Name: How to Start Your First Business in 48 Hours
Uploaded: 2024-07-11T13:38:48.000Z
Duration: 14 min 13 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Future simple

All right, so how do you start your first business in a weekend? That is what Noah Kagan purports to teach us in this book Million Dollar Weekend, which is what we're discussing in this episode of Book Club, the ongoing series where I distill and discuss highlights and summaries from some of my favorite books. And genuinely, this is a absolutely fantastic book to read if you are an aspiring entrepreneur. If you've ever thought that you want to start your own business and you have not yet done it, you need to read this book because it's going to give you a play-by-play roadmap on how exactly to do that. Okay, so the book is broken down into three parts. You've got part one, start it, part two, build it, and part three, grow it. And in this video, I'm going to focus on part one and two, start it and build it. Let's go. If you're watching this and you haven't yet started your business, I suspect, for a lot of people I know, you might have been thinking about starting a business for several years, you have just not yet taken action. And there is this pervasive myth that happens amongst everyone who's an aspiring entrepreneur, which is,

Modal verbs - A2

I need the right idea. I cannot get started until I have the right idea. But the thing is, and what Noah talks about throughout the book, is you don't start a business by first having the right idea and then starting the business. You start a business by deciding to start a business, and then you find a process to come up with the right idea. And really, the core message he's sharing this first chapter, which is why it's called a chapter one, just f*** start, is begin before you are ready. No one feels ready to start a business. Just like I've heard, no one really feels ready to have kids. The timing is never quite right. Similarly, the timing to start a business is never quite right. You have to just start, you have to begin before you're ready. And just to labour this point just a little bit more, there's a nice quote here. Most people overthink first, act later. Every successful entrepreneur, act first, figure it out later. Any analysis ahead of action is purely speculation. You really do not understand something until you've done it.

To-infinitive

Rather than trying to plan your way into the confidence to act, just start acting. And there is a motto that he talks about here, and this is a motto that has really stuck with me since I read the book a couple weeks ago. And that motto is, now, not how. Whenever we think of doing something, we're like, okay, well, I've got this idea for this thing, but like, how do I do it? And, you know, there's this tyranny of how. The how holds us back from doing things. Instead, think, what is the smallest action I can take right now? Even if you don't know what to do about anything, there's probably a small action that you can figure out, that you can just take action on. And then once you've taken action on that, you can then get started with the thing. So honestly, the whole first chapter is a lot of emotional support. Genuinely, like, I've been running my YouTuber

Academy for a few years now. We've taught like 5,000 students in it. 95% of students, when it comes to starting YouTube channels, it's not technical things they're struggling with. It's the emotional side of things. They're like, oh, I couldn't possibly make the YouTube videos unless

I have the perfect idea. No one starts making YouTube videos with a perfect idea. Just like no one starts a business with the perfect idea. You decide to start, and then you can figure out the idea second. Now, whatever stage of the business process you're at, you're hopefully making some amount of money, and then you're going to need a place to invest that money. And that is where the sponsor of this video comes in, and that is Trading212. Trading212 is a fantastic app that lets you invest in stocks and shares and funds in a commission-free fashion. They've got a bunch of really good features, which is why I personally use them to manage a portion of my portfolio. So firstly, they've got a great practice mode. If you're new to investing, for example, you can go on the app, and you can make an account for free, and you can invest with fake money, which actually sort of will track how the market's actually performing. And so you can see, would you have made money, or would you have lost money over a certain period of time, had you invested actual real cash? And then once you're ready, you can always switch it from like the fake play video game mode into the actual money mode, which is obviously what I do, because I invest my actual money through Trading212. They also have a really good pies and auto-invest feature. So basically, there's a bunch of like random people who are super into like stock market analysis, and they'll create these pies, where they might be like, you know, this is a pie of stocks, like 30% Apple, 20% Tesla, 10% like, I don't know, Microsoft, 20% Google, all that kind of stuff. And you can browse through these different pies. And you can see how they are currently performing and how they've historically performed. And if you like the idea of a pie, and you kind of agree with what's going on with it, you can actually just copy and paste that asset allocation directly into your account. And you can invest however much money you want in that particular pie. Obviously, for the record, the thing that I do, not financial advice, but generally what most people recommend is to just invest in broad stock market index funds.

But if you're like me, and you maybe want to play around with some small percentage of your portfolio, then using the pies feature is a great way of dabbling with like individual stock picking in that sense. They've also recently added support for multi currency accounts. So if, for example, you're in the UK, and you want to invest in a US stock market index fund like the

S&P 500, like I do, then you won't get hit with the annoying foreign exchange fees. And if you have an invest or an ISA account, then trading 212 also gives you daily interest on your uninvested cash in USD or GBP or euros. They've got more than 23,000 trust pilot reviews with an average rating of over 4.6 stars. So they are very reputable. And like I said, I've been using them for years to manage a portion of my own portfolio. And so if any of that sounds up your street, then do hit the link in the video description. And that will take you to this page where you'll be guided on how to sign up for an account. And if you use that link, you will also get a free share up to the value of 100 pounds. So it's free money, you might as well check out trading 212. And thank you so much trading 212 for sponsoring this video. So now that we've gotten the emotional support side out of the way, that begs the question, what happened the next. And that is where we now come to the customer first approach to building a business.

