Ep 13: Justin tackles the top 3 steps to start a business

[00:00:02] Justin: I would just want to encourage entrepreneurs because this is a hard, this is a hard role of being a founder, of being a CEO, and it’s, it's the hardest thing I’ve ever done in my life. Right. And I used to get tackled by 300-pound men every Sunday.

[00:00:25] HOST: Welcome back to the second season of This is Small Business – now a weekly podcast, brought to you by Amazon. I’m your host Andrea Marquez -- and your guide to the world of small business insights you'll get when you listen to this show...which is kind of funny --because actually -- I'm not a small business owner. But I do come from a long line of people who own and operate small businesses -- and right now -- like you -- I'm on a learning journey to find out what it takes to make a small business succeed. And who knows? -- Maybe one day I'll start a small business of my own.

Ok, so for Season 2 [00:01:00] -- we're getting SUPER organized. We're gonna be walking through all the stages of a business life cycle: starting out, finding funding, setting goals, sourcing products, product iteration, and growing a small business. The idea is I want to go along this journey with you, no matter where you are on that journey, either barely starting out or maybe ready for that next step. My conversations with business owners and leading business experts are going to focus on extracting the most valuable and useful information for you that I will distill at the end of every episode.

During our break we had some great feedback from listeners like Ruby89P who said she “was thrilled to listen this podcast as a small business owner, and [that] it helped [her] tremendously! It’s very inspiring to listen to other business owners from different industries! Highly recommend!” Thank you, Ruby89P!

So with that, I can't wait to get started [00:02:00] -- because -- just like you -- I've got a LOT of questions.

Getting your small business idea off the ground can often be a little scary. And if it’s your first small business, you don’t always know what to expect or what first steps to take. What I learned in Season One, is that it's a really good idea to be intentional from the outset. But how do you do that? What are the first few steps you need to take to get your business off the ground? How do you ensure you set up a good business plan that lets your business become an entity that makes money? Coming up -- I'll speak to Serwaa Adjei-Pellé -- a business strategist -- who will walk us through a few pro-tips for getting your small business started.

But first -- I want you to meet Justin Forsett. Justin is a former NFL player, and founder of the company Hustle Clean. They make packaged wipes, created especially for use after a workout when -- you know -- you don't have time for a full shower and you have to be presentable. [00:03:00] Such a simple, great idea!

[00:03:05] Andrea: Justin, thank you so much for being with us today. Tell me about Hustle Clean and how it came to be. What’s your origin story?

[00:03:12] Justin: …the origin story. Hustle Clean is a mission driven self-care brand for the active lifestyle. So we're essentially a line of restorative self-care products to help the everyday athlete with wellness, recovery, and hygiene. It started from a place, that I came from in sports and fitness. I played the NFL for nine years. I was a pro bowl running back for the Baltimore Ravens. I was around and in locker rooms throughout my entire life. And within our community, within sports and fitness, we're always pushed to produce results by any means necessary at any cost. Right. We just want results. And with that mindset it really caused a lot of issues inside the locker room, whether it's bad hygiene habits or burnout, anxiety, stress, depression, and really [00:04:00] there was no self-care or personal care tools or items inside of the locker room in this community, besides a hot tub and a cold tub. And those things were cool, but they, they were really surface level.

So we say, Hey, let's be the solution to that. And we wanted. First attack this problem when a shower is optimum and not possible because we all sweat and we're all always on the go and had these dynamic schedules. So we created this disposable washcloth that removes sweat, dirt, and body odor. And it was a great solution. So I just grew the brand essentially as a side hustle because my day job, I was with the Seattle Seahawks playing when I started this company. And I would go to the local shops in Renton, Washington, in Kirkland, Washington. And I would just, after practice, I would say, Hey, if you sell my product in there, I'll make sure I come back. I'll sign, I'll do autograph signings. I would show up at events I like the Seattle Marathon. I would bring players with me like Marshawn Lynch to like sign autographs, take pictures, and just added value so I could get placement within the store. And I was hustling like that for years until I eventually retired [00:05:00] from football in 2017, excuse me, and fully immersed myself in the business as CEO and co-founder, and really started hitting the groove within the business and started taking off. We got on shows like Shark Tank, Good Morning America, and then started doing more brick-and-mortar retail. But that was the point where we really started to really grow and evolve our brand into providing a full assortment of care to this consumer.

