That’s why, when it comes to generating business ideas, customers come first. Before the product or service. Even before the idea. To build a business, you need someone to sell to. I can’t tell you how many times someone has emailed me saying, “What do you think of this business idea?” My auto-reply? “Have you asked what the customer thinks?” Steve Jobs said, “You have to start with the customer experience and work backwards.” Jeff Bezos, too, insists everyone at Amazon use a Customer First Approach to generate ideas and decide which to develop. The first of his sixteen Leadership Principles — Customer Obsession — starts by saying, “Leaders start with the customer and work backwards.” Working backwards prioritizes access to a group of customers (a group you probably belong to) and focuses on an aspect of a customer’s life that doesn’t work. If you do it this way, you’re assured of nailing the three Ws of business right from the start: Who you are selling to What problem you’re solving Where they are Your goals in this chapter are to use the Customer First Approach, to narrow in on three markets that you’ll target, to use your knowledge and experience of these markets to generate lots of ideas, and then to choose the three you think are the most likely to succeed. It’s the first step in the three-part Million Dollar Weekend process, in which you’ll learn to sell ideas to a small early adopter group before you’ve built the product (or spent a cent) in order to validate that there is a market that will pay. Repeat, fast and cheap, until it hits. Experiment, experiment, experiment — BOOM!
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Now Where Do You Find Customers? When novice entrepreneurs search for opportunities, they too often look beyond their Zone of Influence. They think the action is happening somewhere else, in some other location or industry. But seasoned entrepreneurs almost always find and create opportunities within the context of who they are, what they know, and especially who they know. In each of the examples above, the business validation process begins with potential customers in the entrepreneur’s orbit. Actual people with names. Tribes you belong to or are interested in, most of whom are already self-organized online. People you know how to reach, today. Though it’s rarely a part of their official origin stories, the biggest companies in the world — even the viral apps now worth billions — started through personal networks and real human connections. Mark Zuckerberg started Facebook in a weekend by emailing friends to use it. Version 1 did well, validating it. And Microsoft started with Bill Gates building software for a guy in Albuquerque. He had a CUSTOMER FIRST. In the beginning, founders should reach out to their friends, their former colleagues, their communities. You may think your business is unique, but trust me, it’s not. Every successful business can start this way. For example, Anahita loves her dogs and wanted healthier snacks for them. She started taking her homemade organic dog treats to her local dog park. She would sell out every time. A year later she now has a store called the Barkery, a dog bakery. Before you even think about picking a business idea, make sure you have easy access to the people you want to help. An easy way to do this is to think about where you have easy access to a targeted group of people whom you really want to help — like, say, new moms in Austin, cyclists, freelance writers, and taco obsessives (like me!). CHALLENGE Top three groups. Let’s write out your top three groups to target. Who do you have easy access to that you’d be EXCITE
"Some people say, "Give the customers what they want." But that's not my approach. Out job is to figure out what they're going to want before they do. I think Henry Ford once said, "If I'd asked customers what they wanted, they would have told me, 'A faster horse!'" People don't know what they want until you show it to them."
The Idea Generators So let’s open the net wide and get down to generating ideas . . . I mean problems! Here’s what the process of coming up with a million-dollar business idea does NOT look like: Getting on TikTok or YouTube and mindlessly copying whatever the influencers say is working for them Getting struck with the perfect vision for a genius new product Meditating, following your passion, and brainstorming Following any other woo-woo method that promises inspiration in a box Here’s what the actual process looks like: What’s the most painful (aka valuable) problem you can solve for people . . . That you also have passion for and/or unique expertise in . . . For the largest niche possible that you belong to and understand . . . Simple enough, but takes some light and fun brainwork. Remember to focus on your Zone of Influence here (your existing community): the 150 followers you have on TikTok, the 200 in your local Taco Aficionados group, the 300 in the WhatsApp group for your mountain biking club (not to mention the 143,000 in the subreddit r/mountainbiking). Your job as a problem seeker is to go to a community of yours. You can access all the idea challenges and more examples at MillionDollarWeekend.com. Now it’s your turn. Use the following four challenges to come up with at least ten potentially profitable ideas:
"Some people say, "Give the customers what they want." But that's not my approach. Our job is to figure out what they're going to want before they do. I think Henry Ford once said, "If I'd asked customers what they wanted, they would have told me, 'A faster horse!'" People don't know what they want until you show it to them. That's why I never rely on market research. Our task is to read things that are not yet on the page."
It's so hard to catch something that everybody already knows is hot," says Bezos. "Instead, position yourself and wait for the wave to come to you. So then you ask, Position myself where? Position yourself with something that captures your curiosity, something that you're missionary about. I tell people that when we acquire companies, I'm always trying to figure out: Is this person who leads this company a missionary or a mercenary? The missionary is building the product and building the service because they love the customer, because they love the product, because they love the service. The mercenary is building the product or service so that they can flip the company and make money. One of the great paradoxes is that the missionaries end up making more money than the mercenaries anyway. And so pick something that you are passionate about, that's my number one piece of advice.
In business, the followers are the customers. To produce these customers, the entire corporation must be viewed as a customer-creating and customer satisfying organism. Management must think of itself not as producing products but as providing customer creating value satisfactions. It must push this idea (and everything it means and requires) into every nook and cranny of the organization.
Once you create and dominate a niche market, then you should gradually expand into related and slightly broader markets. Amazon shows how it can be done. Jeff Bezos’s founding vision was to dominate all of online retail, but he very deliberately started with books. There were millions of books to catalog, but they all had roughly the same shape, they were easy to ship, and some of the most rarely sold books — those least profitable for any retail store to keep in stock — also drew the most enthusiastic customers. Amazon became the dominant solution for anyone located far from a bookstore or seeking something unusual. Amazon then had two options: expand the number of people who read books, or expand to adjacent markets. They chose the latter, starting with the most similar markets: CDs, videos, and software. Amazon continued to add categories gradually until it had become the world’s general store. The name itself brilliantly encapsulated the company’s scaling strategy.
It’s so hard to catch something that everybody already knows is hot,” says Bezos. “Instead, position yourself and wait for the wave to come to you. So then you ask, Position myself where? Position yourself with something that captures your curiosity, something that you’re missionary about. I tell people that when we acquire companies, I’m always trying to figure out: Is this person who leads this company a missionary or a mercenary? The missionary is building the product and building the service because they love the customer, because they love the product, because they love the service. The mercenary is building the product or service so that they can flip the company and make money. One of the great paradoxes is that the missionaries end up making more money than the mercenaries anyway. And so pick something that you are passionate about, that’s my number one piece of advice.
Value can’t be created without understanding what people want (market research). Attracting customers first requires getting their attention, then making them interested (marketing). In order to close a sale, people must first trust your ability to deliver on what’s promised (value delivery and operations). Customer satisfaction depends on reliably exceeding the customer’s expectations (customer service). Profit sufficiency requires bringing in more money than is spent (finance).
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