Business Ideas and Principles from Lecture

Starting a Record Label

• Random Name Idea: "Broke Boys Records"
• Main Revenue Source: Selling records (digital products)
• Cost Structure: Need to find records to sell

Finding Artists

• Look for artists who are not well-known or struggling
• Commission Structure: Offer deals based on sales, avoiding upfront payments
  • Example: 50/50 split on sales

Distribution Channels

• Test various distribution methods:
  • Traditional channels: Apple Music, Spotify, etc.
  • Independent methods: own website, SoundCloud, etc.

Initial Strategy

• Sign artists and promise to sell a high volume of records (e.g., 100,000/month)
• Gather content from artists (music, videos) to promote them
• Continuously produce and release content to generate interest

Business Principles

Speed and Production

1. Speed: Constantly produce and release content to build a catalog.
2. Volume: More output leads to potential sales, even if individual sales are low.

Team Building

• Use Friends and Family: They can be effective and cheap workers.
  • Example: Hire young family members for tasks like website building or social media.
• Benefits of Youth: They may have more time and less financial pressure.
  • Young people can work for free or for less pay.

Working with Family

• Pooling Resources: Collaborate with family members to save costs (e.g., sharing housing).
• Shared Goals: Align financial and business goals with family to increase wealth.

Commanding Respect

• Physical Presence: Having a strong physical presence can improve respect in business dealings.
• Discipline: Being in shape shows dedication and hard work.

Reselling to Existing Customers

• Easy Sales: It's easier to sell to previous customers than to find new ones.
• Upselling: After fulfilling initial sales, promote additional products/services.

Avoiding Legal Complications Early

• Wait to Get Legal: Don't focus on legalities until the business is profitable.
• Prove Viability First: Ensure the business model works before worrying about legal matters.

Utilizing What You Have

• Resource Inventory: Make a list of resources and skills available.
• Leverage Existing Skills: Use personal strengths and networks to create businesses without heavy investment.

Staff Management

• Staff Objective: Ensure every staff member either saves time or makes money.
• Monitor Performance: Regularly evaluate staff contributions and make necessary adjustments.
• Quick Accountability: Teach staff your business principles to improve speed and efficiency.

Conclusion

• Attention to Principles: Focus on these foundational principles for success in business.
• Continuous Learning: Revisit the lessons to reinforce understanding and application.