[00:05:25] Andrea: This started as a side hustle and you were able to grow it into something bigger, did you always envision that? Did you think: Once I'm done with the NFL and playing football, this is where I want to go.

[00:05:36] Justin: For sure, for sure. I believe my third year in the NFL, around 2010, I saw, it was a Sports Illustrated article that came out that said 80% of NFL players, two years after they retire are, are either bankrupt, divorced, or depressed. I was like 80%. So eight out of 10 players are in those categories, and I'm like, I don't wanna be in that number. I don't wanna be in that statistic. So started thinking about things that I was good [00:06:00] at, things that I, I loved to do and I was passionate about. And it just let me down the road of entrepreneurship and I felt like if I could build a business, leverage the NFL and the platform that I had, it'll really help me in my transition phase. So that was my goal.

[00:06:13] Andrea: And did you have experience as an entrepreneur before then, or was this your first rodeo?

[00:06:18] Justin: This is my first rodeo. My parents were entrepreneurs. They were in the restaurant game. We had a barbecue restaurant so I saw the work ethic, I saw the grind, I saw the discipline and the commitment, and you know, it really kind of laid the groundwork for me in becoming an entrepreneur and reason why I wanted to leap right in.

[00:06:35] Andrea: Thank you for sharing your background. So I want to dive deep into starting a small business. Hustle Clean exists because you saw a problem that you wanted to solve, and the unique opportunity to solve it, given your background. It was a side hustle and now it's your journey and it's part of your legacy. So how does one start? That's what I want to dive into today. Because it can be overwhelming to think about many things at once, so, [00:07:00] I want to start with your big three. Can you tell me the top three things that someone who already has an idea should consider before they even think about raising capital for their business.

[00:07:13] Justin: I would say one, you have to really nail down your why. Like, why are you really trying to start a business? Why do you want to come into this space of entrepreneurship? Because everybody thinks they are cut out to be a founder, but most businesses don't make it, right. It is very difficult. It is time intensive. So a lot of times people get in here because when I wanna make a lot of money, I wanna be able to make my own schedule, you know, make my own terms. And I don't wanna answer to anybody. And all those things are, you know, really cool and seem really amazing from the outside looking in. But entrepreneurship is a team sport. Right. So you're always gonna be working with people and you're gonna have to communicate with others, and you're probably serving somebody. You gotta have, in order to have a business, you gotta have customers. So you answer to your customers, [00:08:00] like, so your why is gonna be important because you're gonna have a lot of difficult conversations, a lot of difficult decisions to make, and it's gonna be very trying at times and you're gonna question why you're doing what you're doing.

[00:08:12] Andrea: Once we have that why down. We know why Hustle Clean exists. We know where it comes from and the problem that exists and what we're trying to solve for. What comes next?

[00:08:21] Justin: The second step when you have an idea, you kind of know your why, this is a step that a lot of people skip over, but I think it's important to have your house in order. As an entrepreneur and as a business. When you first start out, before we talk about raising capital and with having your house in order, I mean, your legal. Right, your operating agreement like in place, and especially if you have, co-founders, uh within your business, so I think that's, that's a big point that businesses skip out on because it's all, it's you in a honeymoon phase when you first start your business, everything is, going right and you're excited about the idea and the opportunity ahead of you, [00:09:00] and you forget that stuff because some people change over time, right? There's feelings that change with the business perspectives that change, and you gotta be able to adapt, and you need necessary steps in place to have smooth transitions when that does happen in life. Like if somebody was like, I don't wanna do this anymore. You gotta have some legal paperwork behind it. So you work with your lawyer, somebody that focuses on the business, somebody on this business space. You know, if it's consumer package goods, find you someone that really understands it, kind of understands the law of the land within whatever state you in, wherever, you've kinda established business and lay it out there. That's what, that's what I would say is number two.

