1 - Why Start a Business

							How to Start a Business
                  by	
  Jason	
  Nazar
 You will learn how to...


Create an action plan to start your
business within 90 days.

If you’ve already started a
business, learn how to fill in the
blanks.




Build and provide a quality
product or service

Fund or raise money for
your business

Get and keep customers
                               Based on
                              a lecture by...

                           Jason Nazar
                  Edited & designed by Rochelle Bailis




The use of a trademark in this eBook does not signify or suggest the endorsement,
affiliation, or sponsorship, of or by us of those trademark owners or their products or
services, or they of us or ours. Docstoc® is a registered trademark of Docstoc, Inc.
Other names, logos, and marks may be trademarks of their respective owners.
Table of Contents

 Overview:	
  What	
  You’ll	
  Gain	
  From	
  This	
  Course
       a)   Who	
  am	
  I	
  and	
  How	
  Can	
  I	
  Help?


 1.	
  Why	
  Start	
  a	
  Business
       a)   Passion:	
  What’s	
  Your	
  Why?	
  
       b)   Sustaining	
  Urgency	
  and	
  Momentum	
  for	
  Success
       c)   The	
  Only	
  Failure	
  is	
  Not	
  to	
  Start


 2.	
  IdeaOon:	
  Evaluate	
  the	
  PotenOal
       a)   The	
  Fallacy	
  of	
  the	
  “Good	
  Idea”
       b)   The	
  Idea	
  Checklist:	
  Does	
  Your	
  Idea	
  Make	
  the	
  Cut?
       c)   Lifestyle	
  vs.	
  Liquidity	
  Business
                	
  
 3.	
  ProtecOng	
  Your	
  Idea
       a)   When	
  to	
  Share	
  Your	
  Idea	
  	
  
       b)   Understanding	
  Copyrights,	
  Trademarks,	
  Patents	
  and	
  Trade	
  Secrets
       c)   Sharing	
  InformaOon	
  Safely	
  with	
  NDAs


 4.	
  Business	
  Plans	
  that	
  Will	
  Get	
  You	
  Funded
       a)   10	
  Key	
  QuesOons	
  to	
  Address	
  in	
  a	
  Business	
  Plan	
  
       b)   A	
  Business	
  Plan	
  Deck	
  that	
  Will	
  Impress	
  Investors
       c)   CreaOng	
  Accurate	
  Financials
5.	
  Se_ng	
  Up	
  the	
  Business	
  Properly
      a)   Choosing	
  the	
  Right	
  Structure	
  for	
  Your	
  Business
      b)   EssenOal	
  Filing	
  and	
  Business	
  Checking
      c)   Licenses	
  &	
  Business	
  Insurance


6.	
  Building	
  Brand	
  IdenOty	
  
      a)   Register	
  the	
  Perfect	
  Name	
  and	
  Logo
      b)   The	
  Best	
  Tools	
  for	
  Physical	
  Collateral	
  &	
  Phones
      c)   Secure	
  Online	
  Presence:	
  Website,	
  Email	
  and	
  Social	
  Media


7.	
  Beder	
  Business	
  OperaOons
      a)   IdenOfying	
  and	
  Securing	
  a	
  the	
  Best	
  LocaOon
      b)   Tips	
  for	
  Working	
  with	
  Professional	
  Vendors
      c)   Tools	
  and	
  Services	
  to	
  Streamline	
  OperaOons


8.	
  Service	
  Based	
  Businesses
      a)   You	
  are	
  Your	
  Product
      b)   Go	
  Right	
  to	
  Ge_ng	
  Customers
      c)   Scale	
  Expenses	
  Along	
  with	
  Demand


9.	
  Building	
  and	
  Selling	
  Physical	
  Products	
  
      a) Leveraging	
  Slideware	
  and	
  Prototypes	
  to	
  Garner	
  Interest
      b) Securing	
  Pre-­‐Sales	
  Contracts	
  to	
  Increase	
  Growth
      c) Easily	
  Selling	
  Your	
  Products	
  Online	
  
