 You get an idea and you want to start a new business. How do you do it? I made a live Q&A two hours ago, and I got about four of the same questions talking about this now before I begin There's a couple of things I want you to do Number one hit that Bell notification button. That's really important Like I said YouTube's doing some funky stuff and if you haven't already Subscribe like and share this video So the question is if you're starting a new business what you should do well number one As mark Cuban states don't take a fucking loan Like don't Eight out of ten businesses fail to think that your business will succeed 100% It's crazy and to take such a high liability that you got to pay back that money is even more crazy It's a different story when you raise money from angels, you know investors for them. It's That's the part of their thesis You know same thing with them eight out of ten of their investments fail and the two to do well Guess what pays back for the eight to have failed and so taking a loan to start a business is foolish at the beginning Now let's talk about scenario over here. Let's say you have a new idea and What most people will do is they're gonna spend money on like oh, I need to spend money on a crazy logo to $3,000 I need to get this I need to get that next thing you know They spend 15 K on God knows what they don't have one sale in and Said what you need to do is you need to go and study the agile lean model of startups Now this obviously isn't applicable for everybody like if you're opening up a bricks and mortar business You go overhead from fucking day one. I'm talking about more or less online businesses And let's talk about something that anyone can do anywhere for the most part for the most part and that is e-commerce using Shopify and Using Amazon dot-com preferably dot-ca is garbage. So let's say hypothetically You have a new headset that you want to sell and you designed it what most people will do is they'll buy a batch of them first probably drop down there's a minimum order whatever that is drop down $10,000 and start selling them and that's a wrong approach Ideally what you want to do is you want to get maybe a couple of prototypes of these new headsets You want to give these headsets to potential customers of yours start with your friends and family everybody needs headset And while you're looking for his feedback And I know a lot of people don't like to hear feedback Because attacks their ego the funny thing is though fortune 500 companies pay fucking million dollars a year for consultants yet You're getting free Advice and feedback constructive feedback from your potential customers. And so what I would do is out. I would see How I can get only a couple of these Right make a deal with the factory listen. You're gonna order a big orders in the future. Yeah, maybe you have to pay Two three times more for a couple of samples who cares right ideally you want to spend maybe say like less than $2,000 in samples. So now you have your samples and what you're gonna do your samples go out to your friends and family Give them out talk to people get the feedback Go towards your factor again make the changes necessary and I'm just giving examples some random stuff Make the changes to iteration and then try to order as minimal as possible If you can even and you can do this trust me you can do this Negotiate with the factory that you're willing to even pay three four extra to cost for a more minimal a quantity order your Your job is not being profitable at the beginning. Your job is getting proper product market fit, right? There's a saying in marketing, you know You can shine copper to be silver, but you can't you can't shine silver to be gold It's all about having the proper product market fit Elon Musk talks about this And so the whole point is like what you want to do is spend at least amount of money getting your product out there You don't want to be sitting on stock, especially if you have different skews if you have like color skew size skew Fuck again, it's a nightmare running e-commerce companies that have different skews Ideally with this is more or less one skew to begin forget different colors Let's say silver and it's unisex and for all fucking head sizes, right? Cool, you order like a hundred pairs for whatever price pay full price pay even more than full price Your job is to break even on that to get your money back And you go out there and you start talking to customers you start going on forum You start giving it out to people you start using social media The whole point is you want to use your pre-existing network and you're getting feedback and feedback and feedback and feedback people like this I don't like this maybe the price is too high The whole notion is you want to suck as much information from the market To then reintroduce to your product Build a better iteration of the product get that fine balance of the product market fit go back to your manufacturer and then order the second batch and you want to do this process as fast as possible and the whole point is you Don't want to put too much upfront capital Maybe you do this process two three times back and forth iteration iteration finding that proper product market fit for a the best Quality headsets and be the proper anchoring for prices once you've done this, you know, you haven't spent too much money It's more or less talking the phone and meeting people in person and using reddit and going on forums Once you find that correct balance, then you can justify Spending money on a bigger order what I see too many times people do is they make the mistakes of ordering a massive Quantity at the beginning and they never done any R&D They never talked to their customers and never done any iterations They never they just assume, you know, the biggest fuck-up of all fuck-ups is assumptions When you assume something you've lost the battle or you lost the war and so building any business Specifically e-commerce business. It's about the lean agile Minimal viable product and the ones that can ship faster and do iterations faster They win when you have a proper product market fit and your customers love your product and they Accept the price they're selling at then you can justify spending money on on your stock You then you can justify money on paid traffic. You can justify money on proper branding But do not jump into branding at the beginning do not jump into paid traffic at the beginning Do not jump into sitting on a fucking stock of $50,000 worth of shit. No one wants to buy You know and that's it. Keep it simple minimal viable Product ship iterate ship iterate ship iterate and that's how you do it All right guys if you have a question leave a comment below now talk to you guys soon peace