A student of mine recently asked me how much money it would take to start this business. He asked me for a no B.S. answer to a no B.S. question, so let’s go ahead and do that, with no B.S. There is so much out there. EVERYBODY seems to be trying to sell you EVERYTHING!!! So what’s the real deal? What do you really need? And more importantly, what do you NOT need to run this business?
Ok, here it is. The no bull answer to what most people don’t want you to know.
First off, you need to figure out what your monthly expenses are. I’m talking your living expenses, such as your mortgage, food, gas, utilities, travel, whatever. And then you need to somehow reduce it. Stop eating out. Stop all the traveling. DON’T buy that new car. Keep your expenses down to a minimum. This is a great business, but it can be tough while you’re getting it running. Wait until your deals are cashing out consistently, THEN buy the new Mustang GT 500 Shelby Foose or the Corvette or the BMW. Ok, you didn’t want to hear that. Here’s what you’re really after.
WHAT YOU NEED TO START THE BUSINESS.
- Fax – Get a nice fax that will also copy and scan. It should be able to send packages of 30 pages or more. Realize that you might at times be sending a package of 70 pages. In those cases, you’ll have to “feed the fax” to make those go through. That’s what I do. $300-$400
- Separate Fax line – $50/month
- Cell phone – $200/month
- E- fax – don’t need it, but good for later.
- Websites – with a good coaching program, they will be very cheap.
- File Cabinet – if you’re broke, use a box. If you have an extra $200, then get something nice that opens and closes easily and locks
- Desk – if you’re broke, use the kitchen table. If you have some extra money, get something fairly cheap.
- Office – not needed!!! Only when you have a staff and can afford the extra $1000/month.
- Attorney’s fees – Shouldn’t need it. If you’re meeting with an attorney to give them business, the initial meeting should be free or fairly cheap. Regarding CYA stuff, your coaching program should help you with all of that. Just take what your coaching program offers, and present it to your attorney and see what he/she says. Again, it should be cheap/free.
- Accountant – Necessary for later on in the business. Later on, you should be paying $200/month or so for book keeping. Early on, DO NOT PAY FOR IT!!! They will catch you up when you have the money to do so. Even if you go 1 or 2 years without one, it’s ok. You can always catch up.
- Marketing – if you have the time, door knock. If you need a door knocking course, go to www.geteverydeal.com to get the best one on the market today. You should also be sending out direct mail. If you’re broke, then only a one or two letter campaign, which should cost you about 75 cents per letter. When you have a little extra money, then Google Adwords is the way to go. Try www.leadsinyourinbox.com for the best internet marketing out there. Bottom line is that you can spend $200/month on marketing or $2000/month on marketing, so be careful here if you’re broke.
- Coaching program – This is where people fail to spend the amount of money necessary. SPEND YOUR MONEY ON A GOOD COACHING PROGRAM!!! Most quality programs will cost you between $10,000 and $30,000 per year. If you can get into a new or budding program, it might be a little cheaper. Here is why you need to spend the money. A good program will help you cash out on a deal much quicker than you can on your own, and much quicker than a cheap or poor coaching program. A good coaching program will help you make an extra $10,000 on that first deal, which will pay for the program all itself. A good coaching program will make you a success while you watch everyone else fail at the business. Lastly, a good coaching program will give you a lot of the things that you need or are nice for the business. Websites, data management software, etc…
That’s about it! I hope this helps to clear some things up.
The best!
