What Business to Start in 2023

Summary

This video offers a framework for deciding which business opportunity to pursue. Layla shares a 10-step process she and Alex used to build acquisition.com, focusing on strategy and decision filters. The steps include assessing market opportunities, margins, strengths, and personal preferences. She emphasizes creating a mission statement and identifying core values as key filters for making decisions. Ultimately, Layla advises choosing a business where the worst-case scenario is manageable, instead of chasing potential profits, and cautions against relying on emotions or external influences when making a decision.

Takeaways

• 📋 Start by identifying all business opportunities you're considering and write them down.
• 🔍 Analyze the pros and cons of each opportunity, considering market growth, typical margins, and overall opportunity.
• ❌ Eliminate any business opportunities that have more cons than pros, regardless of personal feelings.
• 👍 Write down what you like and dislike about each opportunity to ensure you're personally aligned with the business.
• 💪 Consider your strengths and weaknesses in relation to each opportunity and eliminate those that don't match your core skills.
• 🎯 Define a mission statement for your business, as it serves as a decision-making filter for future opportunities.
• 💡 Identify the core values required to achieve your mission and ensure they align with your personal values.
• ✅ Narrow down the remaining opportunities and check if they align with your mission and values.
• 💭 Consider the worst-case scenario for each opportunity, choosing the one where you can handle the downside.
• 🧠 Focus on choosing a business based on risk tolerance, not just potential profit, and make decisions accordingly.

Q & A

What is the main focus of the video?

The video focuses on helping individuals figure out which business opportunity to pursue using a strategic decision-making process.

Why does the speaker emphasize the need for a strategy when choosing a business opportunity?

The speaker emphasizes strategy because without it, having multiple opportunities can be overwhelming. A strategy helps create decision filters to narrow down and evaluate options effectively.

What is the first step in narrowing down business opportunities?

The first step is to write down the top business opportunities you are considering. This gives you a clear view of your options before applying further filters.

How does the speaker suggest evaluating the pros and cons of each business opportunity?

The speaker suggests evaluating opportunities based on market growth, margins, and overall market potential. For each opportunity, you should assess whether these factors are a pro or con.

What should be done with opportunities that have more cons than pros?

Opportunities with more cons than pros should be immediately eliminated from consideration, regardless of personal feelings toward them.

Why is it important to consider your likes and dislikes about each business opportunity?

It's important because even if a business has high potential, if you dislike the core aspects of the business, you are less likely to succeed. The speaker advises eliminating opportunities you dislike more than you like.

How does the speaker recommend aligning business opportunities with personal strengths and weaknesses?

The speaker recommends choosing business opportunities that align with your core strengths. If an opportunity doesn't require your strengths, it's better to eliminate it.

What role does a mission statement play in choosing a business?

A mission statement acts as a decision-making filter. It clarifies the purpose of the business, and any opportunity that doesn’t align with this mission should not be pursued.

What should be the final consideration when choosing between two business opportunities?

The final consideration is to evaluate the worst-case scenario for each opportunity. The speaker advises choosing the option where you can live with the worst-case outcome.

What is the speaker's advice on avoiding emotional decision-making in business?

The speaker advises not to rely on emotions or how much money an opportunity could make when starting a business. Instead, consider how much you could potentially lose if it fails and whether you can live with that outcome.