If I Started A Business in 2026, I'd Do This

Summary

In this video, the speaker shares their journey from having $1,000 to breaking a Guinness World Record in book sales. They discuss the core principles of building a business, emphasizing the importance of selling either high-ticket items to a select few or affordable items to a broad audience. The speaker highlights the value of selling one-on-one services in the early stages, as it generates cash flow, builds credibility, and provides invaluable learning experiences. They also stress the power of cutting through friction and providing exceptional, fast service to increase perceived value and enhance customer satisfaction.

Takeaways

• 😀 Start by either selling extremely expensive items to a select few or something cheap to the masses. The middle ground is where businesses struggle.
• 😀 When starting out, selling expensive items to a few clients can provide the necessary cash flow to expand later, as seen with Tesla's strategy of starting with high-ticket items.
• 😀 Selling your time one-on-one can be a powerful strategy, even if it isn't scalable. It provides immediate cash flow to reinvest into growing the business.
• 😀 By working with high-value clients, you’ll learn more and improve your belief system about who is in the market for premium services.
• 😀 Everyone earns money per hour, whether it's acknowledged explicitly or not. If you charge more than you currently earn per hour, you’ll increase your income.
• 😀 Offering one-on-one services gives you the flexibility to quickly adjust and iterate your approach without the need for large-scale changes.
• 😀 Limiting the supply of your service forces you to raise prices, creating natural demand and increasing the value of your offer.
• 😀 Trading your time for money through one-on-one services gives you a 100% margin, making it one of the most profitable ways to start a business.
• 😀 High-ticket, unscalable services can lift your brand’s perceived value, and even if no one buys the service, the price tag can boost the value of other offerings.
• 😀 To sell premium services, confront the high price upfront, and allow customers to consider the value. If they hesitate, offer a more scalable alternative at a lower price.
• 😀 Increasing speed or reducing latency in your service delivery enhances customer satisfaction and helps you outcompete rivals, even if you rely on external vendors.

Q & A

Why is it important to either sell extremely expensive stuff to a select few or sell something cheap to everyone?

The middle ground in pricing is where most businesses fail. By either selling to a select few with high-ticket offers or offering low-cost products to a larger audience, you avoid the 'death zone' where businesses struggle to make a profit. This strategy ensures you're either generating significant income from a small group or consistent revenue from many.

What lesson can be learned from Tesla’s business model regarding pricing?

Tesla started with a $250,000 Roadster, selling to a small group of wealthy customers. This allowed them to generate the necessary funds and proof of concept to later develop and sell more affordable models like the Model S and Model 3. The lesson is to start with high-ticket items, then scale down as your business grows.

Why is selling your time one-on-one considered an effective strategy when starting a business?

Selling one-on-one time, even though it's not scalable, provides immediate cash flow and allows you to reinvest that money into growing your business. It also helps you build experience and credibility with high-value clients, which can lead to more opportunities in the future.

How can charging high fees change your perception of money and business?

When you start charging high fees, especially for one-on-one services, it shifts your belief about what is possible. For instance, when someone pays $15,000 for a service, it makes you realize the potential value of your time and expertise, which changes how you approach pricing and business.

What are some common limiting beliefs business owners have about charging high prices, and why are they incorrect?

Many business owners hesitate to charge high prices because they fear they will not attract clients or believe it's too expensive. However, the reality is that selling your time for a premium price creates value and positions you as an expert. It’s a matter of finding the right clients who see the value in your offering.

How can offering high-ticket services, even if unscalable, benefit your business in the long run?

Offering high-ticket services can generate substantial revenue that you can reinvest into your business. Even though these services may not scale, they help build your brand's credibility, provide cash flow for reinvestment, and enable you to develop more scalable offerings in the future.

Why is the perceived value of your business elevated when you charge high prices?

Charging high prices elevates the perceived value of your business because it creates an association with exclusivity, luxury, and high-quality service. Even if few people purchase your high-ticket offers, the perception of your brand improves, and it increases the demand for your lower-priced products.

What is the importance of confronting the high price during sales conversations?

Confronting the high price head-on in a sales conversation helps the potential customer fully consider the value you're offering. By directly stating the price and allowing them to process it, you're positioning the high price as a legitimate part of the offer, which increases the likelihood of a sale or negotiation.

How does reducing the time it takes to deliver a service affect its perceived value?

Reducing delivery time, or offering faster service, increases the perceived value because time is a more valuable resource than money, especially for wealthy individuals. By promising quicker results, you appeal to the customer’s need for efficiency, which can justify higher pricing.

What is the role of 'speed' in persuading customers to buy high-ticket services?

Speed, or reducing latency, plays a crucial role in customer decision-making. People are more motivated to buy when they believe the service will be delivered quickly and efficiently. In high-ticket services, emphasizing how fast you can deliver the desired results increases the value of the offer.