Are you looking to embark on a new business venture? Choosing the perfect business to start can seem like a daunting task, but fret not, as we’re here to guide you through the process. In this blog post, we will explore seven essential factors that you need to consider before making this crucial decision. By the end of this article, you will be equipped with the knowledge and insights necessary to select a business idea that aligns with your goals and aspirations. So, buckle up and join us on this exciting journey towards finding the perfect business for you.
Starting a business or making crucial decisions within an existing one is akin to embarking on a complex journey through uncharted terrain. Just as a seasoned explorer equips themselves with the right tools and knowledge, a successful business decision-maker relies on a toolkit of essential factors to navigate the path to success.
RESOURCES & LINKS:
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Answer the public: https://answerthepublic.com/
Ubersuggest: https://neilpatel.com/ubersuggest/
Revolutionizing Marketing with AI: The Future is Here: https://youtu.be/l_U4aQTj6Mg
New to Digital Marketing- 10 Essential Tips for a Strong Start: https://youtu.be/4abNIEHj-10
My Secrets To Creating an SEO Friendly Website: https://youtu.be/5I1hXX_xz7c
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Starting a business or making crucial decisions within an existing one is akin to embarking on a complex journey through uncharted terrain. Just as a seasoned explorer equips themselves with the right tools and knowledge, a successful business decision-maker relies on a toolkit of essential factors to navigate the path to success.
A clear and compelling vision is the foundation upon which all business decisions rest. It’s the North Star that guides every action and choice. Without a vision, a business can drift aimlessly. Decision-makers must define their purpose, mission, and long-term objectives.
Understanding the market is like having a map of the terrain. Decision-makers must analyze market trends, customer behaviors, and competition. What are the needs and pain points of the target audience? What sets your business apart? This knowledge allows you to make informed decisions about product development, marketing strategies, and pricing.
Every business venture involves an element of risk. Decision-makers must become skilled risk managers. Assessing risks involves identifying potential pitfalls, analyzing their impact, and developing mitigation strategies. While taking calculated risks is often necessary for growth, it’s essential to balance risk with caution.
Strategic thinking is like having a compass. It enables decision-makers to set a course for the business’s future. Strategic decisions involve setting priorities, defining goals, and developing a roadmap to achieve them. Effective strategies align with the business’s vision and leverage its strengths while addressing weaknesses.
A successful business is built by people and for people. Decision-makers must foster a positive work culture, hire and retain talented individuals, and create an environment that encourages collaboration and innovation. Effective people management extends to customers and partners, as well, as they are integral to the business’s success.
The business landscape is constantly evolving. Decision-makers must be agile and open to change. This includes embracing innovation, staying ahead of industry trends, and being willing to pivot when necessary. Businesses that thrive are those that can adapt to new challenges and opportunities.
In the ever-changing world of business, decision-makers need a well-equipped toolkit to make informed choices that drive success. Vision and clarity, market understanding, risk assessment, financial acumen, strategic thinking, people management, and adaptability and innovation are the core tools in this arsenal.
Successful decision-makers continually hone these skills, recognizing that they are not static but evolve over time. They also understand that each tool in the toolkit is interconnected, and the effectiveness of one can influence the efficacy of another. By skillfully wielding these factors for success, business decision-makers can confidently navigate the complex terrain of entrepreneurship and steer their organizations towards prosperity.
