SFR 287: The Two Worlds Of Entrepreneurship – Stephen Larsen

SFR 287: The Two Worlds Of Entrepreneurship

Nov 18th, 2019 anchorwave

There are two worlds of entrepreneurship…

One will enslave you while handing you a spruced up prison cell…

The other looks challenging, but it really isn’t that difficult, once you start walking…

Welcome to another awesome intense ‘your life’s never gonna be the same’ Sales Funnel Radio blog… 🔥Entrepreneur advice especially for you

Today, I’m gonna tell you…

  1. About the TWO Opposing Worlds In Entrepreneurship.
  2. Why you should choose your path to entrepreneurship wisely.
  3. How I piss off the professional VC funders and college professors (…and how you can too) 😉

Steve Larsen entrepreneur advice

When I was in college, I was taught to…

  • Create a business plan
  • Make a mission statement
  • Do a 15 to 30 page write up
  • Stand in front of a board of investors to see if we could get funded.

Crazy entrepreneur advice

… we actually did that.

I’m NOT bad-mouthing college; I learned a ton. I still think people should go to college. Personally, I needed college because I needed to learn how to learn.

I would not be doing what I am now, today, without college.

So I’m not gonna bad-mouth school. I’m never gonna a bad mouth higher education.

If you have an MBA… (or went even higher than that) – Congrats, that’s awesome…

It’s just NOT what fills your wallet.

Entrepreneur advice

…and that’s okay.

You can do things that aren’t for cash.

HOW TO BE AN ENTREPRENEUR

In college, I had this brilliant teacher who’d invented a new style of concrete that was significantly stronger and needed less material.

When the World Trade Centers were hit in 9/11, his company was hired to rebuild them…

He was a *BRILLIANT* guy and super fun to learn from. He was walking the walk, talking the talk.

He was actually out on the street and making cash.

I always wanna learn from somebody who’s done what I’m asking them to teach me.

So, in this class, we created a 15 to 30 page business plan; it was a BIG write-up with a SWOT analysis and ALL the stuff…

The culminating event of the entire semester was to stand in front of a board of investors and pitch these guys to see if we could get our businesses funded.

Entrepreneur advice on funding

… there were people who were actually funded – it was super cool and exciting.

And it wasn’t until I actually saw this pesky little book called DotCom Secrets that I realized that business success wasn’t based on…

  • The product
  • How it looked

… all the things I was learning at college; these things help, but they’re NOT why your product sells.

It was hard because I was like, “Well, this guy, Russell Brunson, is totally an entrepreneur…

But he’s not teaching me to go do the same stuff that I’m learning in college.”

How to be an entrepreneur

So it was almost a little bit confusing for me for a little while…

HOW ENTREPRENEURS THINK…

And that’s WHY I want to share this golden nugget from OfferMind with you!

I’m gonna reveal to you…

  1. How deep the two worlds of entrepreneurship go.
  2. Why people are so rooted in the world they’ve chosen.
  3. Why I’m a fan of one path… and NOT the other!

You have an opportunity to choose which path you’re gonna take and I want you to choose wisely.

I’m gonna tell you right now: A funnel is ALWAYS greater than funding.

...and I want you to know why!

If you go out and get funding, more power to you – but you’re gonna see WHY I believe that is the dumber path.

Kill the j curve

Funding is NOT actually what you should be aiming cause…

  • … it’s hard.
  • … it’s scary.

It’s MORE nerve-racking to chase funding for a business than to build a funnel.

Let me tell you why…

Sometimes, people be like, “Steve, I built a funnel. It didn’t work.”

I wanna shake them and say, “And?! Do you want the alternative?

  • Just try it again.
  • Stop whining.
  • Ok, go get funding.

So now I’m gonna reveal to you why I think you should take the funnel option.

THE TWO WORLDS OF ENTREPRENEURSHIP

There are two worlds of entrepreneurship.

How entrepreneurs think

  1. Funding & The J Curve
  2. Bootstrapping Your Funnel

Q: Have you heard of the J Curve?

(… if you’re an SFR fan you will have 😉)

I HATE the J Curve.

The J Curve has killed more dreams, in my opinion, than anything else.

I hate the j curve

#EvilPractice

The first world of entrepreneurship is about funding. I love Shark Tank, but I hate what they do. 😂

*Funding Is Terrible*

THE SIX CELEBRATIONS

There are Six Celebrations in the standard entrepreneurship world

I really wanted to get an MBA for a while… and this is what I was taught in college as I was being prepped for an MBA).

I’m not throwing rocks… if you have a higher education, that’s totally fine.

How entrepreneurs think about funding

It’s just NOT what causes cash.

The J Curve is what I was taught as a prep for an MBA.

Q: How many of you guys learned about the J Curve in school?
Yeah.

Q: How many of you bought into the J curve and got a loan?

  • Totally get it.
  • Feel your pain.
  • Did the same once.

So let’s get back to those Six Celebrations…

Check this out….

CELEBRATION #1:

Entrepreneur advice celebration 1

  • When you get FUNDED. Woo!

Coulton and I won a business competition at our college (that’s where we met) and they sent us to compete in another business competition at another college.

Steve Larsen and Coulton entrepreneur advice

#BeforeTheBeard

None of the other entrepreneurs took us seriously ’cause we hadn’t been funded yet.

  • They didn’t even wanna talk about…
  • How to market the product?
  • What problem our product solved…

#WHAT???

They had the attitude of, “… it’s NOT viable ’cause no one’s funded it yet!”

Steve Lasen how to be an entrepreneur

The moment you get funded, it’s a huge celebration in the traditional entrepreneur world.

CELEBRATION #2:

Entrepreneur advice celebration 1

  • The moment you STOP losing money.

