Ramit Sethi’s 7 Rules To Start a Successful Business
Starting a business is one thing, but starting a successful business is another level of planning and goal-achieving. Before you rush into the wrong thing or talk yourself out of the right one, form a plan of action based on someone else’s blueprint who has done it before, and well. Ramit Sethi is an American entrepreneur and author who specializes in the ability to teach others to be rich.
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Starting your own small business will come with a million to-do lists, investment strategies and piles of paperwork. However, if you are ready to put one foot in front of the other, here are seven rules Sethi swears by to help you get your successful business off the ground.
No. 1: ‘People Buy All Kinds of Stuff!’
Don’t rule out niche markets when it comes to areas where your business can succeed. In the United States, capitalism is the biggest belief system, and there is no shortage of options.
“If you’re not sure what people would pay money for, think about what you spend money on. Then imagine how many things you already know people would pay for," Sethi advised. "Parents happily spend money on their kids. We spend money on our own entertainment and self-improvement. We make impulse purchases for things that we want or think we need. No matter the state of the economy, there will always be people happily spending money.”
No. 2: Move Past ‘I Don’t Have an Idea’
The truth is there is not just one great idea, but several you’ll make throughout your entrepreneurial journey. Don’t necessarily focus on the destination but more on the process of how to get there.
“Now, if you keep telling yourself the same story… You have no time, no idea… You don’t want to start a business ‘in this economy’ like one of my readers told me last week," Sethi stated. "Maybe it’s not any of those. Maybe you just don’t want to start a business. Which is OK! But be honest with yourself.”
No. 3: ‘Don’t Reinvent the Wheel’
There is nothing wrong with modeling your business model after those who have had success in your desired field or product lines. Though imitation may be the highest form of flattery, it can also help with profitability.
Sethi said, “Lots of other people have figured some of the hard parts of starting a business out. Use their lessons! Give yourself every advantage to save time and avoid common mistakes! When I was starting out, I would have given anything to have a system that showed me how to find an idea, find customers and grow my business.”
No. 4: ‘Success Doesn’t Have To Be a Ferrari’
Sometimes people can fear success just as much as they do failure. It may seem counterintuitive but both are overwhelming when it comes to the changes associated with earning or losing money. Here are three examples Sethi outlined.
“They think that ‘money changes people.’ (YES! They’re right — money allowed me to dream bigger, to be more generous and to be more adventurous.)”
“They worry that if they grow a successful business, they’ll be chained to their desk all day long. (NO! Having too many customers is a great problem that you can hire away.)”
“Or they worry that they’ll suddenly start posting pics on a yacht to show off on their Instagram account. (NO! You won’t.)”
No. 5: ‘Embrace Constraints’
Working within your own boundaries or even beneath your means can help you create longevity for your business.
“Keeping your costs low gives you flexibility and freedom," Sethi said. "Think no expensive rent, no expensive inventory and low overhead! You don’t need the perfect business with the most beautiful website. You just need an idea that you can turn into an asset that your customers are happy to pay for. Keep it simple.”
No. 6: ‘Focus on What Could Go Right’
This is not to say you shouldn’t be realistic about your expectations or growth potential, but honing in on clear-cut goals and how to achieve them can be greatly motivational.
Sethi advised, “Most of us worry about all the things that could go wrong. Try turning that around for once.”
For example, focusing on earning extra money monthly or annually, and what you could use it for, switches you to an abundance mindset. It also helps prepare you for dealing with a successful business when the time comes.
No. 7: ‘It’s Not Enough To Just Think About It’
As the saying goes, actions speak louder than words and though you should always formulate a financial plan, the next stage is doing something about it.
Sethi asked: “How long have you been reading my emails? How long have you been ‘trying to figure it out’? If you want to start a business, put time and money behind it.”
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