10.	
  Building	
  and	
  Growing	
  an	
  Online	
  Product	
  
       a)   3	
  Golden	
  Rules
       b)   Keys	
  to	
  Building	
  a	
  Superior	
  Online	
  Product	
  
       c)   Ge_ng	
  Feedback	
  and	
  GeneraOng	
  Users

11.	
  Raising	
  Money	
  and	
  Financing	
  
       a) The	
  5P’s:	
  Selling	
  Yourself
       b) Understand	
  and	
  Find	
  Sources	
  of	
  Capital	
  

       c) Mastering	
  the	
  Pitch	
  
	
  

12.	
  Building	
  an	
  Amazing	
  Team
       a)   The	
  Standard	
  for	
  Partners,	
  Employees	
  and	
  Investors	
  
       b)   The	
  Best	
  Way	
  to	
  Recruit
       c)   Issues	
  with	
  Partners,	
  Early	
  Employees	
  and	
  Equity


13.	
  HR	
  EssenOals:	
  Beder	
  Management
       a)   QuesOons	
  for	
  Interviewing	
  Candidates
       b)   Properly	
  Hiring	
  and	
  Firing	
  Employees
       c)   Issuing	
  Payroll	
  and	
  Benefits


14.	
  Guide	
  to	
  Ge_ng	
  Customers	
  
       a)   #1	
  Reason	
  Why	
  Businesses	
  Fail
       b)   Why	
  You	
  Can’t	
  Outsource	
  Sales	
  and	
  MarkeOng	
  
       c)   What	
  Has	
  to	
  Be	
  Your	
  #1	
  Priority?
15.	
  Increasing	
  Sales	
  
      a)   The	
  5	
  Step	
  Sales	
  Process	
  
      b)   ProspecOng	
  Made	
  Easy


16.	
  MarkeOng	
  and	
  PR	
  That	
  Pulls	
  In	
  Customers
      a)   Free	
  and	
  Paid	
  Online	
  MarkeOng	
  Tips
      b)   Leveraging	
  PR	
  to	
  Boost	
  Awareness


17.	
  Smart	
  Financial	
  Planning	
  and	
  AccounOng
      a)   Key	
  Financial	
  Statements
      b)   CriOcal	
  Bookkeeping	
  Skills
      c)   Being	
  Prepared:	
  Tax	
  Planning	
  


18.	
  	
  The	
  Business	
  Dashboard:	
  Tracking	
  Growth
      a)   Defining	
  and	
  Reaching	
  Your	
  KPI’s
      b)   Example	
  1:	
  Tea	
  Time
      c)   Example	
  2:	
  Online	
  Magazine


19.	
  Prevent	
  Risk:	
  Primary	
  Legal	
  ConsideraOons	
  
      a)   Saving	
  Money	
  When	
  Working	
  with	
  Business	
  Adorneys	
  
      b)   PrevenOng	
  and	
  Managing	
  Lawsuits
      c)   Enforcing	
  Your	
  Legal	
  Rights
20.	
  Gathering	
  Great	
  Mentors,	
  Advisors	
  and	
  Board
      a)   What	
  You	
  Don’t	
  Know,	
  You	
  Don’t	
  Know
      b)   CourOng	
  Advisors
      c)   Working	
  with	
  a	
  Board	
  of	
  Directors	
  


21.	
  Buying	
  and	
  Selling	
  Business
      a)   Finding	
  Good	
  Businesses	
  to	
  Buy
      b)   Valuing	
  a	
  Business	
  
      c)   Selling	
  Your	
  Business	
  


22.	
  Strategy:	
  Make	
  the	
  Right	
  Moves
      a)   How	
  to	
  Make	
  the	
  Right	
  Business	
  Decisions	
  
      b)   Stay	
  in	
  the	
  Game:	
  Protect	
  Your	
  Downside	
  Risk


23.	
  Philosophies
      a)   The	
  Entrepreneurs	
  Dilemma:	
  Where	
  do	
  You	
  Fall?
Overview
So who am I to lecture you on entrepreneurship?


