Starting a Business

I remember starting our business 6 years ago. I was inspired by Robert Kiyosaki's book Rich Dad, Poor Dad. I thought to myself, this is it, my way out of the rat race!

Fast forward 6 years and multiple bloopers, I'm still alive but man, that Rich Dad book really understated it (hahaha!). Not to take anything from that book but really, Rich Dad just tells you why, not the how. My wife and I had numerous challenges in starting a business the past 6 years. And though we experienced a lot of hard times, we would still choose the way we chose: business over employment. Our why's are all in Rich Dad. But for quick hows, especially to many of my friends looking to cross over soon, here's what I can share:

1. Build Inner Strength - Related to my blog about Giving Up is mental toughness. I don't think you can survive owning a business without developing mental toughness. And it's not about the petty problems either. It's about problems that are matters of life and death - of your business that is. Problems make you strong, there is no substitute for challenges to make you grow.

If faced with a huge problem, a technique I learned is: Don't think about the problem. That's right. Instead, think about the solution. For example, you have a money problem. Instead of thinking about what will happen to you when you don't have the money, focus your efforts on how much money you need and how you will get it. I try to visualize the exact amount I need and sooner or later, my mind gives out suggestions.

Focus on the solution.Focusing on your problems will inevitably cause anxiety. Focusing on the solution gives you a puncher's chance. Use your thoughts wisely.

You will be tested many times in your business life. If you fall, just get up and play some more. Also, you will need a good assist from above.

2. Pray like Jacob - There have been a lot of small miracles in our business life. Loans that get granted just in time, timely rebates and stuff like that. I know that no matter how hard I try, if I don't have the blessing from my God, I'd be doomed. But I also learned to pray like Jacob sometimes. That is, to knock, pound and shout to God to bless me. And to keep on knocking until He 'gives in'. I don't know if you can ever force God to give in but I do know that Jacob wrestled with an angel and did not let go until he was blessed. That sort of tenacity is needed in prayer sometimes. We are all children of God, and He blesses us. It won't hurt to be persistent as long as we know how to submit if the answer is No.

3. Choose a business with multiple markets - You are never helpless in a business. If business is slow, make sure you have a market you can woo. For example, in our laundry business, we serve mostly retail. But that didn't stop us from courting commercial accounts. Both of these markets are actually 'woo-able' but I like having the option to go out there and talk person to person to purchasing managers and get their big accounts.

Some markets are too focused on retail and walk-in customers. It would be good if your business gives you the chance to sharpen your man to man sales skills too. Which brings me to #4.

4. Learn to Sell - Most of us who came from the world of employment do not know how to sell. But selling in your store or when you are courting customers is a very important skill. And it's not hard to learn. The key is PRACTICE. Selling skills do not sprout overnight. And it is not dependent on how many books you have read. You have to go out there and sell. Be ready to be rejected, but be happy because it means you have room to improve.

The best way (and cheapest too) to practice selling in the Philippines is to join a direct-selling company. Yup. Those dreaded direct-selling companies and networking companies are actually great boot camps to get you in shape. You also get good trainings and get to watch good salesmen exhibit their skills. Join a company you believe in and stay out of 'hyping' which is actually just a form of lying. Sell softly until you get the hang of it. Build your confidence. And be sure that the sales process is successful for both ends. You have to be able to collect payment for you part. Selling is different from giving, you know.

You can also practice selling in your store. Make sure you are the receptionist on some days so you can get to know your customers.

5. Conserve Cash - One of my biggest mistakes when I started out was when I spent too much to beautify parts of my store my customer wont even see! Looking back, I wish I conserved the cash because I definitely had better use for it when we opened for business.

6. Look for the Market BEFORE you build your business - Most people look for customers after the store has been built and after the cash has been spent. Look for a business that has ready made customers waiting. If you are still looking for a business to start, take a look around. What do all these people need that you can provide for? Do you have competitors? Can your competitors copy your idea? Can you get people to be loyal to you?

7. Stick to One - In his great book: Growing a Business, Paul Hawken reminds his readers to not start multiple business at once. Just one. And put all your efforts into making that business successful. Robert Kiyosaki also advises us to put our eggs in one basket and watch that basket. I subscribe to this way of thinking and I find it better advise compared to diversification. Diversification is good advice for those who have a lot of money. If you have only 100T or even 1M, diversification will only divide your investments into mediocre parts, without real substance or promise for growth.

8. Know You are Capable - Never discount yourself. Instead, take stock at what you are good at and think of that always. Everyone can learn to be entrepreneurs. I often smile at people's comments that this person or that person is 'business-minded'. I have been introduced to 'business-minded' people who are only good at one facet and that is looking for the next opportunity. They have no focus and no sense of persistence at all.I should know, I have that streak myself!

While some of the most quiet people I know, though they don't know how to sell yet, have many ingredients that make them ready to own their businesses - they are tenacious, numbers-oriented and have enough willpower to carry the business through.

9. Choose Your Own Adventure - Businesses are as diverse as the people that own them. My experience in service and in distribution tells me I have much to learn. These two business types have different challenges and rewards (not all rewards are monetary). I think I would love to try out trading or import-export someday. Some comments:

Service - small capital needed.You meet a lot of people. Business could be prone to complaints.
Distribution - not much hassle but could need big capital to corner a market.
Trading - you can start small. Competitors can be a problem if they smell your success. You need to be innovative often.
Manufacturing - big capital needed. Marketing arm needs to be strong.

Choose a business compatible to your character. But be open to challenges of adding some skills too, especially selling. If you are contemplating going into business, don't keep a plan B when you start. Plan it well then burn the bridge. Make it your only option. I know it's scary but positive tension can do wonderful things.


Dedicated to my friends who are looking to start their own business. You can do it!
God be with you!

Recommended Books:
1. Rich Dad, Poor Dad
2. The E-Myth Revisited