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– Because it's very unrealistic to be In a niche and being like, you know what? I'm going to dominate
this niche and gobble up A hundred percent of the
market share, or even 20, 30%. That's very hard to do. But on the flip side, it's easier to say, Hey, I'm going to go after this
multi-billion dollar market And I'm going to gobble up 0.1% of it. Right? You gobble up even something small, That's enough money
where you're generating Millions of dollars where it's meaningful. (bright music) – Welcome to Young and
Profiting podcast, Neil. (chiming) – Thanks for having me. – Really excited, YAP fam. One of my favorite topics
to talk about is marketing. As you guys know, I am a marketer And today I'm thrilled to report That we have one of the most legendary And popular marketers
in the world joining us, And that's Neil Patel. If you don't know Neil,
he's a digital marketer, A New York Times bestselling author, An entrepreneur and an investor. After founding Crazy Egg, Kissmetrics And other multimillion dollar companies, Neil now focuses on running
his SEO tool, Ubersuggest, As well as his agency, NP Digital, Which specializes in paid campaigns, SEO, Social media and content marketing. He's worked with global Rams like Amazon, NBC, GM, HB and Viacom to name a few. So we're obviously very
excited to talk with Neil,
And in this episode we're
going to share his journey Of how he became one of the world's Most recognized internet marketers. He'll break down his biggest
digital marketing tips, We'll try to cover
everything from social media To email marketing to SEO. And lastly, we'll get his insight On marketing trends for 2023 And how we can future proof
content in the age of AI. So Neil, like I mentioned earlier, You are one of our generation's
most notable marketers. You're basically a household name When it comes to marketers. So-
– You're too kind. – Congratulations on all your success. (Hala chuckling) – You're too kind. I don't know if my name is that household, But you're too kind. – Well, when it comes to
marketers, you are for sure. And you've always had an entrepreneurial And hardworking spirit and
I was surprised to learn, I didn't know this
before I was researching For this podcast, that you actually Started your first
company when you were 16. And so I'd love to
understand some of the jobs And experiences you had as a teenager In terms of the work that you did And also how you ended up
getting into internet marketing And dabbling into that just as a teenager. – Yeah, so when I was a young kid I always had a drive to make money, Which isn't the best
reason to start a business. But from everything, when
I was like, around 15
I was selling like, CDs
and music in high school, Which right now people would be like, You're crazy, why would people want CDs? But back then, that's how
people listened to music. And from there sold, you know, Cable TV and stuff like that to parents Without getting into too much detail. I probably shouldn't have
done some of those things. (Hala laughing) And then as I grew up, I was just like, You know what? I want a high paying job. And the reason I want
a high paying job is, My sister at the time was
working for Oracle Consulting And this Oracle consultant
was making like $120 an hour, Sometimes like 200 plus dollars an hour. That's a lot of money. And keep in mind, that's
around 21 years ago. So 21, 22 years ago,
that's, even right now, Even though when people are like, oh I'm making a hundred bucks an hour, People would be ecstatic with that, right? A hundred, 200 bucks an hour 20 plus years ago was much
more than it is today. You could buy homes back
then for a few hundred grand, You know, now you need a home for, Depending on what city you live in, Some cities you can't even get a home For under a million bucks. So my sister worked for
this Oracle Consulting. I started looking online
for Oracle Consulting jobs. So I went to the site called monster.com. It's not popular now. Everyone uses LinkedIn,
which you know all about, But back then people were
using monster.com to find jobs.
So I was typing in all these Oracle financial consulting jobs, And I couldn't qualify for any of them. Didn't have a college degree, Didn't have Oracle certifications. So I was missing out
just on a ton of revenue, But I wanted that revenue. So I started taking
nighttime college classes And while I was taking
nighttime college classes, At the same time, because
they didn't qualify For any of those jobs, I
noticed that monster.com Was making hundreds of
millions of dollars. I'm like, you know what? If I just replicate this business, Even if I make 1% of what
they make, I'll be a rich kid. So I created my own job website, Paid some contractors that I found online Using the money I made from, you know, Picking up trash at a theme park To cleaning restrooms to selling CDs. Gathered all the money that I could find, Raised, I think it was
like 500 bucks or $900 From college kid, I mean
high school classmates. So I would go to around my class, Try to get money from some of them And started the business, the job board. Also was going to college at nighttime. Job board started getting more traffic. Learned internet marketing on my own, Did a ton of research, got
traffic but made no money. Literally just making zero
money. I was devastated. I was like, I'm getting
like a hundred thousand Visitors a month, no money, this sucks. So I'm like, you know, forget this.
