The Top 10 Challenges You’ll Face as a New Entrepreneur (and how to conquer them)

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6609306So you want to be an entrepreneur and leave the 9-5 jive forever? I don’t blame you.

I’ve been an employee and I’ve been an entrepreneur, and being an entrepreneur is way better.

When I was an employee I was making 30k a year in salary. That 30k per year salary translated to about $17,000 per year money in my pocket.

That’s a pathetic amount of money, but I actually lived on that money. I had my own apartment, I had insurance to pay, I had an auto loan to pay and I had bills on top of that.

I didn’t know that as an entrepreneur, even as a not very good one, you can make way more money than you would as an employee. As an entrepreneur I’ve made more money in single days than I made in full years as an employee.

Can you do the same?

Of course you can.

You will face challenges as an entrepreneur, but those challenges pale in comparison to the challenge of selling your soul for a paycheck.

And there are easy ways to conquer those challenges…..

Below are the top 10 challenges you will face as a new entrepreneur – and easy ways to conquer those challenges.

#1 Picking the RIGHT business

Most small business fail because they aren’t real business in the first place. Pick the right business and your work as an entrepreneur will get a whole lot easier.

If your business doesn’t help people, doesn’t provide a solution, or doesn’t give people something they want then your business is shit and it will fail.

To do great business you should have a great product or service that you believe in. If you believe in it, you can get others to believe in it. When you don’t believe in something but you tell other people they should buy it you are lying and deceiving.

What you see is what you get should be the motto for your company.

Remember one very important thing, your customers aren’t buying a product, they are buying you.

So there is one very important thing you should always do – deliver what you have promised.

If you can’t deliver you should always offer a money-back guarantee. You never want people to feel cheated. You never want people to feel buyers remorse, you never want people to tell the world that your company is a scumbag company.

Give them what they paid for. If you can’t give them what they paid for give them their money back.

The only way small business can success is by delivering quality. If you can’t deliver quality you can’t make a living. I know it, you know it and your prospective customers know it too.

#2 Financing your business

How do you start a business when you don’t have any money? Good question, and there are two solutions:

  1. Borrow money  – I HATE this idea for new entrepreneurs. Unless you’re experienced, know what you’re doing and you’re certain your business can succeed (and grow) you should not borrow a single dime.
  2. Bootstrap – Use only a small amount of money and find a creative way to get your business going.

I’ve started only two successful businesses and I started both for less than $100 and I turned them both into top earners. I’ve never borrowed a dime to start a business.

Personally, I don’t like the idea of starting a brick and mortar business, I like internet business. The growth potential is massive and the costs can be as low as $15-$20 to get started.

#3 Finding customers

Finding customers is only a challenge if you don’t have a good product or service. If you have a good product or service then people will come to you, no need to spend hundreds or thousands on advertising. At least not right away.

There is a certain type of person who will be your customer. Not everybody in the world is buying what you’re selling, so your job is to simply find the people who are in need of your service.

Only try and sell to people who have expressed interest or desire in your product. Never waste your time trying to convince somebody to buy something they don’t already have an interest in.

Never, ever waste time on people who have no want or need for your product. That’s called being “pushy”. Nearly everybody hates pushy salesmen. These type of boiler room salesman do a “hard sell” approach.

Pushy salesman = buyers remorse = refund requests = fewer profits = bad reputation = failed business.

Take a “soft sell” approach. Simply find people who are interested, explain the product and benefits enthusiastically and let your customers decide what they want.

I will personally go out of my way to NOT deal with a pushy salesman, even if I’m interested in what they’re selling. I’ll buy from a nice, calm guy all day everyday before I give a dime to a pushy salesman.

There’s no need to be pushy, if you have a good product you can simply calmly explain your products benefits and let your customer decide and it’s win-win for everybody involved.

#4 When to quit your day job?

The right time to quit your day job is when you have a foolproof business opportunity or you have enough money in the bank that you can work on your business and not be evicted from your home.

You’ve got to have money to survive, so quit your job when you a) have a little money to work with and have a real business plan or b) are making an income from your entrepreneurial gig.

When I quit my job as the world’s worst insurance agent I had enough money to live for one month.

But…

I had two signed real estate contracts that I knew were worth some dough. So even though I quit with barely any money in the bank, I was certain I was going to make some money soon.

Those two contracts turned into $4,000 dollars in my pocket one month later.

4k sounds like nothing, but I was making peanuts as a pretend insurance salesman, that 4k saved my life and showed me what was possible. That 4k was the most important payday of my life. I was elated and I’ll never forget that feeling.

That 4k proved to me that I was right in leaving the 9-5 jive. That 4k was just the start of a 100k year.

#5 Dealing with the stress of not having a steady paycheck

There is no other way to put it, it’s extremely stressful when you don’t know when or if you’ll be paid again.

My first business, real estate investing, I didn’t make a steady income, I’d score a big payday then have to wait and wait for another one. I made a few bucks extra per month (about $1000-$1500) but not enough to live on so I needed to constantly do new deals.

I was good at my work so I always had new deals in the pipeline, but it seemed like it was always down to the wire when a new deal finally came through and I had a check with my name on it.

One day it seemed like I was almost penniless, the next day I’d have a check for 10 grand. Living like that can be extremely stressful so you’ve got the have the mental fortitude to power on, keep working, never give up and never go back to a “safe and secure” 9-5 job.

In real estate investing sometimes deals would fall through and I’d make nothing for my hard work, other times deals would fall in my lap and I’d score a huge payday.

Personally, I recommend a gig where you get paid more frequently. My Bold and Determined empire pays me every single day, day in and day out. Waiting a month or two between paychecks doesn’t happen to me anymore and it’s way less stressful. For this reason I really recommend opening a web-based business.

