How To Not Suck At Startups #1: Starting Your Startup Successfully, By Not Starting It Yet—A Simple Guide for New Entrepreneurs

Hey, you. Yeah. You starting the startup. Before you quit the day job, I want to ask you to stop for a second.

Sit back in your chair for a second, and let yourself daydream... Yeah, that's it.

Hey, remember back in the day when you dreamed of becoming the Cookie Kingpin at school?

Selling so many snacks that you just knew for a fact that by age 16 you’d be the Jeff Bezos of school treats? Let’s channel that ambition and excitement into your first business venture. Here’s how you can turn your idea into reality, just like you imagined back then.

Step 1: Picture Your Idea

Think back to your big schoolyard dreams. Write down your business idea in one clear sentence.

Example: "I want to sell homemade cookies to my classmates during lunch."

Step 2: Spot Your Customers

Just like you knew who loved snacks at school, think about who would want your product now. Focus on people you can easily reach.

Example: "Students at my school during lunch break."

Step 3: Make Your Guess

Take your idea and make an educated guess. Use this simple format: "We can sell [product] to [group of people] who [specific behavior]."

Example: "We can sell homemade cookies to students who want a tasty and affordable snack during lunch."

Step 4: List Your Assumptions and Needs

Identify what you think is true about your customers and what you need to make your business work. Remember how you’d figure out if your friends would buy your cookies?

Example:

1. Students will pay $1 for a cookie.
2. Students have $1 to spend.
3. At least 50 students will buy cookies each day.
4. I can make 50 cookies daily.
5. I can get friends to help sell the cookies.
6. I have a plan for leftover cookies.

Step 5: Plan Quick Experiments

Think of simple ways to test each assumption, just like you would try out different cookie recipes.

Example:

1. Will they pay? Make cookies and sell them at lunch.
2. Do they have money? Ask students if they have $1 for snacks.
3. Are there enough customers? Count interested students over a week.
4. Can you stock enough? Make 50 cookies for several days.
5. Can you get help? Get friends to help sell cookies.
6. Handle problems? Plan for leftover cookies, like selling them after school.

Step 6: Run Your Experiments

Carry out your experiments and jot down what happens, just like you did with your school science projects.

Example:

• Day 1: Sold 20 cookies at lunch.
• Day 2: Asked 10 students if they have $1; 8 said yes.
• Day 3: Counted 50 interested students; sold all 50 cookies with friends' help.
• Day 4: One friend couldn’t help; sold 30 cookies, gave away 20.

Step 7: Look at Your Results

Review what you wrote down. Did people buy? Did they have money? Were there enough customers? Could you make enough? Did you have help? Did you handle problems?

Example:

• Results: 20 students bought cookies; most had $1; enough students were interested; could make 50 cookies; friends helped sell; had a plan for leftover cookies.

Step 8: Decide Your Next Steps

Use your results to decide what to do next. Adjust your plan based on what you learned, just like you’d tweak your strategy for the next recess game.

Example:

• If students bought cookies and had money, make more cookies.
• If not enough were interested, think of a new product or different customers.

Step 9: Keep Testing and Improving

Keep running small experiments and learning from them. This helps you understand your customers better and improve your idea. Remember how practice made your lemonade stand better each summer?

Example: Try different cookie flavors or selling at different times to see what works best.

And That’s How The Cookie Crumbles

Starting your own business can be as exciting and fun as those childhood dreams of becoming a Cookie Kingpin. By following these steps, you can turn your idea into something real and discover what works. But don’t worry about perfection or it will stop you dead in your tracks—just get out there, try things, and keep learning.

Reconnect with that ambitious spirit and embrace the journey!

Want to learn more about what you need to know to survive the entrepreneurial journey? Here's more information to help you not suck at running your startup:

How to Not Suck at Startups #2: Let Them Eat Cake (Finding Product-Market Fit Before You Lose All Your Dough)