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Aaron Hoddinott
THINK, ACT, AND BE RICHER 5 Key Principles That Make Entrepreneurs
Succeed
Disclaimer: This report represents solely the opinions of Aaron Hoddinott. Aaron Hoddinott is
not an investment advisor or business valuator/broker, and any reference to specific investment
opportunities in the list referred to in the report does not constitute a recommendation thereof.
Readers are encouraged to consult their investment advisors and accountants prior to making
any investment decisions. The information in this report is of an impersonal nature and should
not be construed as individualized advice or investment recommendations.
Contents
Every Entrepreneur‟s Journey Starts with a Business Plan .......................................................5
Success Is a By-product of Passion ..........................................................................................6
Passion Gives You a Mission .............................................................................................7
Enter Akinori Ito ................................................................................................................7
The 5 Insanely Important Elements of a Successful Startup .....................................................8
1. Market Already Has Built-in Demand or Desire for the Product/Service.......................8
2. Focused on a Niche within a Niche (aka Micro-niche) ..................................................9
3. Frugal .............................................................................................................................9
4. Strong Management Team with Everything to Lose .................................................... 10
5. Willing to Spend a Significant Amount of Capital on Marketing ................................. 11
Wrapping Up .......................................................................................................................... 12
About the Author .................................................................................................................... 13
5
Every Entrepreneur’s Journey Starts with a Business Plan
efore you think I am going to give you the usual five steps „to a great business plan‟
rundown, let me just say, that‟s not going to happen here. Cookie cutter business plans
are for wannabe entrepreneurs, and whenever one comes across my desk, it always gets
trashed. This Ebook is about my personal experiences as an entrepreneur and startup investor.
I‟m going to explain exactly what I‟ve found has worked, why it has worked, and what I‟ve seen
to be a recipe for disaster both when investing in new businesses as well as starting a new
venture. If you‟re an entrepreneur, or an aspiring one, I guarantee you will walk away from this
Ebook having learned something you can apply right away. Let‟s get started…
A business is supposed to be innovative. So why on earth would you want to make a cookie
cutter business plan? It‟s just a terrible way to start things off.
If you‟re serious about your business idea, and need help creating a stellar business plan, visit the
URL below (I‟ve authored a detailed article on how to create the perfect plan, worthy of any
VC‟s time):
http://capitalistcreations.com/every-entrepreneurs-journey-starts-with-a-business-plan/
Why My Opinion Matters
I‟ve spent the majority of my entrepreneurial life reviewing business plans/models and deciding
whether or not I want to invest in companies based on their plan. Needless to say, I take this stuff
very seriously as my money and reputation depends on accurate analysis. So, analyzing and
improving business plans is a big part of what I do for a living.
Before we jump into things - I have a question for you:
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Success Is a By-product of Passion
The driver behind every successful business is always passion. Before starting any venture or
looking to expand upon one already in existence, you have to ask yourself if the endeavor allows
you to act on your passion.
When my son was born, everything changed for me, and that even included my perspective on
business. I went from an entrepreneur to a fatherpreneur, meaning:
• I was more focused, from a business standpoint, on making a positive difference in other
people‟s lives.
• I began working more efficiently so I could spend more time with my wife and son
(learned to outsource as many tasks as possible).
• I became interested in finding companies to invest in that created value for humanity over
the longterm.
• I paid more attention to my business‟ ecological footprint.
• And I wanted to expand my brand in a way that would allow my company to make
money only after helping others make money.
I changed my way of thinking and acting as an entrepreneur because I wanted to be a great
example for my boy, and leave this world a better place for him and my future grandchildren.
That‟s my passion.
Having kids changes the way you think as an entrepreneur and capitalist. It gives you a zoned-in
focus on creating sustainable initiatives and prepares you for bigger challenges. So, if you want
to be a great entrepreneur, go make a ton of babies (just kidding).
7
Passion Gives You a Mission
One story I want to share with you, before we get into the nuts and bolts of how I‟ve learned to
operate as a successful entrepreneur, exemplifies the beauty of capitalism and demonstrates the
importance for entrepreneurs to have a mission.
I routinely mention on our fan page (https://www.facebook.com/CapitalistCreations) that, as
entrepreneurs, we need to focus our businesses on a MISSION, not simply making money. If we
do that, and do it well, prosperity will find us. This is a timeless truism of capitalism, and it will
never change.