[00:09:37] Andrea: Okay, so we have the why, and the legalities in place. These are very important as they’ve been mentioned a lot in past episodes of the show. What would be that next step after legal considerations, in your opinion?

[00:09:50] Justin: I would say having a sound business plan. And that I think encompasses of a lot of things. Cuz we need to make money at the end of the day. Before thinking about raising capital, [00:10:00] how can we make this business an entity that is, it is making money and has cash flow. So I think about are you gonna do the research? To write to see how big your industry is. Are you going to have points of distribution? What are your main channels for sales? And do you understand your customer and their habits and their behaviors and where they're gonna purchase for you. So having that sound business plan or how you're gonna make money, how you're gonna pay yourself and, and your team is gonna be crucial.

[00:10:27] Andrea: I want to tackle this one first. Because “Business Plan” can mean different things to different people. What do you think should be the first questions to ask when preparing it?

[00:10:36] Justin: Who's gonna buy this? Who's the customer? Who are we trying to serve? Because everything in your business should be built around the customer. You have to be obsessed and extremely focused on the customer. So when you talk about the business plan, like you want to be able to build something, where you're gonna be able to authentically show up in places that your customer is going to purchase. You wanna be able to send messaging to them and create a go to market strategy in which you [00:11:00] know that your customer is going to relate to, that they understand and that it resonates with them on emotional standpoint, not just a transactional standpoint.

Those are some of the early questions, but then: how big is this group of people? What's the, what's the actual, size of the pie? Right? Is this like a really small lifestyle business where you're not gonna really need a bunch of funding in order to get this thing off the ground and to really establish it? Or is this something where this is a billion-dollar opportunity and you're gonna need like, you know, maybe VC capital to come in, someone to, to lead around. You're gonna have to start a series. You start thinking about, okay, I'm gonna have to have a seed. I'm gonna have to go series A, series B, or what have you. You start thinking about, what does it look like? What kind of business do I want to run? Am I looking for an acquisition? Those are things that you have to start thinking about. I don't think you should obsess about it because you actually gotta do the work and it's about execution. And when people ask me like, what do you want for the outcome of your business? I really want options, right? [00:12:00] But there's certain things that you're gonna have to do in order to build a, a business that is worth acquiring if that is something that you are looking for, right. So you should be thinking about a couple of those things that I just mentioned in your business plan.

[00:12:15] Andrea: And it’s all new language for a first-time small business owner.

[00:12:18] Justin: I mean, I feel like you have to think about these things because it changes the way you operate in your business. If I had a fourth step, the fourth step would be creating a huddle. And what I mean by that, and it's a football analogy, I'm the football player. Creating a huddle is like, you gotta get a group of people in your business to help you, like mentors, advisors that are gonna pour into you, that are gonna help you on your journey and really establish your identity as a brand. And help you miss some of the pitfalls that you can't see yet, right? Because you're so young, you don't understand everything, so you're still learning, growing. So you gotta have coaches in your life.

[00:12:54] Andrea: I am all for the analogies, by the way. So keep them coming!

[00:12:58] Justin: When I was in a huddle with Peyton Manning, [00:13:00] I played with Payton Manning for uh my rookie year, and I was in Indianapolis with the Colts. He would gimme three things in every huddle. He would gimme warning, he would gimme encouragement, and he would give me instruction. Every single huddle he would give me that thing. And that was applicable, not only to a football field and having a huddle in that experience, but also in business. Like you gotta have warning, encouragement and instruction along the way.

