The How of Business - How to start, run, grow and exit a small business.

Five common reasons not to start a small business yet, from escaping a bad boss to fearing sales, give aspiring entrepreneurs a readiness check before they quit their job and put their savings at risk.
Show Notes Page: https://www.thehowofbusiness.com/621-5-reasons-not-to-start/
Part of helping you start a small business is helping you decide if and when you should start one, and these five reasons not to start a small business yet will help you go in with your eyes wide open.
The reality is that about one in five new businesses with employees closes in the first year, and about half are gone within five years, according to the U.S. Bureau of Labor Statistics.
In his years of coaching aspiring business owners, Henry has found that those who struggle most very often started for the wrong reasons, or before they were ready. As he puts it, it's best to know before you take that leap, before you make that investment and sacrifice, rather than end up completely frustrated or even financially ruined.
In this episode of The How of Business, Henry Lopez shares the top five reasons not to start a small business yet. Each one comes with a question to ask yourself and what to do instead. "I'm not here to talk you out of starting your first small business," Henry says. "I just want you to go in with your eyes wide open."
Five Reasons NOT to Start a Small Business:
1) You mainly want to escape your bad job or your horrible boss. Am I running from something or toward something?
2) You're following your passion. Is there a business here that customers will pay for, or is this just something I love doing?
3) You can't afford it yet. Do I have the runway without risking my family's financial security?
4) You can't handle uncertainty or pressure. How do I really react when things are uncertain and it's all on me?
5) You hate or you're afraid of selling. Am I willing to ask people for their money?
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

How to Build Trust Fast. Trust runs every small business relationship. One simple formula, the trust equation, shows small business owners how to earn it faster without faking it.
Show Notes Page: https://www.thehowofbusiness.com/620-the-trust-factor/
On this short episode Henry Lopez shares his thoughts and experiences related to why trust matters so much in business relationships, and one variable or technique that can have significant positive impact on how quickly people trust you.
People don't buy from, partner with, or make deals with people they don't trust. That's often true even when you have the better product or the better price.
Most small businesses don't have a big brand name doing the work for them. The owner or a key employee is the face of the business, and word of mouth and referrals, the lifeblood of new opportunities, depend on trust. The challenge is that trust takes time to build. You often get only one sales call, one first meeting, or one negotiation to start.
In this episode of The How of Business, Henry Lopez explains the trust equation from The Trusted Advisor by David Maister, Charles Green, and Robert Galford. Henry taught this book throughout his sales training and enablement career. He also covers the one variable in the equation that can speed up trust more than any other.
The formula is simple. Trustworthiness equals credibility plus reliability plus intimacy, divided by self-orientation. Credibility asks, "Can I believe what you say?" Reliability asks, "Can I count on you to do what you say?" Intimacy asks, "Do I feel safe sharing my real problem, budget, and concerns with you?" Self-orientation asks, "Whose interests are you really focused on?"
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

How to start and grow a small business without investors.
Show Notes Page: https://www.thehowofbusiness.com/r361-tyler-king-without-investors/
Bootstrapping a software business without venture capital or angel investors lets you grow on your own terms, and Tyler King, co-founder of Less Annoying CRM, shares how he built a profitable, sustainable SaaS company by staying disciplined, customer-focused, and true to what he actually wanted from the business.
Tyler King, co-founder and CEO of Less Annoying CRM, joins the show to share how he bootstrapped a profitable software company. No venture capital, no angel investors, no exit plan, and no rush. He shares what small business owners can learn from building a company on their own terms.
For anyone who assumes a software startup requires millions in funding and a race toward an IPO, Tyler's story is a useful counterpoint. He grew a sustainable, profitable SaaS (Software as a Service) business slowly and deliberately, proving that discipline and patience can be advantages rather than limitations.
Tyler didn't grow up dreaming of running a business. He was a programmer at a venture-backed startup when the 2008 downturn hit and nearly everyone was laid off. Everyone except the five cheapest employees, which happened to include him. With the bosses gone, he spent a year unofficially playing co-founder, and discovered he loved entrepreneurship. In 2009 he and his brother Bracken started what became Less Annoying CRM.
The idea came from real frustration. Tasked with setting up Salesforce at that old job, Tyler (a computer science graduate) spent a month and couldn't make it work. At the time, roughly half of the CRMs companies paid for went unused. So rather than build something with more features, he set out to build something people could actually use.
From there, Henry and Tyler dig into the practical realities of bootstrapping: funding the business from savings and side-job cash flow, why banks won't lend to software companies, and how limited money forces healthy discipline. "How much money did we make this month? That's how much money we can spend," Tyler explains.
He shares hard-won lessons on shipping a minimum viable product (MVP) fast (his first version was "minimum, debatable whether it was viable"), using intuition over thin data, and building a company that can survive any one person (what he and his team call the "hit by a bus" test) which is the same discipline as building to sell. They also cover his unusual culture choices: separating raises from performance, giving everyone "20% time," and recruiting almost entirely from a pool of interns.
Perhaps most striking is how Less Annoying CRM's biggest differentiator - customer service - happened by accident. Tyler put his own phone number on the contact page, and when it rang, the caller was stunned anyone picked up at all.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