#6 Managing your money, legal protection, taxes

Managing your money can be a real burden if you don’t know what you’re doing and if you don’t know when your next paycheck is coming through.

I manage my money in a very simple way – I rarely buy anything. I pay my bills, I buy my food, I pay my gym dues and the rest is for business or for the bank account.

I don’t live on a budget, never have, I just don’t spend very much money unless I have to. When you’re building your business I recommend you live like a Spartan and don’t haphazardly spend your money. You may very well have some lean times ahead of you and you’ll want some money in the bank to help get you through.

On the other hand, nothing lights a fire like having no money and needing money. When I started Bold and Determined I had enough money in the bank to live for a year, so maybe it’s no coincidence that it took me one year to turn Bold and Determined into a profitable business.

Taxes

Taxes are a real pain. When you have a 9-5 job they steal, I mean take, taxes from your paycheck before you even see your paycheck. When you’re an entrepreneur your money comes to you first. So there are two very important things that you need to do:

  1. Write off everything you can for your business. This will save you a ton of money in taxes.
  2. Pay your taxes. It’s one thing to receive a de-taxed paycheck, it’s another thing to get out your checkbook and write a check to Uncle Sam. But you’ve got to do it, just make sure you’ve written off everything you can and taken every deduction you can.

You’ll keep a lot more of your money by preparing your own taxes rather than letting the tax-man loot you. That’s the easiest, #1 step to making more money. The guy that makes 30k as an entrepreneur takes home a lot more money than the guy who makes 30k as an employee.

The tax-man rips you off, he takes every cent he can. When you’re self-employed you’re in control of your taxes and you use write-offs to keep more of your hard-earned money.

Legal protection

You’ll need to set up your business as a business, not a hobby and not as a sole proprietorship.

When is the right time to open a business structure?

I wouldn’t open a business until a) you are making money or b) are absolutely certain of your business.

For American small business owners the best structure is an LLC taxed as an S-Corporation.

An LLC is a “pass through” tax entity. That means that the LLC itself does not pay tax, you pay tax on the profits you receive. The trick to reducing your tax liability is two-fold: start an LLC but tax it as an S-Corp. Pay yourself a small but reasonable monthly salary and once per quarter you can take out a chunk of the profits as a distribution. You will pay standard tax on your monthly salary but the quarterly S-Corp distribution is not looked at as employee wages so you will not have to pay social security or medicare tax on this distribution amount (more tax info).

#7 Dealing with negative people, loneliness and self doubt

The Germans call it Schadenfreude. It means the pleasure people take in seeing others fail. If you have people like this in your life, as most of us do, there is only one solution: cut these energy vampires out of your life.

They’re a mental burden on you because they drain you of energy. Energy that you need to build and conquer. Give these people the boot and do it ASAP. If they aren’t on-board with you, then toss them overboard.

You often hear of successful people how much they’ve changed and how they don’t spend time with their old friends anymore. Successful people don’t have the time or the will to hang out with losers, so they cut them off.

With money and success comes choice, that means you get to pick and choose who you spend your time with. And you don’t have to spend time with go-nowhere nudniks.

You also have the choice to not be lonely. The misconception is that if you don’t go to a 9-5 job everyday and hang out with office drones then you will be lonely. Not true. You’ll only be as lonely as you choose to be.

What about self doubt?

Self doubt is simply a fear of success. It’s hard as hell to be superior and it’s easy to be average and it’s easy to give up and go work a 9-5 job.

All of us feel self doubt at one point or another. An easy way to conquer self doubt is to take a look around you and see all the people who have given up and ask yourself if that’s how you want live.

If that’s not how you want to see yourself then….

DON’T GIVE UP. EVER.

#8 Finding trustworthy business partners, building a reputation

It should go without saying, but I’ll say it anyway. Never go into business with scumbags. Going into business with a scumbag will give you a bad reputation. Your reputation will be linked to the scumbag, even if you’re a man of your word.

It can be hard to tell at first sight who is a scumbag and who isn’t, but you will always find out eventually and when you do find out you must instantly dissolve the relationship with the scumbag.

I had a business relationship with a scumbag, years ago. He scammed people for hundreds of thousands of dollars. People lost their homes. It wasn’t a nickel and dime hustle, the scumbag stole homes from people. I had already severed ties with the scumbag long before this issue so I came out of the situation clean, legally and morally. But my name was still linked to the scumbag from prior deals.

Even though this did not hurt my own business, it left a bad taste in my mouth and taught me a very valuable lesson: Cut scumbags out of your life forever. No 3 strike policy. One strike, then kick them to the curb.

It’s not a moral issue, it’s not an ethical issue, it’s an issue of having a clean soul vs having a dirty soul.

Scammers and scumbags never get away with anything because, even if they are legally in the clear, they still have dirty black souls that will haunt them.

If you help people you help yourself. If you hurt people you hurt yourself. You don’t have to be a tooty-fruity save-the-world liberal. Just be a man and do good business.

#9 Dealing with competition

John D. Rockefeller famously said “Competition is a sin” and I’d have to agree. Why bother competing you can be an innovator and start something new.

3 years ago there was nothing like Bold and Determined and that’s still true today. Even though I have dozens of copycats (maybe hundreds) nobody can compare.

badcopycats

Hundreds of heavy metal bands have copied Metallica’s unique style and none of the copycats have had the same success as Metallica.

Copying is the path to mediocrity. Pioneering is the path to success.

Ask yourself “what is missing from the market?“. Answer that question and you’re in business as an industry leader.

#10 Hiring employees

As a small business, typically the last thing you’ll do is hire employees. You’ll want to hire employees when your workload is too much to handle yourself and you have the revenue to pay your employee(s).

