Step 2: Ask your self these 4 questions
It’s comparatively simple to take a seat and give you a listing of random concepts. However with out the suitable framework, you’ll be able to’t inform if these concepts will ever maintain any weight.
That’s why we use this straightforward train to get the ball rolling.
The primary a part of this train is to ask your self 4 questions.
Query #1: What do I already pay for?
I like to guide with this query as a result of lots of us can’t even fathom the concept that somebody would pay them for one thing.
However when you consider it, we already pay different individuals for tons of random stuff.
For instance, possibly you pay somebody to:
- Clear your condo
- Change the oil in your automotive
- Make your dinner
Whenever you begin to make your listing, you’ll shortly see that you simply pay different individuals day by day.
That’s why I begin with this query. It opens your thoughts to what’s doable.
So take a second — proper now — and consider about 3-5 issues that you simply already pay for. Write them down on a sheet of paper and transfer on to the following query.
Query #2: What abilities do I’ve?
What are you nice at? Write these issues down.
Keep in mind, there aren’t any unhealthy concepts right here. Your listing of abilities can embody something you need.
- Are you good at cooking?
- Do you communicate Spanish?
- Are you an Excel wiz?
As you make your listing, you’ll begin to see what individuals would possibly pay you for.
For instance: In case you’re nice at cooking, possibly somebody would pay you to be a private chef for them?
If you recognize Spanish, possibly you possibly can tutor somebody?
In case you’re superb at Excel, I do know loads of individuals who would gladly pay you to create some charts for them — proper now.
I would like you to push your self to give you a listing of not less than 10 abilities you have already got. Write down something that involves thoughts. Don’t filter any of your concepts.
When you’ve bought not less than 10, you’ll be able to transfer on to the following query.
Query #3: What do my pals say I’m nice at?
That is essential to consider as a result of it may be very revealing.
Possibly your folks are all the time saying, “Wow, you give superb relationship recommendation. You’re the one particular person I come to.” Or, “Your condo is so organized. I want my place seemed like this.” Or, “OMG, you’re all the time carrying the right outfit! I’m so jealous.”
You may flip all three of these issues into profitable companies.
Typically it’s simple to neglect we have now these abilities as a result of they arrive naturally.
That’s why I embody this step.
If you end up pondering, “Ramit, I should not have any abilities,” go ask your folks. It may appear just a little bizarre, however I guess they’ll provide you with a listing of not less than 3 belongings you’re superb at — straight away.
Add these concepts to your listing. Shoot for not less than 3-5 concepts and be happy to ask a few totally different individuals in order for you.
Belief me, there are belongings you’re nice at that you simply most likely don’t even acknowledge.
Query #4: What do I do on Saturday morning?
This final query comes from considered one of my good pals, Ben Casnocha.
He stated, “Whenever you’re looking for a enterprise concept, take into consideration what you do on a Saturday morning earlier than everybody else is awake.”
- What are you studying? Trend magazines? Health books?
- What are you watching?
- What one factor may you do all day?
One other means to think about that is: In case you have been locked in a room together with your pal, what may you discuss for 3 hours straight?
This can be a nice option to expose the concepts and passions. The belongings you would have a blast sharing with the world.
Writing these concepts down can go a good distance towards serving to you discover a profitable enterprise concept.
By the tip of those 4 questions, it’s best to have not less than 20 concepts written down. In case you don’t have 20, return and check out asking your self every query once more till you do.
When you get to twenty, you’re prepared for step 3.
Step 3: Use the Demand Matrix to ensure your success
Lots of people will simply go away you there and say, “Make a listing. Have enjoyable!”
However I wish to take it one step additional. In our programs, we all the time take a look at our concepts for profitability.
That means we are able to just about assure they’ll achieve success.
And for that, I wish to present you a software we use referred to as the “Demand Matrix.” Right here’s what it seems to be like:
The Demand Matrix is a quite simple option to take your 20 concepts from step 2 and work out which ones are value your time.
Earlier than we get to that, I wish to clarify how this chart works.
Within the higher right-hand nook of the chart, you’ve bought Golden Goose. Concepts that fall underneath this part make nice companies. That’s as a result of these concepts have the potential to get lots of prospects and command a excessive worth. Consider corporations like P90x and Apple’s iPhone — plenty of prospects, fairly excessive worth.
Then, within the backside right-hand nook, you’ll see Mass Market. Underneath mass market, you’ll be able to nonetheless get lots of prospects, however you’ll solely be capable to cost a low worth. Consider well-known books you would possibly learn, like The 4-Hour Workweek. There are lots of prospects, however the price-point is fairly low.
Subsequent, within the backside left-hand nook, you’ve bought a Labor of Love. These are enterprise concepts which have few potential prospects and may solely cost a really low worth. Any enterprise concept that falls on this class is doomed to fail — earlier than it even begins. That is your weekend interest that no person would pay for.
Lastly, within the higher left-hand nook, you’ve bought Excessive Finish. That is nonetheless an amazing enterprise choice as a result of you’ll be able to cost a excessive worth, however you’ll possible have comparatively few prospects. Take into consideration corporations like Rolls Royce and Prada. They cost a really excessive worth however have comparatively few prospects.
I mapped out a few of merchandise for my very own enterprise. That means you’ll be able to see the place a few of our enterprise concepts fall on the chart:
Excessive Finish: 6-Determine Consulting System course. Since this course helps already-successful enterprise homeowners make more cash, it has comparatively few prospects, however it may possibly command a a lot greater worth. Profitable enterprise homeowners are keen to pay a premium worth to develop their gross sales.
Golden Goose: Our Discover Your Dream Job course matches right here. This can be a program the place I present individuals find out how to discover a job they love. Clearly the marketplace for that is enormous as a result of 90+% of us have jobs. And since discovering a Dream Job is one thing individuals actually need, we are able to cost a comparatively excessive worth for this system.
Labor of Love: That is the place we put all of our enterprise concepts that can most likely by no means see the sunshine of day. Some examples would possibly embody an ironing course or a category the place I train individuals about spicy meals. Sure, these could be issues that I like and am nice at doing, however there’s not an enormous marketplace for these. And any market the place there are individuals, these individuals would not likely pay.
Mass Market: That is the place my e book, I Will Train You to be Wealthy, falls. Books are nice Mass Market merchandise as a result of plenty of individuals purchase them, however the worth is comparatively low.
See the way it works?
It’s a good way to check your concepts for (1) profitability and (2) demand.
It’s not meant to be tremendous scientific. It’s only a back-of-the-napkin option to discover out if an concept has an opportunity of being worthwhile.
There’s no proper or incorrect solutions.
To check for demand, simply ask your self, “Do lots of people care about this?” If the reply is sure, then ask your self, “Are individuals keen to pay loads to resolve this downside?” to determine worth.
Shortly you’ll see the place your totally different concepts fall on the chart.
It’s fairly easy, however I wish to be sure to undergo every step completely. Getting this proper up entrance can prevent 1000’s of hours over the long term.
