#1: Start with a survey.
I'll tell you a secret: there's an entire class of people out there that always need things done, who happen to be able to pay in cash at very reasonable rates.
Go to every small business owner in town with a simple survey: What are the top 3 things that would increase your profits if you could get reliable help to do them?
#2: Find the greatest pain-points.
Based on the geographic area that you're in, you'll find certain items come up on every survey. To give an example from where I live, most businesses here need help setting up a productive website. (Surprisingly common almost everywhere.)
Once you have the data, identify the top two or three items that have some synergy between them (ie., physical labor, digital services, peak-time staff support, etc.).
#3: Create some initial cashflow.
Each owner will have included an item or two that is fairly easy to knock off. In fact, they may just ask you to do it on the spot. You'd be amazed how many little things pile up at the average business. Maybe they need their walk-in fridge scrubbed down, some paperwork sorted, a basic inventory done, etc.
Pick the ones you can do really well, then guesstimate the hours required. Offer them a project rate that should net you $25/hr. They’ll accept. Make it worth their while.
#4: Create a brand.
Take your top choice from step #2 and make a brand around it. Be very, very specific in your choice of company name. For example: 'Atlanta Small Biz Web Presence Consultants'. Don't worry about catchiness or scalability at this point. Just make sure the name says exactly what you do, removing all ambiguity.
Then register a domain ($10 because of your non-catchy name), build a basic site (Squarepace), and create a Facebook page (not group). Once they’re all set up, make up a post-card sized handout that briefly and clearly explains what you do. Include a testimonial or two from the initial projects you finished.
#5: Get some clients.
Take those cards back to the businesses that you first interviewed. Don't worry about selling yourself on credentials. Sell yourself on common sense and hustle. The majority of small business owners are doers, not academics. As long as you can do the job competently, you're hired. (Just be reasonable with your rates.)
(Note: Your marketing budget thus far should not have exceeded $1,000. If it did, you overpaid for something. This is a bootstrap operation.)
#6: Expand your workforce.
This is a two-pronged effort.
Hire smart, driven students — kids who don't talk a project to death before getting their hands dirty. Focus on those who can sell, get stuff done, and create a good impression with clients. Give them room to earn junior partnership and pay them well (take only a small margin from their labors).
Leverage Fiverr, Odesk, Guru, etc. Spend the money to find out who is best at what. Don't be afraid to throw away $25 on made-up projects just to judge skill-levels and response times. It will look awfully impressive if you already have a wizard waiting in the wings when you have a commissioned project.
(Note: If your service quality has been good, those businesses will have already given you a lot of referrals. You'll be amazed how quickly you can scale if you have the right workforce model to take on new projects at the same service-level.)
#7: Expand into new niches.
Go back to that original list from step #2. What else do people need to get done? Begin thinking about mid-size businesses, professional firms, regional corporations. You should now have the legitimacy you need to get into their offices to make your pitch, especially with a long list of local testimonials in hand.
#8: Sell the business.
After a few years of this, your cashflow and margins should be high enough to justify a valuation in the 50-250k range. You're going to need that cash for the next step.
(Note: The logic behind selling is preserving all the equity in your next venture. But also because you're going to want all of your focus intact. It doesn't make sense to spend your limited mental energy on a small-cap business. It isn't a "mistake" to retain it for the cashflow, but I think you'd ultimately regret it. Others may disagree.)
#9: Do a bigger survey.
Go regionally/provincially/state-wide. Try to be a bit more focused this time. For example, what specific online things do they need most: content marketing, online ordering capabilities, social media management?
Or maybe you've already noticed a common trend (say still using paper tickets or not using Facebook efficiently). Pick one thing that stands out most.
#10: Build a focused service-company.
Take that one thing (just one) and spend a few months researching the life out of it. Go on Quora. Find every relevant blog. Ask experts. Volunteer at a larger firm that does it well. Learn that niche inside out. Then build a brand around your offering.
#11: Build supplementary businesses.
Register a corporation that can function as a holding company for the individual service-companies (providing bankruptcy protection for a worst-case scenario). Then start adding more offerings that are equally focused.
You can co-brand them if you want to take advantage of your existing reputation. Just ensure the primary marketing pitch for each venture is just “x thing done really well". Use your corporate staff to keep operational costs in each unit as lean as possible.
#12: Do whatever you want to do in life.
If done right, the businesses should be systematized and relatively self-sufficient. You can retire and live on passive income. Or you can sell and have boatloads of cash to do with as you will. Or you can take the middle ground and just sell a large equity share.
The world is your oyster.
Moral of the story: The best businesses aren't always built by MBAs with large budgets. If you have a willingness to work and an ability to execute with brutal focus, you can build an empire. Some of the best entrepreneurs I know can barely read and are tech-illiterate — but they outworked their competition by a large margin.
Find mentors like that, then go and do likewise.
PS - You should start now. Don't necessarily go to university first . The world is changing. The above formula has a shelf-life.
By Jeremy Arnold.
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