I'm just going to go forward,
go to college and wrap things up And just go get that Oracle certification, Just get the hundred, $200 an hour. So tried going down that route And while I was in high school
still, I was 16 at this time, My first class was Speech 101. Gave a speech on how
Google algorithm worked And how to get Google traffic. Someone in the class was working At a power supply
manufacturer and just like, Man, can we end up hiring you? My boss is looking for someone like you. I'm in sales, here brushing
up on my sales skills, Hence I'm in that speech class, but I know They're looking for someone
who understands Google. So they gave me a gig. Long story short was
for five grand a month. I was ecstatic. That's a lot of money. Even right now that's a lot of money. So 60 grand a year. I didn't know what kind of impact I was making on that business. Eventually I found out I was driving Around $25 million a year in revenue To the business through online marketing. So then the owner of
the company had a son. The son owned a ad agency
and then he introduced me To Blue Cross, Countrywide, ING Direct, Which was like the first online banker, Was one of the first
well-known online banks, And he was giving me five
grand a month per client And just arbitraging it and
charging more on the other end. And over time, you know, I
was around 16, 17 years old At this time, I was
making 20 grand a month
And that's how I got my start. – It's so amazing, you know. It just goes to show that if
you find your passion early, If you stay focused, you know, You've been doing this
basically for two decades now. Your company is running,
you know, ad campaigns, Spending billions of dollars
with huge global brands. Like, you've totally made it. And it just goes to show how
much you can do when you focus And you become like a true,
true expert in your field. – You're totally right. But I didn't learn the
focus thing probably until 13, 14 years into my entrepreneur journey. It was late. If I focused from day one
on doing the right things I would have a much, much,
much bigger business. But that's a mistake that I
learned, better late than ever. I just wish I could turn
back the clock and focus. – Well, it's funny now we
have like, all these resources Like Young and Profiting
podcast where we get To talk to Alex Hormozi
and he schools us on like, Why we need to focus and all these things. So you know, It was a different situation
when you first started. You didn't really have as much
resources as everybody else. So speaking on, you
know, getting your start. I've got a lot of young listeners And these young listeners
often are really confused About where to focus their attention, How to find their passion,
how to understand, You know, where they should focus in terms Of their passion that
will also make money. What's your advice to them? You know, considering the
fact that you've basically
Dominated this internet marketing niche. – This is one of my favorite questions, Or topics more so not really questions, But it's one of my favorite topics. I met a lot of young people, They've asked me the same thing. I didn't know my passion
would be internet marketing. Back then it wasn't really popular. And what I found is when
we're born and we grow up And we start getting
into elementary school, We have these ideas of what we want to be. Astronaut, policeman,
firefighter, you know, I wanted to be a doctor
when I was a little kid. And people believe that a lot of others Just know what they want to do and then They grow up and that's what they do. But that's not actually true. Majority of the people
that I've met and talked to And I also wrote a book called
Hustle, I had co-authors And we did a lot of research and we found That majority of the
people aren't really born And be like, I want to be a doctor And then they grow up being a doctor. The way most people find their passion Is they actually try a
lot of different things. And typically the stuff
that they're not good at They just don't do much of. Or if they don't like it,
they just don't do much of. But typically what you find is When people try a lot of different things, They stumble on upon stuff
that they're naturally good at And you tend to love the stuff
that you're naturally good at And you tend to be more
passionate about it. And that's what you
should end up focusing on.
But the way you end up figuring it out Is not spending 10,000
hours to master something. It's just a ton of trial and error And you just constantly try new things. – I totally agree with you. And I think one of the reasons Why you probably found
your passion so early Is because you were doing
a lot even as a young kid And experimenting and
getting a lot of experiences. – Totally right. Did too many businesses, some I loved, Some I hated but live and learn. – Yeah, you learned from it. Okay, so talking about niches, Let's talk about picking your market. I know that selecting the right market When you're starting a side hustle Or when you're becoming an
entrepreneur is so important. And I was talking to you offline About how I have this LinkedIn masterclass And I teach people how
to grow on LinkedIn, How to master their content, go viral, How to convert leads into sales. But where I see them struggling is That they don't have product market fit. Their offer isn't really right. They don't really know
who their marketing to And then my strategies may not work If they don't have that
all lined up and perfected. So I'd love to understand from you, What makes a good audience market. – What makes a good audience
market to me is a big TAM. So assuming you find something You're passionate about just
through trial and error,
You got to make sure you're
focusing on a big TAM. Everyone says the riches
are in the niches. That's far from true. If you look at the majority of The large corporations
out there, like Teslas. Automotive, right? People
need cars in this world. If you look at Microsoft, Everyone needs software
to run these computers And digital devices that we're on. If you look at Google,
we're relying on search For anything and someone organizing data And feeding it to us in
a very organized fashion. If you look at Apple, we need
all these hardware pieces That they're selling from headphones To cell phones to laptops, right? These are large markets. If you, again, look at the
biggest companies in the world, They're going after large
markets and not niches. So the key is to go after a big TAM. Now you can start in a niche if you want And there's nothing wrong with that But you need to make sure that you can Expand that niche into a large market Because the amount of effort
it takes to market a business, Whether it's on LinkedIn
or any social platform Or even SEO, for a niche
compared to a large market Is almost the same amount of effort. Sure, it's harder in a large market. It takes longer to see results,
but it's the same process And the same time and energy
that you're putting into it. So might as well go after something big Because it's very unrealistic to be In a niche and being like, you know what? I'm going to dominate
this niche and gobble up
A hundred percent of the
market share, or even 20, 30%. That's very hard to do. But on the flip side, it's easier to say, Hey, I'm going to go after this
multi-billion dollar market And I'm going to gobble up 0.1% of it. Right? You gobble up even something small, That's enough money where
you're generating millions Of dollars where it's meaningful, right? For example, if it's a $10 billion market That you're going after,
you gobble up 0.1%, That's big enough to create
amazing life and a business. – Totally. And just to define some things For my listeners who may not know, TAM is total addressable market. So you're saying you need a
big sort of more broad market. You don't want to get too in the niches Because they're really hard to find. That's like finding a
needle in a haystack. When you're a marketer, you
want to find your audience In mass, you want to target them in mass. That's how you're going to target them In the cheapest way, most effective way. If you have to find like 10 people here Or 10 people there, 10, it's like, You are just going to exhaust yourself And it's going to be very expensive. – Exactly right. You need to go after a big market So that way you don't have
to have frequency issues Of like, oh, I've shown
my ad to 500 people. All right, how many more
people can you show it? Well, that's my only audience. Or even 10,000 people, it's not enough. You need to go after the masses.