And I reached out to people that were in the industry to really help me to think about, okay, what should I be thinking about right now? How can I grow? As a, as entrepreneur, how can I evade some of the, the missteps that commonly happen within my space and my industry? So when I did that early on within my business and talking to other entrepreneurs and other people in my space, they kind of helped guide me to my thought process and thinking like, okay, at some point, you're gonna need to make money because your industry requires a lot of cash flow, right? I started think about, okay, the industry that I am is gonna require a little more capital. So I have to put ourselves in a position where we look at least enticing to early-stage investors.

[00:14:00] Andrea: Are there any things that you wish you would've done differently that you have learned from and would offer as advice to entrepreneurs starting out?

[00:14:07] Justin: I would say a couple things. One: values are important. You have to have core values which your company stands on, and it's important not only for you internally, but when you bring people in, right? So you know what you're looking for because again, entrepreneurship is not a, is not an individual sport, like it is a team sport. But if you don't have an identity and you don't have values in place, it's really hard to really know what to bring into your team and when you're building your team and building a huddle in order to help you execute.

And early on, if I'm honest with myself, we didn't have those core values in place. And like what we actually stand on: what are things, what are non-negotiables within our company in which we do not tolerate at all? Right. What are things that we champion within the, within our company, even at a small stage. Because what we got into, even as a, as a company, Early was just like we, [00:15:00] we weren't in a place where we were having just like real authentic conflict that is healthy. I would say healthy conflict because there is some bad conflict that happens within business, but you're facing conflict all the time and you need to be able to manage the conflict and you need to be able to embrace conflict.

And if you have core values in place, it'll really guide you on how you operate in hiring people that can really handle these issues or conflicts that pop up. So now as a company, I have a couple pillars. Like you have to be real brave and relentless. Cause that not only reflects us as internal as a company who we are, but also it reflects our customer. And then you have to exude faith, fight, and freedom. Those are things that are non-negotiable within our company. Like, so if, if you wanna be a part of our company, you gotta have that hustler's mindset. Like no excuses. We're not just problem spotters over here, we're problem solvers. So I really, if I could go back, one of the things that I would do would be have those values in place.

And then the other thing would be focus. [00:16:00] Having like laser focus on who your customer is and the opportunity at hand, like be great at something. Don't try to spread yourself too thin. Like early on there were so many opportunities, especially with our hero product. The Hustle Clean disposable washcloth, the body wipe. It was great for campers, hikers, military, athletes, fishermen, uh, flight attendants, all these different categories, and we are like, oh man, the sky's the limit. We're gonna be able to take over the world. Like this is, this is the next thing. Best thing since sliced bread. And when, when you're trying to master all of 'em, you master none of them, right? So you gotta really laser focus on like, what you're trying to do, who you're trying to go after, understand them better, be obsessed with them, and then operate from there. Then once you own that space and own that core customer, then you can start branching out. But I failed at that early on within the business.

[00:16:48] Andrea: What are some of the constant worries you hear from early-stage entrepreneurs, and what do you have to say about them?

[00:16:56] Justin: There's a lot of worry around, the, the instep of funding. [00:17:00] Especially when you think about, you know, I'm speaking, I'm a minority owned founder. I'm a black founder of a consumer package goods company, right, in Hustle Clean. A lot of times, uh, within the sector, whether you're minority, uh, black and brown, women led companies, we're often over mentored and underfunded. So we see a lot of entrepreneurs worrying about, "man, if I build something right, will I have what it takes in order to get the money in order to take me to the next level?" That is one of the things that I'm seeing. Like money is a worry, right? And then you put your, your life savings or you put a lot of sweat equity, um, into and capital into this business and like just worrying about, uh, will you have enough fuel in the tank? And I would say, build something worth investing in. Start small and not necessarily try to go so fast. And I know it's enticing to like go, just like leap all in and say, I'm going to, to leave my current job and I'm gonna go and just like immerse myself [00:18:00] in this business, this startup. And I don't know what's gonna happen. I, I'm, I'm of the belief like, you gotta do what you gotta do till you can do what you want to do. So if that, is that being a side hustle, and you're just like earning some income to help fund your, your business and your dream, your passion, then do that. But just start slow. You're worried about things that are outside of your control, like excel at the things that you can control, right? Your attitude, your effort, your preparation, you know, owning your customer. Those things that you control, focus on those things.

