Hey, John Crestani here online marketer in tech entrepreneur, and in this lesson, I’m gonna be going over how to create a startup and most importantly what is a start-up. So first I’ll be defining what the startup is and then I’ll be going over the 5 main steps you’ll need to go through from business plan funding selecting the right people creating a website and getting customers that you need to start your business so let’s get into it.
First, off congratulations, you’re considering starting a business which is the best way to build wealth and income and everything it seems all of the big things happening in society were created by businesses that were once startups like where the very position you may be in or may already be in right now.
So first off what is a start let’s start with that I got this definition a startup is a young company founded by one or more entrepreneurs in order to develop a unique product or service here it says it typically is done on a shoestring budget now wild many startups are done on a shoestring budget or many small businesses.
I like to differentiate between the words startup and small business now I live in California right I live in Malibu California may see some palm trees and stuff blowing around me, it’s kind of windy today.
I look at a start-up as a tech company or some sort of internet-enabled company that is getting some sort of funding some sort of outside funding is what I associate with a start-up whereas I differentiate that from a small business was a small business.
I typically look at it as being self-funded or using friends and family or other sources of funding so I’m gonna really focus a bit more on startup bean it’s something that requires funding will be going into that in just a second here now the 5 different things that you need to understand to create a startup to build one.
First of you to need a business plan second off you need funding money has to come from somewhere third you need the right people around you fourth you need a website you know the place to do business and fifth you need customers I’m gonna be going over each of these items in detail of what you need to do to start your business.
So let’s go to the first one – business plan now here is a chart of businesses with a business plan as you see over here and you see businesses without a business plan right here now what. The statistics show is when you start a business with a business plan you’re much more likely to succeed and I really sum this up by talking about goals setting a goal from the get-go just gonna write that big and bold right here is when you know where you’re aiming when you have a mark you’re more likely to hit the problem.
I’ve seen with a lot of businesses I teach tens of thousands of entrepreneurs just to let you know and I help them start their own internet businesses so I see a lot of success and I see a lot of failure and those who start with a plan a clear destination of where they’re going and are working towards it have a much better chance of success people who are just kind of flying by the seats of their pants are much more likely to fail.
Because ultimately as the winds below you may change direction and continually change direction continuous direction changes are just catastrophic for business because there’s no plan again it’s much easier to reach your destination if you know what it is in the beginning and that’s why we built a business plan now I’m not going to go to death into how to write a business plan you can Google it for more information but I’m giving you a summary of what is in a business plan.
I’m also going to give you an example of a business plan that was extremely short but extremely effective so first off this is recommended by the small business administration which is a government entity that funds over $5000000000 of small businesses every single year.
So if you’re looking to start a business getting a loan from the government is a really easy option in the give out over $500000000 worth of loans a year to just small entrepreneurs that just have a business plan so first off you need an executive summary which is essentially just a summary of what the business gonna be.
Number 2 is you need a company description. Number 3 is you do a market analysis so the market analysis is actually getting into why you think you can succeed it’s getting into how many people are in the market who the competitors are what more. I could share the competitors have X. Sentara C. need to know what market you’re in before you know you write a business plan.
Fourth you need a product or service that is gonna be selling ok. whatever your product is let’s say you’re selling pens or if it’s a service the service is you’re doing maybe some sort of consulting fifth is you need to have a sales and marketing plan that’s a lot of what I teach on this channel I teach
a lot of different methods to do marketing if you’re looking for ways to get traffic to your website I check out my playlist free traffic methods which goes over a lot of ways you can do marketing on social media and the 6 you need funding this section is where you talk about how much funding you need
and you give justification for why you need tax amount of dollars and finally you give the financial projections which should if you are writing a good business plan look like up into the right like every good business plan you have a lot of charges that are all showing up into the right that’s a little
the trick now here’s an example of a very short but effective business plan this is from Elon Musk the founder of Tesla motors the founder of the solar city the founder of PayPal the founder of SpaceX multi multi-billionaire and this was his plan for Tesla which is an electric car company if we have any E.
