4 Ways to Come Up With A Good Business Idea
Ideas are meaningless without execution. But what does that execution look like? Business guide Africa takes you through on how to turn your ideas into successful businesses. What does a rollout strategy look like from idea to releasing into the marketplace, testing it, getting feedback, and scaling into a successful business? Find out here:
Step 1: Choose Your Model
The two types of businesses are cash flow and disruption. These models have completely different approaches.
1. Cash Flow Model: Sell what is Already Selling
This is what most people are doing in the market place and in the information product world. Big companies sell what is popular in the marketplace and do it better than anyone else. They ensure the margins are there, advertise the products, and get them into channels such as retail, Amazon, and search engines. This model tends to cap out at $3-5million and has a lifespan of 2-4 years.
2. Disruption Model: Sell What the Market Needs
Look at the marketplace and figure out what it needs that is not being solved. This is the Uber model, which disrupts the marketplace and does it better than everyone else.
Remember that bad ideas happen when they don’t fall into either of the above categories. If you are starting out, it is recommended to follow the Cash Flow Model. Once you have that in place, then spend time on disruption.
Step 2: Choose a Channel
Channels are where customers or leads already hang out. Once you find yours, place your product or service on the channel. Potential customers are already looking for your competitors on advertisement, social media, search engines, iTunes, App Stores, and on Amazon. This is relevant to both models.
The hardest way is to develop and sell to your own audience. This is the longest route and takes the most time and effort, but is the most rewarding, as you have full control. The workaround is to use someone else’s audience. This can be done by paying someone to leverage their audience for them, be your spokesperson, and get your exposure.
Step 3: User Acquisition and Follow-Up
Follow-up with your customers and put yourself in a position to acquire more users. Ensure you have a process to create a positive experience with your product or service to have a long-term relationship. This can be in the form of communication through the product, email follow-ups, phone calls, or service calls.
Step 4: Profit Maximization
This is high-end upsells. What is it on the backend you are going to sell to customers?
All users and customers are out there. You just need a system to get in front of them to deliver your message. For instance Ryan is marketing his disruption company by partnering with people who have existing audiences that meet the target demographics and compensate them to share the message so that people find out about the product. This is the fastest route to getting the first thousand customers, which is the tipping point to get others to start to hear about the project, digest it, and get it in the marketplace.
In order to stay top of mind, Ryan gets a lot of customer feedback in the beta phase. Future follow-ups will be via email and social media.
The follow-ups are via email and get the customers on the webinar to teach and sell them on your other physical and information products. Most of the profits come from the follow-up process and high-end profit maximizers, yet most people spend 90% of the time on customer acquisition.
Instead of focusing on new users and customers, get your existing customers to buy more. The acquisition is the most expensive and difficult part of running a business. Turn existing customers into repeat customers, as they have already shown you they like your idea and told you they want more.
Once you have solved the initial problem, spend 80% of your time on leveraging channels and getting in front of existing audiences.