after seeing so many people launch businesses and fail I analyzed all of my past 15 businesses that have helped me create over $800 million in sales and this is the exact framework that I came up with step one we need to analyze the business problem I start with three things that I am proficient in for me it's something like e-commerce and then we've also got Fitness used to be a personal trainer and then we've also got apparel yours is obviously going to be very very different to this but if you're struggling to think hey what
am I actually good at just ask yourself what does your friend text you to ask you about that you'd be comfortable giving advice for the reason why we want something that we're proficient in and our subject matter expert in is the next step is we're going to write down problems that we know are problems within the space so in e-commerce I know that people really struggle with forecasting their forecasted Revenue so therefore they buy way too much stock so I'm just going to write stock as in stock management you would obviously on your computer write
down the full problem and be as specific speci ific as possible the next thing I know people struggle with in e-commerce is how to scale marketing then I go down to Fitness what's something that I know that is a problem within Fitness it's recovery SL overtraining people just way overtrain and they get joint issues and then Fitness as well is knowing what to train for apparel I can go to actually the business side of apparel which is how do I find a supplier what products to launch now you can see I've got a 3X3 Matrix
here with the problems and the actual subject that I'm thinking about launching one question I often get here is I'm an expert in the subject but I can't really think of any problems this is where Reddit hacking comes in you can go onto Reddit and you can go into the subreddit and then write in problems and search problems through that subreddit what will pop up is a ton of people with a firsthand story describing their issue every single one of these issues is money ready to be made the next thing we need to do is
analyze the issue and the state of awareness that the consumers are in for that issue there's multiple stages of awareness the first is not aware then the second is problem aware then the next one is either solution or product aware and then the last one is their brand aware so we got Fitness and we got inflammation and joint pain then we're going to are they problem aware to really understand the difference between these two let's understand something like gut health people might be aware of the issue that they're facing with gut health but they're not
aware of the problem that is driving that now moving on to product aware this is the stage where there's already existing products to solve this problem for our gut health example the product aware stage would be I'm aware that probiotics can help me then we go to Brand aware okay I know that this Swiss probiotic is the most important thing to solve my issue whenever we're thinking about a business idea we have the problem that we're trying to solve but now we need to analyze how receptive the market can be and how much of a
Market opening that actually is because if I suddenly say hey I'm going to create a probiotic where there's absolute billion dollar companies already very very brand aware then chances are it's not going to work because there are riches in niches and you need to ride a trend wave to do over $10 million in the first year you can make a really big business by growing slowly but if you want to do massive massive numbers in the first year it's really important to ride a trend for example calming blankets when I first launched people were problem
aware as well but they weren't brand aware so I got them just before this stage here so they'll even product aware at this point cuz there was brand scaling in the US for a similar product we want to be before there's brand aware and we want to be after there's not aware because if they're not aware then chances are there's going to be a large amount of Education to push the consumer to believe your product how do we know if this is the case we can do a lot of research on Reddit but one of
the main things that we can do is we can actually just Google the solution that we're doing in the market that we're planning to sell it in and if there is no competitors chances are you have an amazing opportunity there that's when you know you're on to something in e-commerce often what that will look like is someone selling in another country but at the same time it not being on AliExpress or readily available to be drop shipped step three is all about choosing your positioning we know the problem we've done some market research and we
know that our solution has a large amount of customers but there's not a large brand that has a huge economies of scale for example probiotics rather than selling probiotics we might be selling a meal plan or something like that but it's all for gut health but we need to understand the positioning of the current solutions that are there while we might not be able to out sell or out Market or outspend our competitors we can always outpos them and carve out a niche audience that we can sell to the best example of this is Dr
Scratch versus dove this is one of the most competitive spaces in the world Dove was selling so to men saying care makes a man stronger Dr Squatch saw this and they came into the market and they said we're going to say that a man makes a man we make soap for a tough man complete polarity and by taking a huge stance we can suddenly stand out with our marketing you're going to pretty much get all of your competitors so comp 1 comp 2 comp 3 and you're going to write everything that they stand for water
for example we've got the the major water Brand Smart Water so it's like intelligence and then we've got Purity Clarity health and then we've got liquid death a billion doll company that came in as an incumbent which is a chaos archetype this positioning allows them to spend more and carve out a new audience within that subsection if you create a relatively unique product in this step and you create a completely unique positioning as well because you've created two forms of differentation that people won't be able to keep up so let's take e-commerce and the fact