You’ll hear me mock employees time and time again. That’s because most companies treat their employees like dumb cattle and the employees always complain “I hate my job“. Then the employees go back to the same job day in and day out, like cattle at a feed lot.

But there is a big difference between working for a faceless corporation and working for a small business. As a business owner you will have the opportunity to create a great company that people want to work for.

Your job as an employer is threefold: teacher, motivator, check writer.

You aren’t a babysitter or a personal therapist and you should never act like one but there is one easy way you get your employees to be happy, feel like part of the team, and come up with new ideas….

You give them a voice. You listen to them. They are helping to build your company, they want to be a part of something, and they will often have ideas that you would never think of.

Who should you hire?

As a small business you would be wise to hire freelancers, contractors and virtual assistants rather than hiring traditional employees. Let them take care of their own taxes (they’ll make more money) and it’s less paperwork hassle for you.

Your employees will never be happy with their paychecks, no employee in the history of the world makes enough money, but that isn’t your concern. Your concern is to pay your employees when you say you will.

You’ve heard of employees not being paid before, companies paying late, companies not paying at all and this behavior is pathetic. No man should ever owe another man money, and that includes you as an employer owing your employee money. Even if it means you starve, your employees should always be paid on time.

Then your business grows and you get rich. And everybody’s happy.

Until next time.

Your man,

-Victor Pride

PS – Be sure to check out BADNET, the first step to the next level.

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Comments

  1. Fuckin’ A!

  2. One thing you missed:

    *Listening to your customers*

    It’s hard to hear your product sucks. It’s hard to hear what you slaved over isn’t worth a fucking dime. But that’s exactly the kind of feedback you need to hear sometimes.

    The smart entrepreneurs all vet their products BEFORE they even build them. And they don’t get too attached to what they think it should look like, but rather, what the hordes with cash in hand say they want.

  3. “The fact is that the average man’s love of liberty is nine-tenths imaginary, exactly like his love of sense, justice and truth. He is not actually happy when free; he is uncomfortable, a bit alarmed, and intolerably lonely. Liberty is not a thing for the great masses of men. It is the exclusive possession of a small and disreputable minority, like knowledge, courage and honor. It takes a special sort of man to understand and enjoy liberty — and he is usually an outlaw in democratic societies.” – H.L. Mencken, 1923

  4. Hey Vic, it would be great to see a follow up article on tax write-offs for small business. Maybe just a few tips and tricks you learned during the process.

    Also, completely agree that every great leader/manager/owner LISTENS to his/her employees, otherwise they may have absolutely no reason to work for you.

    • I agree! I’d love to hear some tax write-off ideas to bounce around.

    • Joey the Hustler says:

      Just ask a CPA man. They are the one’s who deal with legal tax advice. If you’re seriously trying to get tax advice from a blog, you’re a moron. Vic is a smart man, no doubt about it but when the IRS audits your ass he’s not going to help you.

      A short list of what you can write off:

      Note: You can ONLY write off this stuff if you have the reciepts to prove it and can show beyond a shadow of a doubt that you used that for a business and it was necessary for your business.

      Your internet bill:
      Anyone making dough on the internet can write off their monthly internet bill. If the internet gets shut off, you’re out of business.

      Mileage:
      If you have a home business where you make deliveries or drive to the post office to mail physical products, you can write the mileage off to the tune of 56.5 cents per mile. (for 2013).

      Supplies:
      If you print shipping labels to mail physical products you can write off the printer ink, the labels, the postage, and the mailing envelopes.

      Fees:
      Do you pay ebay fees or Amazon fees? You can write them off.

      LLC creation:
      Spent a ton of money incorporating or setting up your LLC? That’s deductible.

      Phone calls:
      Unless you use your phone for your business for over 60% of the time, then you can’t write the whole thing off. If you have a pay by play phone plan then you can write off the individual business call.

      Home office:
      If you have a lease agreement, you can deduct the square footage and amount of power your office equipment and desk take up and write that off as well.

      Equipment:
      Anything you need to purchase to keep your business running is fair game.

      Again this is just a short list, hit up a CPA to get a firm grip on all of it.

      • So what you’re saying is I should ignore everything you just wrote.

        • Victor Pride says:

          Joey just wrote a pretty good guideline.

        • clifton says:

          No, but he did effectively say you’re a moron if you take his advice. Good advice, weird contradiction. Go figure.

          • Joey the Hustler says:

            What I said was true, don’t take the advice of anyone, not me, not anyone. I’m merely pointing you in the direction. Like I said before, talk to a CPA who will be responsible if he screws up your taxes. That’s the advice you can trust. I got all this info from my CPA as well. Get your info from the source always.

        • Joey the Hustler says:

          Oh you’re a clever little tike aren’t you….

      • DAMN!! I hope Customs fee is also writable offfable??

      • grab a book by Sandy Botkin named Lower your taxes big time read it 3 times…. then get a kick ass accountant tax code changes yearly and there are so many ways to write stuff off. Leasing from yourself, leasing a home from yourself, trip write offs deductions etc, and it’s all legit. small biz and home based biz (online biz) are the last and best tax shelter left in America.

  5. I could not agree more. Especially dealing with haters. Great read for anyone starting a business. It is scary but at the end it is much more fulfilling than making someone else. rich.

  6. Hey Vic, Another gem of great advice from B&D. Also, tooty-fruity save-the-world liberals do not really want to save the world unless its on your back and on your dime. This is why the USA is slowly going down he toilet.

