5 Steps to Start Your First Business
Summary
TLDRThe video script outlines a step-by-step method for starting a business, known as the Castle Method, aimed at beginners. It emphasizes the importance of ideation, creating a minimum viable product (MVP) for lead generation, and achieving product-market fit. The script shares practical advice on validating business ideas through free offerings like webinars or scorecards, and highlights the significance of lead generation as the foundation for business success. It also touches on scaling up the business once a solid customer base is established.
Takeaways
- ๐ Starting a business is a manageable step-by-step process.
- ๐ The Castle method is introduced as a guide for beginners to build a business.
- ๐ก Ideation involves generating multiple business ideas and selecting the best one.
- ๐ Daniel Priestley's book 'Oversubscribed' is highly recommended for business knowledge.
- ๐ Focus on solving a problem for customers rather than personal interests.
- ๐ฏ The Hedgehog concept suggests finding a business idea at the intersection of market demand, personal expertise, and passion.
- ๐ Assemble a Minimum Viable Product (MVP) for lead generation, not immediate profit.
- ๐ Offer something of value for free to generate leads and test market interest.
- ๐ Use tools like scorecards or free webinars to validate your business idea.
- ๐ Product-Market Fit is achieved by adjusting the product to meet market needs.
- ๐ Once product-market fit is achieved, focus on marketing, sales, and scaling the business.
Q & A
What is the Castle method for building a business?
-The Castle method is a step-by-step process for starting a business, which includes conceptualizing, assembling a minimum viable product (MVP), shaping the product towards product-market fit, launching the product, and expanding and scaling up the business.
Why is it important to generate a lot of ideas during the ideation phase?
-Generating a lot of ideas helps to ensure that you consider various possibilities and can choose the best idea or combination of ideas that have potential in the market and align with your personal interests and expertise.
What is the Hedgehog concept mentioned in the script?
-The Hedgehog concept, from Jim Collins' book 'Good to Great,' suggests finding the intersection between what the market wants, what you could potentially be the best at, and what you personally enjoy. This intersection is where a business can truly flourish.
What is a minimum viable product (MVP) and its purpose?
-An MVP is a simplified version of a product that is designed to generate leads and test the market's interest without investing extensive time and resources. Its primary goal is to validate the business idea and generate indicators of interest.
How can one create a free webinar as an MVP?
-A free webinar can be created by offering valuable content related to the business idea. For example, in the case of a financial services business, one could offer a free webinar teaching about current trends in the financial markets.
What is a scorecard and how can it be used as an MVP?
-A scorecard is an online quiz or assessment that can be used to engage potential customers, validate the business idea, and generate leads. It asks questions related to the business concept and provides a result that can lead to a call to action, such as a free consultation or product trial.
What is product-market fit and why is it crucial?
-Product-market fit refers to adjusting the product to meet theๅธๅบ้ๆฑ. It's crucial because it ensures that the product being offered is something that customers actually want and are willing to pay for, leading to a successful and sustainable business.
How does one achieve product-market fit?
-Achieving product-market fit involves refining the product based on feedback and interactions with early customers. This can involve adjusting the product's features, pricing, or even the entire business model to better align with what the market is looking for.
What are the three steps to trigger every sale according to the script?
-The three steps to trigger every sale are emotion, logic, and urgency. A successful business combines these elements in the right doses to persuade customers to make a purchase.
What resources are recommended for learning more about marketing principles?
-The script recommends '100 Million Dollar Offers' by Alex Hormozi, 'DotCom Secrets' by Russell Brunson, and 'Oversubscribed' by Daniel Priestley for learning more about marketing principles and getting customers to buy your product.
What is the role of a CEO coach in scaling a business?
-A CEO coach can provide guidance and expertise in scaling a business, helping with strategic planning, expansion into new markets or locations, and overcoming challenges that arise during the growth phase.
Outlines
๐ Starting a Business: The Castle Method
This paragraph introduces the concept of starting a business as a manageable step-by-step process, contrary to common beliefs about entrepreneurial challenges. The speaker shares insights from their own experience and interviews with successful entrepreneurs, emphasizing the importance of following a structured approach. The video aims to guide beginners through the Castle method, which promises to help them create a minimum viable product (MVP) within two hours. The speaker also mentions the availability of a free template and resources to aid in the process.
