The $100 Startup By Chris Guillebeau: Book Summary and Review

70/100

The first book by Chris that I didn’t absolutely love.

Highlights from The $100 Startup by Chris Guillebeau:

Prologue: Manifesto: A Short Guide to Everything You Want

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There’s no rehab program for being addicted to freedom. Once you’ve seen what it’s like on the other side, good luck trying to follow someone else’s rules ever again.

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Perhaps most important, the vital career question of what is risky and what is safe has changed permanently. The old choice was to work at a job or take a big risk going out on your own. The new reality is that working at a job may be the far riskier choice. Instead, take the safe road and go out on your own.

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family. (In almost all these cases, they said something like, “Losing my job was the best thing that ever happened to me. If I hadn’t been pushed, I never would have made the leap.”)

Part I: Unexpected Entrepreneurs

Highlight (yellow) – 1. Renaissance: You Already Have the Skills You Need—You Just Have to Know Where to Look. > Page 5

It wasn’t what Michael had ever expected to do, but he had built a real business, profitable right from the first truckload of mattresses and providing enough money to support his family. On the two- year anniversary of his abrupt departure from corporate life, Michael was looking through his closet when he spotted the Nordstrom suit he had worn on his last day. Over the last two years, he hadn’t worn it— or any other professional dress clothes— a single time. He carried the suit out to his bike, dropped it off at Goodwill, and continued on to the mattress store. “It’s been an amazing two years since I lost my job,” he says now. “I went from corporate guy to mattress deliveryman, and I’ve never been happier.”

Highlight (yellow) – 1. Renaissance: You Already Have the Skills You Need—You Just Have to Know Where to Look. > Page 6

Product launches from one- man or one- woman businesses bring in $ 100,000 in a single day, causing nervous bank managers to shut down the accounts because they don’t understand what’s happening.

Highlight (yellow) – 1. Renaissance: You Already Have the Skills You Need—You Just Have to Know Where to Look. > Page 20

As we’ll see, James later got serious about making a real plan, but the more important step was the decision to proceed.

Highlight (yellow) – 2. Give Them the Fish: How to Put Happiness in a Box and Sell It. > Page 39

KEY POINTS Value means “helping people.” Our unexpected entrepreneurs discovered that when they focused on providing value above all else, their businesses were successful. Give people what they really want, not just what you think they should have. Give them the fish! The more you can market a core benefit instead of a list of features, the easier it will be to profit from your idea. Core benefits usually relate to emotional needs more than physical needs. Most people want more of some things (money, love, attention) and less of other things (stress, anxiety, debt). Always focus on what you can add or take away to improve someone’s life…and then prepare to get paid.

Highlight (yellow) – 4. The Rise of the Roaming Entrepreneur: “Location, Location, Location” Is Overrated. > Page 71

Even entrepreneurs like Brandon Pearce who have carefully built a high-income, hands-free business that allows them to work minimal hours do that only after the business has been established. In the beginning, there’s usually a fair amount of fumbling and a large number of hours spent working on projects that may or may not succeed.

Highlight (yellow) – 5. The New Demographics: Your Customers All Have Something in Common, but It Has Nothing to Do with Old-School Categories. > Page 75

Finally, I realized that the target market had nothing to do with demographics in a traditional sense—the group simply consisted of people from all backgrounds who wanted to live unconventional, remarkable lives. They were “pro-change” and interested in pursuing a big dream while also making the world a better place for others. In other words, I didn’t have to segment or label them according to irrelevant categories.

Highlight (yellow) – 5. The New Demographics: Your Customers All Have Something in Common, but It Has Nothing to Do with Old-School Categories. > Page 80

This is another sign of a good business opportunity: when lots of people are interested in something but have a hard time implementing it in their daily lives.

Highlight (yellow) – 5. The New Demographics: Your Customers All Have Something in Common, but It Has Nothing to Do with Old-School Categories. > Page 82

Questions like these are good starting points: What is your biggest problem with ______? What is the number one question you have about _______? What can I do to help you with _________?

Highlight (yellow) – 5. The New Demographics: Your Customers All Have Something in Common, but It Has Nothing to Do with Old-School Categories. > Page 85

I didn’t have time to call Dan on launch day, and perhaps I missed a good opportunity to learn from him. But I’m pretty sure it was the better decision to get back to work on my core market instead of spending time with one disgruntled customer who had already received a refund.

Highlight (yellow) – 5. The New Demographics: Your Customers All Have Something in Common, but It Has Nothing to Do with Old-School Categories. > Page 89

Who are your people? You don’t necessarily have to think of them in categories such as age, race, and gender. Instead, you can think of them in terms of shared beliefs and values.

Part II: Taking It to the Streets

Highlight (yellow) – 6. The One-Page Business Plan: If Your Mission Statement Is Much Longer Than This Sentence, It Could Be Too Long. > Page 95

Jen and Omar began with an idea, kept costs low, and didn’t wait long before stepping forward with a product. Then they adapted to the marketplace response (make more maps!) and built each new product carefully. “It’s funny, because we’re both obsessive planners,” Jen told me. “But this project had almost no planning whatsoever in the beginning, and now it’s our full-time work.”