Finding your entrepreneurial mission is critical to your long-term success as a capitalist. And in
order to find your mission, you have to ask yourself, “What am I passionate about? What would I
spend my career doing if money was no object?” I can tell you from personal experience that if
you don‟t love what you‟re doing, even if you are making a fortune, you won‟t be happy.
Success is a by-product of passion.
Enter Akinori Ito
Akinori Ito is a fatherpreneur and the perfect example of an innovator on a mission not geared
toward money. However, if he is successful in getting his innovation widely adopted, Akinori
will likely become a multi-millionaire, and deservedly so…
What Akinori has created is a portable device that can convert our old plastics into oil. As you
likely know, plastic containers consist of a substantial amount of oil.And considering that barely
4% of all plastic containers we send to the recycling plants are actually recycled, that‟s a lot of
oil being wasted, and a lot of landfills growing in size.
Akinori‟s passion behind this ingenious innovation came from his children. As a child he loved
the outdoors, and when he had children of his own, Akinori noticed the places where he once
played weren‟t there anymore. He began to research some of the environmental concerns within
his own country, due to urbanization, technology and population growth. It was from this
research that he established his entrepreneurial mission. That mission is to limit the negative
environmental impact of trash by using Japanese technology to convert old plastics into oil
(which can later be used for diesel, kerosene etc.). Thanks to his incredible innovation, plastic,
according to Akinori, should be viewed as treasure, not trash.
Before starting any venture, make sure your passion is front and centre. After you have
established what you are passionate about, then you can determine your precise mission, just like
Akinori.
8
The 5 Insanely Important Elements of a Successful Startup
fter nearly a decade of investing in various startups, I‟ve come across my fair share of
breakthrough companies that managed to conquer their particular niche – whether that be
in technology, mining, energy, agriculture or biotech.
I‟ve had tremendous success investing in startups, but I‟ve
also seen my fair share of failures. And I‟m appreciative
to have invested in, and worked with, startups that ended
up going broke (although I never like to see anyone fail),
because I learned more from my mistakes than
successes.
It was from those mistakes, and the millions of dollars
lost in those deals, that I acquired the knowledge on
how to identify red flags and potential threats to new
businesses. It taught me precisely what the
successful startups did differently than the failures
– an invaluable lesson.
Although startups can operate in very different
industries, some extremely obscure, the successful ones have nearly
identical characteristics. I‟ve identified the five key principles every successful startup I‟ve
worked with, and invested in, had. These five principles are essential to the success of any new
startup:
1.Market Already Has Built-in Demand or Desire for the Product/Service
Great startup ideas are built around the premise of
filling a need of society. Typically, great startups
provide a convenience or make a market more
efficient (i.e., cutting out a middle man).
As a simple example, think about the concept of a
food truck. It comes to the customer (outside office
buildings), cuts out the overhead of a restaurant
(making for a cheaper product), and saves people time
during their lunch hour. It‟s no wonder the food truck
industry has taken off so quickly in all major
metropolises across North America.
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2. Focused on a Niche within a Niche (akaMicro-niche)
The most successful startups these days are
focused on a very precise market. It isn‟t
enough anymore to focus on just a niche
market. You need to focus on a micro-
niche.
A perfect example of a micro-niche
business is a company a friend of mine runs.
He owns a property management company
which focuses on executive rentals.
However, he goes one step further than a
typical executive rental management
company. He doesn‟t just rent suites for
executives who travel in and out of town for
extended periods. He specifically rents
„waterfront executive rentals‟. All of his
properties have waterfront views for out of
town executives to stay in. It‟s a very smart
concept when you think about it.
Executives are typically accustomed to
higher-end accommodations and willing to
pay for it. Needless to say, my friend‟s
business is four years young and doing
exceptionally well – a great example of a niche within a niche.
3. Frugal
There‟s nothing sexy about a startup. It‟s about putting in long hours, going months without a
salary (if you‟re a founder), eating late dinners at shitty take out restaurants, and saving money
wherever possible.
Successful startups don‟t spend money on flashy office space, classy décor and the like.
Successful startups spare no expense on things that will generate REVENUE (i.e., technology,
leads, talent, and marketing to create sales). But on everything else, frugality wins.
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4. Strong Management Team with Everything to Lose
Startups require a strong management team
with superior knowledge of the sector they
are operating in. However, that in itself isn‟t
enough – not from my experience.