[00:18:30] Andrea: As one of my last questions, you mentioned minority groups being “over mentored and underfunded." In your opinion, what should be done for these small business communities?

[00:18:41] Justin: Right. I wholeheartedly believe that we, we need more, uh, funding within the diverse communities, because it does take money, right? But there's also creative tools out there that we can use, whether it's looking at grant options, whether it's, you know, debt or SBA or you know, even early on of a strategy of ours that we implemented was like, [00:19:00] how can we go to these pitch competitions and win, you know, 10 or $15,000 here and there in order to get money? And so we just gotta be scrappy right until culture or the, until the people that have access to the capital until they catch up.

We just, we figure it out because we have to. Right, there needs to be more of us, uh, there needs to be more representation within these categories and at a broader spectrum. And I feel like. If we can get more people backing that sentiment, get more people that are putting dollars along with mentorship. Because information is important. That is a barrier to, to a lot of folks as well. But we need people that are gonna both do the, the mentoring and doing the funding pouring into these businesses.

And I would just want to encourage entrepreneurs because I would just want to encourage entrepreneurs because this is a hard role of, of being a founder, of being a CEO, and it’s the hardest thing I’ve ever done in my life. Right. And I used to be tackled by 300-pound men every Sunday. [00:20:00] And this is very, this is, this can be very trying. And, and football can be very detrimental to your outer being, but entrepreneurship can be very, very detrimental to your inner being, right?

We see high levels of anxiety, depression, burnout, um, divorce all those things, right? So I just want to encourage the entrepreneurs out there just to, to love the journey. Don't get caught up in just like the end point of the, the destination, because I don't know if we all ever arrive to the place that we want. Just like try to find fulfillment in what you're doing. Be transparent, be vulnerable, talk to people. Just know: you have value outside of what you're doing, and love the journey.

[00:20:43] Andrea: Justin, thank you so much for your powerful message. And thank you for being on This is Small Business.

[00:20:48] Justin: Thanks for having me.

[00:20:53] MIDPOINT: HOST: You're listening to This is Small Business, brought to you by Amazon. I’m your host, Andrea Marquez. That was Justin Forsett -- [00:21:00] former NFL player and founder of Hustle Clean. You can find out more about his company in our show notes on our website thisissmallbusinesspodcast.com.

I think Justin raised some essential points about the things entrepreneurs often forget to focus on when they are just starting out -- and the extra challenges sometimes faced by business owners of minority-led companies. His football analogies were great, too, by the way. I love the idea of creating a "Huddle" -- people who can surround you and your business with support, and give you advice, teachings, and encouragement...

Did you know that more than half of the products sold in the Amazon store come from small-and-medium sized businesses? Hustle Clean is one of the many small businesses selling in the Amazon store who have tapped into some of the tools and resources offered to help them succeed and grow. Learn more about them in our show notes on our website ThisisSmallBusinesspodcast.com.

[00:22:00] My next guest is someone you DEFINITELY want in your huddle. Serwaa Adjei-Pellé [pron: SAYwah - ah JAY-pel AY] regularly teaches CEOs proven corporate strategies that help them launch, grow and pivot their companies. I'm so excited for you to meet her!

[00:22:14] Serwaa: So my name is Serwaa Adjei-Pellé. I'm a business strategist and also a podcast host. I run the, “She's Off Script” media company where we create resources for small businesses. Prior to doing all this, I worked on Wall Street for almost a decade, where, one of my favorite things was to work on the 10,000 Small Businesses Initiative, where I got my love for working with and mentoring small businesses.

[00:22:40] Andrea: In your time working with small business owners, what are some of the common mistakes you see toward the beginning of their journeys?

