This is absolutely THE most important step in starting your online business!
In this "Find Your Market Framework" exercise, I'm going to show you how to virtually guarantee your idea will be profitable by running some simple benchmark tests. And conversely, let's help you totally AVOID markets or niches that don't pass these tests for whatever reason.
My aim is to help you get a profitable online business up and running, so...
PLEASE don't skip this!
I actually didn't know about this framework until about 3 years into my online business journey and it caused me to languish in frustration and suboptimal profitability. I don't want that for you. :)
At the risk of overemphasizing this, it's 1000% worth your time and effort to diligently pursue completing this exercise. It could make the difference between faster success or slower (and more painful) failure.
All that said, here's what we're going to cover in the "Find (& Refine) Your Market Framework" exercise.
1. The Ideal Market Size Test: Using the free tool Google Trends, I’m going to show you exactly how to test your brainstormed market and find some relevant targeted keywords so that we can run your keywords through the...
2. The Ideal Market Competition Test: Utilizing a simple Amazon test, you’ll very easily be able to see if your market is too big, too small or just right, so that you can focus on becoming wildly profitable.
3. The 5 Market Essentials: We’ll walk through the 5 characteristics your market needs to have for you to be profitable. You want to make sure your market is:
By the way, all of these exercises come from Ryan Levesque’s book “Choose. - The Single Most Important Decision Before Starting Your Business”. So if you want to go into some more depth I HIGHLY recommend this book. This link extends a $10 offer for the hardcover that also comes with an additional $200 of awesome bonuses including the audiobook. This book alone has completely revolutionized both the way I deploy my own online business as well as the way I teach it.
Let's dig right in...
Here's just a little bit of insight for this next exercise: Don't be discouraged, if the niche for your online business doesn’t have ALL of these 5 things.
If it doesn't have all 5, you may need to either look either niching up OR niching down in order to find that optimally profitable market.
Let’s jump into each one and talk about that a little more.
“You’re looking for a market that continuously self-renews despite season or temperature.”
An evergreen market is juxtaposed to a fad market that sort of just comes and goes. Think of fidget spinners, mood rings, Cabbage Patch Kids or beanie babies.
Some examples of evergreen markets would be: fitness, personal finance, weight loss, dog care, personal development, entrepreneurship and orchid care.
BUT just because it’s evergreen, doesn’t mean it’s necessarily a “green light” market. We still have 4 more factors to consider.
So next, let’s talk about…
“This describes a market where the buyers are highly enthusiastic about the topic, so much so that they tend to remain buyers for a long period of time.”
Some examples could be: antique collectors, weight loss, sports car lovers, guitar players, home brewers and bonsai tree lovers.
You want to be in a market where people tend to become buyers for life. For example, in the guitar player market, you have people who make large purchases like guitars, and amplifiers, but also purchase ongoing education products and products for maintenance of their gear on an ongoing basis.
Some examples of non-enthusiast markets (that you want to avoid) would be things like flea removal, mold removal or roof repair to name a few. These are markets where someone is looking to solve a problem, but once that problem is gone, they’re off to other things.
So, so far if you’ve checked the evergreen and enthusiast markets, next you’ll want to look at…
“It’s not enough to enter a market that is both evergreen and enthusiast. You need to also focus on solving an urgent problem in the context of that evergreen and enthusiast market and that’s where the $10,000 problem comes in.”
You’re looking for a problem that has a high pain point attached to it, say it starts at $1000, but it doesn’t end there.
The key question to ask here is: “What is a $1,000 problem that under certain circumstances transforms into a $10,000 problem? What’s a $1000 problem that has the potential to become 10 times bigger under certain circumstances.
One of the examples Ryan uses in the book is the new pre-potty trained puppy owner that needs to travel with their new puppy that incessantly pees on any carpet it encounters.
While this could easily be categorized as a $1000 problem (ruining rugs, carpets, cleaning bills, etc.), it becomes a MUCH bigger problem when you think about your dog peeing on airport carpets or in the belly of the 747.
So, you’re looking for a $1000 problem that, under certain conditions, could turn into a $10,000 problem, which leads us to..
“What you’re looking for here is evidence of additional future problems you can solve for that same customer, above and beyond that first problem you might solve for them.
Because once you’ve taken the time to solve your customer’s urgent $10,000 problem up front and set yourself up to become their trusted advisor, you have the opportunity to sell additional products and services down the road.”
For me in this business, once I help my students get their online business set up, some of the future problems I can help them solve are: 1) how to expand their email marketing, 2) how to build and sell online courses and 3) how to help them scale their businesses to six-figures and beyond.
So, if you can engage your market with that initial $10,000 problem, that gives you an open door to build credibility and to continue to solve problems they’ll have as a part of their success journey.
BUT, even if you have ALL of those 4 and you don’t have this one, your business is either not going to work or is going to be WAY harder than it needs to be.
“A viable market is one that has PWMs: people who are willing to spend a large sum of money in one particular area of their lives to address or avoid a recurring problem, or, in many cases, to fuel an important goal, hobby or personal vision.”
THIS is THE fatal mistake I made in my first online business that caused my business to grow like absolute pond water…
My first business, zerodebtcoach.com, which is my personal finance brand, only had 4 out of the 5 of these and missing THIS one, made a HUGE difference and not in a good way.
So, while I had a HUGE heart for people at the low end of the personal finance spectrum who were living paycheck to paycheck, I failed to recognize that they were not a PWM market.
Man, I really wish I would have had this framework when I started. This would have totally helped me to pivot a MUCH more profitable sub-niche and MUCH more quickly than the 3+ years it took.
So, now that we've covered the Find (& Refine) Your Market Framework, please leave your biggest "a-ha" moment in the comments below and make sure to ask any clarifying questions.
Thanks for watching and I'll see you in the next one.
Whenever you're ready, there are 2 ways I can help you:
1. If you're wanting forward momentum in your business, I'd recommend starting with an affordable course:
➡️ START. An Online Business - Course: Productize your knowledge with my niche validation, content, marketing, audience attraction and traffic growth system. Everything you need to start, grow and scale a profitable solopreneur business.
➡️ Inner Circle 6-Week Group Coaching Experience (Waitlist): Group coaching cohort where I take you from business idea validation to product creation to traffic generation. My complete system for creating: 1 verified market, 1 way to generate leads, 1 way to convert leads and 1 product to sell. Program opens about 4 times per year and you can get on the waitlist, here.
2. Register for my next free in-depth workshop on how to start, grow and scale an online business from a side-hustle to six-figures and beyond: Register here.
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