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5 Successful Businesses That Started With Simple Ideas

5 Successful Businesses That Started With Simple Ideas

Many of us have heard that small business is the backbone of our economy. Mega-corporations like Walmart and Apple started off as small businesses. Some people are dissuaded to start one. They turn to statistics that say “most new businesses will fail within three years” to justify their reason for not starting one.

Starting a business is simple. It begins with an idea, some paperwork, and a storefront and/or website. However, creating a successful company is not as easy, but it can be easier when the business model is based on a simple idea. Here are five successful businesses that started with a simple idea.

1. Cheekd

Lori Cheek, the founder and CEO of Cheekd.com, started as an architect. After working 15 years in the industry, Lori abandoned the career to immerse herself in the tech world.

She was forced to get extremely creative about funding the business since she was living on her savings.

To offset her expenses, Lori managed to make $75,000 by selling designer clothes on eBay, walking dogs, doing focus groups, secret shopping, and selling her stuff on Craigslist.

She no longer wanted to build structures but rather build relationships. So, Cheekd was born. It is a dating app that makes missed connections obsolete. The app connects people in real time rather than virtual time, which allows people to begin meeting in person before continuing online.

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Her biggest break came when she got accepted to be a contestant on ABC’s Shark Tank. While her idea was shot down by all five Sharks, she left them with a message. “Trust that you will all see me again,” she said. Within 48 hours after the episode, about 50 investors wanted to invest in her business.

The New York Times has called Cheekd, “the next generation of online dating.” She has been featured in The Huffington Post, Inc Magazine, and TEDx. Cheek’d has customers in 47 states and 28 countries.

2. Air Ad Promotions

Marty Buckholt started Air Ad Promotions in 1989.

One day, he was looking through Entrepreneur magazine and came across an ad of an advertising balloon. He pitched the idea to his roommate, agreeing that he would fund the venture and his roommate would use his sales skills to start generating income.

A couple of weeks later, his roommate found a job and opted out of the partnership, leaving Marty with an advertising balloon and $3,000 less in his bank account.

When Air Ad Promotions started, cash flow was the biggest challenge. In their startup days, credit cards and lines of credit were scarce. So, besides the profits of the business, bootstrapping was the only option. However, with patience and relentlessness, Air Ad Promotions was able to make $100,000 in revenue within their first year.

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Marty attributes his success to anticipating the needs of his customers. He admits that he is still figuring things out after being in business for 25 years. However, the company now generates over 6 million dollars in yearly revenue.

3. Fundrise

Fundrise started with a simple question: “Why can’t everyone invest in real estate?” The founders, who were also real estate developers, had an idea to buy a debilitated building and convert it to a mixed-use retail and restaurant space.

Their most difficult challenge was raising capital. When they went out to search for funding sources, their prospective banks did not see the opportunity in the project. Fortunately, the founders were able to bootstrap the business for the first three years.

Despite being denied by banks, they persisted after receiving validation from the local people in nearby communities.

They earned $12,000 in their first year of business and it has continued to grow each year thereafter. Last year, the business received $35 million from a Series A round led by Renren, a Chinese tech company.

Fundrise has now over 50,000 members who have invested in 55 projects across the country and has received over 50 million from investors to fund real estate projects. They are on target to make $3 million dollars this year.

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4. Underdog

Josh Goldstein is the co-founder of Underdog, a small technology startup that started with a simple idea.

He created a simple form that took a minute for candidates to complete. He and his team of four take that information through a process of analyzing, tagging, and grading candidates. Once that process is completed, they feature the best candidates to a network of startups who in turn pay them a subscription fee.

Josh started the business in April 2014 and was determined to make his business the curated marketplace for talent. He worked for startups in the past, which gave him the experience in dealing with the stress, inefficiencies, and lack of capital.

From the start of his business until now, he remains a bootstrapper. He and his team run the business at The Founder Collective in New York City.

Underdog is doing well over $500,000 a year and works with over 120 NYC startups.

Even with Underdog’s amazing success, Josh admits that he and his team are overwhelmed with work. In the beginning, it was much worse since they were utilizing a manual process rather than their current streamline system.

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If there is one thing that Josh and the Underdog crew care about the most, it is their customer service. “We love to hear from candidates that found new jobs through our platform. And it is nice to be charging such a small fee to our customers. You can be a customer on Underdog for four years and make one hire, and it is still cheaper than using most recruiters,” Josh said.

5. Le Club Des Douze

Three and a half years ago, Alex Rizos would feature a curated selection of 12 menswear products with hopes to eventually become an online clothing retailer. “When I launched, the business was basically just an idea. I was not anxious to launch, but I wasn’t sure which direction it was going to take. Therefore, I decided to fund it all on my own to make sure that it would not cost more than I had.”

Within a year in the business, Alex took a different route and started to add content to make it resemble a blog. While the business earned him about $200 a month in the first few months and almost $8,000 within his first year, it only accounted for 10% of his income.

Alex wasn’t satisfied. He wanted to invest his current income from the business to develop it further. He pushed even harder and was able to earn a full-time income in his second year of business.

