The $100 startup… powerful stuff!
I quickly browsed through the book The $100 Startup, it’s pretty good. Here’s a review from a Forbes magazine writer:
One important insight Chris Guillebeau offers is this:
Identify what you do which is VALUABLE and TEACHABLE
Repairing a computer is valuable, but not easily teachable. So it’s not a good topic for starting a business.
Waitressing tables is teachable, but not very valuable. Almost anybody can do it.
Since the founding of Talentelle, I’ve been repeating the same question (Zoonie is probably sick of hearing it!) or mantra: “Is it replicable?”
If, in your business, you’re doing something VALUABLE for your clients, and you can TEACH it to another person, then you have a potential HUGE business (fortune!).
For example, I uploaded the outline yesterday, in PDF format, for the Marketing Arithmetics teleseminar I’m giving. It is quite valuable for first-time entrepreneurs AND it is relatively easy for me to teach another person how to teach it.
I’m currently also teaching calligraphy to a private student, and it’s quite valuable to her, BUT I cannot easily teach another person how to teach calligraphy (she first would have to master calligraphy, and it takes about a year or more to do so).
*** So the key insight here, which could help you FOCUS in your business, is this concept which I call “reteachability.”
Sarah and Meggan are two sisters who launched Tippi Toes, a fitness/dance company for young kids, and were on Shark Tank. Their business model is pretty much based on offering something VALUABLE and TEACHABLE.
Hence, they got 7 franchisees early on, each paying them minimum royalties of $1,000 per month.
And they were Mark Cuban’s (a guest on the Shark Tank show) first investment! (100K for 30 percent equity; they initially sought 30K for 5 percent equity).
These two ladies impress me so much that yesterday, I used Camtasia to create a complete case study (in video format) on how they built and pitched their business to the five sharks.
But to get back to Guillebeau’s book, he offers evidence that more and more employees — especially knowledge workers — CAN create a new business easily by leveraging their focused and practical knowledge.
*** If you’re experiencing difficulties in your business, it is most likely because you try to do too much, instead of doing ONE THING and going ALL THE WAY.
I fall into this trap also, more often than I’d like to admit publicly! lol
For example, I created the Entrepreneur Exchange a while back, so I will relaunch it but make it a free exchange where entrepreneurs just fill out a Google form online, and once they submit their info, they’ll be able to access the online database showing the info on all other members.
That’s it, that’s all. That’s Entrepreneur Exchange. A self-running, automatically growing database.
One has to be that ruthless about defining one’s value proposition, and stick to it while one is completely saturing the target market.
Focus and market saturation are the important elements of business success.
Do you agree? Thanks for your feedback!