Wherever you are in the process of starting your own business,
I’ve been there. Maybe you want to start your own company, but
you’re not sure how. You may be scared to leave your job, doubt
the validity your idea, or fear the struggles that lie ahead.


The reality is, once you start your own company, the
uncertainties only grow. How do you get funding to build your
product? Hire the best employees? Get your first set of
customers? Become profitable?


I’ve been there. I’ve asked myself these exact same questions,
and found answers through hard work, mistakes and constant
improvement. You will make mistakes too, but many of them can
be avoided by following this course.


Five years ago, after earning my JD/MBA at Pepperdine
University, I launched Docstoc with my co-founder, Alon
Shwartz. Docstoc developed from a simple document storage
site to an online resource with millions of documents, expert
videos, courses and productivity tools to make every small
business better. Docstoc grew into one of the top 500 most
visited websites, and currently has over 25 million users.


I’ve done hundreds of lectures on how to raise money, build a
business plan, grow and track revenue, etc. My goal today is to
combine all of my experiences and presentations into one
comprehensive guide on how to start a business, from A to Z.
1. Why Start a Business


   StarOng	
  a	
  business	
  is	
  a	
  huge	
  undertaking.	
  
   Whether	
  you’re	
  planning	
  to	
  sell	
  your	
  business	
  or	
  
   live	
  off	
  the	
  revenue,	
  it	
  could	
  take	
  you	
  5	
  to	
  10	
  years	
  
   to	
  build	
  up	
  your	
  company	
  to	
  a	
  point	
  where	
  it’s	
  
   actually	
  profitable.	
  


   I	
  have	
  discovered	
  the	
  one	
  thing	
  that	
  will	
  moOvate	
  
   you	
  through	
  the	
  arduous	
  journey	
  of	
  
   entrepreneurship,	
  through	
  the	
  all-­‐nighters,	
  the	
  
   doubt,	
  the	
  strain	
  on	
  your	
  
   relaOonships,	
  and	
  I	
  will	
  
   share	
  this	
  secret	
  with	
  you	
  
   in	
  this	
  chapter.


   I’ll	
  also	
  be	
  talking	
  about	
  
   speed	
  and	
  urgency,	
  and	
  why	
  they	
  
   are	
  more	
  criOcal	
  than	
  perfecOonism,	
  
   genius	
  or	
  any	
  other	
  qualiOes	
  that	
  
   you	
  may	
  assume	
  lead	
  to	
  success.
What’s Your Why

A	
  lot	
  of	
  people	
  ask	
  successful	
  business	
  leaders	
  “how	
  did	
  you	
  do	
  it?”	
  But	
  
the	
  secret	
  behind	
  their	
  achievement	
  isn’t	
  in	
  their	
  methods.	
  When	
  
you’re	
  taking	
  on	
  a	
  huge	
  endeavor	
  like	
  creaOng	
  a	
  business,	
  the	
  most	
  
important	
  quesOon	
  to	
  ask	
  yourself	
  isn’t	
  how,	
  but	
  why.


If	
  you	
  don’t	
  have	
  a	
  big	
  “why”	
  constantly	
  pushing	
  you	
  forward,	
  you’re	
  
always	
  going	
  to	
  use	
  the	
  “what”	
  and	
  the	
  “how”	
  as	
  an	
  excuse	
  for	
  not	
  
doing	
  what	
  you	
  set	
  out	
  to	
  do.




                                                                                                                       Chapter 2: Why Start a Business
What’s	
  driving	
  you?	
  Why	
  are	
  you	
  starOng	
  a	
  business?	
  Maybe	
  you	
  want	
  
to...
	
