Last updated on February 18th, 2022. Posted in Finding Profitable Business Ideas.
What business concepts are most important? I mean, there can be a lot of moving parts in business, right? And it's easy to get side tracked, distracted, overwhelmed, and focused on all the wrong things. So here, we're gonna nail down the absolutely most important business concepts -- specifically as they relate to online business -- so that you can keep focused, stay on track, and build your profitable and fulfilling business!
Here are links and resources mentioned in today's video. Enjoy!
Okay now, let's get going with these business concepts.
Here, we'll start with a (hopefully) more obvious one...and then we'll get progressively more powerful and more advanced.
Okay the first concept that we'll cover really should go without saying...but it's something that gets totally taken for granted and misunderstood by a lot of people...
...and that is, the peer-to-peer network that we're all connected to called The Internet.
The gift of the internet allows us to find likeminded people and to discover products, services, creative works, and much more that are a perfect fit for us.
And as online business owners we can totally leverage this at practically zero cost to begin finding and attracting the sorts of people that we want to serve and do business with...
...that is, our target audience!
We take it for granted...we carry it around in our pocket all day long...yet if we can begin using it for Production rather than Consumption, the internet is one of the most powerful tools ever invented.
In this day and age, there's no reason to do work we despise, work a job we aren't suited for...when there's an audience of people streaming through the internet looking for the exact sorts of things we'd like to create.
The next concept is actually one I developed myself, and it's called The Fulfillment Equation.
What The Fulfillment Equation does is, rectifies the problem of either doing what you love or chasing and doing what makes the most money.
See, there's a big, giant myth in the world of business that says, "do what you love" -- you and I have heard that a thousand times, right? "Just do what you love and you'll never work a day in your life," right?
Well there's a big giant problem with this...And that is, what if the thing you love to do provides zero economic value to other people?
The foundation of all business is an exchange of economic value. You provide a problem-solving product or service, and your customers give you money for it -- that's the foundation of the whole thing.
But if you're providing the thing you love to do, whatever that might be, and it has zero value to other people...if it doesn't give other people what they want...then you aren't going to be in business very long!
So then what, are you just supposed to go into business to make as much money as possible?
Well I don't think that's the answer either. The world is full of business owners who despise their business.
And further, couple this with our first concept of the peer-to-peer network we're all connected to, and there's no reason to start a business doing something you don't enjoy when you can run a business doing work you enjoy that other people -- that is, the market you serve -- values a great deal.
So the first part of The Fulfillment Equation says, "do work you enjoy."
The second part of The Fulfillment Equation says, "that's valuable to other people."
Now admittedly, I'm trying to keep it short 'n sweet here...but if you'd like much more depth and detail on this, including how you can begin applying it for yourself, then you and I can go much further with The Fulfillment Equation in my book, Online Business Building Blocks.
Alright, the next concept is one that was developed by Scott Adams in his book How To Fail At Almost Everything And Still Win Big.
Adams calls this your Talent Stack...I call it your Skill Stack...you could call it your skill set...it all means the same thing.
And here's the gist: It's a myth that anyone successful is only good at one thing. Like, you've gotta find that ONE THING that you're put on this earth to do.
That's a total myth...I mean, I don't know about you, but there's A LOT of things I love to do and a lot of them have nothing to do with business or making money.
So rather than trying to be THE BEST at any one thing, instead the concept of your Skill Stack is all about combining together complimentary skills.
And really, this boils down to things that you're naturally good at, your preferences (that is, the way you like to do things), and complimentary skills...
...complimentary skills would be things that, while you don't necessarily enjoy doing them, they add a lot of value to what you've already got.
Again, this is a concept that we go much more indepth with in my book, but for now think of it like this:
If you love to cook, but you also enjoy photography and writing, you could combine these seemingly unrelated skills together to create something totally unique...
...you could put together a cookbook filled with meal cheatsheets for young bachelors who don't know anything in the kitchen.
Or you could start a cooking blog...or a cooking newsletter...or who knows what else.
The trick here is to take a look at the things you enjoy doing and the things that you're naturally good at...and see if you can put something totally unique together.