Elon fans in the house type in the comments the lawn fan I’m a huge fan of Ilan mosque I think is a really smart guy so his business plan was this build sports car use that money to build an affordable car, use that money to build an even more affordable car and then he said while doing the beloved provide
0 emission electric power generation and then at the end he says don’t tell anyone it’s a kind of a joke but this is exactly what he did he wrote this back in 2006 and you can see that from this he followed through the planned to the tee now one of the funny things about the cars you on built by the
way I don’t know if you’ve seen them but you build the model S. he built the model 3 he also built the model X. car and he has the model Y. I don’t know if you can see what that spells but basically in leet speak and spell sexy now the second thing you need. Need to start a startup if you need some
sort of funding now here are the top funding sources for small businesses just kind of ranked you see very predominantly it’s the personal savings and credit cards are a great way to find your business and in fact, the most common way people find their business friends and family getting loans from
your friends or your family members venture capital angel investors banks and crowdfunding so are a lot of options if you need money to start a business there’s a ton of different options if you don’t have friends or family that have any money use credit cards you don’t have credit cards or savings
use venture capital is kind of hard so let’s just assume you don’t live in LA or New York you can hit up angel investors or angel investors in every country in the world but say you just don’t like meeting people you can create a good business plan and go to the banks and let’s say that going to the
banks don’t work you can pre-sell your product and I’ll talk a little bit about that you can sell it to people before it’s even made through crowdfunding for a lot of options available in today’s economy to start a business you really have no excuses if you have a great idea that’s going to add value
to the world go out there do it come on help people out if you really have something to add value to the world just do it there’s no excuses there are all these different ways you can get the money to do it and there are lots of good jobs available all over the world and the most in-demand skills are actually
the cheapest full or you know you can learn a lot about sales and marketing on my channel there’s a lot of places you can learn about programming which is another highly in-demand skill just to give an idea now here’s an amount of small business loans that were given out to small businesses and as you
can see sorry I said 500000000 before $583000000000 of small business loans were given out to businesses that were cresting less than $1000000 so even if you’re just in the beginning stages you just need $100000 $50000 or a quarter of $1000000 you can get the government’s giving out 0.$5000000000000 on
just loans super-low interest from the government if you. Live in America Comerica but there’s a lot of money out there the government’s given out tons of free money basically if you’re starting a business because it’s important to help the world grow as you see over $2000000000000 were given out to
bigger businesses that requesting more than $1000000 so a lot of money is out there you just need to start somewhere the third step to creating a successful startup is finding the right people surrounding yourself with the right people or consultants for building a team or whatever I’m a big advocate
for partnerships you know I have a business partner in my business and I found that finding like-minded people that are moving in the same direction no matter how much success either persons had doesn’t matter about the success what matters is to people with a shared vision moving in the same direction
together is a one plus one equals 3 situations you can get a lot more done when you’re working with good people and our kind of see that in this chart as we see the majority of businesses that succeed or are funded or get acquired have between 3 to 4 people in them and if we expand a little further 2 to
7 people are the sweet spot for building a team to works better than one folk this was PayPal PayPal and 5 co-founder Spielen musk Peter Thiel a couple of other people that’s the sweet spot so keeping that in mind you can certainly start a business with one person but understanding that having more minds
working together in the same direction creates a better situation for you to become successful now the fourth thing you need to do is you need to build website websites don’t need to be complicated again I have a video on my channel where I show how to build a website in 5 minutes we’ll have my editors
link to it but it’s very fast and very simple nowadays to build a website and there are some tools I recommend one tool I recommend to build websites superfast is click funnels and I also have a video on click funnels which doesn’t require any programming whatsoever you can literally build a website and
make it very advanced without any programming so I talk about that in mine. I how to build a website video as well as another video which is specifically about what is click funnels now the fifth and last thing is you need to get customers for your business now getting customers for your business should
