Achieve success in your startup or side hustle by following these tried and tested laws

Sometime ago I was reading an influential and thought provoking book called The 48 Laws of Power. The book by Robert Greene can be described as a self-help and strategy book that outlines laws to achieve and maintain power, influence, and success. It got me thinking, there are certain laws in the business startup space  that if followed will increase your chance of success. I spent a considerable amount of time going through my many successes and failures to work out what the common themes were that lead to success and those that if ignored lead to failure. It is these laws which this article aims to identify using anecdotes from my previous experiences to explain the importance and application of these rules.

So without further ado let’s start with rule number one.

1. All Startups Are A Puzzle

All new businesses are like a puzzle. There is a solution to all puzzles, the hard part is finding it. Sometimes the puzzle is easy to solve, other times it can take longer, however, if you persist you will always find a way. Many give up before cracking the code. The fact that there is always a positive answer should inspire you to continue.

When we start any new venture we are convinced we know the secret code but it doesn’t take long before we realize it’s the wrong combination. You must continue trying again and again. This isn’t unique to you; every new business owner encounters the same problem.

Let’s say you start a drop shipping business or any of the other kinds of businesses you see advertised online. The commercials make it sound so easy. But each business has its own DNA, it is impossible to explain that DNA without starting your own business and discovering it yourself. The lesson here is never give up before you have discovered the unique solution to your business. It doesn’t matter if the solution is very different to what you had envisaged the business looking like from the outset, that is probably what will happen, your goal is simple, solve the puzzle.

2. Start With An Idea, Any Idea

Obvious right. The idea doesn’t have to be great. But you do need to start with something. No business starts with no idea. The myth here is you have to start with a good idea. That’s wrong. It obviously helps but the crucial point is you must have an idea to get started, what that idea is is irrelevant.

Let me explain. Let’s say you have an idea for a pet grooming business. Perhaps you were employed in one at some point in time. So you decide this is the perfect business for you. You start the business at your home and quickly realize that when speaking to your customers there is a big demand for a pet sitting business. You perform a mini pivot and offer this new service along with your grooming business. Now the point here is without plunging into this first business you would have not discovered the opportunity in this other business. It is the main advantage of getting into the game. You must be in the game to benefit from this law.

3. Bootstrap Like Someone Who Is Penniless

Money is always tight at the start of any venture. You must conserve cash by buying wisely. Remember, this is your money now, not corporate cash. That means you should perform most tasks/jobs yourself. Avoid outsourcing to third parties such as PR and branding consultants and website designers. If you are constructing something, go through the spec carefully and challenge everything. Get multiple quotations. You can do most things yourself and or utilize freelance sites such as Fiverr.

You also don’t need to be in a rush to raise money for your new venture. With other people’s money comes added responsibility. Although we never admit it to ourselves we have a tendency to spend on things we don’t need when we have an abundance of money to play with. The best new ventures start with limited money where every cent you spend has to be justified. It’s a great habit to get into.

4. Get In The Game

Most business ideas come to nothing. Most people who dream about starting a business never do. Why not? Because we all want to start with the perfect idea. There are very few entrepreneurs that have a winning idea from the get go, most develop over time through a system of trial and error. So the lesson here is, just get started.

Don’t be afraid to make adjustments to the idea because what you will discover is that once you begin ideas will flow, you are in the game. Getting in the game is key. That is when your eyes will be open to new ideas and opportunities.

That leads me to say, don’t make excuses as to why you haven’t made a sale yet, you don’t need a website or a business card to make that first call. Don’t put artificial barriers in the way. I started a sales recruitment business with no website. I picked up the phone and started calling and emailing possible clients using a gmail account. It’s that easy.

5. Keep An Open Mind

Your successful business will probably look very different from the one you start with. That is why it is important just to make a start. This follows on from the previous rule. Don’t get wedded to your idea. Be open to pivot or even traverse to something totally different. I’ll repeat it, the most important thing is being in the game.

Your mind will start thinking like an entrepreneur the day you start your new venture, that is where the magic happens. One thing is for sure the magic doesn’t happen when you are sat on the sidelines. Don’t be too quick to give up and pivot, sometimes it takes time for a good idea to gain traction, particularly in the crowded world of websites and social media. But also be ready to experiment with other ideas related to your original idea as it may be this one that ends up being the winner.

