Finance Tip: The secret weapon to starting a new business.

This isn’t going to be a long post but let me be clear there is a lot of nuance that goes into starting a business. There are a couple of key components though that you will not get from places like fidelity, Forbes, your financial advisor etc. Now this may seem like common sense but you would be surprised at how many small businesses fail because people follow their passions and do not think deeply about the concept highlighted below.

Do things for people who no longer want to do those things and have the money to pay someone else to do it.

A very simple example of this is cleaning the house. When many people get older or get to a point where they have disposable income, they seek to purchase time. Purchasing time simply means you pay people to do things that you no longer want to do so you can do something else. These are not complex financial concepts here. This isn’t something you need to pay a finance professional for either. It’s rather simple really and if you can do this the likelihood of you having a successful business is high.

If what you are selling gives people more time to do what they want = income.

Can you provide a good or a service for someone that they would have to do themselves but they no longer want to do it?

That is the secret weapon. If you start a business with that premise, you will likely find yourself in a situation where you can derive a good income. The jobs won’t be glamourous of course, from landscaping to house cleaning to dog walking to grocery shopping. This is a luxury purchase really but it can be scaled. Think about the businesses in your area and the services they need that they may not want to do. As an example that small house washing business who is doing something the homeowner doesn’t want to do, might not want to do their own booking keeping.

This is different from the old concept of “solving a problem” for people or businesses which is a good way to start as business as well but relies completely on the notion that the entity you want to work for can’t do it themselves. The secret I am giving you now is very lucrative, it’s doing something for other people they do not want to do.

You can make a nice living doing this, because let’s face it everyone has something in their life they simply don’t want to do.

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The number 1 rule to starting your own business/side hustle

No I am not selling anything, I do not have a program or “course” for 49.99, lol. I do though have decades of business experience and before I reveal the #1 rule let me give you the standard disclaimer. You should gather as much advice as possible before making any financial decisions. The views I express on this blog are my opinion based on my experience. They may or may not work for you, this advice is not a guarantee of success.

That out of the way what is the #1 rule? It’s actually more of a question but if you can answer it you essentially have the launch point for a business.

What problem are you solving?

Yes, it’s that easy. Now “problem” has to be taken in context here, it doesn’t necessarily equate to a negative outcome it’s just someone has something they can’t do or obtain on their own that they want (the problem) you provide the means by which they can obtain it (the solution).

So when thinking of a business or a side hustle you have to first think of what problem am I solving here? What am I providing that someone else needs? The core of any successful business is providing that solution for your customer. A lot of these “problems” revolve around time and that’s important here. You might be providing a service, like lawn care, that the homeowner could do but they want to spend their time doing something else.

Anyone can start a small business or side hustle.

The problem there is, the buyer wants to spend their time doing something other than mowing their lawn. Remember that important caveat in the rule, many of the problems you would be solving involve saving someone else time. If you can figure out how to use your skills (or time) to solve someone else’s problem (or need) you can charge for that and people will pay.

Think about your life for a moment and all the people you know, what are some of the issues that come up over and over? I know 3 people in my life who don’t drive but need things you obtain at stores. Now Amazon has made this easier for them, still these people want things locally. This is a problem to be solved. One of them pays someone $25 bucks an hour to transport them. This person drives them around 1-3 hours a week, my friends pays them in cash by the trip. I know you’re thinking “can’t they uber, or take a taxi?” yes but this “assistant” (for lack of a better term) knows the client exclusively.

Simply put they know her needs, they have a routine, it works.

That’s one example of many. If you are thinking about starting your own business or side hustle just remember that one important question to ask yourself “What problem am I solving?” If you have a good answer, you have a business.

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