ENTREPRENEURSHIP 101: Turning your idea into an actual business | Moses Manuel | Skillshare

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ENTREPRENEURSHIP 101: Turning your idea into an actual business

teacher avatar Moses Manuel, Entreprenuer | Lecturer | Author

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

12 Lessons (55m)
    • 1. Introduction

      1:50
    • 2. Quick overview and what to expect

      5:24
    • 3. What problem is your idea aiming to solve

      4:23
    • 4. How do you plan to solve the problems

      5:25
    • 5. Which specific customers are you serving in your business

      5:05
    • 6. What value are you going to offer your potential customers

      5:13
    • 7. What is it about this business idea of yours that makes it hard to copy

      5:52
    • 8. How much will it cost you to run your business

      4:53
    • 9. How do you plan to get your customers

      5:48
    • 10. How do you specifically plan to generate revenue

      5:05
    • 11. How will you keep track of performance

      4:10
    • 12. Now that you are done with the videos

      2:05
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About This Class

We all have had some version of a business idea.

I am sure you have had conversation which goes along the lines of “if only I had spent that money on creating a business.”

The truth is Having a business idea is one thing, turning it into a profitable business…well that is where it gets interesting.

And so how do you do that?

This is what we intend to look at in this course

Meet Your Teacher

Teacher Profile Image

Moses Manuel

Entreprenuer | Lecturer | Author

Teacher

Moses Manuel has over seven years’ experience in lecturing BUSINESS, LEGAL & DEVELOPMENT related studies

He is the founder of ZERITE VENTURES, an educational company that makes it easy for students and professionals on various fields to access educational materials and interact with each other making education available for all. He is also the host of ZERITE NETWORK a YOUTUBE channel that offers simplified videos on Business and legal related topics