– Yeah. So I know that you have a formula For marketing that you talk about. Could you break that down for us? – Sure. So number one, go
after a really big TAM. Once you have a big TAM,
then if you want to do well You need to take a omnichannel approach From LinkedIn to Facebook to Instagram To WhatsApp marketing through text. Through email marketing to
SEO to paid advertising. It doesn't matter if you like
paid ads on Facebook or not. If it's profitable, it's profitable. You got to keep leveraging it. And then from there, you got to figure out How to add into up sells and down sells Because if you look at marketing over time It continually costs more and more. So you got to add into
up-sells and down-sells, In other words, build
that funnel, figure out How to generate more revenue
from that same customer. And if they're buying
more right at purchase It allows you to spend
more money on marketing. As well as figure out a way to
generate reoccurring revenue. So how do you sell to them multiple times? And it may not be reoccurring in the sense That most people think
where someone's subscribing For $10 a month, but
it could be reoccurring As simple as, I built an
amazing product or service, I have product market fit where I'm Amazon And people will just
buy toothpaste for me. Oh, and the next day
they'll buy toilet paper And then they buy some shoes And then they buy a t-shirt
or a headphone or a laptop. And Amazon is continually
making money from you Each and every single month,
even though a lot of people
Aren't subscribing to
reoccurring products. (Hala hums) – And I'd love to dig deeper On a couple things that you mentioned. So can you help us
understand some examples Of an up-sell and a down-sell? – Yeah, no problem at all. So with up-sells and down-sells This key is speed and automation. I learned that from a guy named Ryan Deiss And he was spot on on it
and I did a lot of testing And I found that if
you're offering a up-sell Or a down-sell, anything
that gives the results faster Or in an automated way
tends to perform better. But to keep it simple,
before we go into that, Let's just take McDonald's as a example. So with McDonald's, if you
buy anything from McDonald's, Or at least when I was a little kid, They would say, "Would
you like fries with that?" That's example of a up-sell. You say, "Oh, I'm not sure." Oh, would you like to supersize your meal? That's another example of a up-sell. Or would you like a happy meal? Right? And typically a up-sell is you're Selling something that could be more. So you order a burger
and that is a up-sell To get them into a happy meal or a combo Where they're getting a drink and a fries. A down-sell could be,
hey, you want a burger? All right, cool. You already bought that. Would you like large fries?
Oh no, it's too expensive. How about a small fries? We're
running a promotion on that. It'll only cost you 30 cents more
When you combine your
burger with a small fry. You don't even have to
spend a dollar more. It's just 30 cents more. That's the example of a down-sell. Because you're getting
them on a lower price point When they're saying no to
something that is more expensive. And typically what you want
to do with your marketing is, How can you sell something
that will get them The results faster in an automated way? So let's use beauty as an example Because it's the easiest
example that I can think of. Let's say people want wrinkle cream. You can probably tell, I
don't use wrinkle cream. But let's say wrinkle cream Because people don't want wrinkles. If you say, hey, check out this light, It's purple or red or blue in color, And if you put it on your face, It'll get rid of the wrinkles faster. So you'll get smoother skin with Less wrinkles in quicker times. So instead of three months, Maybe it'll take you only one month. That kind of up-sell does really well Because you're getting the results faster. Or another way is, hey,
here's some wrinkle cream. Here's this device that you
can just wear when you sleep And it just puts it in your face For you overnight and it just injects it. I'm making it up. Or here's this toothbrush. Instead of buying it,
here's this attachment That you can add on for another 50 bucks And you just put it in your mouth
And it brushes your mouth for you. That's the example of automation
where people pay for that Because they're like, oh, cool, So I can walk around my
house while this device Brushes my teeth for
me and I'm good to go. – Yeah. So the reason why all
of this is so important Is because we want to
increase the lifetime value Of our customers, right? So every customer costs
a certain amount of money For us to acquire if we're using paid ads. Sometimes it's free if you're
using organic strategies. And at the end of the day, We want to make sure that we're increasing The LTV or lifetime
value of our customers. So can you further break
down your perspective on that Or any tips around
increasing lifetime value? – So lifetime value is
about how can you get people To keep just buying
more and more from you, Whether it's reoccurring
or up-sells or down-sells. But the key to really
increasing the lifetime value Is just understanding
what issues people have With your business, your
products and services And just talking to them and saying, Hey, what could I do better?
