A “Great Idea” Can Lose You A LOT of Money
How would you feel if you poured your heart and soul into building a business, and instead of making money, you lost $10,000 (or more)?
I’m assuming not very good.
Yet this happens to entrepreneurs every day.
You see, we all have great ideas for a business.
At least we think that they are great.
The reality is… most “great” ideas are not great.
In fact, most ideas that you have will not lead to a successful business.
And herein lies the problem…
Most failed businesses occur because the entrepreneur didn’t take the time to validate whether or not their idea was a good idea or not before they spend a lot of time and money to create and launch it.
Here’s what can happen when you just assume that your idea is a good idea:
* You will invest (spend) money in your business that you will never get back
* You will invest (spend) time to create your business/product/service
* You will get frustrated & demoralized thinking that you will never be able to achieve the freedom from becoming an entrepreneur
This has happened to us (more than once).
You see, after we created several of our businesses, people began asking us how we did it.
So we created a blog, but the blog was not making us a lot of money.
We decided that we could create a course showing people how to launch a business and sell it on the blog.
So after we (read: I) had this great idea, what did we do?
We set out to create the course (of course)!
We spent nearly $1,000 on equipment and software.
We spent an entire day creating 32 videos.
We spent months putting together the worksheets, editing the videos and setting up a website to host and sell the course.
By the way… did you notice that Ariana was pretty pregnant during all of this?
The launch day came and we were so excited! (Don’t we look happy above? We were so ignorant.)
I think we sold three courses for $150 total (minus PayPal fees, so it was like $137).
We had planned to sell this course for $500 each. Instead, we begged people and 3 felt bad enough for us that they bought the course at the deeply discounted price of $47.
So what can an entrepreneur do to avoid wasting time, money and motivation on an idea that isn’t going to work out?
It’s pretty simple actually (see below).
You see, there are many risks with launching a new business/product service.
* You are not clear on who your customer/target market is
* You are not clear on their problems (and whether they are willing to pay to solve them)
* You don’t have the right solutions defined that will solve their problems
* You haven’t identified how you will reach your potential customers (and warmed them up so that they are ready to purchase)
* You haven’t validated the cost of creating your idea and how much it can sell for
This is called customer research, and it can often be seen as boring (especially when someone tells you that you need to put together a 30-page business plan before starting out).
The good thing is… we have a process that is not boring, will help you avoid all of these risks and make money before you ever even create your business/product/service.
Does this sound too good to be true?
Here are the steps:
- Spend 30-60 minutes creating a simple 1-page business plan (see the brief video below)
- Using the marketing channels that you defined, go out and find 10 people who may be interested in your product
- Schedule some time to talk to them to understand the problems that they are facing
- Once you understand the problems, follow up with them and spend time understanding if your solution solves their problem
- Once you understand that the solution will solve their problem, create a very basic solution (called a Minimum Viable Product) and ask them to buy
- Continue tweaking/refining until your desired number of sales that validates the idea for you (ex. 20 sales)
- Now that you have money, customers, and a validated idea, actually build the product and launch it
Now let’s assume that you are going to sell your product for $50. If you get 20 people to pay you $50 before you build your product, that means that you will have $1,000 before you even build the product.
Now, what if you are selling a $500 product and you get 50 people to purchase? That’s $25,000 that you would have before you even build/launch your product/service/business.
How much better would that be?
It’s not a pipe dream.
It’s totally possible.
Check out the brief video below where I show you how to create the 1-page business plan.
Now that you have seen how to create your 1-page business plan, click one of the buttons below so that we can help you avoid wasting time and money and release a successful product.