See full profile

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Transcripts

1. Introduction: Hello, I'm mosses, the front of the truck, which is an indication of a company focusing on issues to do with business, legal staff, development related studies, biscuits and divisional company. Now, I've been lecturing for the last 11 years on the same business, legal stuff and developmental studies. Now, in this course, turning your idea into a profitable business, okay, here's what you and I are going to try and figure it out. So by the time you're done with this course, if she'd been a position to answers to the following questions, what problem is your business idea trying to solve? How do you plan to solve the problems? Which specific customers are you serving in your business? What value are you going to offer your potential customers? What is it about your business idea that makes it hard to copy? How much will it cost you to run your business? How do you plan to get your customers? How do you specifically planned to generate revenue, and how we keep track of performance. So as far as the class is concerned, you're going to have assignments, basically, all those questions, you'll need to come up with an answer to them as part of developing the plan that is going to convert your idea into a profitable. So this course was designed for, well, the course is designed for anybody who's ambitious enough to actually decide to hunt on a business. And if you are employed in there taking the course, we're going to start your own business. There is something called intrepreneurship. You can still go to your boss and convince them about your idea there is opposed to let them make the business some money. So either way, the course is going to help you. So as you go through the costs, remember, okay, remember, everybody has an idea. But in this case, the question is, how do you turn that idea into something that is going to be profitable? So let's get started. 2. Quick overview and what to expect: Hi. So I'm fairly certain that some point to talk about starting a business or you've heard people talking about, you know, if they had money, they would've started a business and all that. But having a business idea is one thing connected to a profitable business. That is where it gets interesting. So what are we going to do well in the next three years, okay, starting with this one, there are things that to him to look up to him to answer nine questions that are supposed to help you turn your idea from just an idea into a profitable business. And that would mean, okay, you get active, okay. Right. Answers. Okay. Tried to come up with as many assets as possible. And if possible, go out there, look at the market trend, figured out there is an opportunity for, if your idea is just an idea that is going to turn into how be one of the questions number 1 that you need to find an answer to, okay, that you'll find a nasa towards you go on, is, what problem is your business idea trying to solve? Because remember, all businesses kind of stem from a problem. There isn't a market or a problem that there is a demand, okay, for solution, which means number 2, how do you plan to solve the problem? Okay? So the way you plan to solve the problem, that is pretty much how we are going to make money. Because if people are not willing to pay for solution to that problem, then it means, well, it was a problem. It's just not a marketable problem. So the problem that is affecting the market, it's a problem that is affecting two people. Number three, specific customers. Are you serving in your business? So you just can't have a business that is intended to serve everyone. I mean, you're not selling, you're not providing oxygen or something. So you really need to figure out the sort of people that you are aiming to go after. We shall see that I mean, think about Super because they're not just producing a means of moving from point a to point B. They're producing cars, yes, But for a certain type of clientele, people want to move fast, want to spend a lot of money, and people are not looking for something to just carry the family. Anyway. We'll see more about that. Number 4, what value are you going to offer your potential customers? People don't spend the money because they have money, at least rational people don't do that. People spend money because they understand the opportunity costs that keeping this money versus auto would get if I spend it wherever I'm going to get is greater than the mine itself. Why? Because of the value. What value is your business going to add? Or at least that idea, once you solve it, what value are you adding? So you'll talk about value proposition as well. Next, what is it about this business idea of viewers that makes it hard to copy? I mean, is it one of those me to sort of businesses? So it shouldn't be that should be a business that is hard to copy. Next, How much will it cost you to run your business? You need to understand your numbers. Numbers are everything in business, okay? Because I know you are told men lie women line numbers because it all comes down to that. So what is the cost of running the business? And you figure that one out or we knew figure that out in that way, you need a plan for that. Number seven, how do you plan to get your customers? Because that is how you're going to make money. Where are they? How do you plan to get them? Because look, at this point, what you're competing with is obscurity. We don't know that you exist and therefore not willing to spend money on you. How do you plan to get the customer's number next? How do you specifically planned to generate income? And I'm going to say, well, just sell my product or services. In addition to selling the product or services, do you have a plan for recurring revenue? Do you know how to upsell? Okay. Do you know how to have modified rebuy so, you know, all that stuff. You need to figure that one out because you not only want to make money, you want to make a lot of money, hence, profitable business. And finally, how will you keep track of performance? Because let's face it. Tracking it means now you're able to know what is going to be controlled and what isn't going to be controlled. So you need to find out answers to all those questions, which is what you're going to do as the business, as the course continues. So by answering these questions will be in a position to formulate