Kris Krohn here with Limitless TV and today we're talking about how to start
your very own business. And if you listen I'm gonna share with you two of my
favorite bonus rules of how I invent a business before I start it to make sure
that by the time I'm committed to it it's gonna do everything that I wanted
to.
When it comes to starting a small business it is amazing to me how many
individuals over complicate it. They think I need a logo, I need a website,
I need business cards, I need marketing, I need this, I need that, I need a secretary
I need an office space. When you're starting a business and you were just
talking about a home grown out of your home business, you don't need any of
those things. In fact I'm gonna share with you the one thing that's gonna save
you massive amounts of time and it'll make a difference on whether you should
even start it in the first place and it all comes down to what I call a
test. A what? a test. Now there's a first generation of testing and then a second
generation of testing and I'm gonna break both of these down for you. First
generation testing means I've got an idea, I want to start a business, and
here's the bottom line, you have no flippin idea whether your
idea is good or not until the market agrees with you in a certain amount of
volume that it's good. So don't waste your time building logos and websites
and getting incorporated unless you've done these first three simple first
generation steps. Step 1, test your idea without logo.
With out
website, without spending money. That's really what I'm sharing with you is do a
test. Number two, make money.
I did a test, I put the word out on the street, and then
number 2 I'm gonna try to make money. And then number 3 if I make enough money I'm
gonna incorporate. Most people do it backwards. I'm gonna start a corporation
like an LLC S corp, sole proprietorship, whatever. So I'm going to start my
business and then I am gonna go out there and build tools and websites and
everything and then I'm gonna see if I can make money. Don't do that. Here's my
bonus for you, I have been an entrepreneur for the last fifteen years
and having started dozens and dozens and dozens of businesses, I will tell you now
that my number one rule in starting a business is first generation testing
based on this idea, can I make money in 30 days? can you make money in 30 days
with your idea without putting all the? pieces in place that you think you need
In other words, you got to have a way of testing whether your idea is any good or
not. Now here's what's cool about my 30-day
testing model, I have an idea I think that I could make
$2,000 a month, $10,000 a month, whatever It is, if I think that I can make money I
need to do a test and your first test out of the gate, you're gonna be your
least polished state but you're also gonna have your warmest market to test
on. They're gonna balance out pretty well and here's what I'm looking for, if my
test can yield half of the results that I anticipate, I'm gonna incorporate move
on to second generation testing. I'm gonna actually choose to start a
business at that point. Can I tell you how often I is an entrepreneur have had
an idea that I thought was great? I talked to my yes men and women about it
and they're like, yes boss it's great it's awesome and I go to the market and
guess what? I just fall flat on my face. And you know what I've done? I've often
given myself 90 days for a test, I produce a tiny little fraction of what I
hope they would and then I work on it for another 90 days and I test it and I
get a little bit more out of it and a year later I'm like, freaked! I put in
this time this money this effort this energy and this idea I hate to say it
but I need to divorce you because this is no good, you suck, you stink. That's the
reality of being an entrepreneur often is that our ideas that we think are good
doesn't exactly aligned with what the market does. So what I'm doing in this
first part of the video here that I want to share with you is you got to have a
real quick and easy fast way 30-day way of testing your ideas and if the market
grabs hold of it and if you actually start generating money, now you've caught
a tiger by the tail and you know where to put your time and energy on round 2
second generation testing. We've just finished our first generation test and
good news, hahaha! the business idea was good, its
sound, it's making money. So I'm going to double down, I'm gonna invest in it, I'm
gonna systematize it all of that great stuff which means I'm ready to move on
to level number two, second generation workings. You know what that's called?
That's called cloning. What is it? It's cloning. And let me tell you about
cloning I will not get into a business that requires me personally to be the
one to make it run forever. If the business is a good idea, then I should be
able to train people that are better and smarter and brighter than me to run and
operate daily hands-on management. Phase two
second generation is always about leverage. It's about what? It's about
leverage. So when I say cloning, I mean to clone me right out of the business. I got
a friend right now he's uh he owns a mr. appliance and he's got the most
successful one in right now I think the entire country and next month he's going
off to convention with hundreds of other franchisees that are gonna ask him
questions, how did you do it? And one of his secrets to his success was starting
in the business, proving the business, being able to do the business, and then
cloning himself. Friends, this is the one thing that most people miss in business,
you get so lost in being in the business that you're actually not working on the
business. Do you understand the difference? There's a world of a
difference between getting lost in it and working on it.
Owners work on businesses, employees work in businesses. Are you the owner or are
you the employee? If you've done first one generation and you've tested it and
you know that it is promising, now you need to do test after test after test to
create a system. But once that system is in place you get to move on to the end
in mind. You want to start a successful business? it ends with you cloning
yourself so that you can either sell the business to someone else for a profit or
hang on to the business and manage the people or hire a manager, better yet who
manages the people that lets it all go. And having dozens of businesses, I will
tell you this is the only way I'll do business. So here are my two bonuses at
the end of this video. For phase one generation, a 30 day test. If I can't get
it to produce what it needs to I'm out.
Second generation test, if I can't be
cloned I'm out. If those two things don't happen I don't get into the business and
you might save yourself years of hardship and heartache by just learning
these two lessons right now.
I sure hope you've enjoyed today's video. If you're
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