Want to be Rich? DON'T Start a Side Hustle.
Summary
TLDRThe video script emphasizes that side hustles are not the key to life transformation but rather a distraction. It advocates for a strategic approach to building a business that can bring significant change. The speaker, drawing from personal experience in venture capital and business growth, introduces a simple yet effective formula for success: identify a problem, solve it, get paid, and then refine and repeat. The script encourages viewers to start by acknowledging problems in their daily lives or work, then to develop a minimum viable product to test in the market. It also highlights the importance of setting a price that covers costs and the need for continuous improvement and scaling to achieve profitability.
Takeaways
- 🎯 **Identify a Problem**: The first step to building a successful business is identifying a problem that needs solving.
- 🚀 **Take Action**: Stop procrastinating and start taking steps towards your business idea to gain momentum.
- 📝 **Document Problems**: Make a list of problems you've encountered in your daily life or work that you could potentially solve.
- 💡 **Brainstorm Solutions**: Think about how you could solve the problems you've listed and consider if there's a market for your solution.
- 🌟 **Start Simple**: Create a Minimum Viable Product (MVP) to test your idea in the market without overcomplicating it.
- 💼 **Market Research**: Assess the potential market size and determine how much people might be willing to pay for your solution.
- 💰 **Determine Pricing**: Set a price that covers your costs and provides a profit, but be open to adjusting it based on customer feedback.
- 🔄 **Iterate and Improve**: Use customer feedback to refine your product or service, making it better and more efficient.
- 📈 **Scale Up**: Once you have a successful product, think about how to scale your operations for greater efficiency and profitability.
- 🌱 **Continuous Learning**: The process of building a business is ongoing; keep learning from your customers and market to grow your venture.
Q & A
What is the main argument against side hustles presented in the script?
-The main argument against side hustles is that they are a distraction and an attempt at a quick fix, which can keep a person on a hamster wheel, always running just to keep up, rather than leading to significant life change.
What is the speaker's background that qualifies them to give advice on business?
-The speaker has an MBA from Cornell University and has spent their career building venture capital and private equity-backed companies, serving as the Chief Financial Officer of several software businesses.
What is the simple formula for finding success in business according to the script?
-The simple formula for success in business is: identify a problem, solve the problem, and get paid for it.
Why is it important to start a business idea immediately according to the speaker?
-Starting a business idea immediately is important because procrastination is a success killer and negative momentum. Positive momentum is needed, and once started, it's easier to keep moving forward.
What is the first step in building a successful business as outlined in the script?
-The first step in building a successful business is to identify a problem. This involves noting and writing down problems encountered in daily life and considering potential solutions to those problems.
What does the acronym MVP stand for in the context of the script?
-In the context of the script, MVP stands for Minimum Viable Product, which is the smallest and/or simplest product needed to solve the problem as initially envisioned to get sales.
Why should one not spend too much time designing the perfect solution initially?
-One should not spend too much time designing the perfect solution initially because the extent of the customer's problem or what the perfect product is not yet known. It's better to start with an MVP and evolve it based on market feedback.
How does the speaker suggest determining the price for a solution in a new business?
-The speaker suggests determining the price for a solution by estimating the cost to do or make it, including all time and costs, and then deciding on a price either through market research or by setting it equal to the cost plus a markup for profit.
What is the significance of the 'refine and repeat' step in the business formula?
-The 'refine and repeat' step is significant as it involves working on the product based on customer feedback to make it better, scaling up production for efficiency, and leveraging various resources to make the business profitable.
Can you provide an example from the script of someone who identified a problem and built a business around it?
-Yes, the script mentions a woman who was dissatisfied with the tea choices available in New York City despite living in a thriving Chinatown. She decided to solve this problem by starting an online tea business called 'Tea Drunk', which sells premium teas and promotes traditional Chinese tea culture.
Outlines
🚀 Starting a Business Instead of Side Hustles
The paragraph emphasizes the importance of focusing on building a business rather than getting caught up in side hustles. It suggests that side hustles can be a distraction and keep individuals in a cycle of endless work with little reward. The speaker, with an MBA from Cornell University and experience in venture capital and private equity-backed companies, proposes a four-step approach to starting a successful business: identify a problem, solve the problem, get paid, and refine and repeat. The speaker also stresses the need to overcome procrastination and start taking action towards building a business that can truly change one's life.
