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 info@capitalistcreations.com. 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.

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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