  
• Make	
  enough	
  money	
  to	
  never	
  work	
  again
• Create	
  a	
  product	
  or	
  service	
  that	
  helps	
  people
• Work	
  for	
  yourself,	
  and	
  break	
  out	
  of	
  the	
  pack

Think	
  about	
  a	
  why	
  that	
  resonates	
  with	
  you;	
  because	
  if	
  a	
  why	
  isn’t	
  
constantly	
  driving	
  you,	
  you’ll	
  get	
  hung	
  up	
  on	
  how.	
  You’ll	
  end	
  up	
  saying	
  
something	
  along	
  the	
  lines	
  of,	
  “I	
  was	
  going	
  to	
  start	
  this	
  business	
  but	
  I	
  
couldn’t	
  raise	
  the	
  money.”	
  That’s	
  an	
  excuse.	
  Other	
  people	
  raised	
  the	
  
money.	
  You	
  just	
  didn’t	
  have	
  a	
  big	
  enough	
  why.


Once	
  you	
  have	
  a	
  “why,”	
  keep	
  it	
  close;	
  you’ll	
  need	
  it	
  when	
  the	
  goings	
  
get	
  rough.	
  The	
  first	
  two	
  years	
  of	
  running	
  DocStoc	
  I	
  was	
  in	
  that	
  office	
  
every	
  day	
  15	
  to	
  16	
  hours	
  a	
  day,	
  and	
  today	
  I	
  sOll	
  work	
  on	
  average	
  12	
  
hours	
  a	
  day	
  in	
  the	
  office.	
  I	
  remind	
  myself	
  every	
  day	
  that	
  anything	
  worth	
  
working	
  for	
  is	
  going	
  to	
  be	
  difficult.
Urgency and Momentum

  As	
  an	
  entrepreneur,	
  perfecOon	
  isn’t	
  as	
  important	
  as	
  speed	
  and	
  
  momentum.	
  They	
  are	
  the	
  only	
  things	
  that	
  keep	
  you	
  ahead.


  As	
  a	
  business	
  owner	
  you’re	
  constantly	
  running	
  against	
  the	
  wind.	
  If	
  you	
  
  stop	
  or	
  slow	
  down,	
  the	
  force	
  of	
  the	
  wind	
  will	
  knock	
  you	
  down,	
  and	
  
  others	
  will	
  get	
  ahead.




                                                                                                                     Chapter 2: Why Start a Business
  To	
  break	
  past	
  the	
  windshield	
  you	
  need	
  a	
  sense	
  of	
  urgency,	
  a	
  drive	
  to	
  
  keep	
  working,	
  to	
  improve,	
  to	
  push	
  forward.


  I	
  literally	
  wake	
  up	
  every	
  single	
  morning	
  feeling	
  like	
  there’s	
  a	
  clock	
  of	
  
  my	
  life	
  that’s	
  Ocking	
  down.	
  I	
  believe	
  that	
  every	
  second	
  passing	
  is	
  one	
  
  less	
  moment	
  I	
  have	
  to	
  work	
  towards	
  building	
  a	
  successful	
  business.	
  
  When	
  I’m	
  not	
  working	
  towards	
  it,	
  I’m	
  wasOng	
  that	
  precious	
  second.




The Only Failure is Not Starting

   The	
  majority	
  of	
  businesses	
  fail,	
  not	
  because	
  of	
  metrics,	
  money	
  or	
  
   other	
  inadequacies.	
  They	
  failed	
  because	
  they	
  were	
  never	
  started.	
  
   I’ve	
  been	
  an	
  entrepreneur	
  for	
  most	
  of	
  my	
  career,	
  and	
  I	
  really	
  don't	
  
   know	
  anyone	
  that	
  regrets	
  ever	
  star>ng	
  a	
  business.	
  	
  I	
  do,	
  however,	
  
   meet	
  people	
  who	
  regret	
  never	
  trying	
  to	
  start	
  one.