I found this video I thought I’d share with you. I’m not sure I entirely agree with everything stated here, but I think this is some great information for anyone involved with (or starting to think about starting) their own small business. Enjoy!

Small Business Startup Mistakes

If there’s one lesson I wish I had learned earlier, it’s to go where the masses are.

I spent a big part of my entrepreneurial life trying to find the perfect money making business, thinking of new ways to do things, seeking needs that were waiting to be fixed, and entering niche areas with far too small a market. I figured that’s what you had to do to make money. You have to become the dominant player.

Wrong!

That didn’t help me get ahead. It wasn’t until I realized that it is far easier to be successful as the number 10 player in a crowded market than number one in a small market.

I’m not saying people don’t or can’t make money in a highly targeted niche market, but I found it to be much more difficult. Just think about those inventors that spend all of their life and savings to create a prototype, only to find out nobody wants it.

What has been a far better approach for me is to do what has already been proven to be a successful business model and improve it. Create a similar product or service, but in a way that differentiates you from the others. Maybe it’s a different price point, or maybe it’s some added value, or maybe you it’s your own personal touch.

There are several reasons I believe this is the way to go. To name a few:

1. The big players are doing all of your marketing for you. They are telling the masses why they need a product or service, and all the things it can do for them.
2. Most people prefer to be educated consumers and they will search for the best service or deal. They like options.
3. Other businesses have already done the work for you. You can see what works and what doesn’t, what messages people respond to, and where improvement can be made.
4. There is lower risk because these are markets that have already been identified as an area that people are willing to spend money.

That last point is an important one. Just because there are millions of people that want to learn how to draw anime, for example, that doesn’t mean they are willing to spend money.

While Apple might be making billions of dollars with iPods, there are hundreds of companies in China that produce similar products and are making millions of dollars.

How many different versions of antivirus software are there? How many burger joints do you pass before getting to Wendy’s? How many different books can you find to learn how to flip houses? How many tax service centers do you pass before getting to H&R Block?

I’d much rather compete in those markets than trying to develop and mass market binder clips that have a flashlight on them, or some other obscure product.

Millionaire Money Habit: Sometimes the biggest money making business is staring at us right in the face. Don’t overcomplicate things by trying to come up with the perfect solution. Do what already works and go where the masses are already spending money.

Establishing credit can be a challenging task for someone entering adulthood. A good credit history is generally required to rent an apartment, get an auto loan and may even be part of the screening process for employers. But if you need credit to get credit, how do you go about establishing it?

What Does Establishing Credit Mean?

Your credit file is a vital document that is used to obtain the necessities in life, and building a good report should be a priority. Your credit file is your financial report card and it may be reviewed by just about anyone that you could owe money to. That means not only home and auto loans, but this also includes your cable and electric bills, and even cell phone contracts.

Before extending you credit, lenders and service providers like to see that you are responsible and pay your bills on time. The only way to determine that is to look at your history of repaying debts. By looking at your credit score and credit file, lenders can estimate just how risky a client you may be and how likely they are to get back the money you will owe them.

How to Establish Credit

As you can probably see, establishing credit for the first time can be a bit tricky. Since it often requires having a credit history to receive credit, where do you start?

The first thing you want to do is to open a bank account and maintain some savings in that account. By having some net worth, it shows creditors you have some sort of income and ability to manage money. Once you have opened a checking and savings account, apply for a credit card through your bank. Since you do business with them, they are more likely to extend a small amount of credit to you.

But just having a credit card is not enough to build a history. You have to make your accounts active by using them regularly. That does not mean using your card to purchase items you cannot afford. While it is important to use your credit to keep it active, the amount doesn’t matter.

You simply want to use your card minimally and pay it off in full in order to build a good history of using credit and repaying your debts on time. What you want to avoid is taking out cash advances or using more than 30% of your available credit as it can hurt your rating.

If you have trouble obtaining your first credit card, having any type of service that has a revolving fee, such as an electric or cell phone bill, can help build your credit history. While these services usually do perform a credit check, you can often negotiate to pay two months of service fees upfront instead of getting approved through a background check. It may require a bit more money upfront, but this will help you quickly establish credit.
Another trick is to obtain a secured credit card. A secured card means that there is an asset linked to the account, which the creditor can take if you fail to make payments. This generally takes the form of depositing cash into an account to “secure” it.

Establishing credit is only the first step to building your financial report card. You want to be sure that you not only have credit, but that you are building a positive credit history. That means always paying your bills on time, keeping your available credit to debt ratio low, and keeping accounts open in order to build a history of relationships with creditors and lenders.

Millionaire Money Habit: Your credit report is your financial report card that can help you or be used against you negotiate throughout important aspects of your life. Take building your credit rating seriously and you will save thousands of dollars in interest payments and fees throughout your lifetime.