Highlight (yellow) – 6. The One-Page Business Plan: If Your Mission Statement Is Much Longer Than This Sentence, It Could Be Too Long. > Page 96

. It’s easier to sell to someone who knows they have a problem and are convinced they need a solution than it is to persuade someone that they have a problem that needs solving.

Highlight (yellow) – 6. The One-Page Business Plan: If Your Mission Statement Is Much Longer Than This Sentence, It Could Be Too Long. > Page 105

If you have a dog-walking service, the feature is “I walk dogs.” The benefit is “I help busy owners feel at ease about their dogs when they’re not able to be with them.”

Highlight (yellow) – 7. An Offer You Can’t Refuse: The Step-By-Step Guide to Creating a Killer Offer. > Page 121

How do I know this really works? I don’t know if this is a good investment (and/or I’m not sure I have the money to spare). I’m not sure I can trust you with my money. What do other people think about this offer? I wonder if I can find this information/get this product or service without paying. I worry about sharing my information online (or another privacy concern).

Highlight (yellow) – 7. An Offer You Can’t Refuse: The Step-By-Step Guide to Creating a Killer Offer. > Page 124

As much as possible, connect your offer to the direct benefits customers will receive. Like the Alaska coupon books, a compelling offer pays for itself by making a clear value proposition.

Highlight (yellow) – 8. Launch!: A trip to Hollywood from Your Living Room or the Corner Coffee Shop. > Page 145

Always return to the all-important value question: How can you help people more?

Highlight (yellow) – 9. Hustling: The Gentle Art of Self-Promotion: Advertising Is Like Sex: Only Losers Pay for It. > Page 153

Freely give, freely receive: It works. The more you focus your business on providing a valuable service and helping people, the more your business will grow.

Highlight (yellow) – 9. Hustling: The Gentle Art of Self-Promotion: Advertising Is Like Sex: Only Losers Pay for It. > Page 154

. Often, I upgrade someone’s shipping to overnight for free, or double someone’s order, or include a copy of my favorite book with a handwritten note. I like to package my products for shipping like a gift to my best friend. This strategy has been a huge contributor to fast growth and popularity in my industry.

Part III: Leverage and Next Steps

Highlight (yellow) – 11. Moving On Up: Tweaking Your Way to the Bank: How Small Actions Create Big Increases in Income. > Page 195

Providing both a product and a service helps with your marketing as well. You can say to prospects, “Hey, my service costs a lot of money because everything is customized. But if you just need a general solution, you can get this version for much less.” Some customers will still want the customized solution, but this way you don’t shut the door on others who like the idea but can’t afford the high-end work.

Highlight (yellow) – 13. Going Long: Become as Big as You Want to Be (and No Bigger). > Page 229

Entrepreneurs are not necessarily risk takers; it’s just that they define risk and security differently from the way other people do.

Highlight (yellow) – 13. Going Long: Become as Big as You Want to Be (and No Bigger). > Page 231

many of the members of our group made a deliberate decision to stay small, creating a “freedom business” for the purpose of having the freedom. Others chose to grow by carefully recruiting employees and going all in.

Highlight (yellow) – 13. Going Long: Become as Big as You Want to Be (and No Bigger). > Page 235

Every morning, set aside forty-five minutes without Internet access. Devote this time exclusively to activities that improve your business—nothing that merely maintains the business. Think forward motion…What can you do to keep things moving ahead? Consider these areas:

Highlight (yellow) – 14. But What If I Fail?: How to Succeed Even If Your Roof Caves in on You. > Page 258

Advice can be helpful, but you can also just step out and take a big leap. Don’t wait for someone to give you permission.

Highlight (yellow) – 14. But What If I Fail?: How to Succeed Even If Your Roof Caves in on You. > Page 259

The most important lesson in the whole book: Don’t waste your time living someone else’s life.

Short Review

Chris does an excellent job sharing research that he and his team conducted on startup entrepreneurs. 

He shares how thousands of entrepreneurs went from almost nothing to business, usually in under a year. 

While the book does a good job of highlighting success, it begs the question of just how many wanna be entrepreneurs try and fail first? Just because there are thousands of success stories, doesn’t mean there aren’t 100 times more failures out there.

But this book, and this author, are highly positive about the possibilities and opportunities building your own business provides. 

Overall, not Chris’ best book, but still a worthwhile read.  

Summary Notes

• You’ll read success story after success story from entrepreneurs who went from $0 to big hit. 
• Chris’ will share his own stories and how he made it online. 
• Freedom from the man is not only possible, it’s happening for thousands. 
• Working the 9-5 is no longer safe.
• You can make money doing just about anything as long as it provides value. 
• When you first start out expect to hustle. 
• As you grow your business, get smart about how it operates to expand. 
• Ask questions of and about your target audience. 
• Not all feedback is created equal. 
• Answer the questions you know your audience has about your offer in order to better position yourself. 
• Under promise and over deliver.