🔍 Identifying and Estimating Market Opportunities
This paragraph delves into the process of identifying problems and estimating the potential market size for a business idea. It encourages individuals to think about the problems they encounter in their daily lives and consider how they might solve them, turning these solutions into business opportunities. The speaker also advises on estimating the market opportunity by considering the number of people or businesses facing the same problem and their willingness to pay for a solution. Examples are given, such as the need for a course on raising chickens or bees, illustrating that even simple, everyday problems can lead to successful business ideas.
💼 Building and Scaling a Successful Business
The final paragraph discusses the importance of creating a minimum viable product (MVP) to test in the market, getting paid for the solution provided, and then refining and repeating the process to improve and scale the business. It highlights the story of John Lee Dumas, who identified a problem with the availability of podcasts and created a daily podcast to solve it. The paragraph emphasizes the iterative nature of business development, where initial products are improved based on customer feedback and the business model is refined for efficiency and profitability. The speaker concludes by encouraging listeners to start identifying problems and creating solutions to build great businesses.
Mindmap
Keywords
💡Side Hustle
💡Hamster Wheel
💡Venture Capital
💡Minimum Viable Product (MVP)
💡Problem Identification
💡Market Opportunity
💡Refine and Repeat
💡Procrastination
💡Positive Momentum
💡Profitability
💡Scaling
Highlights
The speaker emphasizes that side hustles are not the path to significant life change and instead suggests focusing on building a business.
The importance of watching videos about side hustles is questioned, as they can lead to a rabbit hole of confusion and overwhelm.
A call to action to stop procrastinating and start a business is made, highlighting that inaction is a 'success killer'.
The speaker shares their experience as a Chief Financial Officer to lend credibility to the advice given.
A simple formula for business success is introduced: identify a problem, solve it, and get paid.
The necessity of getting started is stressed, with the speaker advising to stop talking and start doing.
The speaker advises to identify problems in daily life and consider them as potential business opportunities.
The concept of a 'minimum viable product' (MVP) is introduced as a starting point for solving problems in the market.
The speaker recommends against spending excessive time on perfecting a solution before testing it in the market.
The importance of listening to customer feedback to evolve a product is highlighted.
An example of a successful business, 'Fitness Blender', is given to illustrate the concept of starting with an MVP.
The speaker explains the need to estimate costs and set prices for solutions, emphasizing the importance of profitability.
The story of 'Entrepreneur on Fire' podcast is shared as an example of a business that started with a simple idea and evolved.
The speaker discusses the refinement and scaling of a business as a key to wealth creation.
The process of identifying a problem, solving it, getting paid, and then refining and repeating is summarized as the core of business success.
The speaker concludes by encouraging the audience to start now and not waste time on side hustles.
Transcripts
I finally got serious about wanting to
change my life a few years ago so I did
my research I found the ultimate side
Hustle by watching hundreds of hours of
YouTube videos and picking the one that
was right for me and after working just
four hours a week for two months I'm now
a multi-millionaire
yeah right if you believe that I have a
bridge to sell you too
here's the truth watching videos about
side hustles is just taking you down the
rabbit hole you'll find yourself
clicking on one video after another in
hopes of finding a good way to make
money but after hours of wandering about
you'll end up lost overwhelmed and
Confused
I'm here to tell you that for someone
who actually really wants to change
their life for the better side hustles
are not the way to go side hustles are a
distraction an attempt at a quick fix a
little bit of easy money
but your time and energy is limited by
filling up any free time you have with
extra work of some kind that just pays a
small amount you stay on a hamster wheel
always running just trying to keep up
I propose that you do something
different instead of aiming low Aim High
follow the four steps that we will
discuss in this video to use your free
time to build a business that can change
your life instead of pursuing a side gig
that will just be a small supplement to
your main job that keeps you on the
hamster wheel
after earning an MBA at Cornell
University I spent my career building
venture capital and private Equity
backed companies I've served as the
Chief Financial Officer of several
software businesses where I worked
closely with sales marketing and
operations to grow the company
I tell you this so you know that what
I'm sharing today comes from experience
so here's the secret to starting a
successful business actually it's not
really a secret at all but it gets
drowned out amidst all the noise and
distractions on YouTube from countless
how to make money videos
the truth is finding success in business
comes down to this one simple formula
write it down and always keep it in mind
you need to one identify a problem
two solve the problem three get paid
for refine and repeat