๐ก Ideation and Conceptualization
The speaker discusses the first step of the Castle method, which is ideation. This involves generating multiple business ideas and selecting the best ones based on market demand and personal interest. The concept of the Hedgehog concept from Jim Collins' book 'Good to Great' is introduced, which suggests finding an intersection between what the market wants, what one can be the best at, and what one enjoys. The speaker also highlights the importance of focusing on solving a customer problem and using artificial intelligence to refine business ideas and value propositions.
๐ ๏ธ Assembling Your Minimum Viable Product (MVP)
The second step of the Castle method is to assemble an MVP with the primary goal of lead generation. The speaker suggests offering something of value for free to gauge market interest. Two recommended MVPs are a free webinar or a scorecard, which is an online quiz designed to validate the business idea. The speaker demonstrates how to create a scorecard using a specific app and emphasizes the importance of not charging customers from the start but instead focusing on lead generation.
๐ฏ Shaping Your Product for Product-Market Fit
The third step involves shaping the product to meet the market's needs, which is referred to as product-market fit. The speaker explains that this may require adjusting the product based on customer feedback and market research. An example is given where the speaker's wand-making business pivots from selling custom wands to offering an online course on wand lore. The speaker also shares a personal experience from their YouTuber Academy, where they had to adjust their product based on the feedback from their target audience.
๐ Launching and Scaling Your Business
The final steps of the Castle method are launching the product and scaling the business. The speaker explains that after achieving product-market fit, the focus should be on marketing and sales, which involves creating a sense of emotion, logic, and urgency in potential customers. The speaker also mentions the use of paid ads, influencers, and other marketing strategies. They acknowledge that scaling a business to multiple locations or markets is a challenging phase that few businesses reach and suggest seeking a business coach for guidance. The speaker recommends several books for further learning and directs viewers to a podcast interview with Daniel Priestley for more in-depth information.
Mindmap
Keywords
๐กEntrepreneurial
๐กMinimum Viable Product (MVP)
๐กLead Generation
๐กProduct-Market Fit
๐กScaling
๐กIdeation
๐กHedgehog Concept
๐กArtificial Intelligence (AI)
๐กScorecard Marketing
๐กZero Commission Investing
Highlights
Starting a business is a step-by-step process that can be manageable if you follow the right steps.
The Castle method is introduced as a systematic approach to building a business, particularly aimed at beginners.
Ideation is the first step, which involves generating multiple business ideas and selecting the best one based on market demand and personal interest.
Daniel Priestley's book 'Oversubscribed' is highly recommended for its insights into starting and growing businesses.
The Hedgehog concept from Jim Collins' book 'Good to Great' suggests finding the intersection between market needs, personal potential for excellence, and personal enjoyment.
The second step of the Castle method is to assemble a minimum viable product (MVP) focused on lead generation rather than immediate sales.
Lead generation is crucial as it is the foundation for all business activities, and the MVP should be designed to attract leads for free.
The Castle method emphasizes the importance of offering something of value for free to validate the business idea and generate interest.
Scorecards and free webinars are recommended as effective MVPs for lead generation and market validation.
The third step in the Castle method is to shape the product towards product-market fit, which involves adjusting the product based on customer feedback and market research.
The fourth step is launching the product, which includes marketing efforts and scaling the business after achieving product-market fit.
The fifth and final step is to expand and scale up the business, which may involve multiple locations, new products, or new markets.
The video provides a free template with instructions and resources to help viewers follow the Castle method.
The presenter shares personal experiences and lessons learned from building a multi-million dollar business.
The video also discusses the importance of focusing on solving a problem for customers rather than being solely profit-driven.
The presenter recommends books like '100 Million Dollar Offers' and 'DotCom Secrets' for advanced marketing strategies.
A deep dive podcast interview with Daniel Priestley is mentioned for further insights into the Castle method and business strategies.