be easy if you watch my channel as you know all I talk about on this channel is about how to get traffic and how to get customers that’s all I focus on this channel if you haven’t watched this before like this video and given to subscribe if you’d like to see more videos on how to get traffic to your
website and how to turn that traffic into customers into paying customers that’s all I focus on and as we see here this is Tesla and Tesla pre-sold 276000 customers so pre-selling your product is another way to actually find your company as well so you could actually just pre seller crowdfund your product
and get money for a product that you have yet to build or ship so that’s a great option for funding and it just shows the power of marketing you could literally get all the money you need everything you need customers if you’re good at marketing if you can get customers you don’t need a business plan
you don’t need any of the other stuff you just get customers and you start making money you build the product or do whatever you like now there’s a lot of ways to do marketing so here’s a chart of R. O. Y. for every dollar spent and as we see here and many of you may have heard about this email marketing
has the highest are alive right $40 for every dollar spent I think this statistic I’ve seen this before I believe this is a bit of a misnomer because the issue with email is you have to build an email list in order to send emails out to people email is what we call warm traffic from a marketing perspective
meaning you already acquired email so if you have an email list messaging or email list is a great way to get customers but if you don’t have an email list doesn’t really help you you can’t really do email marketing so that’s why I like to focus on the rest of the place is what we call cold traffic these.
Methods are all that I call pull traffic meeting you are talking to people who have never heard about you before who haven’t signed up for your email list in order to grow a business you’re going to have to do cold traffic because nobody knows about you if your startup so that’s why I just don’t like
the emails startup people don’t know about you now as we see here some of the highest ROI places SCO search engine optimization I don’t talk about this much on my channel because it takes so much time and time if you need customers is not something you can sit around and hope for it’s also some it’s
also risk because if you spend a lot of time and money doing SCO you may not ever right you know it could be 6 months down the road and you never shop for those keywords that being said I do think in terms of search engine optimization I think starting a YouTube channel is a great thing my video shop
for a lot of keywords on Google so I think starting a blog or doing a YouTube channel is a good long term method for getting customers now what I advocate more is I advocate things that are faster you don’t have to worry about time as much it’s more about figuring out the marketing message which is
mostly through advertising and as we see we get $19 from internet display advertising which is stuff such as Facebook advertising Pinterest advertising Snapchat advertising X. Cetera Google display advertising we have mobile advertising you know just a little lower intent again people’s attention spans
on their phones are pretty weak you have keyword ads which is Google advertising at a 17 to one return on investment I’ve been spending millions of dollars on Google for years I’ve been spending millions of dollars a year on Google and I can plainly state that search advertising keyword-based ads are
great and they work and it’s just an obvious place to start and if you’d like to learn more about how to advertise on Google I have a video called how to turn $50 into a $500 using Google ads and you can check that out somewhere in a bubble above my head and last as banner ads still work again. If you
return to dollars for every dollar you spend it’s still not so bad so that’s how you build a startup in a nutshell if you have any questions about this feel free to leave the questions in the comments below and I’ll try to answer some of them also if you are excited.
WRAPPING UP: HOW TO CREATE A STARTUP AND BECOME WEALTHY
If you’re creating a startup let me know the name of your startup I’d love to hear about it or if you are going home when you say you’re going to do it just type in I’m going to do it in the comments I’d love to see who’s actually going after this also if you want to learn more about marketing and getting traffic to your website taking
that traffic is turning into customers subscribe to my channel check out some of my other videos I have a lot of videos on traffic and also feel free to join our communities I get about 2 quadrillion messages per day or at least it feels that way I’ve built communities for everybody to interact with
discord chat channel for people to chat we have a subreddit forum so you can post up forum topics in reply to things and we also have our own Facebook group and these are all places where you can interact with people and potentially even meet your startup co-founder right so take these things seriously.
And looking forward to seeing you in future videos talk to you soon.