Step 2: Ask your self these Four questions
It’s comparatively simple to sit down and provide you with a listing of random concepts. However with out the correct framework, you may’t inform if these concepts will ever maintain any weight.
That’s why we use this easy train to get the ball rolling.
The primary a part of this train is to ask your self Four questions.
Query #1: What do I already pay for?
I like to guide with this query as a result of a variety of us can’t even fathom the concept somebody would pay them for one thing.
However when you concentrate on it, we already pay different individuals for tons of random stuff.
For instance, perhaps you pay somebody to:
- Clear your condominium
- Change the oil in your automobile
- Make your dinner
If you begin to make your record, you’ll rapidly see that you simply pay different individuals day-after-day.
That’s why I begin with this query. It opens your thoughts to what’s attainable.
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 subsequent query.
Query #2: What abilities do I’ve?
What are you nice at? Write these issues down.
Bear in mind, there aren’t any dangerous concepts right here. Your record 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 record, you’ll begin to see what individuals may pay you for.
For instance: For those who’re nice at cooking, perhaps somebody would pay you to be a private chef for them?
If you understand Spanish, perhaps you possibly can tutor somebody?
For those who’re wonderful 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 provide you with 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 received not less than 10, you may transfer on to the subsequent query.
Query #3: What do my buddies say I’m nice at?
That is vital to consider as a result of it may be very revealing.
Possibly your mates are all the time saying, “Wow, you give wonderful relationship recommendation. You’re the one individual I come to.” Or, “Your condominium is so organized. I want my place appeared like this.” Or, “OMG, you’re all the time carrying the proper outfit! I’m so jealous.”
You can flip all three of these issues into profitable companies.
Generally it’s simple to overlook we’ve got these abilities as a result of they arrive naturally.
That’s why I embody this step.
If you end up pondering, “Ramit, I do not need any abilities,” go ask your mates. It may appear a bit of bizarre, however I wager they’ll offer you a listing of not less than Three belongings you’re wonderful at — immediately.
Add these concepts to your record. Shoot for not less than 3-5 concepts and be happy to ask a few totally different individuals if you need.
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 certainly one of my good buddies, Ben Casnocha.
He mentioned, “If 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? Vogue magazines? Health books?
- What are you watching?
- What one factor might you do all day?
One other manner to think about that is: For those who have been locked in a room along with your buddy, what might you speak about for Three hours straight?
It is a nice method to expose the concepts and passions. The belongings you would have a blast sharing with the world.
Writing these concepts down can go a great distance towards serving to you discover a profitable enterprise concept.
By the top of those Four questions, you need to have not less than 20 concepts written down. For those who don’t have 20, return and take a look at asking your self every query once more till you do.
When you get to 20, you’re prepared for step 3.
Step 3: Use the Demand Matrix to ensure your success
Lots of people will simply depart 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 check our concepts for profitability.
That manner we will just about assure they’ll achieve success.
And for that, I wish to present you a software we use known as the “Demand Matrix.” Right here’s what it seems to be like:
The Demand Matrix is a quite simple method 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 received Golden Goose. Concepts that fall beneath this part make nice companies. That’s as a result of these concepts have the potential to get a variety of prospects and command a excessive worth. Consider corporations like P90x and Apple’s iPhone — a lot of prospects, fairly excessive worth.
Then, within the backside right-hand nook, you’ll see Mass Market. Below mass market, you may nonetheless get a variety of prospects, however you’ll solely be capable to cost a low worth. Consider well-known books you may learn, like The 4-Hour Workweek. There are a variety of prospects, however the price-point is fairly low.
Subsequent, within the backside left-hand nook, you’ve received a Labor of Love. These are enterprise concepts which have few potential prospects and might 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 one would pay for.
Lastly, within the higher left-hand nook, you’ve received Excessive Finish. That is nonetheless an awesome enterprise choice as a result of you may cost a excessive worth, however you’ll doubtless 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 manner you may 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 house owners make more cash, it has comparatively few prospects, however it might command a a lot larger worth. Profitable enterprise house owners are prepared to pay a premium worth to develop their gross sales.
Golden Goose: Our Discover Your Dream Job course suits right here. It is a program the place I present individuals how one can discover a job they love. Clearly the marketplace for that is large as a result of 90+% of us have jobs. And since discovering a Dream Job is one thing individuals really need, we will cost a comparatively excessive worth for this system.
Labor of Love: That is the place we put all of our enterprise concepts that may most likely by no means see the sunshine of day. Some examples may embody an ironing course or a category the place I educate individuals about spicy meals. Sure, these is likely to 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 Educate You to be Wealthy, falls. Books are nice Mass Market merchandise as a result of a lot 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 method to discover out if an concept has an opportunity of being worthwhile.
There’s no proper or fallacious 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 prepared to pay lots to resolve this drawback?” 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 totally. Getting this proper up entrance can prevent 1000’s of hours over the long term.
