The $100 Startup Summary – January 2022

Author: Chris Guillebeau

Short Summary
The $100 Startup (2012) is a business-centered book by Chris Guillebeau, whose aim is to help prospective entrepreneurs become aware of the challenges that come with creating a successful small business to generate revenue, allowing the entrepreneur to succeed and escape the rat race to start living a rich life. The new reality is that working at a job may be a far riskier choice. This book is for those who take action and those who inspire.
the $100 startup
Source: amazon.com

Detailed Summary

The $100 startup is an outcome of many surveys and discussions of the actual startups. That’s the reason that most of the points and examples are mentioned with illustrations.

Have you ever thought of quitting your job and starting your own business?

Nowadays, most people are leaving their jobs just to pursue their passion and goals. Those who are driven by a desire to live a meaningful life are launching their small businesses.

The $100 Startup Key points

Passion-good business sense is the magic formula

“The missing piece is that you usually don’t get paid for your hobby itself; you get paid for helping other people pursue the hobby or for something indirectly related to it.” Chris Guillebeau

The particular element that most entrepreneurs have is a love for their passions. But you can’t be successful just with your passion; you also need skills and customers. Where your passion, skills, and needs of customers are met, there you get success.

The important part is to find your passion, your skills, and provide values that other people will pay for. Business success is directly related to providing products and services of value. You should have those values to get paid. The main focus of a startup should be on the overlapping: the overlapping of what you want, what you are passionate about, and what others need. When you focus on helping people to satisfy their needs, you will succeed in your business because helping people means “providing values.”

You can achieve that success by just having the products or services for which the customers would pay and a way by which they would pay.

Passion or skills + usefulness = success.

Product creation: The new demographics

How do you create a product? The first thing that he talked about is the new demographics, not the old way of thinking, which is age, sex, and location. But if you are working in today’s world on a global scale, then you have to start thinking about the targeted new demographics like passions, what people love, what they are interested in, what their beliefs are, their values, because they might be 20 or 65, but they are both interested in the same passions or beliefs.

Creative marketing: Focus on benefits

Get creative and strategic with marketing. Marketing the advantages that are linked to the sympathetic needs of others rather than listing the features of products and services would be more beneficial for your business.

Don’t focus on the details of your products; focus on how your products are providing value to your customers. Think from your customers’ perspective.

Launch success-framework to successfully launch a products

Most of the time, products fail not because they’re bad products, but because the person does not understand sales, marketing, and self-promotion. Successful launches depend on the preparation and instilling of an understanding of haste. Your mission statement must be explained before your launch. Start self-promoting yourself and your brand before launching. So, you can build up an image with your targeted customers. Engage them by describing the products and the startup you are working on.

Excite them by giving the launch discounts for a limited time, reminding them of the deadline again and again. So, they wouldn’t miss the opportunity because the hustle sometimes turns into action.

Focus on your cost and income

Money is the backbone of every business, but you must minimize your budget at the start. The author recommends that you don’t need to have a large amount of money to start your business. You just need a laptop and a website. These cost no more than $100. That’s also the reason behind the name of this book, “$100 Startup”. Chris Guillebeau gives an example of a girl, Chelly Vitry, who started her food guide profession with just $28 but is now making $60,000 per annum.

If you still need some financing for your startup and the bank refuses to give you a loan, then you should consider other unconventional ways like crowdfunding. Shannon Okey raised $10,000 to start her craft publishing business when the bank rejected her loan.

Limit your expenses and invest in things that will have a direct impact on your sales.

Promoting repeat purchases

Promoting repeat purchases is a fundamental financial success principle.

Subscription services are one of the most effective forms of repeat purchases. Guillebeau demonstrates the effectiveness of a subscription service by demonstrating that a $20-per-month subscription with 400 subscribers generates $100,000 per year.

When creating a subscription service, your prices should be based on the benefits you are providing rather than the cost of production. Make your business as big as you want it to be.

Expand your business as much as you want to

If you want to expand your business, you can do it either vertically or horizontally. Vertical expansion means providing more services to the same existing customers and entertaining them on a deeper level. Horizontal expansion means creating new products to attract a wide range of different customers. Keep your plans simple to focus on the mission statement.

Keep your plans as simple as possible to focus on the missions

Business owners, managers, and entrepreneurs often start by spending months preparing business plans that are never used. They spend too much time dreaming and not enough time taking action. The result? A lot of wasted time and missed opportunities.

Your business plan should be flexible enough to adjust your strategy as you incorporate new ideas and learn from past mistakes. You know the saying: “If you don’t have a dream, you can’t make a dream come true.” If you want to achieve something, you can’t achieve anything in the process. Write down your goals, and then be realistic about how to achieve them.

Whom would I recommend the “The $100 startup”?

  • To those who have skills, passion, and want to step into micro-businesses,
  • Those who have any ideas to kick start their businesses,
  • Those who want to increase their revenue by growing their existing micro-business.