[00:22:46] Serwaa: So I would say we get an adrenaline rush from brainstorming, from writing ideas down from dreaming about what could be, and I would say a lot of people who are dreaming about launching businesses get stuck in that dreaming phase. [00:23:00] Because it's so much fun. There's not much risk in dreaming and brainstorming and writing down. There's risk in executing. So I would say that's a first, the first hurdle a lot of small businesses need to get over before they even start a business. But, next, I would say that people need to think about why they're looking to start a business because your why and your passion is going to fuel you.

So whenever people feel like they're ready to go to the next stage and actually select a business idea, I often encourage them to look for the idea that sits at the intersection of their passion and the market need, meaning that they are solving a problem that is actually out there and it's not simply something that they think is gonna be cool, and also at the intersection of their, their expertise. It's something that you are skilled at and can deliver with your eyes closed. Because running a business is difficult and if you are learning as you go, when it's time to actually deliver the solution, [00:24:00] it's gonna make it monumentally more difficult to actually do anything. So it's important that that business idea you finally go with is at the intersection of those three things.

[00:24:09] Andrea: What are the steps you think someone should consider after they've had the idea? After they've settled on their why, but before they're considering finance.

[00:24:18] Serwaa: Finances should come way, way, way down the road. I think definitely don't over invest right away because so much is in flux when you're first starting a business, but after you have your idea, it's important that you create a minimum viable product. And all that means is you need to figure out: how can I put in the least amount of effort in order to deliver a solution that solves a problem for somebody? So, don't go thinking you have to build this $12,000 website when you don't even know how you're going to make money. Step one is figure out how to create your minimum viable product. And there's some sub steps that go under that. You know, as I mentioned, knowing who [00:25:00] you're building this product for, like who's your target audience, and once you do that, it's gonna really influence how you move forward. Once you have that MVP it's important that you let the world see it.

Earlier on, you mentioned, you know, what are some of the things that kind of hinder people who are looking to build businesses from getting to the next step. And part of it is perfectionism. People want to sit in their basements and tweak and tinker until they feel like it's, it's perfect. And unfortunately, when it finally comes to market, when they're finally ready for people to see this perfection they have created, it's crickets. Nobody wants to purchase it. No one wants to buy it because unfortunately, there's a little bit of ego involved there. You don't want your ego to be bruised, but it's very important that you take your MVP out there, let people see what it is that you've built, and people will vote with their wallets. I know we're in a world where social media people hype you. They're telling you, "oh my gosh, it's amazing. I would absolutely buy that." [00:26:00] And then when you put it out there, nobody purchases it. So it's important that you take your MVP step to actually put it out there and allow people to give you their feedback. Sometimes the feedback is nobody purchased.

Sometimes the feedback is people will purchase it and they will return it, or they'll hop on Amazon and you will hear everything that's in the reviews. I love to say when people are in the market research phase to go on sites like Amazon and read the reviews. The three-star reviews are gold because people who have five-star reviews, they are so excited about it, they just write loved it. People who absolutely hated it, and for some reason they just wanna come, you know, spew their vitriol all over you. They're just like, it was terrible and that there's nothing constructive about that. But three-star reviews... as we like to say, they've got time. They're gonna sit there and tell you step 1, 2, 3, 4, 5, about you know, what you could have done better. Take the feedback that you receive and use it to iterate, meaning use it to improve upon your product.

[00:27:00] Now, given that you started at a low-cost point, then once you receive purchases, you can reinvest that into improving that minimum viable product. So don't tinker and spend so much money that honestly may or may not pan out. Get it out there, get the feedback, and continue to improve.

[00:27:23] Andrea: What happens if I do go out to market and I realize that no one wants what I have?