Management needs to have a lot to lose if
the company fails, meaning:
The individuals running the company
must have a substantial amount of their
own capital invested, as well as their
reputation on the line. Fear is the
greatest motivator, and whether that be
fear of losing capital or fear of losing
their reputation, it only helps the long-
term potential of the company when
management has a lot riding on its
success.
Furthermore, the startup must be
management‟s sole focus. This one hits me close to home. On two separate
occasions I invested a substantial amount of my company‟s capital into very impressive startups
which had a clear market advantage and stout management teams.
These companies were impeccably positioned in their marketplace and had all the fixings to be
home run deals. However, the people in management were stretching themselves thin. In both
instances, the management teams had a couple multi-million dollar businesses on the go and simply couldn‟t allocate enough time to these particular startups. Needless to say, the companies
underperformed (although they still exist today and are doing okay).
These companies took too long to capture their micro-niche because management was
preoccupied; and now they are a part of a crowded space – a space where they were first to
market, but not quick enough to grow.
5. Willing to Spend a Significant Amount of Capital on Marketing
Like it or not, we live in a cluttered economy. Getting the word out on your product or service is
vital. And you can‟t rely on word of mouth, particularly in the early stages.
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Don’t Pinch Pennies on Marketing
The most successful startups I‟ve invested in, or worked with, have always been willing to spend
a good chunk of their war chest on marketing. These startups understand that spending money is
needed in order to make money, and they raise as much capital as they can to help spread the
word on their company.
Initially, a large marketing budget
can make a founder uneasy as it often
depletes the treasury very quickly;
but if you‟re not willing to spend
money to get your brand in front of
thousands of people, you should think
twice about starting a business. A
brand that is built to show is built to
grow… spend money to show off
your company.
If you don‟t have money to market,
then go raise some money, whether
that be taking out a loan or seeking investors. One great thing about starting a business in today‟s
economy is that, thanks to social media and the rapid growth of the internet, marketing has never
been more affordable. And if you think you have a great idea that just needs some cash, feel free
to email [email protected]. I am always looking to invest in solid startup
opportunities.
So there you have it. Startups require these 5 essential elements if they are to achieve long-term
success. The first million is always the hardest to make, but if your startup has the above
mentioned components, it will likely be a hell of a lot easier.
12
Wrapping Up
he information I‟ve shared with you in this Ebook is not theory; it is my real life playbook
for entrepreneurial success and personal economic freedom.
These entrepreneurial principles are precisely what I used to get to where I am today; and
I will continue to use them no matter what venture I embark on next.
As I mentioned, I have made my fair share of mistakes along my entrepreneurial journey, but
those mistakes allowed me to sharpen my skills by teaching me what works and what doesn‟t.
Don‟t beat yourself up over mistakes, simply learn from them. One of my favorite statements is
“conflict and adversity makes a dull blade sharp”.
I‟ve spent nearly a decade building my online marketing company, investing in startups, and
running two online financial newsletters. Using the principles and strategies mentioned in this
Ebook, there‟s no telling where my entrepreneurial ventures will take me in the next decade.
That blue sky potential is exciting, and I hope this Ebook has provided you with some great ideas
and motivation for your own entrepreneurial journey.
Be sure to stay up to date with www.CapitalistCreations.com as we publish motivational and
practical articles every week that will keep you on track to achieving your entrepreneurial
mission. We don‟t preach about get rich quick schemes at Capitalist Creations, because they
simply don‟t exist. Becoming wealthy is a choice, and it requires preparation,
perseveranceanddaily motivation.
Welcome to the Capitalist Creations community, and please don‟t hesitate to email us with any
questions you may have in the future.
Stay hungry,
AaronHoddinott
www.CapitalistCreations.com
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About the Author
Aaron Hoddinott started his own marketing company at the age of 22. His company has grown
into a full-scale online PR & marketing brand which specializes in online marketing and
awareness for publicly listed companies in the biotech, natural resource, technology, and energy
industries. His business has helped raise awareness for over 50 publicly traded companies (at one
point these companies had a combined market capitalization of over $1 billion). Aaron is also the
author of a financial newsletter which focuses on publicly traded startup and early growth
stageopportunities.Aaron‟s writing and commentary has been featured on:
TheStreet.com
Minyanville.com
TheDailyCrux.com
Trade King All-Stars
and more...
Aaron is the founder of CapitalistCreations.com, a father, husband, and dog lover (as well as a
self-titled beer connoisseur).
Join Capitalist Creations‟ fan page: https://www.facebook.com/CapitalistCreations