Transcripts
starting a business can sound like an
impossible task you might think that you
don't have what it takes you might think
you're not very entrepreneurial and you
might know the stat that 9 out of 10
startups fail
but what I've learned over the
years of building my own multi-million
dollar business and interviewing dozens
of successful entrepreneurs is that
starting a business is actually a
step-by-step process and if you follow
those steps then actually things can
become a lot more manageable okay so it
might be a case of copy pasting hey
friends welcome back to the channel and
to another episode of money Club the
ongoing Series where we discuss the
principles strategies and tools that can
help us on our shared Journey towards
Financial Independence and building a
life that we love in this video I want
to introduce you to the step-by-step
Castle method of building a business and
this video is going to be aimed at
beginners so if you've been thinking of
starting a business but you maybe
haven't started one yet then I promise
if you follow the first two steps of
this method you will create a working
minimum viable product hopefully in
under two hours throughout this video
we're going to be designing a business
completely from scratch and I'm going to
be going through the castle method on
this template over here and if you want
this template it is available completely
for free along alongside a Google doc
version if you don't like notion that'll
be linked down below we've got the
difference between J curve and non-jco
businesses you've got all of my
highlights from this book over
subscribed and a bunch of other
resources that'll help you because this
video is going to be ridiculously long
and so we're just going to pile all the
other information straight into that
template again it's completely free just
hit the link down below and you can
download it if you like so let's start
with step one of the castle method and
that is conceptualize and to illustrate
this I want to tell you a little bit
about Cedric
the strapping young rad must be Cedric
am I right Cedric is an 18 year old who
has just graduated from school and he
realizes that he wants the freedom fun
and flexibility and the money that
building his own business can lend him
his family haven't had much money
growing up and he's seen the power of
financial Independence and so he really
wants to start his first business so one
step is ideation ideations coming out
with at least 10 ideas and then figuring
out which one would be the best or which
two or three ideas would be the best so
that's an actual process called ideation
um and most people jump from first idea
to action rather than coming up with
nine other ideas and saying well why did
I choose that one that's Daniel
Priestley he's a Serial entrepreneur and
he's also a coach for CEOs and for
business owners and he's written a bunch
of books that are all about starting and
growing businesses and Daniel's book
oversubscribed as my most highlighted
book of all time and the knowledge I got
from this book has directly translated
to over two million dollars worth of
sales for my own business so Step One is
ideation so what Cedric needs to do and
what you need to do if you're starting a
business is just generate lots and lots
of ideas for what possible business you
could start if you wanted to and if you
look inside our template we've got some
more instructions here that you can
follow around brainstorming researching
the market identifying the problem that
you're solving developing a unique value
proposition and ultimately refining your
idea and because Cedric is intelligent
he understands the power of artificial
intelligence to help him come up with
his business ideas and to refine his
value proposition as well now at this
point you want to look through your list
of business ideas and you want to try
and combine two different things you
want to combine what you think there
might be a genuine market for with what
you personally might be potentially
interested in or what you have personal
expertise in and this is an idea from
Jim Collins book good to great and it's
called the Hedgehog concept and it's
basically this Venn diagram intersection
between the things that the market wants
the thing that you could potentially be
the best in the world at and the thing
that you personally enjoy and if you can
find something in the intersection of
that Venn diagram that's when you really
have a business that could flourish but
within this Hedgehog concept especially
if you're starting your first business
by far the most important thing is
trying to focus on the problem that
you're solving for your customers trying
to focus on being of service rather than
being selfish Cedric might decide for
example that he really wants to start
this magical Fitness Studio but if he
looks at the market can realize is that
actually no one really cares about
magical Fitness and there's tons and
tons of Fitness studios in the area even
if Cedric is super interested in Fitness
himself it's probably a pretty bad idea
to start that particular business
because it's a real uphill battle to get
customers for that particular product
and so thinking in terms of what he's
interested in also what there's a market
for Cedric looks at his list of business
ideas and he thinks oh wand Maker's
Workshop what if he starts a business
where he could potentially sell custom