Le Club Des Douze now generates over $100,000 in annual revenue and have partnered with hundreds of independent brands.

For the aspiring business owner, Alex shares a good nugget of wisdom. “Having a vision is not enough. You need to have the drive and an action plan to turn your idea into a profitable business.”

Featured photo credit: citirecruitment via imcreator.com

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Published on July 22, 2019

The Secret to Success Is Failure

The Secret to Success Is Failure

You see a job that you’d love to do; and, you decide to go for it.

You submit your application, and then are pleased to find a few days later that you’re invited for an interview. This goes well, and you begin to have quiet optimism that a job offer will be coming your way soon…

It doesn’t.

Instead, you receive a letter saying thank you — but, they’ve decided to go with another candidate.

At this point, you could allow yourself to feel defeated, sad, and perhaps even a little angry. These are normal responses to bad news. Yet, it’s not wise to let them fester and disrupt your goals. Successful people don’t let failures kill their dreams.

Sure, they might temporarily feel deflated. But, very quickly, they pick themselves back up again and begin planning their next steps towards success.

How about you? Do you currently feel embarrassed or guilty about failing?

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Don’t worry if you do, as most of us have been programmed since childhood to see failure as a bad thing. Yet, as I’m going to show you in the next few minutes, this programming is dead wrong — failure is actually an essential part of success.

Don’t Be Tempted by Perfection

The first thing I want you to think about is this:

Resisting failure is, at its core, seeking perfection. And, perfection doesn’t exist.

That’s why perfectionists are also likely to be chronic procrastinators.

As Psychology Today noted in their article Pitfalls of Perfectionism, people who constantly seek for perfection stop themselves from engaging in challenging experiences.[1] That’s because these perfectionists are less creative and innovative than the average person — plus they’re less likely to take risks. Add these factors together, and you have someone who is overly focused on their own performance and is always quick to defend themselves. Unfortunately, these traits prevent them from having the necessary focus when it comes to learning new tasks.

Let me be clear: Striving for perfection is not the same as striving for excellence.

The former is a fool’s quest for the unattainable; while the latter is really just about doing our very best (which we can all obtain).

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And, there’s another problem that perfectionists have to deal with. Namely, when they fail to reach their ideal, they feel dejected and defeated. And — as you can imagine — repeat this often enough, and these people can end up feeling bitter and depressed about their lives.

So, forget about seeking perfection, and instead, focus on always doing your very best.

Why Failure Is Good

I recently came across a Forbes article Failing Your Way To Success: Why Failure Is A Crucial Ingredient For Success[2] that helped explain why most people are opposed to failure.

The article referenced the work of two world-renowned psychologists (Daniel Kahneman and Amos Tversky), who were awarded a Nobel Prize for their work. They discovered something very interesting: the effect of a loss is twice as great as the gain from a win.

Have you ever thought about that before?

What it means is that failure has a far greater negative impact on us than the positive impact of an equivalent win. It’s no wonder then that most people are afraid to fail.

And, here’s where it gets interesting…

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Amazon (which along with Apple, Facebook and Google, is considered one of the Big Four technology companies) has a culture that is tolerant of failure. And Jeff Bezos — Amazon’s founder and CEO — believes that this culture is one of the main reasons for the company’s big achievements over the last 25 years. In a letter to shareholders, he said:

“Failure comes part and parcel with invention. It’s not optional. We understand that and believe in failing early and iterating until we get it right.” 

The truth is, failure can open up a world of exciting opportunities for you.

How does it do this?

By constantly showing you new avenues to travel on. And, by helping you learn from your mistakes — so you can be better next time around. It also helps you identify what’s not working for your life, and what is.

So instead of seeing something as detrimental to success, you should see it as a tool FOR success. A tool that will help you to continually refine your journey in life.

If you still need some convincing that the secret to success is failure, then take a look at the following excerpts from our article 10 Famous Failures to Success Stories That Will Inspire You to Carry On:

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• J.K. Rowling encountered a catalog of failures shortly after graduating from college, including: being jobless, the breakdown of her marriage, and living as a lone parent. However, instead of giving up on life, she used these failures to propel her to write the Harry Potter fantasy series — the best-selling book series in history.

• Walt Disney didn’t have an easy start either. He dropped out of school at a young age in a failed attempt to join the army. Later, one of his early business ventures, Laugh-o-Gram Studios, went bankrupt. He was also fired from a Missouri newspaper for “not being creative enough.” (Yes, you read that correctly.) Was he defeated by these failures? Just ask Mickey Mouse.

• Michael Jordan had this to say about the power of failure: “I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”

Embrace Failure, and Prepare for Success

I hope this has been an eye-opener for you.

Failure has long been branded a leper; but in reality, it’s a healthy, essential component of success.

The trick of course is to develop the mindset of a winner. Someone who sees failures as stepping stones to success — and defeats as important learning experiences.

So, are you ready to embrace your failures and take the proud road to success?

I sincerely hope so.

Featured photo credit: Bruce Mars via unsplash.com

Reference

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