If you are thinking about making the leap into being an entrepreneur make sure you set yourself up correctly before you give up the steady source of income you currently have. You don't want to give up the job that pays your bills and find out your business idea does not bring in enough money to pay the bills. It could negatively effect your mental state and stop you from going at it again because having to go back to a 9-5 after you gave it up to pursue your dream could put you in a mental state that you are a complete failure and never want to do it again.
Failure is a part of life and most definitely a part of being an entrepreneur. You have to learn from these things and grow from them and re-tweak things as many times as it takes until you crack the code for yourself.
So how do we set ourselves up so that when we make the leap we have some sense of security that we will be ok and not have to go back to a 9-5 again?
A few things we have already touched on you must do; being a life long learner and knowledge seeker, reading books that expand your mind and business sense and health everyday, having mentors, learning as much as you can about your industry, putting more value into every hour, and using the miracle question. These things are all very important, I cannot say and express this enough.
An extremely useful and solid piece of knowledge that no one every really tells you, but very effective and super important is: The Framework to Earn a Good Living.
It works like this:
1st and foremost you must figure out and use properly your niche (finding your unique niche is something you may have heard). In order to find your unique niche and separate yourself from everyone else will take research, understanding your industry, understanding your competition, understanding what your potential customers/clients need that only you can provide and figuring out how to deliver, and figuring out your core audience.
They say that if you market to everyone then you are marketing to no one. Obviously the best case would be if everyone in the world used your service or bought your product. But you can't market to the whole world, and even if you could that would be way too much money. Apple doesn't even market to the whole world, they market to their core audience, their core client/customer base, and by doing so effectively it spreads beyond this core audience. But at Apples heart of their marketing is having figured out who their core audience is and advertising and marketing to this core.
If you don't have a core audience you are never going to make money. You must know the demographics you are trying to reach. If your core audience is 18-21 year olds it is going to be a whole heck of a lot easier and way more effective to be able to reach out the them and streamline your efforts to do so.
Once you have this figured out you are ready for The Framework to Earn a Good Living:
- You are not trying to get everyone in the world to use your service/product. All you need is to capture 18% of your core audience. If 18% of people can become highly engaged with you, you will live the good life. Think Globally, Act Locally.
If there are a potential 5,000 people in your local area that need your thing and you capture just 18% of them as highly engaged and always using only you, and lets say it is monthly they need your thing, and you charge $10 for it... that is $9,000 a month or $108,000 a year. That sounds like a pretty good income to me.
- Focus on the 18% and don't worry about alienating the other 82%. Put all your effort into making sure just 18% of your market knows who you are and using your thing. Obviously you want to work towards 100% of your market knowing who you are and you need to do that in order to capture just 18% of it. But as you start to build up from 0% to 1% to 3% to 5% and so on, you must make absolutely sure that you nurture each and every one of them so they only go to you, or at least come to you on a regular frequency. Just because they used your thing or service once does not mean they will come back, you have to keep building the relationship and always be appreciative of them and show them so.
- Find your messy story; your message. What is your story? What is it that is going to get peoples attention and want to and start to use your thing? Messy story because messy is like maybe you had a rough childhood and something about it you remember and can use this to play into your message that makes it memorable and worth checking out. Stories are memorable and shareable and your struggle getting to where you are now may be useful to shape a message for your thing. Maybe it is why you started your thing to help others like you, so don't hide it, share it.
Strive to capture 18% of your core audience and you will be financially set upon achieving it.