Tai Lopez Shares 7 Steps to Launch a Business With No Money or Experience
Mary Delaney – The Oracles
Last year, 310 out of 100,000 people on average created new businesses each month in the U.S., according to the 2017 Kauffman Index of Startup Activity. Most entrepreneurs start businesses out of opportunity rather than necessity.
We asked investor, philanthropist, and member of The Oracles, Tai Lopez, for his take on how to capitalize on an opportunity and launch a business. If you’re unfamiliar with Lopez, he advises many multimillion-dollar businesses and is a social media marketing expert. In the last year, his Facebook following has grown from 600,000 to over six million.
“Thanks to modern technology, it’s possible to go from idea to paying customers within a short amount of time,” Lopez explains. “But most never get started because it’s overwhelming.”
Here’s how to get started:
1. Pick an idea that works for you.
“Most people think they know what they’re good at,” wrote Peter Drucker in Managing Oneself. “They are usually wrong.”
“That’s the most important principle I ever learned,” says Lopez. “A lot of entrepreneurs can’t figure out why their business is failing. But you can only build on strength. ‘Doing what you love’ usually only works for hobbies. Don’t build a business around your weakness.
“I love basketball, but I’m not good enough to play professionally. If I tried to pursue it as a career, I’d fail financially. So, I play basketball as a hobby but build businesses around things that come naturally to me: public speaking, making videos, and social media marketing.”
Lopez says take the time to become more self-aware. “If you’re talkative and like asking questions, maybe start a podcast or host events. If you’re organized, becoming a virtual assistant can be lucrative.”
2. Spot trends.
Another reason why startups fail, according to Lopez, is because the founder ignores trends.
“For example, small businesses struggle with social media. More adults are ditching college for jobs. People want practical skills to get paid immediately. So, I created a multimillion-dollar business that teaches people how to manage social media for small businesses.
“View problems as opportunities to help people out. You’ll earn money as a reward for your solution and get paid in proportion to the problems you solve.”
3. Launch quickly.
Lopez shares what his first mentor, Joel Salatin, told him at 19 years old: “Tai, sometimes good enough is perfect.”
This philosophy means building prototypes that are just good enough versions to test in the market. “The biggest mistake new entrepreneurs make is creating something that no one wants to buy.
“By using prototyping, you focus on creating something that people will pay for, quickly and cheaply. ‘Speed of launch’ combats procrastination. We procrastinate because of perfectionism about the initial launch. Then we lose interest, and the project never gets off the ground.”
Never forget: Good enough is perfect.
4. Pivot around what customers want.
Lopez explains how entrepreneurs can learn a lot from Apple and Kodak. The iPhone has continually evolved from user requests and continues to dominate the smartphone market.
Conversely, although Kodak was the top photography brand for over a century and once “sure bet” stock, they ignored early warnings and didn’t pivot fast enough for the digital world. By 2012, the company went bankrupt.
“When it comes to growing your business, don’t fall in love with your idea. The idea gets you started but be willing to change. Improve your idea through experiments and tests. Otherwise, you’ll fail.”
5. Optimize your pricing.
“Most businesses get their pricing structure wrong,” says Lopez.
“In the book ‘Smart Pricing,’ two Wharton professors analyzed all the things you can do for positive repercussions for your business. Optimizing price is first. Most businesses’ prices are way too low or high.
“If you study economics, it’s the study of allocating scarce resources. Unless you’re a Saudi sheikh, most people only have a limited amount of money.
“So, focus on testing different prices to ensure demand for your offer. If people won’t pay a penny, shut the business down or do a massive pivot.
“But if the product sells well—or you can charge a premium price over similar products in the market—you’re ready to scale.”
To scale, Lopez says you need two things: viral free marketing and paid advertising. But your product has to be good for it to work.
“The billionaire Charlie Munger said, ‘You can’t polish a turd.’ Some people try to advertise a turd idea. It doesn’t work.”
But you can polish a good idea. “If your idea is good, employ some controversy, humor, and drama in your marketing for free virality.” Lopez recently uploaded a highly provocative Instagram post to market his clothing line.
“Once you have a hit product that’s going viral, invest in paid boosting. Most people try to boost too early, which is an expensive mistake. You’re trying to boost something that people don’t resonate with.”
7. Use a trainer.
Lopez recognizes that all world-class performers use trainers, coaches, and mentors. He applies the same principle to his own life. His basketball coach, Pooh Richardson, was an NBA pro basketball player for 10 years. His personal trainer is 2016 Mr. Olympia, Danny Hester. And his Brazilian Jiu Jitsu coach is Rigan Machado, widely regarded as one of the top competitors in the sport’s history.