your business plan, or product launches or campaign, or even communicate with investors. So that's the thing about these. Even if you're not in business, you can still use this class to sort of just launch, launch, launch a product in a company for employed. So look, there's something need to understand about business plans. Or as Steve Blank, an entrepreneur, educator and author and speaker puts it, a business plan is a document investors make you write that they don't read. So I wanted to just get obsessed with having a business plan. I want you to think about execution. Execution is key. So as you are continuing, remember that's the overview of the course. As you are continuing in this course, the one thing that should be in your mind is execution, okay? You need to figure out these, what I need to do, this or I'm going to do, and therefore I'm doing it because he wrote executing there. It's just another course. I mean, there are a lot of courses that you can take, so I don't want this to just be another course. I want these to be the one cost that you take. You go there, you do what you have to do and to get things done. So have your piece of paper with you or have your laptop, whatever t is a place you're going to take notes because there are assignments are expected to do each time we finish. So let's talk about all that. Let's start with the first problem that we mentioned as far as the list goes on, the problem. So let's talk about that. See you in the next video. 3. What problem is your idea aiming to solve: Now just because you've seen a problem in the market or just because you went somewhere and you wanted something and you couldn't buy it. And then you think, well, if I'm to produce these things, elephant supply distinct in this area, we are going to buy. That isn't exactly how businesses work. Okay. Sometimes you don't have, you know, sometimes there is nothing for you to buy it because we're not interested in selling those things. Because people are not interested in buying those things, you just happen to be deselected a case. So just because there is a problem, doesn't really mean that it needs solution and that a solution to it is going to turn into something profitable. Most entrepreneurs fail because they spend a lot of time, money, and other resources on coming up with the wrong problem resulting from a poorly perceived problem. So the point here is that you, you idea, okay, which you think this idea is a result of a problem in the market? Is it really something profitable? In fact, is alternate. Remember, you need to understand the customer's problem faster. And you see by the customer talking about the person who's actually going to pay you. So what idea do you have? I mean, talk about it or write it down, look at it. What exactly is willing to pay for that? Because who has that problem? Is that person going to be a customer? But then the question is, who's a customer? Well, it's simple. The customized, somebody's going to pay money to have the problem fixed. So take something like Facebook or social media. You and I could be using social media and you're not paying for anything. So does that make us the customers? Well, we are part of the value chain. Okay. But then they don't really make money from there, only take money from us. They need us because our data or our preference, or the way we use the social media is what is going to make somebody pay to target you with marketing so that other person becomes the customer. You are just a customer, but you're not really paying type. You technically a part of the product. And so what am I saying? What I'm saying is that think about your problem, okay. What problem exactly do you think that idea of us is trying to, as identified in the market or in whichever place that, but it's business or in the market. So it doesn't really matter whether you think your idea is good or bad. It all comes down to the market. The customers to be specific. So it's an activity that you need to undertake rational, okay? I want you to write down, point straight down three problems that you think are already there. Lists your customers top three problems, and then list alternatives that may already exist in the market and the customers may use to solve their problems today. So why am I telling you that? So let's say you think the problem is people don't buy watches where they're not to my knowledge, what are the alternative? The alternative is that they have a mobile phone, a smartphone. And so they probably don't think that the watch is important. So if you start selling watch, you really think you're just selling watches. I mean, orange recombinant smartphones. But then what if you say these are vintage watches, so that kind of makes it different. You're not just selling a watch, you're selling a brand, you're selling a lifestyle. So I want you to think about that. I mean, as an example, let's say I want to start a customer relations software sort of thing. So is output that. So number 1, support cases get lost or forgotten about. Number 2, support cases are hard to share and delegate. And number three, customer care software being used is complicated and slow. So maybe that's the problem that I think an organization has and therefore may make my software is going to help them. So I need to think about that. I want you to think about three problems that you are. Potential customers have. The figure alternatives to, solutions to those problems, and then see where you fit in. That is your first assignment, okay, that is the project. Now, make sure you do that before you move on to the next video, because otherwise it's just pointless, Amy, but write them down. Don't don't don't make a big deal out of it. Okay. I don't want you to think. Just chop, chop, right? Okay. And then I'll see you in the next video. So the idea is to try and identify the problem that you think your business idea is a limit. So let's see what is the problem. Three of them? Well, if you can do more than three, that's even better, but let's start with that. So I'll see you in the next video. 