  7. Starting a business is never easy! You have so much at stake and there is no quick path to success! You have to put your nose to the grindstone and work!
    I learned to sell when i used to work in retail years ago. At first a was “Pushy” because that is what the higher ups were telling everyone to do. When i sold anything most of the stuff came back! Selling “Boomerangs” sucked as i lost out on the commission! I had to change the way i approached and sold to people. I learned that not being “Pushy” got me more sales than before!
    I was about 15 on the list of salespeople with the most sales but after 3 months i rose to number 2 on the sales list. Why because i had to change the way i approached!

    I know number 2 is not something anyone should be happy about as you are still not number 1. The reason being was there was this guy who would sell like crazy! I would constantly be nipping at his tail and at times i was number 1 on the sales list he would complain to the higher ups about me but i figured its all about “Competition” and when that commission check came it felt good!

    The customers that i dealt with became repeat customers and would ask for me by name! I went as far as making up business cards to give to them in case they had any questions about the product i sold them.
    So in the end if you want to start a business and be an Entrepreneur, you have to put in the time and learn to Sell and not be pushy!
    Remember you cannot make money with “One Shot Sales”! You make the most money from repeat sales! How do you think Vic makes his money? Repeat business and since he is a good guy he has built a reputation of doing honest business which is why people mention and buy his products!
    Something to think about!
    Again Great post Vic!

  8. Very motivational piece victor, gave me some real good insight. Yea it is a pretty gut clenching feeling not knowing when you’ll make your next dime with a online business.

  9. Sir, i m such a loser that whenever even a opportunity comes knocking at my door i just let it by and get demoralised and stop working hard…even when i had worked so hard for that opportunity to get that opprortunity. Why am i like this ? Please cure me. :(

    • Victor Pride says:

      Don’t know, don’t care, but I’d appreciate it if you’d go be a loser somewhere else.

      • #7 Dealing with negative people, loneliness and self doubt
        Fix your mentality before you expect someone else to help you.

        Or another tip, take advantage of the fucking opportunity?

    • Joey the Hustler says:

      What the fuck? Dude, get your shit together man and knock that loser talk off for starters.

    • “The saving of those who are drowning is a direct duty of those who are drowning”. In other words: no one is going to help you, but yourself. You do need a doctor, just a desire to get better. Write down all your symptoms. Google every single one of them until you know exactly what you got. Then keep on digging for what is used to better or cure those conditions. Find those meds online / in store; buy them / apply them / get better / be happy. It is super simple, mate: do your research, find what works, apply it. I do not know what exactly you got, might want to try some stimulants+antidepressants – it is much harder to feel like a looser when you are always in a super good mood. Caffeine pills (200mg)+Ephedrine(8mg)+Rhodiola(450mg) first thing in the morning might work for you as a start, can get those in most pharmacies / nutrition shops. Research each before you do. Keep on reading here for curing doses of motivation. Apply what you learn. Good luck.

    • Dude! PLEASE GIVE THIS GUY A PROZAC OR SOMETHING! Why don’t you fix your self confidence brother! its messing up the vibe here!

      Fix it or go away! Only winners come here!

    • I suggest you to start popping triple dose of 5-HTP every night before bed! You might have serotonin imbalance or something …

  10. Picking the right business in my book gets you 90 percent there.

    Example, I built a 400 page vintage guitar website about 3 years
    ago.

    I don’t play guitar and I’m not really passionate about them. I went
    into this venture strictly for the money.

    And I slaved over this project for a full year.

    Last month the site brought in $286. My expenses were $195.

    You do the math.

    After taking this beating I went back to my core niche.

    This is a niche I’m passionate about, so I enjoy the work, I actually
    look forward to doing it.

    The day I made the switch I found myself leaping out of bed again
    so I could go after it.

    And when you get to this point, you’re pretty much unstoppable…

    So things like joint venture partners, customers and paychecks start
    appearing out of nowhere.

    I always tell people, take the thing you like doing the most, then go
    find a way to make money doing it.

    And even if the cash doesn’t come rolling in (it will) you’ll still enjoy
    the process.

    Mark

  11. That’s an A+ post, thanks a lot Vic!

    All the points bring great clarity, but especially #10 is something I had never thought of before, although I had seen it countless times. Indeed in small business the employees are different than those in big corporations or even medium businesses.

    Also, regarding the stress of not having a steady paycheck as you mentioned, this is everywhere. Actually, employees should have a bigger stress, because if their boss comes up and tells them that they won’t pay them, that they will pay them later or that they will fire them, they will have to deal with it…

    Nothing else to say, amazing post, you nailed it!

  12. Another great post.

    Really putting in the time is the biggest thing. Doing the work. Learning what works and what doesn’t. Actually getting products in front of customers and the experience of CREATING instead of CONSUMING.

    It’s a change a lot of people aren’t ready for. Most would rather just sit on their ass eating up what real people create. Like a dog waiting for scraps.

  13. Victor, I totally relate to this article. I have tried businesses that I wasn’t passionate about, like multilevel and insurance that went nowhere. The two business I enjoy Real Estate and Hotel consulting , do not feel like work.

    It is important to hedge against the tough times, and pay your taxes like you said. At one time I owed more than 60,000 to the IRS and no way to pay it back because I didnt pay quarterly taxes when I got the checks. That is painful.

    It has been a long hard recovery from my Las Vegas real estate crash in 2008, and I lost my confidence. Your site and ideas are helping me to get that back as I am undergoing the 30 days to discipline challenge, and living below my means, and building my business again.

    Thanks

  14. Hey Vic,

    I really like the new website for your start a blog business. That’s an amazing deal gentlemen, and I was very pleased to take advantage of it to start my website. Quick setup, and helpful guides. I was wondering, what is your opinion on Danger & Play? I have mixed opinions about it.

