Start YOUR Business with $0 (Beginners)

Summary

This video offers valuable insights into the realities of starting a business with limited funds. The speaker emphasizes the advantages of service-based businesses, which have lower startup costs and allow for learning through mistakes. They highlight models like contractor arbitrage, personal training, and videography as profitable options. By sharing their own entrepreneurial journey and the struggles of students, they showcase how service-based businesses provide room for growth without significant risk. The speaker encourages aspiring entrepreneurs to focus on these low-risk business models to achieve long-term success.

Takeaways

• 😀 Service-based businesses have low overhead costs, making them ideal for entrepreneurs with little money to start with.
• 😀 E-commerce and software businesses can require large financial investments without guaranteed success, which can lead to significant losses.
• 😀 A service-based business allows for flexibility and provides an opportunity to learn without facing massive financial risks.
• 😀 Contractor arbitrage, or hiring global talent from lower-cost countries, can greatly increase profit margins when working with clients who pay higher fees.
• 😀 Global markets allow businesses to hire skilled contractors from countries like Serbia, Brazil, and Morocco at affordable rates.
• 😀 A service-based business lets you “fail forward,” as the lack of high operational costs means you can experiment and improve over time.
• 😀 Personal training, videography, and digital marketing are prime examples of service-based businesses with high earning potential.
• 😀 Persistence and consistency are key; it may take time (e.g., 18 months) to secure a client, but once you do, it can lead to substantial profits.
• 😀 The global economy provides opportunities to hire talented workers for a fraction of the cost, increasing business profitability.
• 😀 A service-based business allows entrepreneurs to scale their operations slowly, learn from mistakes, and grow without risking massive financial setbacks.
• 😀 The speaker's success story illustrates how starting small with a service-based business, like personal training, can lead to significant long-term growth and success.

Q & A

What is the main challenge of running an agency, as mentioned in the video?

The main challenge is that every year you have to work harder just to achieve the same results as the year before, which makes it a brutal industry. Despite that, it is doable, especially if you are an expert in your field.

Why does the speaker advise against thinking that launching a course will bring in a lot of passive income?

The speaker warns that the market is highly competitive and fickle. With constantly increasing standards and so many other offerings, it is not realistic to think that launching a course will bring in crazy amounts of money without considerable effort.

What type of business model does the speaker recommend for those with little to no money to start with?

The speaker recommends starting a service-based business because it allows for low upfront costs, minimal financial risk, and provides a learning environment where failure won't lead to significant losses.

What is contractor arbitrage, and how does it work?

Contractor arbitrage involves hiring contractors from lower-cost countries to deliver services for clients in higher-income countries. This model allows businesses to charge higher prices for services while paying contractors a fraction of the cost, benefiting both sides.

Why is a service-based business seen as less risky compared to e-commerce or software businesses?

Service-based businesses have lower operational costs, meaning you can afford to fail for several months without incurring significant financial losses. In contrast, e-commerce and software businesses require large investments in inventory, ads, or software development, which may not guarantee success.

What examples of service-based businesses does the speaker mention?

The speaker mentions personal training, videography, and deal packaging in real estate as examples of successful service-based businesses. They also provide insight into how their own creative agency started from offering videography services.

How did the speaker get started in the business world at a young age?

The speaker started by offering personal training services to their friends' parents at the age of 15 or 16. They studied training materials, developed their skills, and began selling these services in their gym, which eventually led to running their creative agency.

What is the significance of Josh Sparks' story in the video?

Josh Sparks' story is used to illustrate the importance of perseverance in a service-based business. Despite struggling for 18 months to get a client, he eventually succeeded and made $7,000/month in profit, proving that service-based businesses allow for gradual success and learning without high financial risk.

Why does the speaker consider a service-based business as ideal for beginners?

A service-based business is ideal for beginners because it offers a low barrier to entry, allows for mistakes and failures without major financial consequences, and provides the opportunity to learn and adapt in a less risky environment.

What does the speaker mean by having 'training wheels' in the context of starting a business?

Having 'training wheels' means that a service-based business allows you to fail and learn without the fear of losing large amounts of money, similar to how training wheels help someone learn to ride a bike without the risk of falling too hard.