wants to people who want custom ones and
Cedric liked this idea because when he
was in school he just found himself
being quite interested in the idea of
wand lore and started reading books
about it and so there's a little bit of
a passion there as well and now Cedric
comes up with a name and because again
he's just using AI because it's just a
fairly quick thing he decides you know
what let's go for the one Studio that is
Cedric's new business now step two of
the castle method is to assemble your
minimum viable product and again this is
where so many people get it wrong people
think that to start a business you have
to put in so much work to build a
product and then once you put in six
months a year two years of effort
building a product then you prefer it to
the market and you hope that people will
come but the castle method and the
method that Daniel Priestley talks about
and in fact the method that every
startup who is intelligent in the world
follows these days is starting off by
building a minimum viable product where
the objective is lead generation so you
want a very simple MVP it's just lead
generation at first so all you're trying
to do is can I generate leads because
everything is Downstream from lead
generation and this is a golden law of
business everything is Downstream of
lead generation if you cannot generate
leads for a business there is no way in
hell you're ever going to be able to
generate sales for a business and a lead
is basically any indicator of Interest
so the point of your minimum viable
product your MVP is to generate those
leads and the way you get those
indicators of interest from the market
is by giving away something of value for
free and seeing if people are
potentially interested in it I
personally recommend giving the thing
away for free rather than charging for
it because if it's free and you can't
get people to sign up for it there's no
way in hell you're ever going to be able
to get people to pay you for anything so
what are the MVPs that you can create
for free well there's a bunch of
different options but there's two that I
would recommend and that is either a
scorecard or a free webinar so in the
case of one Studio they could if they
wanted to create a free webinar and they
could do it on one making techniques and
on the history of one making or
something like that let's say you don't
want to do the one thing and maybe you
want to start a business offering
Financial Services now you probably
wouldn't just go to the market and say
hey buy my financial services you might
offer a free webinar that teaches people
about the current trends in the finance
markets and because it's free people are
more likely to sign up for it you've got
your indicators of Interest you've got
your lead generation and you've
validated your business idea so it
doesn't take long to put one of these
webinars together and again in this
template we've got a bunch of different
tools that you can use to schedule them
completely for free and you can use that
as a way of testing your business idea
but one thing I've started to use
recently in my business is to create
scorecard minimum viable product now my
scorecard is basically a glorified
online quiz and these are great because
a people love filling in online quizzes
and B you can ask a load of questions to
validate your business idea so we are
just going to create one of these
scorecards for Cedric's one studio and
I'm going to show you how easy this is
to do now if you want you can do this on
a Google form or a type form or anything
but there is a specifically designed app
called a score app which is actually a
company owned by Daniel Priestley and he
actually has a book on it called
scorecard marketing and that's the app
that we've been for the last six months
I'll put a link down below and it's also
in the template for a free 30-day trial
if you want to try this out but I'm
going to log into my account and you can
see we've got productivity quiz
podcaster Brandon come side Hustle
YouTube growth scorecard The Wheel of
Life like we use scorecards for a lot of
things to generate leads for our own
business and our own products but we're
going to create a scorecard for the one
studio and I'm going to show you how
easy this is so let's hit create
scorecard and we're going to use the AI
Setup Wizard by the way quick heads up
score app are not sponsoring this video
but I am an investor in the product I
invested in it like two weeks ago
because I just freaking love it because
we've been using it so much so feel free
to explore the market if you like but if
you end up using score app then it looks
good on me because it shows that I'm a
good investor because I've plugged the
product or something like that whatever
you can do whatever you want this is one
way of generating quizzes or scorecards
for your product but you can use dozens
of other software as well if you really
want anyway I'm going to create a
scorecard so my primary goal for the
scorecard is to generate new leads and I
actually think something like a witch
wander is right for you scorecard would
make perfect sense so I want a single
outcome I want to tell the customer what
want type they're going to go for how
would I describe my business Uh custom
wand
how would you describe your target
audience
Harry Potter fans cosplay Enthusiast
magical performance yeah that's called a
Harry Potter fans why not what do you
