How do I start a new business with no experience?

Generally, you cannot do anything without knowledge. Having the requisite knowledge will help you reduce the likelihood of failure and risk. By the same token, acquiring the requisite experience (in addition to having knowledge) to start a business will significantly increase your success rate in the long-term. It is only through having a sound implementable strategy and gaining the right hands-on experience that you will successfully start and run a long-term sustainable business.

Depending on your tolerance for risk-taking, you can start a business without any experience and knowledge. ‘Just do it’ will be your motto.

Or if you are still working in a job, you could start a business on the side or part-time just to learn and experience as much as possible about starting and running a business on your own. Once your side business is making good money, then you can run that business full-time by quitting your job.

If you are only thinking short-term, does not matter whether you start your business without experience. But if you want to start a long-term sustainable business, then you really need to acquire business experience without a doubt.

Just think about the number of business failures current day entrepreneurs have endured!

Here’s the thing.

Research has shown that people who do start a business full-time without experience will encounter significantly higher rates of failure when compared to someone who gained some requisite experience in starting and running a business part-time while still in a full-time job.

In a 2014 research, Should I Quit My Day Job? A Hybrid Path To Entrepreneurship, Raffiee and Feng examined how workers could reduce the risks and uncertainty associated with their entrepreneurial activity by embarking on “hybrid entrepreneurship”. This is the process of starting a business while still retaining a day-job in an existing organisation.

Starting a business may sound great, especially when you do not have one. But it does take a lot of effort, commitment, and sacrifices to make all parts of your business run effectively and in a sustainable way.

Generally, here are some things you need to do when starting a business:

[1] Determine whether you have the personality type to start a business. Based on personality research, only a small percentage of people are natural entrepreneurs and business owners. A large portion of the population will happily stay employed in a job and will never start a business on their own.

[2] Determine the type of business you want to start. Here are some options:

• An online business
• An e-commerce business
• Bricks and mortar business
• Franchise business

[3] Find an idea based on the type of business you want to start. I have compiled a comprehensive list of money-making ideas for you to study and get your creative juices flowing. It’s just a starting point. Ideally, your business idea should be the intersection of the following six criteria.

1. You are so passionate about and committed to your money-making idea that you will spend all your free time working on it (even on weekends!).
2. You want to create value for people and desire to make a difference in people’s lives trying to solve their problems.
3. You have desperate niche customers who are willing and able to pay you for your unique product or service because you can solve their pain points or problems, which is the ultimate outcome of your online business activities.
4. You can create a sustainable stream of income out of the money-making idea when you do decide to quit your 9-to-5 job. Remember always that you have to pay your bills!
5. You have or are capable of acquiring the necessary skills and experience to build that online business without much re-skilling or learning.
6. You want to align your business and work with your personal and religious reasons and beliefs. Your WHYs of embarking on an online business must be crystal clear.

[4] Based on your business idea and the type of business you have selected:

1. Write up a solid business and marketing plan. You may want to do a one-page investment logic map like the one found here. Without customers, your business is dead.
2. You need to find some money to invest in your business startup. Click here for some information on pitching for investors. An online business requires very little capital whereas an off-line business will cost you more.
3. Your legal and tax structures must be based on your personal and tax circumstances. Hire a lawyer, tax consultant or financial planner to advise you on the best structure and approach to adopt for your business.
4. Your accounting needs must be considered at a later date.
5. You need to find a lawyer to help you with reviewing contracts and legal negotiations.
6. Sort out your personal asset holding as you could be personally liable for your business debts. Seek legal advice on how to ring-fence and protect your personal assets from potential creditors.
7. If you are an inventor, then consider hiring a patent lawyer to protect your creation. It does cost money to protect your intellectual property.
8. Take out personal insurance to protect you and your family. Income protection, disability, life, and death are some options. Talk to an insurance broker for the best insurance cover for you.

Whatever pathway you select to start your business, you should always think about drawing up your own strategy to make money including plans to execute that strategy.

I am always reminded of a passage in Alice in Wonderland (chapter 6). It nicely captures the reasons why having a sound strategy is so important for everyone.

“Would you tell me, please, which way I ought to go from here?”

“That depends a good deal on where you want to get to,” said the Cat.

“I don’t much care where –” said Alice.

“Then it doesn’t matter which way you go,” said the Cat.

“– so long as I get SOMEWHERE,” Alice added as an explanation.

“Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”

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I have learned that finding my strategies as early as possible will focus my efforts to do the things that matter most and to earn an income in the future.

I am always reminded of this quote by a successful online entrepreneur.

“I initially failed in my quest to create a sustainable second income, simply because I didn’t have a clear strategy in mind. I didn’t follow a clear system. I did everything that everyone else seemed to be doing but I didn’t really know what my main goal was. Thankfully, now I do. Even better, I now know how to focus on my chief objective and more practically secure my present and future financial prosperity.”

Your strategy selection will depend on many factors like:

1. Your desire to succeed including time and commitment that you are willing to put in.
2. Your personality and interest.
3. The audience that you are writing for and selling to.
4. Amount of money or savings you have to finance your strategy.

Having a sound strategy to start a business and make money will be the key to your success.

What does your strategy look like?

Good luck.