“Regardless of the business you start, a mentor answers the stuff you can’t find online. They’ll cut your learning curve by years. Their personal experience calms and guides you through.
“There are three options when getting trained: in person (the best), online or books (easiest), or none (avoid).”
If you want to learn how to start your business in one to eight weeks, Lopez is offering a free training video on his website for Entrepreneur readers.
How to Win an Argument, According to Science (Infographic)
Courtneyk | Getty Images
an hour ago
Whether you’re right or wrong, winning an argument can be a challenge. Luckily, with a few simple tricks, you can learn how to debate like a pro.
For starters, rather than coming off aggressively, start a conversation. Having a two-way discussion will show the other person that you’re open to hearing their ideas, and in turn, they’ll likely be eager to hear yours. You should also always let them speak first and ask them open-ended questions.
Next, mirror your opponent and mimic the way they are positioned. Be sure not to make it too obvious, but if you see them sitting cross-legged, then do the same. According to research, people are more likely to believe someone who is positioned the same way as them. Of course, always make direct eye contact, and once they’re finished speaking, repeat some of the most important points they were trying to make so you know that you fully understand their point of view.
Now it’s your turn. When it comes to making your case, make sure you have all of your facts straight, use evidence such as studies to support your argument, end your questions with affirmative questions such as “right?” and “wouldn’t you?” and of course, never raise your voice.
To learn how you can always win an argument, check out SavingSpot’s infographic below.
Rose Leadem is an online editorial assistant at Entrepreneur Media Inc.
How to Create the Perfect Infographic Infographic
How to Create the Perfect Infographic Infographic
Infographics are powerful to communicate detailed information in a way that people can grasp quickly. However, you cannot just slap some images together, call it an infographic, and expect the page views to come pouring in. If you want to create a successful infographic, you have to follow a few different steps.
This infographic provide quick tips to create the perfect infographic that will be shared and read. It highlights simple best practices like: defining a goal, including a call-to-action, use a consistent color palette, and more.
Once you have created your infographic your work is only half done. You need to release it out into the world. There are three main tactics you can use to promote your creation.
- 20 Ideas for Creating Perfect Infographics Infographic
- The History of Infographics Infographic
- Tips& Tools For Creating Infographics Infographic
- Infographics in eLearning Infographic
- eLearning Infographics Pros and Cons
“In my view, organisational performance is highly dependent on worker ability and motivation”
Here’s an interesting article that’s been rattling around the web for a while now, but worth revisiting: according to Jared Sandberg at the WSJ –
In the Information Age, so much is worked on in a day at the office but so little gets done. In the past, people could see the fruits of their labor immediately: a chair made or a ball bearing produced. But it can be hard to find gratification from work that is largely invisible, or from delivering goods that are often metaphorical. You can’t even leave your mark on a document in increasingly paperless offices. It can be even harder trying to measure it all.
In Ireland recently, a survey by the recruitment company Executive Connections suggested that most people in the job market are on the move not, as you might imagine for greater remuneration, but because of a perceived lack of career progression and satisfaction with their current role; people really do have an inherent need for, and are motivated by responsibilities in their job.
As learning practitioners – and particularly in e-learning – we’re aware of the importance of motivating and rewarding learners. Many of us have first-hand experience of the numbingly dull exercise of proceeding through linear old skool CBT-style courseware. We try to design, develop, and deliver engaging and interactive experiences that will reward our learners, or at least evoke a degree of satisfaction when they accomplish a task or successfully complete an activity, and we also know about the statistics of the high drop-out rates for e-learning programmes.
I’m wondering if there’s a relationship between these two phenomena? In my view, organisational performance is highly dependent on worker ability and motivation.
Ability depends on educational development, experience, and training; developing this facility is an ongoing process that doesn’t reap immediate rewards. However, motivation can be improved quickly. As a guideline, there are broadly seven strategies for motivation.
- Positive reinforcement / high expectations
- Effective discipline and punishment
- Treating people fairly
- Satisfying employees needs
- Setting work related goals
- Restructuring jobs
- Base rewards on job performance
These are the basic strategies, though the mix varies from situation to situation/workplace to workplace. In the under- or unmotivated worker (including those who drop out of e-learning courses for example) we can say that there is a disconnect between an individuals actual state and some desired state: so how do we resolve this disconnect, and ultimately support knowledge workers find increased psychological satisfaction in their professional endeavours?
Answers on a postcard please.
Sandberg, J. (2008) A Modern Conundrum: When Work’s Invisible, So Are Its Satisfactions. The Wall Street Journal [Internet]. Available from: http://ift.tt/RXNABi
[Accessed 12th July 2017]