Choose

1. Choose Your Market Wisely: The Foundation of Entrepreneurial Success

If you choose the wrong market, your business is destined to fail before you even begin.

Market selection is crucial. Choosing the right market is the single most important decision an entrepreneur can make. It's not about what you want to sell, but who you want to serve. This shift in perspective from "what" to "who" can make or break your business before it even starts.

Avoid common pitfalls. Many entrepreneurs fall into the trap of choosing oversaturated markets or entering markets with no demand. Instead, look for markets that have:

• A stable or growing trend
• Enough competition to validate demand
• Room for new entrants to differentiate themselves

Use the river analogy. Think of entering a market like launching a boat on a river:

• Too little current (small market): Progress requires constant effort
• Too much current (oversaturated market): Risk of being overwhelmed
• Just right current: Natural momentum to propel your business forward

2. Identify Your Entrepreneur Type and Align with Your Strengths

You win, or you learn.

Know yourself first. Understanding your entrepreneurial type is crucial for aligning your business with your strengths and motivations. The four main types are:

1. Mission-Based: Driven by a cause or desire to make a positive impact
2. Passion-Based: Fueled by a deep interest in a specific topic or activity
3. Opportunity-Based: Motivated by identifying and fulfilling unmet market needs
4. Undecided: Still exploring various options and interests

Play to your strengths. Once you've identified your type, focus on markets and business models that complement your natural inclinations. For example:

• Mission-Based entrepreneurs might thrive in social enterprises or non-profits
• Passion-Based entrepreneurs could excel in niche markets related to their interests
• Opportunity-Based entrepreneurs may succeed in innovative or emerging markets

Leverage your experience. Don't underestimate the value of your existing skills and knowledge. Even if you're not an expert, your unique combination of experiences can provide valuable insights and differentiation in your chosen market.

3. Find the Market Size Sweet Spot Using Google Trends

The Market Size Sweet Spot is a narrow bandwidth in which markets are the ideal size for education and expertise businesses to thrive.

Utilize Google Trends. This free tool provides valuable insights into market size and trends. By comparing search volumes for different keywords, you can gauge relative market sizes and identify potential opportunities.

Find the sweet spot. The ideal market size is neither too big nor too small. Use these steps to identify it:

1. Enter your keyword into Google Trends
2. Set the location to "Worldwide" and timeframe to "Past 5 years"
3. Compare your keyword with established successful keywords (e.g., "orchid care," "improve memory," "leadership skills," "beekeeping")
4. Look for keywords that fall within a similar range as these successful examples

Interpret the results. Use a traffic light system to evaluate potential markets:

• Green light: Keyword falls within the sweet spot range
• Yellow light: Keyword is on the borderline of the sweet spot
• Red light: Keyword is clearly outside the sweet spot (too big or too small)

4. Assess Market Competition to Ensure Viability

Pioneers get shot and settlers get rich.

Competition is good. Contrary to popular belief, some competition in your chosen market is desirable. It validates demand and shows there's money to be made. However, finding the right balance is key.

Use Amazon as a gauge. Amazon's advertising can provide insights into market competition:

1. Search for your keyword on Amazon.com
2. Count the number of "Sponsored" listings on the first page selling education or expertise-related products
3. Interpret the results:
   • Green light: 3-7 advertisers
   • Yellow light: 1-2 or 8-9 advertisers
   • Red light: 0 or 10+ advertisers

Learn from competitors. Instead of trying to eliminate competition, look for markets where you can improve upon existing offerings. Identify gaps or weaknesses in current products and services to differentiate yourself and provide added value to customers.

5. Evaluate the Five Market Must-Haves for Long-Term Success

The times you'll be most fulfilled, the times when you'll be happiest, are not the times when you hit some lofty goal or milestone.

Ensure sustainability. To build a lasting business, your chosen market should possess these five essential characteristics:

1. Evergreen Market: Continuously relevant and not subject to fads or short-term trends
2. Enthusiast Market: Customers remain engaged and make repeat purchases over time
3. $10,000 Problem: Addresses an urgent, high-value problem that customers are willing to pay to solve
4. Future Problems: Offers opportunities to solve additional related problems for the same customers
5. Players with Money: Contains customers willing to invest in premium solutions

Apply the IN/UP/MAX framework. This model helps structure your product offerings:

• IN: Low-priced entry product for all customers
• UP: Higher-priced premium product for about 10% of customers
• MAX: Top-tier, high-value offering for about 1% of customers

Evaluate thoroughly. Use these must-haves as a checklist when assessing potential markets. A market that satisfies all five criteria has a higher likelihood of long-term success and profitability.

6. Embrace the "Win or Learn" Mindset in Entrepreneurship

Be careful with Mastery. Mastery is elusive. Mastery is a never-ending quest.

Reframe failure. Adopt a growth mindset that views setbacks as learning opportunities rather than defeats. This perspective shift can help you maintain motivation and resilience in the face of challenges.

Focus on the process. Instead of fixating on end goals or milestones, concentrate on mastering the day-to-day aspects of running your business. This approach leads to continuous improvement and long-term success.

Cultivate grit and courage. Entrepreneurship requires persistence and the willingness to take calculated risks. Develop these qualities by:

• Setting realistic expectations
• Celebrating small victories
• Learning from mistakes
• Seeking support from mentors and peers

Remember your "why". Stay connected to your core motivation for becoming an entrepreneur. Whether it's personal freedom, making an impact, or pursuing a passion, keeping your purpose in mind can help you navigate difficult times.

7. Ask Your Market What They Want Before Creating Products

If I had asked people what they wanted, they would've told me faster horses ...

Understand customer needs. Before developing products or services, take the time to deeply understand your target market's desires, frustrations, and challenges. This approach minimizes risk and increases the likelihood of creating something people actually want to buy.

Implement the ASK Method. Follow these steps to gain valuable insights:

1. Develop a Single Most Important Question (SMIQ) using your Bullseye Keyword
2. Conduct a Deep Dive Survey to identify common themes and market segments
3. Use open-ended questions to uncover customers' true motivations and pain points
4. Analyze responses to identify "hyper-responsive" potential customers

Customize your approach. Use the information gathered to:

• Tailor your marketing messages to different customer segments
• Develop products that address specific pain points
• Create targeted landing pages and email campaigns
• Build a loyal customer base by demonstrating a deep understanding of their needs

By asking the right questions and truly listening to your market, you can create products and services that resonate with your target audience, leading to higher conversion rates and customer satisfaction.

Last updated: October 4, 2024