want to help your clients improve
achieve or prevent by using the
scorecard find your perfect one match is
pretty good now choose what you'd like
the possible outcomes to be here are
some suggested categories and let's keep
it at three we're allowing people to
either end up with Dragonheart string
Phoenix Feather or unicorn hair just to
keep things simple next Phoenix Feather
bravery and card Above All Else Fierce
loyalty and let's go Justice and
fairness why not that's for Phoenix
Feather gave another feather
just one other okay good so I've got my
single outcome find your perfect one
match Dragon heartstring Phoenix for the
Unicorn hair nine questions create my
scorecard let's see what happens
discover your perfect one match with a
profile test answer nine questions we'll
send you a personal report sick all
right let's go take the scorecard boom
enter my details
this is clever because when you're doing
lead generation and you ask it to enter
the details initially it means you get
the contact details so it's nice
obviously there's like contention all
that kind of stuff which you'll you can
ask for at the end of it do you have a
strong desire for power yes do you
believe that the end justifies the means
hell yes do you believe in loyalty above
all this yeah why not do you value
honesty and integrity nope do you
believe in second chances hell no and
are you compassionate towards other lull
absolutely not congratulations on
finding the perfect one match Dragon
heartstring this is your profile and now
when I was doing this in the screen
recording that didn't record I adjusted
this text to basically say create a
custom call to action are you interested
in a custom wand if you'd like to order
a really nice beautiful custom one let's
jump on a quick no obligation 100 free
10-minute Zoom call and if you want you
can use something like calendly but
calendly is really good you can
literally just get people to hop on a 10
minute Zoom call with you and it's
completely free but literally in a very
small amount of time we have created a
minimum viable product and this is where
so many people go wrong with businesses
I've seen so many friends and colleagues
try and start businesses where they try
and charge people from day one don't
charge people from day one offer them
something for free free create a minimum
viable product because everything is
Downstream of lead generation now once
you've made loads of money by using a
business like this then you're going to
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video and let's continue now we are on
to step three which is shape your
product towards product Market fit
product Market fit is adjusting the
product to meet the market so you
imagined the product would be red but
everyone wants it in blue and you're
like uh okay as much as I thought it
should be red it needs to be blue now
generally when people are building
actual startups in the real world they
spend several months if not sometimes
years on continuing to refine their
product until they've got product Market
fit in my wand maker business I might
think that people really want custom
ones and will be willing to pay a
hundred dollars for them but as I hop on
Zoom calls with people and try and sell
my custom ones for 100 I realize people
don't want that people want a really
basic one because they want to learn
about the introduction to WAND lore in
the first place and so my product might
actually change instead of it being I
sell custom ones I might realize through
Market validation and market research
actually I should make a one craft
school because people are way more
likely to buy an online course in one
lore and then I can upsell them on my
fancy custom one further down the line
rather than get them to buy a fancy one
straight up and that's something I
wouldn't have known had I not actually
validated my idea by talking to my
customers and testing the idea out we
really noticed this in my own business
when I created my part-time YouTuber
Academy so we started off our minimum
viable product was actually just a quiz
at the time score app wasn't a thing so
we just used a Google form we asked
people when it comes to starting your
YouTube channel what's your biggest
challenge now the product I had in my
mind I thought I was going to make a
course that taught people with over a
hundred thousand subscribers how to
scale their systems and delegate and
hire a team and build a business around
their YouTube channel but when we put
the scorecard out on my email list and
on Twitter turns out 99 of people had
not even started a YouTube channel in
the first place and like 0.01 of people
that filled out the survey had more than
a hundred thousand subscribers and so
that was completely like whoa okay
I thought I was building a product for a
tiny tiny tiny component of the market
which is what they needed but turns out
actually my audience is broadly full of
noobs no offense when it comes to
YouTube and so the product molded to
become way more beginner friendly
because in my mind the product was very
different but what the market told me
was something else and so we got product
Market fit and then the part-time
YouTuber Academy ended up being a
multi-million dollar product now there
are some other caveats here like this is
a really really huge topic how to start
a business um I want to talk about Jacob
versus non-jco businesses and what type
