The BEST business to start in your 20s (2024)

Summary

This video script unveils a seven-step formula claiming to offer a high chance of reaching a $10k monthly income by starting an online business. It emphasizes avoiding common pitfalls that lead to failure, such as imitating large-scale business models unsuitable for beginners. The speaker introduces a strategic approach to selecting a business model, choosing profitable services, targeting the right niches, and securing clients through outreach. The script also details a 'Contractor Arbitrage' method for service delivery, allowing business owners to scale without handling the work themselves. Lastly, it promotes an e-learning platform, 'Grow Your Agency,' and its program 'Agency Navigator,' positioning it as a comprehensive guide for aspiring agency owners.

Takeaways

• 💰 The 'seven step formula' promises a structured approach to achieve a consistent $10,000 monthly income by eliminating guesswork in decision-making processes.
• 📉 A staggering 95% failure rate is attributed to beginners choosing complex business models like software development or e-commerce, which are better suited for experienced entrepreneurs with substantial resources.
• 🚫 The speaker emphasizes avoiding business models that require significant initial investment due to the high risk of losing savings or incurring debt.
• ✅ The recommendation is to choose business models that leverage personal strengths and require minimal initial investment, such as offering services rather than products.
• 🛠️ Services are favored because they bypass the product development stage, allowing the service provider to monetize their skills or knowledge without upfront costs.
• 💡 The concept of 'Contractor Arbitrage' is introduced, where services are delivered by contractors, minimizing the service provider's investment and risk.
• 🔑 Selecting a profitable service involves considering factors like high ticket pricing, remote work options, recurrence of income, and the ability to deliver a clear ROI for clients.
• 🎯 Niche selection is crucial, with a focus on industries with high revenue, good profit margins, and a high average transaction value to ensure clients can afford and benefit from the service.
• 📝 The process of acquiring clients involves compiling a targeted list, reaching out, and securing meetings, with an emphasis on personalized and strategic communication.
• 🤝 Building a service-based business, or 'agency,' can lead to significant monthly income with less upfront investment and experience compared to traditional employment.

Q & A

What is the main claim made in the video about a seven-step formula?

The main claim is that the seven-step formula, when applied correctly, gives you the highest chance of hitting ten thousand dollars a month, and it is the fastest way to go from zero to a full-time income by removing guesswork from decision making.

Why do 95% of people who try to start an online business fail according to the video?

They fail because they try to emulate large-scale profitable businesses like those of Jeff Bezos and Elon Musk, which require significant capital, business experience, and access to top talent, none of which most beginners possess.

What is the fundamental difference between starting a business like Amazon or Tesla and a business suitable for a beginner?

The fundamental difference is the scale, capital, and resources available. Amazon and Tesla operate globally with unlimited access to capital and top talent, whereas beginners have limited cash, no business experience, and very little access to top talent.

What is the first parameter to consider when choosing a business model according to the video?

The first parameter is initial investment, which should be low enough to avoid the risk of losing all savings or going into debt, and considered a calculated risk for beginners.

Why should beginners avoid businesses that require product development?

Beginners should avoid these businesses because they require an abundance of time and cash to develop products, which can lead to significant financial strain and risk without a guarantee of return.

What type of business is recommended for beginners to start with according to the video?

The video recommends starting with a service-based business, as it does not require product development and allows the business owner to leverage their own skills or knowledge.

What is the concept of 'Contractor Arbitrage' mentioned in the video?

'Contractor Arbitrage' is a strategy where the business owner hires contractors to deliver services to clients, allowing the business to operate without having to manage the service delivery themselves, thus reducing risk and investment.

What are the three parameters to consider when choosing a profitable service to offer?

The three parameters are price point (charging high ticket prices), recurrence (offering a service that can be paid for monthly), and the type of service being an ROI (Return on Investment) offer.

Why is it important to choose a service that allows for high ticket pricing?

High ticket pricing is important because it allows the business to reach a significant monthly income with fewer clients, making it easier to manage and scale the business.

What is the significance of offering a service with recurrence?

Offering a service with recurrence means that once a client is acquired, they continue to pay monthly, providing a steady and recurring income stream that builds upon itself each month.

How does the video suggest finding potential clients for a service-based business?

The video suggests using cold outreach methods, such as compiling a list of potential clients, reaching out to them, and booking meetings to sign them as clients.

What is the process of getting a client through cold outreach as described in the video?

The process involves compiling a list of potential clients, reaching out to them, having a zoom call to pitch the services, and signing them as clients if they agree to the service.

What is the importance of choosing the right niche when starting a service-based business?

Choosing the right niche is crucial because it determines the potential revenue and profitability of the business. Working with businesses that have high revenue, good profit margins, and a high product ticket ensures that they can afford to pay for services and see a quick return on their investment.

What are some examples of good niches to target for a service-based business?

Examples of good niches include law firms, pool installation, home renovation, pest control, and solar energy, as these businesses typically have higher profit margins and are more likely to pay for services that can bring them more customers.

How does the video suggest structuring deals with contractors for service delivery?

The video suggests paying contractors a fixed amount per client, which is a fraction of what is charged to the client. This allows for a high profit margin and eliminates the need for the business owner to invest in service delivery themselves.

What is the recommended profit margin when working with contractors for service delivery?

The video recommends maintaining a profit margin of at least 60% to keep the agency profitable while still offering competitive rates to clients.

How can one find contractors to work with for service delivery?

Contractors can be found through various platforms such as LinkedIn, Upwork, and Facebook groups related to the service being offered. Closed communities for softwares that teach the service are particularly good sources for high-quality contractors.

What is the 'agency Navigator' program mentioned in the video?

'Agency Navigator' is a comprehensive program designed to teach individuals how to start and scale a service-based business or agency to ten thousand dollars a month by selling services online, even with no previous experience.

What are the three main parts of the 'agency Navigator' program?

The three main parts are the foundations, where you learn how to set up the business; client acquisition, which teaches how to sign clients; and service delivery, where you learn how to master the service being offered and deliver results for clients.

What kind of support does the 'agency Navigator' program offer to its students?

The program offers a student community for shared experiences and support, expert coaching calls on various topics, and a dedicated one-on-one coach for personalized guidance and mentorship.

How does the 'agency Navigator' program ensure accountability and guidance for its students?

The program includes regular check-in calls with the dedicated coach at one month, three months, and six months, ensuring continuous support and accountability throughout the student's journey.

What is the significance of the lifetime access offer for the 'agency Navigator' program?

The lifetime access offer allows students to continuously benefit from the program's content, community, coaching calls, and dedicated coach without additional yearly fees, providing a long-term investment in their business education and growth.