund Yourself (step 1)
Too many would-be entrepreneurs seem more focused on gaming their business to get funding than actually focusing on building a real business.
This guide will help you get honest about what you want to make. Depending on what that is, this book will assist you in getting your footing and how to create it yourself. As a successful entrepreneur, I have built businesses with funding and I have built businesses without funding.
One pro to building a business with funding is it gives you adequate time to provide an idea the run- way it needs to take root. The other side of this coin is it allows you a false sense of security which makes you not iterate as quickly and thus causing a far larger and costly error.
Step 1) Decide what is the purpose of the business you are building. When we dive into use, I am not talking about what industry or what your business will do. I am referring to what is your goal of an outcome. I boil it down to 3 main types:
A lifestyle business: This is a business that you do not intend to scale really. It’s designed for maximum profitability as quickly as possible. Often these are comprised of 1–3 partners. The majority of all other scale is through outsourced vendor relationships. This is a great option that majority of people should explore.
A legacy business: This is a business with large-scale ambition that you do not desire to sell. Most of the time this happens because the firm is heavily predicated on the founders own personal brand, making it hard to separate which part of the success is due to the founders and which part is due to the business. Successful legacy companies are rarely talked about as they typically relish flying below the radar. However, they are powerful wealth creators.
Building for the exit: This is a business designed from the ground up with an expectation of exit. This means almost 100% of the profit is poured back into the firm to help it scale as large as possible. The idea of the founders is to make a ton of money all in one shot. This is wildly popular for obvious reasons.
It is important to understand that all three of these options, while different, are proven to build wealth. There isn’t a wrong choice. It just comes down to how you are wired and the outcome you are seeking.