I've interviewed hundreds of entrepreneurs on my podcast, spoken to hundreds more in real life. And all of them basically talk about this idea, this customer first approach, which is that you're not trying to find an idea for a business. Instead, first of all, you're starting with who are the people you would like to serve? Because fundamentally, what a business is a business solves a problem for someone who's willing to pay for that problem to be solved. And the biggest thing that holds back entrepreneurs and has done forever is trying to build something without first verifying that there's actually someone out there willing to pay for the thing. This is the problem that students often have, because students come up with great ideas. And it's amazing that I have this idea for this business, and they'll just go and try and build it without first verifying that there are in fact people to pay for it.

Here we go. That's why when it comes to generating business ideas, customers come first before the product or service, even before the idea to build a business, you need someone to sell to. I can't tell you how many times someone has emailed me saying, what do you think of this business idea?

I also get those emails. My auto reply, have you asked what the customer thinks? Basically, when you're trying to start a business, the first step is to figure out who are you going to sell to. And that's ideally within your own zone of influence. For example, in my position of being a medical student at university, the people I'm serving are probably the people around me or the parents of the people around me or the people I interact with in hospitals or the people I interact with at the university or the local businesses I interact with. That's like within my zone of influence. The other good thing that this customer should ideally have is money. It is so much easier to create a business where you are targeting people who have money rather than people who don't have money. Again, this is one of the issues with students is that if you're a student, then everyone you know is your age and probably does not have very much money. If it were me and I were a student starting a business, I might be thinking, okay, my friends don't have any money, but who does? Their parents do. Okay. What are the problems that my friends' parents have?

Who else has money? Like my college or my university. There's a pot of money I can tap into there. Okay. Now that you've brainstormed who are the sorts of people ideally with money that you'd potentially like to serve, the next step is to brainstorm what are all of the problems that they have. Now, the easiest way to do this is to just go and ask them, what are the things in their life that are really annoying? What are the things that they already pay for? What are the things where they're paying for something, but the thing they're paying for doesn't seem very good. And if you do this enough, you will come up with an infinite list of problems that people have. And the whole world progresses and evolves based on people discovering a problem and then trying to find the solution to that problem. Uber started because someone complained. It was like, oh man, it's really annoying trying to held out a cab and trying to ring the taxi company. And so that's where the idea for Uber comes along. And there's a really good example here. So I love this. There's the founder first approach and then there's the customer first approach.

So here we go. Let's say you have an idea for a dog walking out. How would you go about doing it?

Here's the way most people, most entrepreneurs would do it. One, spend hours at home thinking about the app and coming up with clever names for it. Two, spend a hundred dollars hiring their cousin to draw a cool logo. Three, set up an LLC. Four, watch YouTube videos about apps and programming and business and dogs. Five, consider signing up for a developer bootcamp and quickly realize that coding is hard. Six, buy the domain name for the snazzy website they're going to build. Seven, look into hiring a developer on Upwork and quickly realize it's prohibitively expensive. Eight, give up again. Does that sound familiar? That is founder first. Now let's take the same idea for a dog walking app and let's put it through the customer first perspective.

One, call or text three people right now who have dogs and ask them to pay you to walk their dog.

Two, turns out none of these dog owners have problems walking their dog. You discover their real problem is finding dog sitters when they're traveling. Three, ask for the next travel dates and have them pay you a deposit. They pay jackpot. And the idea here is that quickly, you know, based on this really simple example, which I think we can all relate to in some ways, in the founder first approach, you go down a rabbit hole where you build this thing without verifying that people actually have the problem and are willing to pay for it. In the second one, you come up with an idea. Cool. Then you talk to people and you see, does the idea have legs?

Would they be willing to pay you for it? You realize, no, they don't. And now you do something else because you realize they are willing to pay you for this other thing. And crucially, you ask for that first sale. You make that first dollar. The first dollar is always the hardest.

The first three customers are always the hardest. If you just aim to try and get your first three paying customers as soon as is humanly possible before you even try and build anything, then at least you have some kind of validation that the idea has legs. So this, for example, is an email that one of Noah's friends, Boris, sent. Subject, helping you help me with food.

Hey friends, one thing I realized is that I'm busy all the time and I don't have time to cook a quality meal. I wanted to invite a few close friends to test a business idea with me. Consider yourself the lucky chosen few. Smiley face. Convenient and home-cooked meals. On February 9, for $20, there will be a personal chef making us food and delivering it to you conveniently and deliciously. If this is something you're seriously interested in, please PayPal $20.