    • Victor Pride says:

      D&P, I like, but I don’t agree with everything he says. However, he’s a guy who is a lot like me. And I don’t run into too many guys who are so similar to me in outlook and mentality.

  15. Back in November 13′ I was working as a dishwasher in a Vietnamese ‘PHO’ restaurant, I worked nine days in a row, eleven hours daily.

    I got paid $300 US for all that work, I was working under the table and I had close to no self-respect.

    Well I quit, no buts no nothing I didn’t look back, Yes I walked myself into unemployment but that day I gained self respect and I gained emphasis into the value of MY TIME.

    I’m writing this because it has to do with #4 in that I quit my job and only dreamed, and reality hit me hard so I woke up and got a job to sustain my self.

    I’m working as another dishwasher/busser but this time I’m getting paid more money and I get to work on my interpersonal skills, win-win. (for now anyways)

    I owe it to you Victor Pride.
    Thanks

  16. Brandon C says:

    Hey Victor,

    Great post. I like the tips you give on entrepreneurship, business and health. Really helpful.

    I was wondering, I started a new website and I was wondering how do you direct traffic towards your site when no one knows about it. How did you do this with B&D?

    Thanks man!

  17. Alexander says:

    Really excellent. Pretty interesting to see the Victor talking about a clean soul and paying employees even if you starve in comparison to the one that seems so aggressive sometimes.

    Also, Victor, the white text on BADNET is hard to read in most places with those backgrounds. Maybe blur the backs or put some clean shapes behind the text. It will make everything much more pleasant and easy to grasp.

    Regards

  18. any chance you know what the equivalent of an S-corp is inside of the UK? and how quickly did you move from making money to incorporating?

    solid post victor, i’ll be reading through this many more times

    • Victor Pride says:

      I don’t know bud, perhaps one of the readers will be able to answer this for you. As soon as you are making money I would go ahead and incorporate.

  19. That’s the type of articles that I like on your blog, you are so good at getting things summerize and minimalist. I agreed with all the 10 points you listed above.
    I wish I read such advices when I started..
    Any tips on how to write straight to the point articles? that one of the thing im working on to better my writting.
    By the way well done on the BADNET thats a smart move.
    All the best!

    • Victor Pride says:

      “Any tips on how to write straight to the point articles? that one of the thing im working on to better my writting.”

      Yes, write your article then delete whole chunks, then delete more, then delete words. Say what you need to say and move on,

    • Abgrund says:

      “Yes, write your article then delete whole chunks, then delete more, then delete words. Say what you need to say and move on,”

      Good advice. The more work (that) goes into writing something, the shorter it gets. That doesn’t mean you cut out any (of your) core content. But cut out /everything/ else, down to the (very) last useless word (that) you can (possibly) trim (examples).

      Also: proofread. Have someone else do it, or re-read your own stuff after a week. This is ten times more likely to spot errors and will reveal places where your meaning is unclear. It’s easy to write stuff that makes perfect sense to /you/ because you already know what you mean, but other people can’t grok it because you left out context and assumptions.

      • Victor Pride says:

        “Also: proofread. Have someone else do it, or re-read your own stuff after a week. This is ten times more likely to spot errors and will reveal places where your meaning is unclear. It’s easy to write stuff that makes perfect sense to /you/ because you already know what you mean, but other people can’t grok it because you left out context and assumptions.”

        Yes, this is very important. I can’t write one paragraph without making a typo of some sort. Most of my articles are proofread before publication, but little mistakes still get through. It takes fresh eyes to spot these little mistakes.

      • Proofreading is really important, but like Vic said, there are always few mistakes left..

  20. This was really inspiring, I’ve been a fan of reading bold and determined for the past year and you’ve inspired me to get much more serious about my goals for being an entrepreneur. As of right now I’m just in college but I’ve been taking your advice and doing what I can to save money so I can spend on assets in the future. I even started my own blog to track my financial progress and physical progress in bodybuilding since I believe recording your hard work is a great way to stay motivated and disciplined.

    Your the man Vic! Keep pumping out quality material!

  21. Schadenfreude – the worst thing is a lot of time those who take greatest pleasure in seeing you fail are those you thought were your best buddies. I guess it all comes down to people not wanting to feel insecure beside you. Even more motivation to win.

  22. Thank you very much for this Victor:

    This really motivated me. What would you say to the kid who is just recently out of school, works a 30K a year job he can’t stand, has about $9 K in the bank, but also has $90 K in student loans?

    I fell for it (the college scam) and put my hopes into a dream that didn’t exist.

    I hate my job and see no future in it. But I have a bulletproof idea for my own business. I am BOLD and DETERMINED. I would die trying to make it work and be successful. If I were to quit I would try to get a job at a bar or something. But I would absolutely buckle down and put 110% into my business.

    I know this in my heart but am too afraid to leave my job and the student debt makes me sick to my stomach. I also have overbearing parents who still control me and my decisions.

    I ask you because I respect your work and remain hopeful that you have the time to provide some insight.

    God Bless,

    Evan

    • Victor Pride says:

      “has about $9 K in the bank, but also has $90 K in student loans?”

      That seems an easy answer to me, Being free and clear is worth more than having 9k in the bank. You can make 9k in a month, or a week, or even a day but those student loans will eat at your soul until they are paid and dead and gone.

      Work the job you have, devise your scheme and leave when the time is right.

      EDIT: Nevermind, I read that wrong.

      My thoughts for you? Make some fucking money and pay off those debts. 30k per year will never get you there, you’ll be a debt slave for eternity.