let's walk through this in a little more
detail with some great examples of how
regular people build thriving businesses
by following this formula
the formula starts with number one being
identify a problem but actually there's
a vital step before number one and that
is to tell yourself get started already
stop talking about wanting to start a
business stop endlessly watching videos
scrolling for ideas stop coming up with
reasons why you can't start yet why now
is not a good time why I'll start just
as soon as something whatever I'm
waiting for to get out of the way
just get started
procrastination is a success killer
procrastination is negative momentum and
what you need is positive momentum once
you start moving it's so much easier to
keep moving so start moving get started
good
now that you're moving here's what
you're going to do first identify a
problem the world is full of problems
you come across problems in your daily
life the key is to note them write them
down literally sit down and make a list
don't just wait for inspiration to serve
up the perfect business idea in a dream
because that may never happen
think of the problems you've come across
in your life think of things in your
hobbies or your work that were hard to
do or hard to figure out then think
about what a solution to those problems
might be
if you can solve these problems you have
a potential business
every business involves someone getting
paid to solve a problem for example
entertainment businesses can be thought
of as solving any number of problems or
needs such as boredom loneliness
distraction inspiration providing an
escape or relaxation Etc a health or
Wellness business like a doctor a health
author or a fitness YouTuber helps solve
all sorts of problems or needs with
information and inspiration and support
to help people improve their health
a tax accountant solves the problems of
tax preparation being complicated scary
or time consuming for many people
so think back what problems have you
encountered that you solved or could
solve what things have you learned how
to do that could form the basis for a
product
a woman who I used to work with in New
York City was from China
she was interested in traditional
Chinese tea but even though we lived in
New York City with its thriving
Chinatown she wasn't satisfied with the
tea choices available
she decided to solve this problem and
started an online tea business called
tea drunk where she sells premium teas
imported from China promotes and
celebrates traditional Chinese tea
culture and offers free and paid classes
about tea for The Connoisseur she's
created a thriving business around t a
business does not have to be complicated
to do well
whatever problems and solutions you come
up with try to estimate how big the
potential Market opportunity is try to
answer the questions how many people or
businesses have this problem and how
much might they pay for a solution
when asking these questions you are
following the lead of some of the best
investors and startup companies The
Venture Capital investors they always
want to know what problem do you solve
and how big is the market opportunity
if you borrow this approach it can help
you choose which of several different
business ideas might be most attractive
to pursue
to give you further ideas of problems
you might find and to illustrate that it
can be simple things here are some
problems I've come across recently in my
life
my wife wanted to raise chickens we live
in a country environment that gets
really cold in the winter we knew
nothing about raising chickens or about
how to keep them safe in the cold so to
answer the countless questions we had
about how to do it we scoured the
internet and YouTube looking for advice
I would have gladly paid for a course on
raising chickens or a support resource
of some kind it would have saved us so
much time
same thing with bees she wanted to raise
honeybees but again it was not a good
resource available or at least not that
we found
we would have gladly paid for a course
or help
or food for thought if you work in a
business what doesn't work well there
what slows things down or causes
problems or something that could be done
a lot better faster or cheaper
can you solve any of them is this a
problem that other companies have too
solving these problems are all potential
businesses
speaking of problems I'm having a small
problem right now I can't quite reach
the like button on your screen could you
do me a favor and just
push the like button if you're enjoying
the video I don't really understand it
but I heard a rumor that this somehow
tells Google that this is a good video
to share I don't know
and if you want more of this kind of
content from me go ahead and subscribe
too
thanks very much
back to our list number two
once you've identified some problems
that you could solve that you believe
have a big enough market opportunity to
be worth your while think about how you
could solve them for someone is it
something that you would teach other
people how to do themselves or a service
that you would do for them or something
that you would make and sell decide how
you will solve the problem
okay now listen carefully to what I'm
about to tell you this is a very
important point you should not spend a
ton of time trying to design the perfect
solution you can't because you don't
know yet the extent of the customer's
problem or what the perfect product is
you have an idea but you haven't tested
it yet in the market
so put together what you think is the
minimum viable product known as the MVP
the smallest and or simplest product
needed to solve the problem is you
