KARL MARX

To start a business, you need three things:

1. A product or service,
2. A group of people willing to pay for it, and
3. A way to get paid. Everything else is completely optional.

Ask three questions for every idea:

1. How would I get paid with this idea?

• Give people what they really want, not just what you think they should have. Give them the fish!
• (Passion + skill) → (problem + marketplace) = opportunity
• You just have to find the right passion, the right audience, and the right business model.
• The first $1.26 or fir...

• In the battle between planning and action, action wins.
• You need to show people how you can help remove or reduce pain.
• Mission statement: We help [customers] do/achieve/other verb [primary benefit].
• “Plan as you go” to respond to the changing needs of your customers...

• KEEP COSTS LOW
• GET THE FIRST SALE AS SOON AS POSSIBLE
• MARKET BEFORE MANUFACTURING
• RESPOND TO INITIAL RESULTS
• MAGIC FORMULA: THE RIGHT AUDIENCE, THE RIGHT PROMISE, THE RIGHT TIME = OFFER YOU CAN’T REFUSE.
• Work “on” your business by devoting time every d...

• But in the overlap between the two circles, where passion or skill meets usefulness, a business built on freedom and value can thrive.
• Not-so-secret recipe for microbusiness alchemy: Passion or skill + usefulness = success
• There’s no failproof method; in fact, failure is ofte...

We tend to default to talking about features, but since most purchases are emotional decisions, it’s much more persuasive to talk about benefits.

Example: A feature is descriptive (“These clothes fit well and look nice”) and a benefit is the value someone receives from the item in question ...

• The not-so-secret to improving income in an existing business is through tweaks: small changes that create a big impact.
• If you operate a service-based business, consider how you can introduce a “productized” version of the service.
• Providing both a product and a service help...

• Horizontally, by going wide and creating different products to apply to different people. Horizontal expansion involves going broader by serving more customers with different (usually related) interests;
• Vertically, by going deep and creating more levels of engagement with customers....

……“A successful partnership (or any type of collaboration) should create a combined business which is at least 33 percent larger than the sum of what the two individuals could achieve on their own.

• Big problems create big opportunities.
• Our future is tied to what we do, decisio...

• Follow-your-passion model.
• Build something that people want and give it to them.
• Low startup cost.
• At least $50,000 a year in net income.
• No special skills.
• Full financial disclosure.
• Fewer than five employees.
• Could you explain what yo...

1. Impact : Overall, how much of an impact will this project make on your business and customers?
2. Effort: How much time and work will it take to create the project?
3. Profitability: Relative to the other ideas, how much money will the project bring in?
4. Vision: How close of...

Strategy 1: Dig Deeper to Uncover Hidden Needs

Strategy 2: Make Your Customer a Hero

Strategy 3: Sell What People Buy

• If your business focuses on giving people more of what they want or taking away something they don’t want (or both), you’re on the right track.
• Busi...

• Style without substance = flash (No one respects these people.)
• Substance without style = unknown (Everyone who knows these people respects them, but not many people know them.)
• Style with substance = impact (This is the goal.)
• Remember that most core needs are emo...

• Spend as little money as possible and make as much money as you can.
• Spend only on things that have a direct relationship to sales.
• Borrowing money or investing a lot of money to start a business is completely optional.
• Maintain a practice of regular rate increases so...

1. Price your product or service in relation to the benefit it provides, not the cost of producing it.
2. Offer customers a limited range of prices.
3. Get paid more than once for the same thing.

Also, having a high-end version creates an “anchor price.” When we see a sup...

• The secret to a meaningful new career was directly related to making people feel good about themselves.
• You can pursue freedom for yourself while providing value for others.
• Value means “helping people.”
• The more a business can focus on core benefits instead of boring...