You take a whole bunch of funded money and dump it into your business systems…

(…this is from Wikipedia)

Entrepreneur advice celebration 2

You see the years at the bottom there?

Well, in three to five years, you’re expected to no longer be losing cash.

THREE TO FIVE YEARS!!!!

Sales Funnel Radio entrepreneur advice

I haven’t been doing *this* that long. 😂 That’s ludicrous!

At this stage, people often go for a second round of funding too.

I’ve had a ton of people on LinkedIn, (“the professionals’ social media” 😉) slam me.

They’re pissed that I am out here exposing the fact that VC funding isn’t needed.

I’ve had VC firms reach out and ask, “What are you talking about? We don’t know how to value your business because we don’t know the loan to revenue ratio.”

“My loan is zero. What are you talking about?”

“So you’re NOT actually worth anything?!?”

“I’ve made $2 MILLION in a year and a half!!! What do you want from me?”How to be an entrepreneur breaking the rules

That VC funding world doesn’t know how to look at our world.

ClickFunnels has been running into this situation, ’cause they didn’t take on any VC money.

They can’t figure out HOW to value ClickFunnels cause there’s no loan to revenue ratio.

Shocking entrepreneur advice

… and they freak out!!!

CELEBRATION #3:Entrepreneur advice celebration 3

  • When you START making money – i.e., you’re NOT losing money anymore.
  • You’re NOT losing money
  • You’re NOT making money either

Money is going out as fast as you’re making it and you’re just going straight.

CELEBRATION #4:

Entrepreneur advice celebration 4

  • When you start making MORE cash than you’ve borrowed!

This is usually in about five years – that’s a BIG celebration.

Entrepreneur advice celebration

HOLY COW!!!

Then when they start making cash on the cash itself, people go for another round of funding.

Then the next influx of funding is when they actually break even and make more money than they took on.

Makes me wanna throw up a little bit.

The j curve makes me sick

CELEBRATION #5:

Entrepreneur advice celebration 5

  • When you actually hit a big PROFIT zone.

The big profit zone is all that space above the bottom line there 🖕🏾

CELEBRATION #6:

Entrepreneur advice celebration 6

  • In about 10 to 15 years, when you SELL UP on the stock market.

This is the dirty dark side of the entrepreneur space.

“What’s your real opinion, Stephen?”

WHAT’S THE ALTERNATIVE?

….the ‘other way’ is just to build a funnel and bootstrap it.

Q: You know what’s interesting?

The people who compete with ClickFunnels don’t sell their funnel software with a funnel!

Ridiculous entrepreneur advice

*RIDICULOUS*

HERE’S THE PATH…

  • Don’t get funding
  • Learn what real marketing is.
  • Create a sales message.
  • Create an offer.
  • Build a funnel.
  • Launch it.
  • Re-launch it.

Sometimes, when I share that path, people are like, “But that sounds like work, Stephen?!”

How entrepreneurs think about work

Or…

The other response I sometimes get is this…

I was sitting on a security line, in the dirt, for 10 days [chuckle] with my M16 in my right hand and DotCom Secrets in my left.

Army uniforms have a pen slot right here on the forearm, so I’d lay my rifle down, make sure no sergeants were around, take out my pen, write notes.

(It was a training, okay – there was nothing going on.)

…and that’s where I read DotCom Secrets.

My buddy asked me, “Where do you learn all this stuff?”

So I told him, Go to dotcomsecrets.com.”

He came back and said, “This guy’s talking a lot about money and it sounds like a scam. I don’t think so.”

I was like, “What are you talking about? Look at my bank statement! The book’s $7, What is wrong with you?”

After a while, I just stopped pursuing him. I’m was like, “Alright, whatever.”

Anyone offended yet? Are we good? Alright!

THE J CURVE

School and mainstream entrepreneurship teach you to…

Mainstream entrepreneur advice

  • Build a business system…
  • Decide who’s on your team…
  • Create fulfillment processes
  • Source your product
  • Create your operations statement?
  • Write a 15 to 30 page business plan and hopefully, get funded.

… then hopefully, those systems create cash.

The j curve

I DON’T BELIEVE THAT’S THE BEST WAY!

Don’t do the business systems thing!

Instead, here’s what I’d suggest…

Stephen Larsen entrepreneur advice

  1. Build the funnel
  2. Test your message and offer real-time.
  3. And then those things create your systems.

That’s why I’ve created MOST of my systems in the last year.

In the first six months, I was solo for the most part.

Now, I take that revenue and the revenue builds…

  • My team as I need it.
  • My systems as I need them.

I get paid from the profit, NOT a loan.

#KillTheJCurve

SEE STEVE LIVE

So several years ago, I walked by a stage in a basketball stadium.

It was my college campus and I was deeply concerned with what I wanted to do in my life.

For some reason, I looked at the stage and thought, “Huh, one day I wanna be on stage. I wanna be an entrepreneur and I wanna buy and sell companies.”

Well, while the last one hasn’t happened … yet, Muahaha… stage and entrepreneurship has…

See Steve Live

And as my business has grown and my message has spread, a frequent question I’m asked is, “Steve, what stage will you be on next?”

Now I totally get that this feels, maybe, a little conceited here…

But considering my childhood fear of speaking up, being heard, extreme lack of self-confidence, and getting in front of people, back in my growing up days, I feel satisfied.

I thought I’d tell you where I’ll be in the world coming up.

And funny enough, just literally go over to seestevelive.com, and it’ll forward you to the next place.

I love stage and it’s one of my biggest things to look forward to in my current role in my business.

See Steve Larsen Live

From little 10 person masterminds all the way to gigantic 5000 person events – from free seats to paid events – events have always been one of the ways I can deliver the MOST value and get the greatest “AHA’s” in the shortest amount of time.

Just come say hi, and go over to seestevelive.com.

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