[00:27:29] Serwaa: You go back to the drawing board and hopefully you have a sense for why it is no one wanted it. If at the very foundation of whatever you created, it's not solving a problem for someone, and you think it's super cool, then there's an issue there. So you may have to go back to the foundation and figure out if it's really the way you're presenting it. Are you presenting it as something that is a solution to someone's problem? I would say even digging further into the kinds of solutions that that exist, and I think there's a different sense of urgency [00:28:00] that's associated with each of those solutions. So, for example, are you a painkiller? Meaning that it's -- I have a huge headache. It's at the front of my mind. I need a painkiller. So is that the kind of solution you have? Essentially the next one is, is it a vitamin? So is it something that's a nice to have solution? Nice to have, you know? But I could live without it.

[00:28:24] Andrea: I had heard of this before, it's vitamin, painkiller, or cure.

[00:28:30] Serwaa: There you go. So I would say there's a different sort of urgency between a pain killer, and a vitamin, or a cure. So you need to think about the type of solutions that you are offering. And unfortunately, there's just more money in painkillers but there's also a higher barrier to entry, right? Meaning it may take you more research, it may, you may need to be more of an expert, or you may need to spend more money in order to enter the market of the painkiller class of whatever it is that you're trying to build.

[00:29:00] So you kind of have to figure out where are you fitting in as you are building products. But I would say there's always that, inclination to head towards whatever is gonna make you the most money. Unfortunately, if it also doesn't align with your passion, then you are, you're probably gonna dwindle very early or give up very quickly because it's something that you're not passionate about. Or if you're not an expert at it, um, and you're not passionate about it, but there's a lot of money in it, then there's the other problem because the barrier to entry's too high for you. You're gonna have to research every single step, and you may or may not get it right, or you don't have the money to hire the experts who will get it right for you. So you have to be mindful of that three part balance as you're looking to build your business.

[00:29:45] Andrea: Super helpful, and I think that at the end of the day, it connects to the why, right? if it doesn't intersect with your passion, you're gonna get tired. Like that's the midnight oil.

[00:29:54] Serwaa: It does. I would say if you build a business plan before you've done all of these phases that I've, I've just mentioned, [00:30:00] your business plan is just conjecture, it's just guesses. And unfortunately, when you enter the thick of it -- it's blown away and it's gonna be collecting dust on a shelf somewhere, because it was really not based in any fact. It's based in numbers that you researched on the internet. So I would say there are certain situations, for example, if you're looking for a bank loan, they will require a business plan or a business plan from you. They wanna know that you've thought things out, but they're also gonna require that you have some sort of a proven track record of making money or you know how you'll be able to pay them back in the future, right? So that's where your business plan with your projections are gonna come in handy.

But other than that, I like to say there are other ways to map out what it is that you are planning on accomplishing, maybe goals, or targets that you are setting for yourself to keep yourself accountable. But don't procrastinate by over researching. You don't procrastinate by researching [00:31:00] and you know, creating and crafting this 30-page business plan that you're never gonna look into again, and that is not actually gonna influence how you will build your business.

[00:31:08] Andrea: What are some of the top questions you think early-stage entrepreneurs should start considering?

[00:31:13] Serwaa: If you are, are building a company, I, I would say there are a couple directions that people tend to approach it. It's the inside out approach versus the outside in approach. So are you doing things because you as a company believe you know what's best, right? So you're gonna impose what you believe is best on your end consumer or are you taking the outside in approach where you're looking at, you know, the market, you're looking at your end user and you're able to let them know, or you're able to then make decisions based on what they need. So it's imperative, I would say, to be focused on your customer because that could make or break you unless you are Steve Jobs, right? I mean, he created something that, or multiple things [00:32:00] that we did not know that we needed. And for him it was inside out, I'm going to create something. I'm the visionary and I know people are going to want it. So if you believe you are Steve Jobs and you're creating something that is just so visionary that has no, you know, equal out there, absolutely take the inside out approach.