of businesses that you should start but
this video is going to be way too long
for the algorithm I mean it's probably
still too long and all of the
information that I want to say is now
inside this template again it's
completely free there's a link to my
website down below you can just download
the notion template so that will give
you the five-step castle framework and
also way more information around the
other stuff that I couldn't quite
squeeze into this video because we have
to keep we have to keep the time step
four is to launch your product I.E go to
market go to market is once you've got
product Market fit and now you're ready
to launch and you're ready to put
marketing Firepower behind your product
and at this point you might be spending
money on paid ads you might be hiring
influencers like me to Shell your
product on their YouTube channels you
might be going out and I don't know old
school knocking on doors and like trying
to sell the product to people you're
doing that kind of stuff to get more
people in because you validated your
idea and you've molded your product
based on a small number of customers
that you had earlier on um the other
thing that triggers every single sale is
a combination of emotion logic and
urgency so
um some and I've found that all
businesses are only really naturally
good at one so some businesses naturally
are good at generating emotion in their
customers but not logic or urgency some
businesses are really good with the
logical side of what you should buy but
they're not very good at the emotion or
the urgency and great businesses they
understand how to do logic emotion and
urgency in the right doses so a company
like apple for example is really good at
all of these different things they
create logic because it makes you feel
like I'm buying the new iPhone for a
reason because of all the marketing
materials that say oh hello the camera
is X percent better than last time they
create emotion because all of the stuff
in the Apple Keynotes and the ads make
you feel an emotional sense of like ah I
really need to have this iPhone so then
I can be a cool person and they create
urgency by allowing you to pre-order
even your pre-order because you know
that the iPhone your iPhone is going to
sell out and therefore there's a sense
of like ah I need to have this now
rather than further down the line and
then step five E is expand and scale up
scale is multiple locations now we're
gonna go out in so we might start in
London and then go out to Los Angeles
and New York in different locations so
we're going to go scale is normally new
products new markets new territories
this is a place where very few people
get to because very few businesses
actually get to the point where they
even launch because people get hamstrung
along the way by not giving things away
for free and scale is basically multiple
locations multiple markets this is stuff
that I am just now dipping my toes into
but I'm nowhere near an expert on it and
so I don't really want to kind of overex
my expertise on this particular area
this is where it's really helpful to
have a CEO coach or a business coach we
spend thousands of dollars a month on my
own CEO coach Eric pateker he's great
he's got a bunch of businesses in the
past he's really helping us with scaling
ours like all of that fun stuff comes in
if you're interested in learning more
about these sort of marketing principles
and how to get customers to buy your
product then two amazing books I'd
recommend the first is 100 million
dollar offers by Alex formosi and the
second is.com Secrets by Russell Brunson
and also if you have a launch based
business over subscribed by Dan Priestly
which as I said is my most highlighted
book of all time for business stuff
those books will teach you a lot of what
you need to know to get your product out
there but I suspect if you're watching
this video you probably haven't started
a business yet it will be it'll be too
much this book is not aimed at beginners
start by conceptualizing by assembling
your MVP and by getting product Market
fit and once you've done that and you've
got some customers for your product
which you've molded to meet the needs of
the market at that point you can worry
about copywriting and sales and
marketing and emotion logic urgency and
all this kind of stuff but the main
thing to remember from this video is
that every single thing is Downstream of
lead generation find a way to validate
your business idea by getting customers
in for free via a scorecard or a webinar
landing page or whatever you want and
then once you've validated your business
idea actually have conversations with
your customers to get product Market fit
and then you can worry about all the
stuff later and we do talk in way more
detail about all of these steps in the
long form podcast interview that I did
with Daniel Priestley so that is on my
deep dive podcast Channel over here you
can also find it on iTunes Spotify Apple
podcast wherever you get your podcast
but that is sick so if you liked this
video and you've gotten to the end of it
you will absolutely love that episode
the comments on it are like oh my God I
can't believe this is free so check it
out completely for free over there thank
you so much for watching I hope you like
this video and I'll see you hopefully in
the next one bye
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