4. How do you plan to solve the problems: Hello. So what have you done? Okay, in the last video we talked about identifying problems. Yeah, so let's talk about solutions. I'm assuming you already know the problems that you or your potential customers have, right? But you haven't told them anything new. They know that they have those problems. And so let's talk about the solution. So identifying solutions is important because that is the beginning of what people are going to be paying you for a solution to those problems. This solutions can include new products, services, or they could just be an improvement to existing products. I'm not saying that you have to come up with something new. I mean, think about some of these softwares or platforms that you use. Facebook. Do you think it was a new thing? And I probably think, yeah, not the old already social media. Okay. We had MySpace and pretty much other stuff that Sam, remember some don't. So first book sort of just improved the social media experience. What about Google? Okay, the biggest search engine we have reached now, it's not the only search engines. Ya'll, was they are being was there. Okay. And then what? Google improved on that? What about YouTube? There are other video platforms that are in existence, but YouTube happened to be the biggest search engine. What am I saying? What I'm saying is that you could come up with something new or you could improve on what already existed. Either way, I want you to figure out a solution to the problems. That idea that you have. This is my $1 million business idea. Cool. Now, the problem that the problem that you've identified, you have a solution to that. Because that is only way that is one of the ways actually, but that is the only way to turn that idea into a profitable business by talking about solution. So what does that problem? Hi, planning to solve those problems. So here's the thing. While finding a solution to the problem or problems is the golden egg. You may not just get a 100 percent of each. Meaning what? Meaning you have to engage with your customers? Meaning you have to learn their daily struggles. Meaning you just come sit in your office and then say, perfect, Here's the plan. Perfect is the product, effect, is the service not. You need to go out there. You need to constantly look at your customers. You need to constantly figure out their pain. And that is the reason why each time you see companies come up with new products or improve on old products. So there is no being lazy here. Okay? How do you do that? Well, as I pointed out, God, there. Okay, go on social media, gone the forearm statistical existing. We are Facebook groups, we have Quora, we have YouTube. Okay, Jacob, some product review on YouTube. Look at the comment sections. What are people talking about? I mean, look, you just can't afford to be lazy. We just can't afford to play God and say, wherever I've created is perfect. The market is not very forgiving and the market doesn't lie, okay? So find out what problem, I mean, what solutions are there and what are people doing a book solutions, those solutions and then improve on them. Or come up with something new. You know, if you have choices, it depends on your idea. In fact, you could, you know, like talk to me about your DA domain, talking about the idea. I mean, it's just part of engagement in this class, right? So don't just travel there. Anyway, try and figure out a solution to that thing. Here's an example. Let's say you remember the first example, we used our software, okay, so here's how we probably want. I want you to present the solution. All customers complaint cases saved in one place with current status and history. Easily add or remove agents. Two cases via a web interface, eliminate extra fields and optimized for speed. So if that was a software that's pretty much what you're going to do. That is what I'm going to prove on the existing software. If you remember the example I give the customer care software, note that that is the business you're going to do. I'm just giving you that an example as an example. So what do I want you to do here is your project number 2. Remember, it's an ongoing thing the first time I wanted to talk about to list your problems now is what I want you to do is go ahead and make a list of solutions to the problems you have identified your customers have. Again, repeat that. Go ahead and make a list of solutions to the problems you have identified your customers, be having. So it gets serious, get busy. That's the second thing you have to do. You identify the problem. Now come up with solutions. And remember, nobody's going to do this for your menu or HDL sex. You owe it to yourself to be successful. I mean, that's pretty much the thing. How bad do you want it? And how focused are you? Because if you can block out everything else and just focus on this, it's going to work, okay, Remember, to the degree that you start succeeding, the chances of you succeeding increases, okay? But if you sit back and just wait, is a thin failure, is exponential success tend to be linear, which means what is success can't go that way. Failure can just be, you know, whichever side. So you really don't want to just sit there and hope that things are going to happen, okay? This is business. Hope is not a business strategy. You have to get things done. So do that, okay. And so that question, and then I'll see you in the next video. 5. Which specific customers are you serving in your business: Let's move on to the next phase of turning your business idea, okay, timing idea into a profitable business. And the problem you are dealing with now is which customers are you serving in your business? Look, really talked about that. Okay. You're not going to come up with a product for everyone. I mean, you're not going to target everyone because that is just going to be one too much work. And to recipe for disaster because you can't do that. It's going to be expensive for you in the long run. So you need to know which guys are my starting with, okay, which, which customers are able to go after? And we talked about Facebook as an example. So look, facebook knows that as a user, you need to be entertained. That makes your user right. And you need to have a sudden experience. But then as an advertiser who's going to spend money, you need to be in a position to actually get whatever you want out of it. And so its job is to make sure that both parties are taken care of the users. Who are the users? What do they want? The advertisers are going to spend their money. What do they want as the business becomes profitable? And so that's the thing you have to understand. Who exactly are you aiming at? I mean, look at cars. Okay. So Mercedes-Benz is all going to make a car