How can I more delight you? And just getting that feedback And continue adjusting
your products and services Is how you optimize the experience And increase your lifetime value.
7 Essential Factors to Consider When Choosing the Perfect Business to Start
Introduction
So, you’ve decided to take the plunge and start your own business. Congratulations! Entrepreneurship can be a rewarding and fulfilling journey, but before you dive in, there are a few key factors you need to consider. Choosing the perfect business to start requires careful thought and consideration, as it will impact your life and financial future. In this article, we will explore seven essential factors that you should take into account when deciding on the ideal business to embark on.
1. Your Passion and Interest
One of the most vital aspects to consider when selecting a business is your passion and interest. Starting a business requires dedication and perseverance, and by choosing a field that you are genuinely enthusiastic about, you are more likely to stay motivated during difficult times. Ask yourself what you enjoy doing in your free time and whether you can turn it into a feasible business venture. Remember, finding a business that aligns with your passion will make the journey more enjoyable and meaningful.
2. Market Demand and Trends
No matter how passionate you are about a particular business idea, it’s essential to assess the market demand and trends. Conduct thorough market research to determine if there is a viable need for your product or service. Explore industry reports, consumer trends, and competitor analysis to understand the potential growth and profitability of your chosen business field. By identifying a market gap or an unmet customer need, you can position yourself for success in a competitive marketplace.
3. Skills and Expertise
Consider your existing skill set and expertise when choosing the perfect business to start. Are you equipped with the necessary knowledge and experience to run the business successfully? Evaluate your strengths and weaknesses objectively, and determine if you need to acquire additional skills or seek partnerships to fill any gaps. Building a business around your existing expertise will increase your chances of success, as you are already familiar with the industry and its intricacies.
4. Financial Feasibility
Starting a business requires financial investment, so it’s crucial to assess the financial feasibility of your chosen venture. Evaluate the start-up costs, ongoing expenses, and potential revenue streams. Create a detailed business plan and identify potential funding sources, such as personal savings, loans, or investment opportunities. Careful financial planning will help you determine if the business idea is financially viable and sustainable in the long run.
5. Competition Analysis
Competition is inevitable in the business world. Before starting a venture, conduct an in-depth analysis of your potential competition. Identify who your direct and indirect competitors are, and assess their strengths, weaknesses, and market positioning. This information will help you refine your business strategy, differentiate yourself from the competition, and seize opportunities to stand out in the market. Remember, competition can also indicate market demand, so choose a business that allows you to carve out a unique selling proposition.
6. Lifestyle Considerations
Starting a business will likely impact your lifestyle, so it’s vital to consider how the venture aligns with your personal and family commitments. Assess the time commitment the business requires, as well as the flexibility it offers. Consider the potential work-life balance and how it aligns with your desired lifestyle. Starting a business should enhance your life, not detract from it, so choose a venture that allows you to maintain a healthy balance and prioritize personal well-being.
7. Scalability and Growth Potential
Finally, consider the scalability and growth potential of the business. While starting small can be a prudent approach, a viable business should have room for expansion and growth in the future. Evaluate if your chosen business has the potential to scale, whether through increasing market share, expanding into new regions, or introducing new product lines. Choosing a business with growth potential will not only increase your chances of long-term success but also attract potential investors and partners.
Conclusion
Choosing the perfect business to start requires careful consideration of various factors. By evaluating your passion, market demand, skills, financial feasibility, competition, lifestyle considerations, and growth potential, you can make an informed decision that aligns with your goals and aspirations. Remember, starting a business is an exciting and challenging endeavor, but with thorough research and planning, you can increase your chances of building a successful enterprise. So, take your time, conduct your due diligence, and embark on the journey of entrepreneurship with confidence and enthusiasm!
