‘Freedom Funds’ (Series: Part 1.1) – 10 business principles anyone can follow

Book: “Kid Start-Up/How You Can be an Entrepreneur”

Authors: Mark Cuban, Shaan Patel and Ian McCue

Published: August 2018

I haven’t done a book review yet in my blog. This isn’t a book review per se, but as I mentioned in my previous post ‘Freedom Funds’ – 3 Practical Steps (Series: Part 1) to learn anything from the basics you have to learn it as a kid.

So, that is exactly what I did, started reading this book. The best part about this book was the “10 business principles kids can follow”. I believe anyone can follow these principles, full credit of these principles to the book I mentioned above. So, without further delay here are the 10 principles kids  ANYONE can follow. *Even you aren’t planning on starting a business, I am sure you will find it interesting.

  1. Business Ideas are easy:  Coming up with business ideas are easy, execution is the hard part. Come up with an action plan that you can can follow for example:
    • Idea – What is your idea you want to execute?
    • Action plan:
      • How many hours will you need to work?
      • What materials will you need?
      • How much will it cost?
      • How much money you will make?
      • How will you sell your product or service (location, marketing etc)
      • What steps will you take to make your idea a reality?
  2. Do what you know: First Mistake people make is entering a business they are not familiar with. Second Mistake is not building massive value in the industry you are entering. Ask your self following questions:
    • What topics do you consider yourself skillful at?
    • What is something you worked hard at in your life?
    • What are some of your greatest achievements?
  3. Don’t expect to win the lottery: No one becomes a millionaire overnight. For example:
    • Dog walking business
      • Month 1 Walk 1 Dog $10 Profit
      • Month 2 Walk 2 Dogs $20 Profit
  4. Save Money to Make Money: Save $5 to $10 each week. It is not a lot of extra cash but it is to make saving a habit. Don’t start your business on a loan. When running a business, try to find lower cost to get materials. For example buying material in bulk from a store like Costco.
  5. Be a big fish in a small pond: It is better to enter a small market with less competition than it is to enter a large market with a lot of competition.
    • Better to open a lemonade stand where 100 people pass by with no other lemonade stands closeby than to open it where 500 people pass by with 10 other lemonade stands.
  6. Make money in your sleep: Half of the businesses fail within the first 5 years. Trading your money for time will never lead to a significant wealth. Only 8760 hours in a year. Generating passive income by opening an online store which is open 24 hours a day.
    • Generate some ideas to sell product or services online. For example: Etsy or Ebay
  7. Just Start: Try Steve Job’s approach – People don’t know what they want. Create something and give them something they know they would want.
    • Create a product or service that you yourself would use and pay for. Ignore the competition, don’t worry about doing too much research about competition.
    • Once you understand some basic points about your competition such as service offerings and price points, move on.  Focus on building your own business than following someone else’s.
  8. Be obsessed: being passionate is different than being obsessed. “work like there is someone working 24 hours a day to take it all away from you”
    • List your obsession, not your passion. It is possible for passion and obsession to intersect but be sure to know the difference.
    • When you are first starting your business people will think you are crazy, but when you succeed everyone will think you are a genius.
  9. Give something to get something: People won’t start using your service or product immediately. Give away free service or free product sample to get customers interested. People will respond much better because they love free.
  10. Start a service based business: Service based business usually costs less money.
    • For example Technology business, trend in the software industry is SAS, Software As a Service.  Software is paid for every month rather than once, also protects from piracy and copying from hackers. 

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Although these are ‘start your business’ ideas for kids, I believe there is a lot of value in understanding these concepts for anyone who doesn’t think in the business world. Even if you don’t start your business, reading through these principles can spark something in you to get started.

What did you think of these principles? Have you thought of starting your business? Or have you sold something that you created or made? Did you find this post helpful? Post your thoughts on the comments below!

As Always,

Stay Curious & Have a peaceful day!!

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