for everyone? I mean, they do that, yes, but not everyone. They're going to target some high-end clientele, at least not in Africa. They don't do that forever in Africa, Toyota will probably do a mass production. But then if they do or mass production, the compromise on the quality of the car so that the Kayz cheap enough for everyone, well, everyone. But it's people on a certain class. And so that's what I want you to think about as far as your business is concerned, I need to remember something. Customers are the people who are paying you. A user is not necessarily the customer. Because if I buy a laptop for my nephew or niece or whatever it is, they're going to use it that they're not the ones who are paying. And as much as if the customer, the laptop has a problem, they'll complain. They don't really care that point. So that way they're not the customer, the other users. So the company is going to make something that will make the users happy. But paying attention to the person was going to spend money. Get a standard, I'm saying so there is a starting point. Okay. Who exactly are your customers? Do you know them? Do you have, you know, you can segment the market. What type of people they are, what do they do? Where do they leave? Okay. How do they make money? How much money do they have? Because sometimes you end up spending amine. You intron and advertisement, right? And then you say, I'm targeting people between 18 to 65 for devotees. Meanwhile, what are you trying to do? What service are you offering your offering tax services? Do you really think people were 18, are going to pay you to audit the accompanies that are going to have companies at that point, most of them don't anyway, most. So you see you're targeting the wrong sort of people. And that is why in as much as you may have a problem and you present a solution, your success or your chances of being profitable still depend on whether or not you can pinpoint the right type customer, okay? What is the point here? The point is you must understand who your customers are if you are going to have any shot at profitability. So what is supposed to do at this point is I want you to do describe your target audience and define what your relationship will be with them. And so if your target audience is going to be a number of people, various types of people, it's segmented. They will still need to look at the relationship they all have. Okay, so if let's say I'm targeting students, well, which kind of students am I targeting? The ones we're working? Okay. The answer whacking. And they're working in a professional capacity or do they just have a job in the sense that they're trying to make money. And there are students who are trained to work and go to school. I mean, if it is an accounting thing and they brought in as a content and a train to upgrade the accounting career. Event is graphic design. Is if somebody was just interested in graphic, that just getting started, or if somebody is working in a marketing company in B12. My point is segment these people and look at what they all have in common because that will help you when it comes to marketing. So again, I'll repeat that is what I want you to do. Describe your target audience, and define what your relationship will be with them. Basically, I want you to think about the problem and the customers the same time. So that is your assignment. Okay, so go ahead and do that. There is number three. So what do you know or do you have at this point, you have a problem, you have a solution. Now anti to have the customers that you are targeting and you're ready to look at them in terms of how they lead to that problem. And if there are many, what is the one thing that ties them all together? Powell? Various things that various common traits that they have. So I'll repeat the question again. Describe your target audience and define what your relationship will be with them. Do that. Then I'll see you in the next video. 6. What value are you going to offer your potential customers: Most of the things you've done so far cave, figuring out the problem, figuring out the solution and figuring out the customers that are, those are not that complicated. So here's where you start to work, okay, is where you start to see the profits by thinking about value. So why should they buy your product or services? Why should the customers do that? I mean, remember what he said when you're starting, people don't just spend money because they have money to spend at least rational people don't do that. They'll look at it in terms of what value or make it. It's like you deciding to go through this course. You didn't just decide to click there because you're like, I have data and you have Internet and then I want to see not really, there is something you're looking for. And I'm hoping that you're actually getting what you're looking for, right? So in a look, people don't spend money because they have money to spend at least rational people don't do that. So it comes down to the value. What is unique about the, you know, what value are you offering them? Okay? And by valleys or I mean, value proposition is a promise of value to be delivered. The idea is to let your customers know, why should they buy from you? What are you promising to deliver? Think about taxes, okay, Uber. Well, it's all like if there was no tax, It's just that it makes it easier for you to someone a cub wherever you are and you don't really need to negotiate. I mean, you see the Cub, you see the price, you know, on average how long it will take it to take the car to get where you are. That's part of the value, right? Think about things like Netflix, okay, I can watch a movie, I don't have to leave my house. Think about, I mean, all this stuff, del delivery services, there is something unique about them. So amazon, how fast can they get to my package? That is the unique thing, is that justice law as the next product, then it doesn't matter. So what is unique about your product in terms of value or your service, okay? The idea here is to let the clients know why you are different and why they should buy from you. So basically, what makes you different? What I wanted to do, Okay? What am I? What you need to be thinking about in terms of value proposition is develop a message that is compelling, clear, and concise. The message should be able to turn unaware of visitors into interested prospects. Like again, just