If you're looking to build a business, you will probably start and stop five ideas before you land on your unicorn idea. I don't think anyone gets a hole in one on their very first shot out of the gate. So the way you learn is by doing. And if you are willing to put yourself out there, if you're willing to learn by doing, that's the only way you're gonna be able to see results. So put yourself out there. You might find that you're able to build something that has more impact than you ever imagined.

[00:32:51] Andrea: Serwaa, thank you so much for being on This is Small Business. It was a pleasure to have you.

[00:32:56] Serwaa: It was great being here. Thank you for having me.

[00:33:00] HOST: That was business strategist Serwaa Adjei-Pellé [pron: SAYwah - ah JAY-pel AY]. She's also the host of the ”Off Script podcast” where they share stories of female entrepreneurship. I hope you got as much out of listening to Serwaa as I did. The idea of "outside in vs inside out" approach to building a business is definitely going in my playbook. Thinking it over -- I'd say Justin Forsett's Hustle Clean takes an Outside In approach -- since he's addressing a NEED for athletes-on-the-go.

I'm curious -- what approach does YOUR small business take? Reach out to us at thisissmallbusiness@amazon.com to tell us what you're up to. Or let me know what you thought of the episode by leaving a review on Apple podcasts – it’s best to do it through your phone. And if you liked what you heard – share this episode with anyone else who needs to hear it!

As always, some of the key takeaways I learned today with Justin and Serwaa are:

• One of our episode favorites, start with the WHY. [00:34:00] When considering this question, some new ways to look at it presented by Serwaa were to think about how your idea sits at the intersection of your passion, market need, and your skill. Like Hustle Clean, it helps if you think about it from the outside in and know that there’s a problem you’re solving for your customers. A subsection of this thought goes back to thinking if your business is a vitamin (nice to have but not necessary), painkiller (short term fixes), or cure (making problems go away). And since running a business can be hard, it helps if you’re passionate about the idea enough to go through the ups and downs of the journey and that you’re also skilled at whatever it is so the learning part doesn’t have to be so heavy.
• When starting out, it’s good to have an operating agreement in place. We’ve talked about in Season One, in episode 7 with Rod Johnson and Naveen Thomas. In the long run, this will help you have the healthiest start to unforeseen circumstances.
• [00:35:00] Creating your Minimum Viable Product, BEFORE your Business Plan. Your MVP will allow you to go to market as quickly as you can and gather needed information like… who will actually buy it? Serwaa suggests really paying attention to those three-star reviews to learn about how you can make your product better, or how you fit into your customer’s lives. Which takes us to…
• Your Business Plan, once you have some proof of concept with your MVP, then you can strengthen your initial hypothesis for why your product is valuable to your target audience. Do your research and understand who that customer is and how big that group of people is. When you laser focus on your customer, you also remember that you can’t be everything to everyone when starting out, like when Justin mentioned Hustle Clean wanting to be the product for all types of customers instead of being the best product for one type of customer first.
• And finally, as an extra point… [00:36:00] find your huddle early on. Those that provide you with warning, encouragement, and instruction early on.

I hope you'll consider me -- and this show -- part of your "huddle" as you continue to play along in this big, messy and exciting entrepreneurial game.

That's it for episode 1 of season 2 of This is Small Business, brought to you by Amazon. Remember -- the show's gone weekly now. And also new to the show, every other week we'll be bringing you shorter, punchy episodes in the form of This is Small Business: Minisodes.

So our next episode will be part of the This is Small Business: Minisodes. We’ll be tackling some of the top business mistakes early-stage entrepreneurs make with Christina Wallace from the Harvard Business School. If you like what you’ve heard, don’t forget to subscribe through your favorite podcast platform or leave us a review on Apple podcasts – it’s easier to do it through your phone. OR you can email us at thisissmallbusiness@amazon.com with your thoughts.

[00:37:00] Until next time – This is Small Business, I'm your host Andrea Marquez -- Hasta luego -- and thanks for listening!

CREDITS: This is Small Business is brought to you by Amazon, with technical and story production by JAR Audio. [00:37:26]