    • Abgrund says:

      Evan, my advice is: go to grad school and get a real degree. No matter how much you have to borrow. Then you can get a great job getting paid astronomical money to shuffle paper. Hot chicks will be chasing you around like flies around a lawyer’s ass.
      .
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      April Motherfucking Fools. 90k is a pretty crushing debt load, you need to at least get some kind of deferment, otherwise the payments will keep you enslaved. Check into any avenue for reducing or postponing that debt, EXCEPT for the grad school deferment. Total disability might work, or maybe the Army still helps out with student loans – but be sure to get THAT in writing. The only sure way I know of to ditch student loans (other than paying them) is to die. You could just quit paying and let them sue you, but they will pile on all kinds of charges so plan on leaving the country forever, or becoming a hobo, if you take that route. Unless daddy cosigned and you’re willing to let him suck it up.

      Speaking of that, why do your parents have anything to say about your life? If you’re living at home and it’s “their way or the highway”, get your ass on the highway.

  23. Some Bloke says:

    I’m 47. The last paycheck I had was at age 24. In all that time, this is easily the best summary of self employment I’ve ever seen. You young guys: Tattoo this shit on the inside of your eyelids, every word is gold.

  24. Thank you for you response Victor. If I am reading it correctly you are saying just hustle my ass off to get as much money as possible… work any job and build my business on the side?

    Thanks Again.

  25. In thick of things, your determination will be challenged; what keeps the entrepreneur going is that one swing that will hit the ball FINALLY off the ballpark. If you don’t take enough swings, you won’t hit it. Thanks, Victor. Always motivational.

  26. “Remember one very important thing, your customers aren’t buying a product, they are buying you.”

    This is something many people who has a business should think about. Detaching ourself from our product makes us a bad entrepreneur; the product is a part of us because we are the one who gave birth to it with the power of our mind.

    Thanks, Victor.

  27. Great article Victor, always looking forward to your emails. I’ve been following your advice on blogging for almost a year now, and my newsletter and visitors are growing exponentially.

  28. Plus if you throw some weightlifting in, you don’t bother too much about negative people.

  29. Hey Vic,

    When you decided you were going to quit your job and become an entrepreneur, how did you cut the negative people out of your life?

    Did you lock yourself away, relocate or just told them your plans and refused to consider their objections? What did your family say when you told them your plans? Or did you even tell them in the beginning?

    • Victor Pride says:

      No need to lock yourself away or relocate. Don’t punish yourself. Just don’t pick up the phone. Just don’t bother with negative people. What did my family say when I told them my plans? Don’t you read B&D? I never told them my plans. One day after I’d made dough in real estate I showed my mom how I did it. She said “wow, that’s amazing! That’s genius! Can you show me how to do it???”. A few years later I showed her my email account that said “You’ve made a new sale” on each message, about 10 pages deep. She said “wow! That’s amazing! Can you show me how to do it???”. Moral of the story, don’t spill your fucking guts until you’ve accomplished. All you are until you’ve done it is just a bullshitter, a shit-talker.

      Yes: Here’s what I DID.
      No: Here’s what I want to do. Is that ok with you?

      • >Moral of the story, don’t spill your fucking guts until you’ve accomplished. All you are until you’ve done it is just a bullshitter, a shit-talker.

        This right here is truth.

        I’ve realised this quickly especially with getting family to be healthier. lead by example, never ask for permission, and when you have achieved, or done something, people will come to you for guidance.

        Case in point look at this site, the moment i read the first post, it was clear as day you know what you’re talking about Vic

        . It emanates in your writing that you know your shit. There’s no quantifiable way to explain the art of speaking about the shit you know well to do, besides saying truth stands clearly from falsehood. Real beats faked over the long term

  30. Victor, I just followed your advice and bought some bronkaid. What’s the best time to take it so that it can burn more fat effectively?

  31. Thanks for the in-depth details Vic.
    Your website is a fucking giant bookmark on my computer.

    It’s a bit different in Canada tax-wise (not familiar yet) but you nicely wrapped-up very useful guidelines here.

  32. Victor,

    Thanks for putting all this information up. I have 2 specific questions I hope you can answer:

    1. After listening to your podcast with Chris from GLL. I was thinking of first building an audience then selling to them via blog/email newsletter. Do I need to buy the domain/hosting with a corp from step 1, or wait until I begin selling to start the corp and transfer assets over?

    2. S-Corp vs LLC, does it matter which one to use from a liability standpoint?

    Thanks again,
    -Kunal

    • Victor Pride says:

      1) Really depends on what your product is. Without specifics, I can’t say.
      2) LLC is best but you can elect to tax it as an s-corp. Best of both worlds.

      • Victor,

        Sure, I can give you the basic premise here.
        I have been researching news and guidance for a specific industry. I am grabbing information from multiple sources.

        My plan is to:

        1. Blog/Newsletter some of the news for free.
        2. Build a database of this info, and link this disparate information together.
        3. Put in a pay wall for the database access.

        1, will tell me if I writing about worthy content, the readership should grow.
        I was thinking of using the corp/llc when I am close to step 3.

        I can email you if you want to hear more specifics.

        Thanks again for the advice.

        • Victor Pride says:

          KP, that plan sounds fine to me. You can always add the name of the company to your domain later. It only takes about two seconds to update your domain owner info.

  33. I love this…. good counsel for any upcoming entrepreneur. (Kenya, E. Africa)

  34. Vic,
    top notch post my friend! Really came in at a good time. Very useful and in depth information too. I think you also uncovered some other parts of your past when making B&D awesome! That’s what makes you real is the fact that you’re a genuine businessman. I also agree with you on web based businesses. Low overhead and a lot of potential. Its great because we can connect with so many people all over the world and are now able to create digital products to fulfill that instant gratification that people have! Look forward to the next post!