random idea, the example that we're using, the web-based customer caffeine. So here's something that you can say about it. One, it's going to be away. It's going to be a web-based customer chaos software that is intended to help customers in record time. Number 2, customer care software that is easier to use than e-mail. That is what makes it unique. And that's pretty much the same. But to repeat, the Alia point is autonomy to have in your mind. Unique value proposition is a clear message that one describes the advantage of number two, makes you different and distinguishes you from the competition. So indeed, you see all that is going to be difficult to it. But if it were easy, everybody would be doing it. And so get, you know, get WACC. So think about that, think about what's next it or the mortar mix, your products or services unique. Okay. And don't say Well, they are unique because of the hand-built. Everybody says that and those are their unique because they are organic. I mean, unless you're kind of trained to sell to people via that kind of thing. And if that is the case, then good for you. But I want you to think about something that is going to make the customer come back again and again. Is it because you now to cook? Is it is it the strategic location that you have? Is it how fast you can deliver the services? Is it that you're offering customer-based solution? I mean, look, there are many things about your business. I don't know your business, but I know that if you take time to think about it, come up with something unique about it. So activity is what I want you to do. Make a list of value that you are proposing to the potential customers. Okay. So read that listed down. I mean, it could be two things. It doesn't really matter what exactly are you proposing that if they spend money on your product or service will be good. Okay. What is it? Is it, is it a class, is it a brand? I mean, people don't go to those high-end restaurants because they just want to eat. That is the class that comes with it. Okay? You don't buy a Ferrari because you just want something that moves you from point a to point B. Okay? You don't go on vacation to like Milan, okay. Or or, or whichever place vocation to. You don't go there because you think, Okay, I want to go somewhere and then I can afford a plane ticket. Not really. There has to be something unique about it. Okay. Why do people buy iPhones? Is it because they just want something that the compressed and then say Hello. I mean, that is why you buy that, then there's just that. But for the most part, there is something they think is unique about it. And that is why they spend money and that is why I want, and that is rather what I want you to think about when it comes to people spending money on your product or your services, okay, what's unique about it? So make that list. The value that you are promising to deliver. Make that list okay? So I'll see you in the next video. 7. What is it about this business idea of yours that makes it hard to copy: So we've talked about your products or your services and the idea that there is value that you're trying to present to you our potential customers. Let's talk about the business itself. What is it about your business that makes it hard to coach your competitive strategy or put more in a simpler way, the unfair advantage that you have, that competitors don't have. So what is it? This is the part that actually sets your business apart. The idea here is to think of the thing about your business that gives you an unfair advantage over your competitors. That is important, okay? Otherwise, if it is a business that anybody can just copy, then you're only going to be profitable for like six minutes until somebody else sees that business and then does it on a larger scale. But that is not to say that you're going to have to spend a lot of time coming up with something new because they are generic ways to make your business stand out, to make a business unique, to develop a competitive strategy. Okay, So here's the thing I want you to remember. The only real competitive advantage is that which cannot be copied and cannot be bought. So what are these generic competitive advantage if you, if you read the book, Competitive Strategy by Michael Porter, I mean your code Thomasine, you go and do it but you could business person. And so it's always good idea to constantly RED. There are three ways in which you can develop a competitive strategy. At least three ways, according to Michael Porter, the first one is, okay. So what's, what's, what's, what's brand? You know, you could compute using branded. Think about shoes. Nike. Okay? If, if you do a blind person test, if you just tell somebody close your eyes and then you put Snickers on their feet, they wear them. And then they'll record you feel comfortable and then you took them out, put another, the military be in a position to say that those who are Nike's and the rest are just some thing. But once they open their eyes, they see the brand. Something just changes. The reason why you can spend X amount of money on a T-shirt and that doesn't have any brand. And then we add something here. Okay, we had some cool designer brand and suddenly the price goes up like ten times or something. Why? Because you're just paying for the T-Shirt. You are paying for the bragging rights, you're paying for the brand, okay? And that's the thing. So that could be something that makes your business unique. Do you have a strong brand? Do you have a plan to make your brand store? If you don't have one now, maybe that's something you need to think about. Number two, you can't compete with costs. Meaning what? It should become a cost leader in that market. If it costs you to produce something and it's costing your competitors to a 100. That means even if you sell it or to a 100, if you're still making twice the profits that they're going to make. So basically that's pretty much the same rate. So if you can find a way to cut your costs down, this is where things like outsourcing will come in. You don't have to do everything on your own if you can find some other way to bring the cost of production down, that can give you an advantage. There is a reason why you really need to understand your costs, okay? And there are a lot of people you can outsource the services to do your research and naughtier to recommend any because I don't know the nature of your