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6. Avoid Business Partners

Bringing in or starting with a business partner means you have someone to answer to, you have additional responsibility, someone to be accountable to. He or she may be your best friend but that will all change after a year in business together.

It may be exciting and new at the beginning but as soon as things become tough, one of you isn’t pulling their weight or your strategies and goals differ, your relationship will rapidly deteriorate.

Yes there are many stories of successful partnerships but there are many more that don’t work out that you don’t hear about. This isn’t a case of simply “it didn’t work out”; this failed relationship could and probably will destroy your business. It’s all about the business so try to go it alone and avoid the temptation of bringing in a business partner.

7. Launch Your Product Fast

Your first product or service doesn’t need to be perfect. This is a rule invented by Silicon Valley. The old adage is, perfect is the enemy of progress. This rule combines some of the above rules. Such as, Get In The Game.

You don’t need an all singing all dancing website to start selling, you just need an email and a cell phone. Your product doesn’t have to be perfect, it can improve with each iteration, and it will. You won’t recognize the later versions of your product compared to that first version.

I had an old business partner that would constantly complain that our product wasn’t ready to be launched to the public. I would argue and demand that we just get it out there and start selling. As long as there are no glaring errors, inconsistencies or major faults then launch. You can add other functions and elements in later versions. This approach also demonstrates to your customers that there is progress being made, increasing repeat sales enormously.

8. Be The First And The Second Employee

Don’t be afraid of picking up the phone or walking into stores. At the beginning do it yourself so you know what your sales teams issues and opportunities are. If you employ someone too early you won’t understand if your sales manager is feeding you BS to justify his lack of sales and his constant requests for more resources and needless changes to your product.

Many small business owners are in too much of a rush to employ a sales or admin person before working out the finer details themselves. You don’t have to be a seasoned sales professional, you just need to know your product and no one knows the product better than you.

9. Choose A Killer Name

Self explanatory but often overlooked. A short catchy name is good. A name that has a high number of keyword searches and where the .com is available is even better but may be harder to achieve on a limited budget. Long names beyond 15 letters are not so good. Try to register or buy the .com. Alternative extensions such as .org, .net or .io are also acceptable if the name is good.

Check to see if your name infringes any trademark before you go all in on the name. If the .com is taken, that doesn’t matter if you are in a different business. It could however lead to a lawsuit if you are in a similar business and you choose a .net for example.

Take your time choosing your name. Think of a couple of names and then mull them over for a few days/weeks before you decide.

10. Don’t Rush In

Write down your idea and flush out other aspects you have not thought about, good and bad. The good will lead to other revenue stream opportunities, the bad to adjustments you must make to your product. Don’t use this process as an excuse to delay, it should only take a few weeks at a maximum and then you must take positive action towards starting your business. A had a friend who spent countless hours adjusting and re-adjusting his financial model. Don’t be that person.

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11. Road Test Your Idea

Road test your idea before throwing money at it. You don’t need a website or an office before you can start selling. You can start simply with a phone and a gmail account. It is important that we road test our product before committing our savings to build out the idea. It isn’t enough just to ask friends.

A real road test is when people are willing to part with money, not “yeh I would buy that”. Let’s go back to my recruitment business again. I started with a gmail account and a cell phone. I called up people who were recruiting on Craig’s List and asked them if they would be interested in me recruiting for them. The hit rate was astonishing, 70% said yes. They didn’t need to see my website, they wanted to hear the person behind the business, the passion and the can-do attitude. That is what you must do.

12. Don’t Be Afraid To Copy But Improve

The best ideas are copies of others. My best ideas were an improvement of another idea. If I see an idea where I think “what a great idea!” and “I can do that” then I want to see how I can improve on it. There is no point in just launching a me-too business. Your best selling point is “this is why we are better.”

There are few unique ideas so don’t be afraid to copy and don’t be deterred by others saying “someone else is doing that already”. It doesn’t matter as long as you can do it better and if the market is big enough for the two of you.

