Is it better to quit your job to run your startup? …study says NO!

Is it better to quit your #job to run your #startup? ...study says No! from Owerly.com on Vimeo.

Is it better to quit your job to run your startup? ...study says NO!

In a study at the University of Wisconsin, Jasmine Feng and Joseph Raffiee found that Hybrid Entrepreneurs, people that continued to work a paying job after founding their organization, were statistically more successful. (http://www.inc.com/jessica-stillman/should-you-quit-your-day-job-study-says-no.html)

Joseph writes:
"We examined businesses' survival times from the date the founder is full-time self-employed (i.e., the date the founder leaves his or her day job), and found that companies initially founded with a hybrid model were 33 percent more likely to survive than companies whose founders were full-time entrepreneurs at the time of founding."

Some hybrid entrepreneurs include the founders of Warby Parker, Steve Wozniak a co-founder at Apple, and Pierre Omidyar from eBay.

This goes against the notion that successful entrepreneurs are high risk takers. It actually said just the opposite, that people that are cautious are actually more likely to succeed in business.

I have met countless entrepreneurs that left everything to invest 100% into their business idea and seeing the toll that it takes on them. They become desperate to make sales and push their idea with a biased view that the original idea has to succeed. They oftentimes lose perspective, objectivity, and become desperate not just with their business but in their relationships, sales, and the way they run their business. From a marketing perspective, the one question I ask potential entrepreneurs is how are they going to pay for their advertising?

On the other hand, if a person has a part-time job or full-time job with a side business, then they are able to take their time with their business to give the business model enough time and flexibility to mature. Furthermore, they are able to make sales with the right perspective and without reeking of desperation. Finally, they can form a more effective online marketing strategy by having a budget that they can invest in paid advertising to sell the product faster or at least be able to find out that the market is not interested in their product or service, in which case they can adjust or scrap the entire business plan and start over in a new direction.

Remember that time you had an idea and somebody told you that if you were really serious, you would do it full-time? Ever meet somebody at said the reason why their business can't take off is because they are too busy? These are more examples of limiting beliefs created from assumptions rather than reality. How many people out there had amazing ideas but were held behind due to somebody else's limiting beliefs?

Thinking about starting a business? It has never been easier with online tactics and techniques that make creating and advertising your business faster and cheaper.

 

 

It’s better to run multiple business ideas than just one. Here’s why…


Adam Grant, author of the Originals and Professor at Wharton, states:

One of the myths that people carry around is if you want to be original, you will think, “I should do less because I want to perfect my invention or my creation.” But again, the data actually support the opposite story.

Dean Simonton, a psychologist states:

The best predictors of how much creative productivity you will ultimately achieve, how much you’re regarded as a genius, is about the number of ideas you produce. The more ideas you create, the more variety you have. Some of those ideas are going to be blind alleys or random walks in bad directions. But you have a better shot then of stumbling upon something that’s really powerful.
Creators are the most novel, the most original, during the times when they have the most bad ideas.

So, you might think you're one business idea is going to take you to the finish line and continuously work on that one idea for possibly the rest of your life. There is a chance that one idea might not take you there. Instead, it may be a better idea to explore multiple ideas, create the Proto type/minimum viable product and test each idea before finding the one with the most potential.

Are you ready to test your ideas and bring it to market with Internet marketing? Do you need some ideas and inspiration on how to make money online? Join Now

How to make money with a website

The basic goal of any website is traffic. Traffic is where the money is and as the vice President of my hospital used to say, without money there is no mission.

Traffic is what makes sites valuable which is why Huffington Post makes so much money or why Amazon bought businessinsider.com

100,000 users who are actively engaged is worth about $10 million. Once you get traffic, there are many ways to monetize whether the goal is profit, charity, or votes.

You can ask for donations, get sponsorships, run advertisements, run fundraisers, etc. All of these things need traffic because they are eyes on your pitch. With enough traffic, you can get venture capital, investors, sell equity or even sell the entire website.

Therefore, the goal is to get traffic directly to your.com/.org so that people are coming to your website to see your ads, to enroll in your newsletter and to engage with your company.

How do you get raving fans that come to your website on a consistent basis?

This is done by a combination of search engine optimization, social media and paid advertising.

Ultimately, you are pulling in traffic from other sites to come to your website base. For example, and social media you post videos, tweet, post pictures on Instagram with relevant hashtags, syndicate to your Facebook fan page, LinkedIn, or Google plus.

For search engine optimization, you can post articles on other websites that give you a back link which can help your rank on Google as well as send you traffic from their website over to your website. This also has the effect of increasing the number of visitors to your.com on a daily basis which google monitors and as your website becomes more popular, Google will raise your rank on their search engine.

For paid advertising, you can pay other websites, social media, or influencers to send you traffic to your site in various ways. For example, once you write a blog post you can post it in your fan page and boost it to the audience of brands within your industry that do something similar to you.

For example, if Reebok is running an ad to get more fans to their site, they might target the audience of Nike because those people already like and buy sneakers that are similar.

Ultimately, when building a site from start to finish, the end should always be kept in mind whether that is a passive residual income from a steady stream of subscribers and traffic or to ultimately sell to a larger company and retire.

Test your Business Idea using the Lean Startup Model

 

Ready to start a business?

Here are some tips to help you get started in the right direction…

1. What is your USP?

USP stands for Unique Selling Proposition. What can you offer your customer/audience that your competition cannot?

Is there a barrier to entry? Patent? Operations? Audience?

2. What are your main features and benefits?

Now that you mapped out your USP, list the specific features of your offer and how it will benefit your customer.

The Lean Startup

3. What leaps of faith are you making?

What assumptions are you making in your business strategy? For example, are you assuming your audience will be willing to pay extra for a specific benefit? How much creator bias do you have in your own idea?

4. Test

The best way to tell if a good idea will work in real life is just to test it.  The Lean Startup model will help you accomplish that for as little cost as possible.

First, create your MVP (Minimum Viable Product). This is the smallest amount of product and work it would take to test the market to see if there is actual interest in your idea. For example, you can create the front end of a website to see if people you market to opt in with their info to be notified of a release or if people are willing to buy pre-orders of your idea.

User Testing

Does a sample size of your ideal audience want to your your product or service? How do they like sampling it/using it? What feedback do they have.

Split Test

Not sure if a change will hurt or help? Can't decide between multiple options? Have a disagreement with a partner? Resolve these problems objectively and confidently with split testing aka A/B Testing.

 

5. Analyze

Problems?

Use the 5 W's to get to the root cause of the problem. Ask why 5 times.

 

Is there an actual demand for your idea/MVP? Or do you need to Pivot.

Pivot

Did your MVP not work out the way you expected? Maybe it’s time to make a shift or change. Here are some examples of the various types of pivots:

Zoom-in, focus on a specific feature of your idea.

Zoom-out, include your idea into a bigger project.

Customer segment, target a different audience.

Customer need, target a different problem for your customer.

6. Adjust

Make that pivot, tweak, change or new MVP and test it, analyze and repeat.

Continue to grow your business and explore you start-up type ideas within your company.