business, but remember, you can always open source, you can always get cheap labor. You can always find a way of bringing the cost of production down by really, really investing in good R and D research and development. It depends on the sort of business that you're doing. And he even shooting videos. You can shoot the video and then you can cut the cost of editing by having somebody else do it for you, and that frees up your time to do something else. People do that. Writing blogs, have somebody else do it for you. If they're going to be cheaper than you doing it, and then they do a good, a good job. So brand cost, number three, you need to design. Okay, so that's another way in which you can make sure that your business has a competitive strategy. How unique is the design? So you can invest time on trend, come up with something cool, something good. That is important. I mean, you see that with cars, okay. So there is just a car that car, tires boom, go. But then you have those postcards that adjusted, properly built and something happens in houses, the same thing can happen in food. It comes down to presentation. You can just cook food, food, boom, plate south. Or you can arrange it in such a way that the customer looks at it and say, okay, I'm only paying for the food, I'm also paying for the presentation. Unique design. So don't write pointless stuff like commitment or passion. Okay? Think of things like reputation, unique brand experience, unique partnership. All of these are things that are supposed to help you make your design Betas or do I want you to do at this point? Is, or I want you to do, make a list of what gives you an unfair advantage over your competitors. Think about that next, at least, what exactly is it about your business? So it's sort of in your product anymore. What is it about your business that gives you an unfair advantage over your competitors? And the assumption is, you know, your competitors, they love to ask you where your competitors are only to do another video talking about, what do we do a different video talking about competitors. If you're in business, somebody is going to come up and then they're competing with you, or you are the one who is competing with them. So what is it about your business that will give you an advantage over them? Make that lists, okay, so remember, every time we tell you to do something expected to do it because the answer to those things and the ones that are going to help you come up with looking at the thing and say, okay, this was the idea. Result's going to be profitable because I've done a, B, C, D and all these things. So what's next execution? Now, I'll see you in the next video. 8. How much will it cost you to run your business: Okay, so let's talk about money in short. What is the cost of doing your business? Right? So if you don't understand or unless you don't love numbers, you just have to find a way of loving the numbers because they're talking about money here in, by money, I mean, the cost of actually doing your business. Generally speaking, there are a number of ways you can classify your cost. But for the sake of this video, let's talk about fixed and variable costs, things that you need to understand. So fixed costs are the costs that are going to incur when they make profit or not, what they do, they sell or you don't sell, for example, rent, okay? If you have walkers, you need to pay their salary. If you're using Internet, you're going to have to pay the Internet if you have insurance, you pay. So some costs that you incur irrespective of the level of production that you do. Need to understand those costs. And then you have variable costs. These are costs that will vary with the level of production. For instance, if you're producing, if you're producing these watch, the more you produce, the more you're going to incur in terms of the cost of raw materials, okay? So you understand that, and those are just basic things, fixed cost, variable costs. You still need to understand things like, what is the cost of starting a business or a boat? Sorry, what is the cost of the legal cost that comes with running a business, things like licenses, okay. Things like that. If there is a municipal or a county council, how much would that cost you? If you're thinking of just doing online stuff and therefore not paying rent, where you still love hosting costs. You still have advertisement charges. Or you're just going to say, Well, I'm not going to spend money on advertising looked yet to be profitable, okay? While you may start by not spending money, at the end of the day, you're going to have to spend money to save yourself time because you're not spending money advertising, spending a lot of time doing organic handful. What is the cost of running a business? You need to understand that, okay, for a joke. At this point, you should be thinking of all the operational costs for taking this business to the market. How much will it cost you to build it? If it is only what is the cost of the landing pages? What are going to be your monthly running costs? Okay? If you have to check our research, how much would that cost? So there's going to be cost again, and you need to figure that one out right now, just half as many things as possible then look. In the last video we talked about trying to become unique. So once you know your cost and you know how you can manage them. So at least a cost of everything don't start cutting costs at this point. Just know that they exist so that you can let a trend to figure out how to manage the cost. Okay? So what I want you to do at this point is what I want you to do. I wanted to make a list of the cost you will incur. Y is the cost important? Well, we said turning your idea into a profitable business, but you're not going to just start to make profit. You're still going to have to survive. And that means you have to figure out your break-even point. What is the breakeven point? Is that point where you're not making profit in the north, making loss in short, the cost of running the business, and the revenue that you're getting the same, you still get a salary because I started composite of the cost of running the business. If if you're paying salaries for taking salary. So this, it doesn't, the reason why it's important for you to understand the costs. You don't have to be like a math genius, an accountant, or whatever it is right now. I just want you to