13. Know Your Competition

It is important you know your competition. Don’t delude yourself and believe that you are the only one doing what you are proposing, there will always be competition. Don’t be deterred by this. Learn from it. Find out what your competition’s best and worst features are, compare and contrast. Use this information to firstly improve your product, to get the pricing right and secondly to ensure you are ready for the objections that will come your way when selling your product. It is best to know what your competition is doing before you start selling, that will mold your sales pitch and improve your chance of success.

14. Be Curious

You hear this all the time when listening to interviews with entrepreneurs. Being curious is the key to success. When you’re on vacation, search the internet, investigate your competition, search for solutions to a problem you have encountered. Curiosity will lead you down a rabbit hole that will result in fresh ideas and improvements to your business.

15. Don’t Be Deterred By Parallel Endeavors

Countless ideas have failed to translate into successful businesses because the founder decided that there were other companies doing something the same or similar. This is the number one mistake when starting a business. As started in Rule 12, copying is healthy. Of course it depends on the market size, however if you are in a growing market then there is room for many operators. Even if the competition is a massive organization that can also be an advantage. Big companies are slow to react to competition. That is why it is important to assess your competition. When someone says to you “someone is already doing that”, react with a smile and “I know, but we will do it better”.

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16. Be Patient And Don’t Be Patient

I met an entrepreneur once who was looking to raise money for his new invention in the baby care space. He had a great idea but he had been sitting on his idea for 5 years with only a prototype and a fancy business plan to show for it. He had been asking for a lot of money for very little equity and he wouldn’t budge. He was also arrogant. Imagine working with him I thought. In response to his bad attitude I made a derisory offer to test him. I didn’t hear back. That’s one extreme. His business idea went to the grave with him and the prototype probably sits in storage.

It’s important you move quickly but effectively. Business is like playing chess. Think of the consequences before making the move, remember however you are on the clock, time being your competition and your dwindling cash resources so make your moves quickly but calculated.

17. Be Careful Cutting Corners

Don’t be in a rush to cut corners. I am not saying don’t cut corners, always be looking for ways to get to market quicker and do things cheaper. Avoid consultants, PR, lawyers and accountants as much as possible, they will take all your money. They don’t care whether your business succeeds or not as long as they get paid. Ensure when you are cutting corners, you perform the shortcut ethically and that you are not doing anything that will jeopardize your business. Always be looking for inexpensive ways to get things done, hire freelancers, but make sure you maintain control, don’t pay in advance for services if you can avoid it.

18. Avoid Unethical Behavior

Cutting corners can lead to unethical and or illegal moves. I don’t advocate either. I see the temptation but in most cases these moves will come back and bite you on the ass. And that bite will jeopardize your business. Try to avoid the temptation to go down this route. If you think long term, illegal or unethical behavior is not in the plan, yes it may get you there a bit quicker but if you follow an ethical path not only will you sleep soundly at night you have a business built on rock. This rule applies to raising capital. Sleep on any decision that you believe is borderline or in the gray area. It may not look so clever in the morning.

19. Never Be Constrained By Lack Of Capital

In the business of startups you regularly hear, “I couldn’t raise the money for my brilliant idea so it never got anywhere”. I believe that if you have a great idea you will always raise the money somehow.

To do this you have to be creative and explore every angle, from crowdfunding, family and friends or picking up the phone Jordan Belfort style. Don’t give away too much equity, that is the biggest mistake when raising money. You become so excited when you receive an offer that you accept it without any negotiation and live to regret it.

Also, as with rule 18 ensure you are raising money within the realms of the law. You don’t want your business ruined by having to return all the money plus a big unpleasant penalty. Take your time planning any kind of capital raising.

Another cardinal sin in raising capital is focusing all your attention on it. Unless you do this for a living it should form only a small part of your daily activities. You have a business to run, that is the key, not raising finance.

20. Remember The Two Bulls

Finally, A young bull looks down a steep hill at the cows below and says, ‘I’m going to screw one of those cows!’ The old bull says, “Son, if you are patient you can screw ’em all”.

A business partner told me this many years ago, I still remember his wise words years later. If you follow these laws you will build a great business which will last as opposed to the young bull’s philosophy which will lead to a rare moment of glory and certain failure.

Go get ‘em!

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