How do you start a new business from SCRATCH?

I’ve been asked this question over and over by many of my friends and business associates (I’ve started 8 companies in the past 15 years,) six of the eight are still in business today!

And having been involved with many different start ups, in many different industries, I get more excited about starting a new business than almost any other professional endeavor.

And when you add the internet to the mix, it really is still one of the best ways, in my opinion, to create wealth out of “thin air.”

When you successfully start a new business that generates a client base and cash flows, you have succeeded in creating something worth value.  Out of “thin air!”

I’ve given this much thought, and starting a new business really comes down to three distinct steps or parts (1, 2, and 3):

1) The Dream

2) The Action Plan

3) Execution of your Action Plan.

Step 1:  “The Dream” (of starting your new business)

The “Dream” may hit you in the middle of the night, from seeing someone else “doing it,” or from a sincere desire to want to find an opportunity or business to start.  It doesn’t really matter where the dream comes from, but you need the “dream” first.  Without the dream of what the business can do for you or your family or for others, you won’t get to step number two.

Step 2: “The Action Plan” (laying out all the steps to starting your new business)

The “Action Plan” as I like to call it, is simply the step of brainstorming and putting each and every conceivable step or task onto paper in a chronological fashion.

While hundreds of digital tools exist to help you with this, I have always resorted to a blue Bic Pen and a pack of Post It Notes, and a paper timeline (simple 8.5” x 11” white blank pieces of copy paper, taped together horizontally end to end.)

The key to your “Action Plan” is to brain storm each and every conceivable step you need to take to get the business open.  Brainstorm like crazy and write each task on a Post It Note.  Once you’re finished brainstorming, start sticking the Post It Notes on your paper timeline with a “best guess” as to the order they need to be completed.  

Once you have all the Post It Notes on your paper timeline, go back and start writing actual deadline dates (the month and day) they are to be completed, and assign the task to a PERSON who will be responsible for accomplishing the task.  If it’s just you (or maybe a partner, wife, or even a staff of employees,) it’s very important to put the deadline date and name on each Post It Note.  It’s simply amazing to get a visual of your tasks to complete to start your business.

Also, for the Action Plan, the more people available to help you brainstorm, the better.  There are no “rights and wrongs,” just the challenge of everything you can think of to get started with your new business.  Things like researching competition, hiring a good attorney, researching wholesalers, researching store locations.  Anything and everything.  You may end up with hundreds of Post It Notes or only a few dozen depending on the scope of the business.

Step 3:  “Execution” (Executing or completing each task of your Action Plan)

Once you have your Post It Note Action Plan taped up on a wall (you may need some space for the time line,) you then simply have to follow through on each task, or manage your team to meet their execution deadlines.  Placing your timeline somewhere highly visible makes it easier for accountability, especially if you have several people involved.

Here’s the “kicker.”  Once a task is completed, you or your team member receives the “honor” of pulling the Post It Note off the wall, initialing that it was completed, and placing it in an envelope marked “complete.”

As you and/or your team proceed through the Action Plan, you will start to get excited, because even though you may need to add new tasks or re-assign tasks, or even re-assign deadline dates, you will be MAKING PROGRESS!  This leads to momentum, and results.

And before you know it,  you will have a viable, open business started.