Picking the Right Game:
When starting a business, it is crucially important to understand that building a successful business is probably one of the hardest things to do as there is so much uncertainty, so many moving parts that are able to build a sustainable business that can last for multiple decades actually includes a bit of luck.
The goal of this training is to help you increase your luck of achieving the goal of building a sustainable business or businesses.
DO YOU HAVE INSIGHTS/EXPERIENCE THAT ONLY A FEW HAVE?
When most people think of creating a business, they tend to think that what they need to do is to sit down and think about these two things:
- A crazy new idea that has never existed
- A specific market that has yet to be sold to
They spend hours, days, months, years thinking about mostly those two things and never make a decision, they get stuck in Analysis Paralysis and never build đ©
My #1 advice is donât try to sit down and spend days trying to figure out what to sell or who to sell to, instead spend 5 minutes thinking about the current knowledge that you have and your experiences.
The easiest path is to sell to an industry that youâre already familiar with, an industry in which you know exactly what keeps them up at night.
If you already have insights about that industry that not a lot of people have, then all you would need to do is to build a specific solution (product or service) that solves their problems.
The great thing about selling to a market that you know very well is that it is pretty easy to come up with new mechanisms to solve their problems! With the internet, you can go learn more about existing products/services in other markets/ niches and simply bring back those products/services and tailor them to your niche! (***Thatâs what I did!***)
If you are Elon Musk, then you probably donât need to copy others, but if youâre not then you have more probability of winning in this game by copying whatâs already working for others, but of course, make sure to improve or else youâll go out of business really quickly.
OPPORTUNITY COST
Opportunity cost is the loss or the benefit that could have been enjoyed if the best alternative choice was chosen.
It is really important to understand that by picking a market and a specific business model, youâre making the decision to leave out a whole of other opportunities, maybe even better opportunities.
If you decide to become an agency owner, then realize that youâre temporarily saying no to opportunities like:
- Owning an eCommerce business that has insane scalability
- Real estate investing - Crazy leverage opportunities leading to having cash flow for life
- Becoming a trader, being able to make a million dollars before noon đ€
Before you make the decision on what business youâre going to focus on, make sure you look at your skillset and pick the best opportunity for you.
Never settle for the opportunity that youâve been sold to the most and by that I mean donât follow the flashiest person on the internet, the person who has served you so many impressions that you think theyâre your friend.
MAKE A SMART DECISION:
- Look at alternatives
- Look at the price youâll have to pay starting business 1 VS business 2
- Look at the ease to achieve results and the predictability of achieving the results consistently.
Letâs take a look at a few things that you need to consider when making your decision below.
PRICE OF ENTRY
- How hard is it to learn how to deliver the transformation?
Many people donât take this into consideration but if youâre going to start a business, you need to realize that itâs a never-ending process of learning, unlearning, and iterating.
If youâre picking the market/niche that you want to sell to, please donât pick a niche that you donât know anything about or a market where you would need to spend a whole year trying to get feedback.
I suggested picking an industry that youâre familiar with, but sometimes people literally donât have any knowledge or experience with any niche, so this is where it becomes important to pick a niche which you can get information about pretty quickly, and when picking your solution (product or service) donât pick a service that will take you 5 years to learn or a whole 5 months to find someone that you can outsource it to!
2. How much money do you need to invest before you can make a $ back?
The faster it is to make a sale, the better!
You shouldnât try to build a business that requires you to invest thousands of dollars if youâre just starting out.
The easiest businesses to start nowadays are service businesses, you can start one even before you finish the training and find someone with a specific skill set that you can sell to the market.
HOW ACCESSIBLE IS YOUR MARKET
I personally consider this to be one of the most important criteria of a Good business and when Iâm deciding or thinking about what new businesses that I can start, I always focus on this one first!
If your market isnât congregated on a specific channel ( phone #, Facebook or Facebook groups, Instagram, LinkedIn) it will be hard for you to sell your product or service as youâll have a hard time finding your ideal customer.
On the other hand, if your market is gathered on the same platform, in a few Facebook groups, per example then you literally have no reason to be broke.
Any niche/market has problems, so your focus shouldnât be on finding the best niche but finding the nicheâs problems that are the most accessible!
Iâve built my first business and scaled it to multiple five figures due to having a really easy time finding the people who want my services and of course because I solve a really painful problem.
HOW IMPORTANT IS YOUR PRODUCT & HOW PAINFUL IS THE PROBLEM:
Is your solution a nice to have or a MUST HAVE?
Please do me a favor and avoid selling anything that isnât a must-have for the niche!
Avoid selling products or services that businesses or your market can live and thrive without!
The only time Iâd suggest focusing on a nice to have offer is if you already have amazing results and great social proof and you can clearly and predictably deliver the same results!
In order to find the âI need this or I canât achieve my goalsâ offer is to figure out a painful problem that your niche is having.
Youâll most likely have many different problems that a specific niche will be facing, so then your focus should be on figuring out the solution to a problem that will result in the biggest outcome, you need to deliver asymmetrical results.
HOW IS COMPETITION:
If you have every person that you know selling the same thing that you want to sell, please donât!
I think this is pretty simple to understand so I wonât spend much time on it but I want to add the fact that the more competitive a certain industry is, the easier it is to get results actually, so you donât want to pick a niche that no one is in because youâll have a hard time educating the whole market on why your service or product is needed.
If youâre just starting out, I recommend you just start, donât lose time trying to find the blue ocean, swim in that red ocean, and become a li'l shark đŠ
DO THEY HAVE THE CAPITAL TO AFFORD YOUR SOLUTION?
This isnât as easy as it seems because literally, most people over 18 can come up with the money to pay for things that they care about, things that they want, so you shouldnât only want to sell to people who are full of $.
That being said, do your best to sell to people with money, you will have less resistance and will have way more fun helping them solve their problems and they will be more grateful for your help.
The metric to focus on when trying to find out if a niche can afford your solution is how much revenue theyâre making and how much your solution can bring in! Even if your service or product doesn't directly increase their revenue, you need to figure out a way to quantify your outcome.
WHAT DO YOU HAVE TO BUILD IN ORDER TO DELIVER THE TRANSFORMATION
Will you need to build a large team to deliver your product or service?
Will you need to build really complex processes before you can deliver the transformation desired by your customers?
Unless youâre Elon Musk or have a few thousand, hundred thousands of dollars to invest in building really complex services or products, I recommend that you focus on building something really simple and sell the heck out of it.
Some people think that having something special, something that the world has never seen is how you become rich but thatâs not true.
SIMPLE scales, when you try to build something hard to repeat and hard to deliver, you end up affecting the luck that comes with moving with speed.
THE PERFECT BUSINESS
- HIGH MARGINS
- HABIT-FORMING
- GREAT OFFER/MESSAGE {something others canât simply copy}
- LONG TERM FOCUS