Open to all and any feedback. Cheers, Boris. P.S. Please let me know if you have any dietary requirements, etc. I promise the dinner will be delish! Exclamation mark, exclamation mark, exclamation mark. This is how you validate the idea for a business. You know, you might have a business idea and at a party you say to someone, oh, I'm thinking of starting a business around bloody blah. Would you be interested? Social etiquette dictates that they basically have to say yes. You're very unlikely to meet someone who will actually say, no, I won't get bit about that. But here's the crucial bit. If you ask them for money, be like, oh, okay, cool. Well, you know, I'm taking pre-orders now. Would you be willing to pay me $20 for it? Now you see how good your idea actually is because no one is going to part with their money unless they actually believe in the idea. Words are cheap, money is not.

So if someone says, yeah, I like your business idea, that, that means jackal. What matters is, are they actually paying for it? Have they pre-ordered the thing? Would they be willing to be your first customer for a 50% discount with a money back guarantee? Anything like that?

Now, the other way to get business ideas is to also look to your own problems. If you find something is a problem for you, chances are it'll be a problem for other people as well. And there are four prompts that Noah gives us that I fully agree with that help us figure out what our own problems are. So firstly, what is one thing this morning that irritated me? Secondly, what is one thing on my to-do list that's been there for over a week? Thirdly, what is one thing that I regularly fail to do well? And fourthly, what is one thing I wanted to buy recently only to find out that no one made it? And these sorts of prompts help you think about like the problems in your own life.

You should sort of become a magnet for problems. Like as you go through life, anytime you find something annoying, what an aspiring entrepreneur or an actual entrepreneur does is they recognize, oh, I'm finding this thing annoying. I have just identified a problem.

And a problem with a solution is a business, assuming people are willing to pay for that solution. Whereas what most people do is like they will just come across a problem and they'll be like, oh, yeah, it's just a thing. Oh, yeah, it's really annoying that we have to fill out these like feedback forms in our lectures. And that's where the idea will stop. What I used to do in med school was, oh, man, it's really annoying that we've got to fill out those feedback forms in lectures. I wonder if there would be a more efficient way of doing that. If we found the right person, we could build a solution to this. And when I was in med school, I was unsophisticated with this. I was like, oh, how might I build this? I knew how to code. I knew how to make websites and apps and stuff. So I would default to like just trying to build the thing. I've wasted years of my life chasing business ideas where I was like, I found an idea. I'm going to build the thing. And I didn't find any customers to pay for the bloody thing. And I really, if someone had told me this when I was 13, I would literally say seven years of my life chasing down random rabbit holes because I was afraid or didn't realize I could speak to people and actually just ask them for money. The main thing is that honestly, the way you start a business these days is that you try and get people to pay for the thing before you make the thing. People come to me and they're like, hey, Ali, I've got a bit of an audience. I want to make an online course.

 And I'm always like, okay, cool. I know that the temptation is there to build the course and then sell it in that order. But you should flip that around. You should sell the course and then build it. So if for example, you're thinking, you know, maybe your audience wants a course on how to build the perfect productive desk setup, you could go out and spend like a month or two or three trying to create the course. That would be a terrible idea. Instead, what you should do is pre-sell it. You can whip up a landing page in like a Google doc in maybe half a day. You can send it out to people in your audience and be like, hey, potentially working on this course about how to have a productive desk setup. If this sounds interesting, you can pre-order the course here. It'll be released in the next month and I'll give you your money back if you don't like it. 50% off. Something to that effect. Because based on how the pre-sell goes, if enough people want to buy it, then it gives you an idea. It lets you validate the market. So it's about finding a problem, finding someone who's willing to pay for the solution to that problem, talking to those people quite a lot, getting money from them. And only once you have done that, do you know that, okay, this is a business idea worth pursuing. And now you can start to build the thing because you already have paying customers. This is the thing that I wish I had known when I started my entrepreneurship journey. This is the thing I wish is a message that could be hammered into the heads of every single aspiring entrepreneur out there. I give so many talks these days around the world. It's super fun. And there's always like half the audience are aspiring entrepreneurs and they're all stuck in this thing of like, oh, I need to have a good business idea. Or, oh, I've just been building this thing, but like I haven't built it yet. And I need to make my MVP first. And then all of it is a total waste of time. If you speak to people who are second time founders, people who have started multiple companies, you'll find this, they spend the majority of their time just talking to customers. The more you talk to your customers, the more you validate the idea actually has a market. The more you understand what problems they have, the more you can start to see, huh, maybe I thought this thing should be red, but actually this thing is blue. The more you try and ask them for money to pre-sell the thing that you haven't even built yet, the more likely you are to succeed in the business. Honestly, I think you should totally read the book. It's absolutely amazing. Noah's done a smashing job of it. And if you liked this video and you want to see a way deeper dive into this, I actually have an interview with Noah Kagan on the Deep Dive podcast that will be linked right over here. Thank you so much for watching and I'll see you in the next video. Bye-bye.