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Young Entrepreneurs
No matter the size of the business or the age the entrepreneur, there are some rules that can be applied to every new venture. Similar to how Newton developed the 3 laws of physics, I’ve developed 10 rules of business.
Alright, maybe there are exceptions. But generally these rules are accurate.
- Without increasing your prices there are only three ways to make more money as a business owner. 1) Find new clients. 2) Sell more things to existing clients. 3) Sell more often to existing clients. Numbers 2 and 3 are often the easiest.
- New customers are 5 times more expensive to find than selling to existing customers. You should sell to people who already trust you and use your services.
- The 80-20 rule says that 80% of your revenue will come from 20% of your customers. In short, this means that you should take good care of your loyal, long-term customers because they will provide you most of your business.
- Saving 10-12 minutes per day saves 1 hour per week or about 50 hours per year. Spend most of your time on activities that are productive and you will not have to work as much.
- Time management of employees is also critical to your bottom line. If you have a crew of 4 people and they waste 15 minutes getting ready, you just paid for an hour of unproductive labor that didn’t generate any revenue.
- The only place you will find success before work is in the dictionary.
- Always do more than your customers expect and they will always be happy.
- A customer and a client are the same thing. Typically a customer is someone who pays as a consumer and a client is someone who purchases as a business.
- Your name is your personal brand. My name is Nicholas Tart. You have to build it and protect it by always providing a quality service.
- On average, 4 out of 5 new businesses will fail. So when you succeed, you’re already in the top 20%. Congrats!
Now how do you get your first customers?
As a young person, you need to build credibility and trust. Start here:
8 Ways to Build Street Credz fo’ Yo’ Biznezz >>
Photo by: Frederic Poirot
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these are all great jobs
Hello, I would very much like a copy of the report but I am confused about where
I would add "reselling" to this list. If you're a young person with a lot of tim
Well this site is great man!kudos to you...i am surely reading your book!
Well done on your blog! Awesome!
{ 5 comments… read them below or add one }
Junior Biz,
Not Bad. I think these rules apply to young and older entrepreneurs. In real estate though, rule 8 does not apply. A client is someone you have fiduciary duties to. A customer is someone you provide honest and fair dealings. big difference in the real estate world.
You know, after I sell a house to a client, I don’t have anything else to sell other than the experience I provided them and the promise to provide the same quality service to someone in their sphere of influence.
You bring up some very good points. There are generally exceptions to every rule and real estate is definitely an exception to a few of these. However, these rules will apply to most businesses young people will get into.
Thanks for the comment.
Also remember that a customers bad experience will travel like wildfire, they will tell everyone. A good experience usually only stays with them and they do not tell other people. You have to be sure your customers do not have bad experiences, as they love to gossip about the bad and exaggerate on that experience.
Hi Nick,
the 80-20 principle is so damn true when it comes to what pages in my blog produce what percentage of the earnings. Actually, the principle can sometimes be 90-10 or 95-5.
“4 out of 5 new businesses will fail”. This is very true, too. But they fail within how much time? I have heard 80% of businesses fail within the first year.
Hey Matthew! I’ve heard that the number is up to 90% failure rate within two years. That’s amazing. Could you imagine if 90% of students failed school?