  35. Good article. Seven years ago I was fired out of the blue and was pretty much left destitute.Through street smarts and hard work I was able to bootstrap and build a business that is still in existence to this day.
    In 2011 I took a corporate job. This past fall (2013) I was again laid off. Thanks to my business on the side, I was working the next day and have every day that Ive wanted to – since.
    Since my last lay off I have vowed never to work for anyone else ever again. There are days when its tough to stick to my principles – but freedom is more important to me than “security”. For me – working for others feels as though I am living in a straightjacket all of the time. Self employment allows me to feel so free.
    Ive learned a lot along the way. For those thinking of starting a business – think of some service/task that no one really wants to do either because its too hard, they don’t have enough time or its just plain nasty. Then find the most efficient way to perform the task and give the best value for the money your client is paying you. Over time, you will have more work than you can handle and it will generate you lots of money. One of the most lucrative divisions in my company is performing a service that fits that criteria. The quality of the work done has been been noticed. I have one corporate client who , over time, has chosen to deal exclusively with my company. They also don’t chisel me on rates – because they see the kick ass work we do. The few times I have needed an increase Ive stressed the quality we deliver instead of bitching and whining about how everything is going up in cost and they willingly paid me what I wanted. All my overflow I subcontract – treating my subs fairly -and over the last few years this has generated quite a bit of passive income . I love being in business for myself – its the only way to go!!!

  36. Vic, don’t forget that people also might have to deal with the fact that THE MARKET doesn’t like their original idea. When I started http://www.premieresl.com (for English language students), the idea I originally had didn’t work, I had to eventually completely and utterly change the business model or face closing it. Plan A didn;t work, so the business evolved rather than perished.

    That’s something a lot of folks don’t get – nobody gives a crap how good you think your idea is. The market decides how good an idea is. People should be prepared to adapt and change as the sands around them shift.

  37. Victor,

    Nice article. I have worked for both a giant corporation and a small business, and what you said is spot on concerning treatment of employees. I worked side by side with my employer in the small business and it was a great learning experience. I think it’s worth noting that being an employee in a small business is also a very helpful step to becoming an entrepreneur. I’m sure it depends on the industry, but I learned more about how to run a business by talking to my employer and working with him than I ever learned in my college classes.

  38. Some great business tips here Vic, very motivational.

  39. I think the main reason for B&D’s success is its honesty. I do subscribe to similar pages but I only read BD.
    And the quality of the comments is a testament to the quality of readership, which is more important than the quantity.
    The ads for his books are not ‘in your face’ but I often wonder how he can earn a constant income from that 2 books every month.

  40. GREAT post, Victor.

    The BADNET site looks really nice. Well done.

  41. Hey Victor, did you get rid of the featured comments in the sidebar?

  42. Victor,

    Incisive and intelligent observations, as usual, and you’ve included some great strategies for overcoming start-up challenges.

    Most importantly-Your BADNET website looks incredible. The importance of appealing appearance cannot be overstated and seeing a website that’s as clean and attractive as that one makes people want to subscribe to your services ipso facto! For some reason, in modern society, care about appearance in all forms (personal, physical, etc.) seems to have been shoved down the gutter.

    Presenting a clean, streamlined website such as BADNET allows you to start this race with a mile’s lead.

  43. Great post, as a 15 year business owner, I agree with everything you wrote.

    What I’m in need of now is a guide to how to deal with losing you passion for what you have done for ages, and how to try and reclaim it if possible (or, know if it is truly time to move on). What used to be fun now feels only like work, my connection to the original mission no longer exists. Maybe I can’t go back to what I once was, but hell, I’d be happy again to just care a fraction of what I used to for the mission my business was built on, but it contradicts what I now do/live/believe in many ways. It’s tough when things change in your personal life that disconnects you from what you once were as you evolve – when someone can point me toward a book on how to get through this rough patch, believe me, I’m buying it.

    • Victor Pride says:

      15 years is a long time to work on the same project. Perhaps it’s time to move on to another?

      • That’s where things are heading – I may cash out this year, take some time off, and seek out a new passion to work on instead. I’ve had 3 letters from firms who want to help me sell my business, looks like it is about tine to get in contact with them and start moving forward with things soon.

        The money and perks of what I do now are nice, but I feel ready for new challenges. But, change is scary after 15 years of doing the same thing, giving up the semi-security of what I have will be the tough thing to get past. Though, the industry is changing rapidly again, so I think the signs are there that waiting things out is nt the right option.

  44. Victor do you still eat like a spartan 1 to 2 big meals a day?

  45. When you were talking about selfish people, scammers etc. all of those people selling pyramid scheme/mlm crap came to mind. I can’t stand those people. They are selling something that has less than what you pay for value and they try to talk you up with it. They don’t REALLY want to help you make money, live the dream life blah blah blah, they see you as the the person under them that passes on their cursed monthly payments. I’ll even ask them specific questions and none of them really understand what they are selling. They are selling their debt to you!

  46. Hey, Vic! Great article, but what you say about starting a bussiness with your friend? Is it good idea?

  47. Business partners and so are a tough one. Having the wrong person means the death or failure of your business. When they dont do their share of the work or able to stay consistently engaged, you’re pretty much fucked for awhile.

    Lay it all out on the table before going in business together, friends and business often dont go together, and friendships often sour because of it.

    Not many businesses let you fly solo. But the online and blogging world does, so keep that in mind.

    • Victor Pride says:

      If you both bring something valuable and necessary to the table, great. If you’re going into business together just because you’re friends what’s the point?

      Like Hugo said, friendships often sour when you turn into biz partners so you should make sure he’s actually valuable as a business partner and not just as a friend.