Increase Close Rates with consistent, professional in-home sales presentations for home improvement and home services businesses, and Dean Curtis of Ingage shares the principles and tools that help small operators win more deals at the kitchen table.
Show Notes Page: https://www.thehowofbusiness.com/619-dean-curtis-presentarions-close-deals/
SPECIAL OFFER: 10% OFF the Ingage Pro when you use the code "HOWOFBUSINESS".
For home services businesses, the sale is often won or lost at the customer's kitchen table and Dean Curtis, CEO of Ingage, joins the show to explain how a more consistent, professional in-home presentation can dramatically improve close rates, with client case studies to back it up.
If you sell at the customer's home (roofing, windows, doors, siding, gutters, baths, etc.) then you're trying to convince a homeowner that you're the right person to solve their problem, and that process is highly educational. Too often the materials salespeople bring to present are off-brand, out of order, and different for every salesperson. That inconsistency costs deals. When the content is consistent, on-brand, and matched to a proven sales process, close rates go up.
In this episode of The How of Business, Henry Lopez is joined by Dean Curtis to explore why consistency, trust, and preparation drive home services sales and how the right content levels the playing field so even a one-person shop can look and perform like a 100-person company.
The discussion opens on consistency. In the replacement remodeling market, the same products are sold over and over, the objections are common, and the more consistent a rep's approach, the higher they close. But consistent doesn't mean rigid. Dean uses a bingo-board analogy to explain why the best sales reps move dynamically to answer whatever the customer raises. As he puts it, borrowing from Mike Tyson: "everyone has a plan until they get punched in the face."
From there the conversation turns to trust, which Dean breaks into three drivers: brand (a homeowner judges you within a fraction of a second), personalization (put the customer's own house and name on the first screen), and education (be the guide who makes the homeowner the hero). "No one cares what you can sell, what you can install if they don't trust you," Dean explains.
Dean then shares what separates the teams that win: they train, they practice, and they coach. They don't hand sales teams content and wish them luck. Instead, they build a feedback loop, using analytics to see what's working and coaching reps without it feeling like Big Brother. He also cautions that content is a tool inside the conversation, not a replacement for it.
The episode closes with two grounding reminders for any small business owner: do the same thing every time so you can actually learn what works, and remember that technology is never a silver bullet — start with the problem, not the shiny object. Or as Dean sums up trust: little deposits in the trust bank go a long way.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

Buying a Business? Do Your Due Diligence!
Show Notes Page: https://www.thehowofbusiness.com/618-buyer-due-diligence/
Buyer due diligence is your primary protection when purchasing a small business, and on this episode Henry Lopez walks through a practical checklist to verify the financials, uncover hidden risks, and avoid overpaying for or buying the wrong business.
Get your FREE DOWNLOAD: Buyer Due Diligence Checklist – from the show notes page for this episode.
Buyer due diligence is the single most important protection you have when purchasing a small business. And skipping or rushing it is how buyers end up owning problems they never saw coming.
Buying an existing business can be one of the fastest paths to successful ownership. You inherit customers, cash flow, systems, and employees, ideally in a proven, profitable model. But things are not always as they appear. A business that's always busy or generating strong revenue isn't necessarily healthy, and you may be inheriting problems that aren't obvious at first glance. Due diligence is how you find those issues before closing, not after.
In this episode of The How of Business, Henry Lopez walks through his buyer due diligence checklist. This checklist includes the key areas you need to investigate, the mistakes that trip up first-time buyers, and how to make sure the business you're paying for is actually the business you think you're buying. Whether you're preparing to buy or getting ready to sell, this is the framework for looking under the covers with confidence.
Henry frames the whole process around an old proverb: trust but verify. A good seller isn't lying to you, but it isn't their job to protect you either. They'll naturally highlight what's great and will likely remain quiet on what's broken. Verification is your job, along with your team of advisors: a business coach, a CPA, and an attorney working together.
He explains why due diligence must be a written condition of your letter of intent or purchase agreement, giving you a defined period and the legal right to walk away. Never waive it, and never buy a business "as is" the way you might buy a used car. He also reframes the three possible outcomes of the due diligence period: 1) the deal is confirmed, 2) the price or terms get renegotiated, or 3) you walk away.
He covers deal structure (why most small business deals are asset purchases and why that's safer for the buyer), and how to validate earnings using seller's discretionary earnings rather than revenue. Because you're not buying sales, you're buying verified profits and the assets that produce them. He shares the typical one-to-three multiple range and warns against buying an unprofitable or owner-dependent business, where you may simply be buying yourself a lower-paying job.
Henry then explains the core investigation areas: legal (good standing, who actually has the right to sell, and the lease traps that can quietly kill a deal), financial (three to five years of statements, reconciling the real flow of cash, and treating unexplained errors as red flags), operational (systems ownership, owner and customer concentration, key-employee retention, and worker misclassification), plus market and risk factors like insurance, regulatory triggers, SBA loan conditions, and franchise approvals.
His closing reminder says it best: "A no that you discover in due diligence is far cheaper than a yes you regret." Slow down, demand complete access, and the deal you clearly understand is the only deal worth doing.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com