that they struggle to Market and I'll tie it to one of my existing businesses they are somewhat product aware that there is mentorship out there so how do I stand out how can I launch a product and actually make a difference because of the positioning that I can actually have for daily Mentor I've done over $800 million in sales so our positioning with that brand is that we only work with experts my coaches have done over $2 billion in sales and run enormous businesses themselves so my positioning is real experts and real mentorship rather than
another form of positioning I just simply reversed what was going on in the industry which was that people were putting people through courses or mentorship and then they would never talk to them I talk to every single person in Daily Mentor I've had a one-on-one with them so again it's like how do you flip what the existing positioning is in its entirety so that you can stand out step four is we need to decide how we're going to market the product first you've got to analyze the main platforms that are selling at your time at
the moment and it's been for a long time Facebook is the number one platform but also now organic is very very strong this gives us the understanding that we can either do paid if we have a little bit of money or we can do organic we need to decide what path we're going to do there and this will largely depend on your financial situation then we need to break down our skill stack what we are proficient in or what we have a natural inclination to or want to learn so that we can just focus on
that until we perfect it we can use new marketing is a form of differentiation but at the same time we've already differentiated here and here so ideally we want to go to the highest value advertising channel that has the most amount of scale so that we can perfect that but sometimes people really want to do organic and they have a natural copywriting skills so therefore they would do Twitter or they would do a newsletter for me with when I failed all of my businesses and then I was like I'm going to launch this one last
e-commerce brand and give it a shot I had already learned videography and I had a little bit of money behind me simply because I was running an agency at the time or it was freelancing at the time so therefore Facebook ads because I could create the content I technically knew how to do it and it was the highest value skill set Facebook worked for me but realistically whatever you want to do you need to make sure that you stick to it for a long period of time there is one final thing where certain niches can
work far better on certain platforms if you're selling a busino business product like mentorship Twitter or LinkedIn might actually work really well for you if you're selling something to gen Z chances are it's not going to work for you and you need to use something visual like viral content step five is we need to tie this all together we're going to create a business one pager not a business plan because business plans are too long don't even bother downloading a template for a business plan what we're going to do is we're going to tie this
all together I know that recovery is an issue I am going to solve this with ice baths this is going to work because my ice baths are portable or affordable and I am going to sell them through organic viral content this works for absolutely every single business I can't stress it enough by just having that one page or it's like six lines it's going to completely set a hypothesis very rarely do businesses not follow a similar process where it's one product One Channel One customer Avatar that can get you to 1050 million very rarely is
it that when we stitch multiple products and multiple channels like I'm going to do organic and I'm going to set up Facebook ads and I'm going to like use flyers or call people to try to sell the product it just doesn't work it's usually one problem one solution one positioning one marketing channel probably miss one thing out that's really important here which is margin and unit economics if you can solve a problem for a customer and they're not willing to pay that price let's say for example we're creating a service where they are a driver
they're also a made cleaning service and they also cook for you we're going to sell that to multiple entrepreneurs but realistically the entrepreneurs only are willing to pay that person $150 a day to get the business at the scale you need thousands and thousands of entrepreneurs but it actually costs to actually fulfill those Services $200 a day it's a great business idea a lot of people would want it they're not willing to spend that much money on the concept so we need to understand margin feasibility one of the good things about that is when we've
used this process chances are we can charge a little bit more CU we have positioned ourselves more specific or differently and chances are there's not too many competitive products because we've used this process they're not setting and anchoring the price for the existing solutions that are on the market and this brings me to step six which is never give up and just get feedback you need to create a feedback loop that fact checks each of these every single step in e-commerce a new conversion rate optimization was a really important thing and I wanted to provide
a productized service where we'll just send you winning tests every single month with your exact website it was going to be very convenient for people to just grab those designs and put it into the website and we started to get traction and it was looking really good however it was not growing at a fast enough rate using my ideal marketing channel and I knew that I was going to have to Pivot it completely changed how much I could see the business blowing up so I decided to scrap it and instead I started to focus heavily
on daily Mentor which I hypothesized through this method now does millions and millions of dollars every single year so you need to create an iterative process where we can test cheaply and validate the concept using this if not adjust the positioning adjust the product itself and keep tinkering with that without getting distracted so if you like this framework go check out my previous video which talks about seven business myths that are holding people back
