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How to Start a Business
In one of Nassim Taleb‘s talks at the American university in Beirut he talks about rather than “trying to change the world” maybe it is better to start a business instead.
Why start a business?
My main thought is that because your personality and approach is so unique, there is no traditional “job” out there which suits you. And when reality doesn’t conform to your way, you must create a new reality.
Conceptions and misconceptions about starting your own business
First of all, I don’t think you need to incorporate as an LLC, or any of these other nonsensical tax filings. I think these are more conceptions by big corporations trying to game the tax system. The easiest way is just file as a sole proprietor, something you could easily do on TurboTax. In fact, I am a huge fan of TurboTax because it demystifies a lot of stuff on filing. In the early days, I had a private tax guy, and he was very good, and helped me learn some basic things on tax filing, but truth be told, I think TurboTax is better, because it is more straightforward, and also the user interface is very fun and friendly, and also very straightforward. The more middleman you could cut out of your business, the better.
So how do I start?
The biggest confusion that I had when starting my own business was this, at what point am I “incorporated” as a business?
If you are a sole proprietor, that means that you are the solo entrepreneur, the only person working for your company and yourself. I best prefer this approach, as it simplifies things. Whenever needed, you can still get contractors, and file them as contractors on your taxes, but for the most part, I like the idea that you are the only head of your company, the only solo human being who builds, and makes everything.
If you have an idea, and you have a website, or have started building a website, you’ve begun!
Thus, the simple answer is this:
You don’t need to do anything special, or file anything special to incorporate yourself as a business. You just start. And then later, when you do your taxes at the year end, you file as sole proprietor.
Why is America so friendly for entrepreneurs?
I remember that I was doing a workshop in Stockholm Sweden, and I was talking to one of my students, who was attempting to start his own photography business. From what I gather, it was insanely complicated.
I think the reason why America is so friendly towards entrepreneurs, entrepreneurship, and starting your own business is this; the strength of the American economy is precisely because it is so easy for so many people to start their own business.
Consider, all of the great American businesses that rule the world, Apple, Amazon, Google, now Tesla, etc.
Most of the founders of these companies were just a single nerd, or two nerds, starting off in their moms garage or basement. Also note that all of the mega companies and corporations and businesses that are created nowadays our technological one; what is technology? Technology is simply a technique, an approach, to leverage more humans to do things more efficiently. Almost anything you do is a technology. For example, sharing new photography techniques, is technology and technique. One of the big things that I personally innovated is discovering new street photography techniques, and sharing them with the world.
Money
There are basic things, like paying the rent, and feeding yourself, and paying for your Wi-Fi subscription.
The first very very very very simple thought is this; reduce your rent to an absolute minimum. Ideally $500 USD a month or less. Paying more than $500 USD a month in rent seems too expensive.
Then, what are practical strategies? Practical strategies include getting roommates, living at your parents home and paying rent, or moving abroad. For example, great places to live with cheap rent include Hanoi Vietnam, Saigon, Phnom Penh Cambodia, Bangkok Thailand, funny enough me and Cindy were actually able to rent a nice apartment in Kyoto Japan for only $500 USD a month!
How much money do you need to earn?
A big thing that I’ve discovered is this; for the most part, money is inconsequential. What does that mean? That means, Lamborghinis are for suckers and losers, the Ricoh GR 3X digital camera is the best digital camera, and the only useful Apple device is the iPad Pro. Beyond this, the only thing I spend money on is coffee and meat, my favorite is going to the Costco business Center and getting beef brisket and beef ribs.
Should I read any literature on building a business?
I’ve read hundreds of books on business, marketing, entrepreneurship, etc. Out of all these, the only books which have been useful to me:
- Biography on Steve Jobs by Walter Isaacson
- Zero to one by Peter Thiel
- Invent and wander by Jeff Bezos
More useful is reading books on philosophy. For example, stoicism is good because it teaches you mental fortitude to not give a “F” about the successes or failures of your business. In fact, the philosophical truth is that there is no such thing as success and failure, only feedback.
Also a more recent innovation, hypelifting. Rather than watching some boring documentary on building a business, or reading some Y Combinator or hacker news propaganda on boring ways to build and sell the business, better to just go to the gym and attempt a hypelift.
What does this mean? I have a theory; in order to become a successful entrepreneur, there is much courage involved. And I believe the physical courage is inseparable from mental courage. Or soul courage.
That is, the number one thing you could prioritize when attempting or starting your own business, or during the journey of building your business and your own solo media empire is this — augment your physical courage.