I dunno...maybe you have a grumpy personality so you make that a big part of your cooking lessons...or maybe you're always in a rush so your thing becomes 10 minute healthy meal preps...who knows!
You've gotta look at what you've got...and you've gotta get creative!
And further, ask yourself what additional skills and knowledge -- while you may not enjoy them -- would really add a lot to what you've already got?
Maybe putting together a website for yourself, learning how to create videos, learning how to podcast or something else.
Next up is a concept pioneered by Darren Hardy called The Compound Effect. Here's the short version of this concept.
There are no silver bullets, magic formulas or quick fixes. Instead, getting the results we want in life boil down to doing simple things correctly, over and over again, over a prolonged period of time.
And what's amazing is, you and I have already experienced this firsthand for ourselves...
...learning to ride a bike, learning to read and write, learning a musical instrument...or really anything else...
...it's all basically the same: Repeat the same simple things over and over again until you start getting good at them...
...and then, it all goes on autopilot. I mean, isn't that the secret to losing weight, what bodybuilders do, what you and I have done in the past anytime we start a new skill or hobby?
And getting good at business and marketing is no different. It isn't complex or mysterious...instead it's largely repeating 1-3 very simple things over and over again.
The problem is, whether in business or in everyday life, we're impatient. We want to skip the learning phase and jump way ahead to reaping the results.
Unfortunately, it doesn't work that way. In reality, the shortcut IS going straight ahead, plodding along day after day doing just a few simple things very well.
And that's what Darren Hardy's Compound Effect is all about!
Okay, there's one final concept for you and I to cover. And it's one that I'll bet you've heard of...but that maybe you're overlooking or not applying. I know in my own business and life, I can always find areas where I'm not applying this principle...
...and that is the principle of 80/20, otherwise known as Pareto's Principle.
This concept, which is really an organizing force found all throughout nature, essentially states that a minority of inputs cause the majority of outputs.
So 80/20 is just a guide...it could be more like 90/10 or 60/40 or whatever. Now before we get into how you can start working WITH this natural force rather than against it, here's a few quick examples...
20% of people in your life are causing 80% of your problems...
80% of sales are generated by 20% of the sales staff...
80% of the wealth is owned by 20% of the population...
You use 20% of the apps on your phone 80% of the time...
...I think you get the idea!
And again, I've gotta stress that 80/20 is just a guideline. If you look closely, you'll find that things skew in a similar way.
What's amazing is, this principle can be seen everywhere in your business, in your life, and in nature.
So how can you apply this to your business? Well check this out: As business owners we see all of our customers as being the same, right?
We might even say things like, "Each customer spends an average of x-amount of dollars per year on our product...therefore, selling is a numbers game."
And that's fine, and that's one way to look at things, but admittedly, it's a pretty surface-level way of looking at your business...
...because if you dig deeper into your data, you'll discover that just 20% of your customers account for 80% of your sales!
Why does this matter? It matters in a HUGE way...it means that our customers are certainly NOT all the same...that a minority of them spend much, much more money with us than the majority of others do.
Or look more deeply at your sales, and you'll discover that about 20% of your product line accounts for 80% of your revenues...
...or what about customer service? I'll bet you'll find that just 20% of your customers are causing 80% of your headaches!
What all of this means is that you can totally optimize and streamline your business. It means that you should be waiting hand and foot on the top 20% of your customers, marketing just 20% of your products, and getting rid of the minority of people who are causing your biggest problems.
Suddenly, us business owners aren't running around like headless chickens trying to juggle 25 things at once. And this is why 80/20 is so huge...
Without 80/20, we can't distinguish between what's important -- what inputs are giving us the result we DO want -- and what isn't. Without 80/20 we have a very blurry picture of our business.
But with 80/20, we can recognize right away (or at least, in very short order) what's most critical and what isn't...what's causing problems and what isn't...what's working and what isn't.
Why work your guts out on 80% of what you *think* is important that, upon further examination, only accounts for 20% of your results...and turns out to be futile, wasted effort?
I'm telling you, this stuff is revolutionary...and when I finally figured it out, I immediately changed the way that I worked both on and in my business...eliminating or putting on hold tasks and projects that prior, I thought were important.