envision it and to get sales
this is what you bring to market sell
them this product first and then listen
to your customers to get feedback
with the feedback you can evolve the
product and make it better
this method is explained brilliantly in
a book called The Lean Startup which
I'll link to in the description under
the video I highly recommend this book
for all entrepreneurs and anyone
thinking of starting a business it will
literally make you smarter by showing
you how to think about building and
evolving a product to fit your Market
Kelly and Daniel are health and fitness
Buffs they enjoyed everything about
eating right and a good exercise routine
but when they look for videos on YouTube
on these topics they found it lacking so
they started a YouTube channel to fill
the gap
their videos were not fancy just basic
the videos showed Kelly and Daniel
working out together and coaching the
viewers through the routine so viewers
could work out with them a classic MVP
well guess what people love them
their Channel and business named Fitness
Blender has been wildly successful with
6.7 million subscribers on YouTube with
loads of free videos plus a website
where you can buy premium content and
tools
start with the MVP and evolve it if and
when necessary three you need to get
paid for providing the solution estimate
how much it will cost you to do or to
make include all of your time and costs
then decide how much you will charge for
the solution
you can set your price by doing market
research to see how much other people
charge for similar services or set the
price equal to your Cost Plus a markup
for profit
to be profitable obviously your selling
price needs to be higher than your cost
be mindful though that depending on what
you're selling
it might be difficult to determine the
right price because it's not clear yet
how valuable your product is to the
market or what your cost will be
at this stage particularly before you
launch a service based product there
simply may be too many unknowns you may
not know for sure how much it will cost
you to provide the product or solution
because you may not know how much time
it will take you to do the work involved
you also won't know if the product is
right for the market or if it needs a
lot of changes which could change the
cost and you don't know yet how much
value it provides to your customers
so at this point I just aim to set a
price that covers all my estimated costs
including a reasonable wage for my time
making sure to protect myself should
cost be higher than expected and just
try to make some sales
the product and pricing can be refined
later
the purpose of the early stages of all
this are to test the product and learn
John Lee Dumas used to drive to work
listening to podcasts but he got
frustrated that the ones he liked only
came out with maybe one episode per week
he really wished they were available
more often
then John realized that he could create
the solution himself that he wished was
available
so John launched his podcast called
entrepreneur on fire publishing one new
episode every day
John's Focus initially was not Revenue
it was on building a good product
granted his cost consisted mostly of his
own time but still he was basically
working for free initially to get the
product up and running and in the hands
of customers his listeners
well John's podcast was a big hit with
now over 100 million listens to his
episodes before long he noticed that
some of his listeners were asking him
lots of questions about the steps
involved in making a podcast
this is where he refined his product
offering because his customers were
telling him they wanted something more
in response he created an in-depth
online resource to teach people all the
steps involved in launching a podcast
this podcasting course was also a huge
success John has now run these
businesses for over a decade and made
many many millions of dollars from them
this brings us to step four refine and
repeat this is where you work on the
stuff that can make you rich you've
identified a product idea to solve a
problem for someone you've built a
minimum viable product and got it into
the hands of initial customers up until
now production of the product may be
pretty manual and inefficient as you
work with initial customers or get
feedback from them if they bought a
finished product learn from them and
make the product better
then you'll sell and deliver the better
product over time you keep learning keep
selling and keep making it better
also start thinking about how to scale
up your production about how you can
make it faster and easier to produce and
maybe even less expensive to make you'll
also learn better what the value
proposition is to your customer which
will help you in your sales and
marketing and in setting a better price
this stage is where you start to make
your business into a factory where you
produce more better cheaper
it's in the scaling of your business
where you start to leverage things other
people processes software and Machinery
depending on the nature of your business
which can help it to become wonderfully
profitable
once again the steps are
identify a problem solve the problem get
paid refine and repeat
there are countless examples of regular
people building great businesses they're
no better than you are no smarter no
luckier they just found a problem
identified a solution and took action if
you really want to change your life
don't waste time on side hustles work on
identifying a problem and then create
the solution
so get started now
I'll see you in the next one
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