Building a Business from Scratch

Jul 12, 2024

How to Build a Business from Scratch

Introduction

  • Focus on discussing minimalist concepts or theories for building a business.
  • Importance of quick execution and repeated feedback.
  • Discussing simple theories that can be applied to high-value businesses.

Business Definition

  • Business: an organization to seek profit by selling services or products.
    • Key: organization, profit, services/products.
  • Self-employment vs. Business: business requires an organization, self-employment is more about selling oneself.
  • The ultimate goal can be to build a company that can be sold.

Steps to Build a Business from Scratch

1. Business Idea

  • Determine what business idea you want to build.
  • Focus on why and whether the business aligns with passion.

2. Business Components

  • Product, Marketing, Operation
  • Product: Offering goods or services
    • Goods: physical items such as food, goods.
    • Services: services like design.
    • Importance of unit economics.
      • Example: selling price 10 thousand, cost 5 thousand.
      • COGS (Cost of Goods Sold): production costs of goods/services.
      • Margin allocation (marketing, operation, etc.).
  • Marketing: Selling the Product
    • More important than the product in the early stages.
    • Getting feedback from customers.
    • Types of marketing: inbound (social media, advertising) and outbound (direct customer contact).
  • Operations: Managing the Business
    • Importance of systems and processes.
    • Mindset of business as an organization.
    • Hiring to reduce operational workload.

Execution Strategy

  • Create a product as quickly as possible (Minimum Viable Product - MVP).
  • Sell the product as quickly as possible to get feedback.
  • Repeated iteration for refinement.
  • Example of application in a pen speaker business.

Conclusion

  • Simplicity in planning: focus on the three main components (product, marketing, operation).
  • Quick execution and iteration for success.
  • Part 2 coming soon: deeper discussion.

Call to Action

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