To Those Preparing to Start a Business: There Is Only One Thing You Need to Prepare

Many people think that what you need when starting a business is "preparation."

That isn't necessarily wrong, but there's no denying that many people get this "preparation" wrong.

I'll write about it, including my own experiences of failure.

Preparation comes from the psychology of not wanting to fail

Generally, the purpose of preparation is to clarify to some extent what needs to be done and to make things go smoothly.
At the same time, I think the desire to avoid failure is also a reason.

With starting a business in particular, I think the desire to avoid failure is especially pronounced.

The breakdown of preparation for starting a business tends to be something like:

Isn't it usually something like this?

And so you start your business only after clearing all of these, and until then you're "preparing to start a business."

But unfortunately, none of these are necessary.
Forget them.

Build cash flow with a side business

In fact, what matters in preparation is just one thing.

It's "building cash flow in advance."
To be precise, "cash flow that (as much as possible) doesn't require you to work."

There will probably be opinions like these.

The strength of having cash flow lies in being able to recover even if you lose your business funds, and in keeping down the risk of financial hardship in your life.

The first idea after starting a business often doesn't work out. Sometimes you lose large sums, and you might even have to resort to borrowing.

Also, even if you have substantial savings, fixed costs always come, both in life and in business.
Over time you'll eat into your savings, which also means you've set a limit on the time until you succeed.

After all, the best thing is to have a side business while you're still employed.
If you're planning to spend two years saving, then spending those two years building enough cash flow through blogging, affiliates, selling digital content, and the like is ideal.

Dreaming about what business to do can wait until after that.
Registration can be put off, and a business plan, startup know-how, connections, and an impressive web page are a waste.

Survive first! Make money afterward!

George Soros

You will definitely fail, and it takes time for results to come

I started my business with no cash flow and failed. At first, I "vaguely" tried to do a service supporting young people going overseas, and it ended as a failed plan.

The first reason was that "it wasn't something I could do right now." To realize the service, I did a mind-map-style solo brainstorm. I could see to some extent what needed doing and what to research, but I couldn't bring myself to move forward from there.

Next, I did a B2C business with housemates at an entrepreneurs' share house at the time, but that also ended as a failed plan. A B2C business couldn't get off the ground without cash flow and substantial funds.

Meanwhile, my savings hit bottom, I got by on unemployment benefits, and I kept myself fed by letting go of a Rolex I'd bought ten years earlier.

After that, I finally had an opportunity to get a substantial amount of cash flow, but it was scrapped within a week, and for over two months I had no choice but to resort to a card loan...

Business doesn't go smoothly until you get results. If you don't accept that "it takes time," you'll be at a disadvantage in every respect.

If you take work on in a resigned, put-up-with-it way, or are chased by debt repayments, you end up giving up control of your life. As the saying "poverty dulls the wits" goes, the business takes a turn for the worse.

In the end, remote-work consulting, sales writing, and outsourced web operations clicked, but it took about a year to get there.

Practicing and correcting course is best

Nothing is certain, and nothing is safe.
I wrote earlier that cash flow is important, but even that may turn out to be no risk hedge at all.

In the end, doing things as you planned more often doesn't work, so it's best to correct course while accepting failure.

If you're preparing to start a business, my advice is: "Build cash flow and just get out there and do it!"