  48. Gabriel says:

    Hey Vic, how are you doing? I started my own wordpress blog, and I’m learning.

    On feature topics, how did you put your categories in Acordeon scheme?

  49. Well done Vic
    I can see by the way that your recommendations on when to quit one’s job become more and more realistic.
    great.

    Cheers

  50. Hey Vic,
    I’m a huge fan of your site. I love the way you tell it like it is. You also give great advice. With inspiration from you I have recently begun woring on 2 worpress blogs. I had a question. Do you know anything about RSS feeds ? One of my sites is about the electronic music scene and I need a good feed to give me news about it. Any advice would be greatly appreciated ! Keep up the good work !
    Rick

  51. Thanks for the response Vic,
    I was looking to use a rss feed for news on the electronic music scene basically to populate my blog. I have been reading that it’s a no no as far as google is concerned. I’m new to this but learning fast. I just don’t want to become discouraged and give up.

    Thanks
    Rick

    • Victor Pride says:

      Ok, you want to have a blog that pulls news stories from RSS feeds and shows an excerpt on your page. Yeah, google doesn’t like that but it can be done. There are wordpress plugins that will do that for you, do a quick 2-3 hour search and find the best one, shouldn’t be too hard.

  52. Vic,

    Would you consider doing a blog post on buying vs. renting your property. I currently rent my own place while bulking up my bank account, and I’m just sick of hearing how “renting” is throwing money down the toilet. I know you’ve touched on it in another post how you feel mortgages are the real money waster, and I know you rent since you’re constantly changing up your locale. I know you probably have some practical advice you could offer on the matter, and why buying isn’t always the best option.

  53. Hey Victor, your blog is badass no doubt, but with all these like-minded people commenting and sharing good stuff this blog is killer!

  54. Great post Victor. I agree that a web based business is the best way to go. One of the most important challenges is managing your stress levels. I have learnt to cope with shit happening the same way I have coped with success.

  55. I thought it would be good to mention that if you are going to make an online business make it as specific as possible. In other words, if you want to sell eBooks, tell yourself that you are going to create an eBook selling business, instead of generalizing the whole idea.

  56. Great tips, Victor. As a new entrepreneur, I’m currently undergoing majority of these challenges and this article was very helpful. Thanks for the advice and keep the great pieces coming.

  57. What type of entrepreneur are you? What do you sell?

  58. Great read, I concur with all of it.
    You know what would be interesting — a post on the ‘dark side’ of a web-based business. Im sure you have a lot say, as do I.

    • I would be very interested in hearing that and I am sure a lot of other people would too.

      Victor- I liked the post it’s helpful to know the pitfalls so you can steer away from them or at least come through them quickly.

  59. Where’d Victor go? It looks like there hasn’t been new articles in a while…

  60. Amazing post as usual. Even if you’re still starting out you’re business and not making money YET, it is so fulfilling to work on something that you own.
    Thank you Victor, you rock.

  61. Bold and determined always gets it right! Another great post! Never give up and keep on going!!

  62. Hey Vic,

    I am a 9-5 drone in the engineering field and am pretty tired of seeing my gross pay cut in half, deposited into my bank account, then spent immediately on unavoidable bills.
    I have picked up a second job on weekends so maybe I can have some extra money, but I am starting to feel like Boxer from Animal Farm…’I will work harder’.

    I have an idea for a product I would like to start marketing. I have been researching/brainstorming obsessively and have ordered a few parts and pieces to experiment with.

    Unless I purchase a special piece of equipment (would be around $1k), part of this product would need to be ordered from an online source and I believe would drive the price of my product up too high. I was hoping to write the equipment off on my taxes but you don’t recommend starting a business until you’re already making money or are totally sure about your business. I am neither at this point…

    I’m trying not to get too far ahead of myself but I am the type of guy who likes to have a plan laid out and know everything I can about what I’m getting into.

    Any advice/tips?

    Thanks man,

    Aaron

    • Victor Pride says:

      I recommend not starting a business typically to net entrepreneurs who have low/no overhead. In your case I’d do 2 things: 1) I’d quit hemming and hawing and I’d plant it firmly in my mind that “I will do this” and 2) I’d open an LLC. Id you’re doing business in your state of residence you’ll need to open it there but if it’s interstate commerce or international you should be able to pick the state you use, look into Wyoming, Nevada, Delaware as good places to open an LLC.

      • You’re right man. I’ve had some doubt thrown my way and have never done anything like this before so I’m being a little bitch about it. I should be able to make enough money from my second job in the month of July to pay for my initial costs to get this thing rolling.

        Thanks again, keep inspiring.

        Aaron

  63. Great article, Victor. I think that the biggest challenge would be finances. Without them, you’re screwed. <3

  64. Elliott Diaz says:

    Victor,

    Just graduated HS,18 years old. During the summer I got an engineering internship, $12:32 an hour,to make a money now to save and invest, which will end soon. But I hate having to sell myself for so little as you have stated many times(I have become a loyal subscriber, amazing articles) but I feel I don’t have the idea or service to start and grow a business. So college, decent paying job then trying to think everyday of something that would capture the consumers attention seems like all I can do. Any advice you could offer, dropping out of college and pursuing something I have an obsession for is a dream of mine, just until there is a spark if an idea i feel there is no other choice.
    -Elliott

  65. Hello Victor where can I buy quality domain names for $10? Where did you buy yours? What do I need to know if I start a bodybuilding website? Thank you.

  66. Just hooked up with this site, and it is life changing.
    It helped to get me back on track. Not much more to add, but, thanks for your marvellous work. I also got a website from the site that you recommended, and you helped me with my blog. I shall start building it soon.

    Thanks Again,
    Big Al

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