look at it. As a business person. How much does it cost me to do this? And don't forget to factor in time because if you don't spend money on something you're like, okay, I'm, I'm not going to pay for ads then account for time because you're not paying for artist, it means you're going to have to constantly write blogs, constantly do pictures, constantly do videos, share them on social media. So there's that, Okay. And it will still cost you. So understand the cost of doing business. Meaning what? Meaning again, I'll repeat the assignment. Make a list of the cost you will incur. So I don't understand that because that is pretty much all you're going to make profit. What is profit in this case? Sales, okay? What have you sold less the cost of producing whatever it is that you've sold. Now sales minus cost of goods sold will give you gross profit or gross loss. Let's hope it's gross profit and then deduct the expenses that are not associated with producing the goods or the services. And then maybe you have your net profit. Of course, check out the taxes, then you definitely have your net profit. So that is the reason why you need to understand your cost. So don't be lazy. Figure that one out. How much will it cost you to run your business to turn that idea from the DEA, which is no longer is at this point in actually getting to the market and the market, how much does it cost you to have it in the market and continue being profitable? Make that list. I'll see you in the next video. 9. How do you plan to get your customers: Hello. Now let's talk about customers because the idea is sales, QR, everything. So the question is, how do you plan to get your customers? Thing about profit is that it kind of just depends on your sales pipeline, okay? The more people you have buying our products, assuming you can't control your costs, the higher the number of profit are going to mix. So it comes down to that. So where do your customers come from? How do you get them? What's the plan? Let's talk about all that stuff. It is simple. You need sales and how do you make the cells? So there's where the marketing is going to come in, okay? You really need to be good at marketing. You really need to be good at going out there, creating awareness, okay? Letting the people know that you exist. So that means using social media if need be using what does mouth using fliers, using all the combination of marketing that you're going to do. So this is the pathway. Start talking about that. I mean text, something like Facebook. And humans think Facebook because it's cheap, right? I mean, Google ads are relatively expensive compared to Facebook. So if you have like a website, okay? And the people go to your hips and these are people who've already interacted with your product. Then you can retarget them using Facebook pixels. So now you don't have to just advertising people, don't know that you exist advertising to people who have interrupted with, who have interacted with your brand. And then you can even create a lookalike audience. Ok? So everything, remember cells. So that number has to be big so that the cost of sales as to be small, that you can get more profit. And that is the reason why it's important to understand the various channels that you're going to use to get you to get your customers. That is important. The channels can be e-mail, all media, blogs, article, trade shows. I mean, you don't have to use all of them. You just have to figure out which one kind of relaxed with where your customers are. And so that is your job. Your job is to figure out where are my customers. Remember you wrote that you wrote under your customer segment. Okay. I mean, unless you didn't do that because I told you to do that. What the customers, where can you find them and then, which is the most sustainable means of getting to them. Because again, repeated that if people don't know that you exist, then I'm going to spend the money on your product because how can they, so you are, your biggest competitor, is not the person doing something that you're doing or similar to what you're doing, you're number one. Biggest competitor is being obscure, not, being, not, not getting the attention that you need from your customers. Money follows attention. And so you need to go out there and you need to do that. So you can't adjust. In fact, to think of it this way, every time you post something, that thing should be doing. Two things, which will be selling your brand or it should be trained to convert customers. And that is not to say just keep on posting by now. By now, not really build a relationship as you're building a relationship. Or put these, show them how you can solve their problems by actually doing it. And then, you know, then ask or give, give, give them, ask. Okay. That's the thing. So I just want to be the person who is checking. So you really need to learn how to use social media to market. Don't say an afternoon for Facebook thereafter for YouTube. Well, if you don't have to find somebody else who has time and then they can do that for you because trust me, all the customers that you are aiming to meet, at least a fraction of them is going to be on online, okay. And those of us who are not online, you just have to go to where they are if you're in real estate, for instance, okay? You can still create a show talking about revealing houses, okay? Or 10 things to know before you buy a house. Meanwhile, you shouldn't buy a house. Talk to me. Okay. Probably thinking, nope, I'm just going to be selling food. Good. Show them how to cook something, show them how to preserve it, okay, like these, or to prevent a, B, C, D from going bad, I'm going to do that. Whatever t is okay. The point is, you really need to make sure that your customers know that you exist. What's your plan disciplined for that? Because you don't have a plan for that, then look, you're compromising yourself and profit kind of just depend on sales. The bigger the cells, the bigger the chance that they're going to make more profit. It kind of works nothing. So you need to think about that. Think about the channels you're going to use to target your customers. And if you don't know anything about them, that's a reason for you to learn. Okay? I don't know how to market on Facebook. Good. That's a motivation. Lung. There are a lot of videos out there okay, on YouTube and pretty much all those things. Tell people or teach people how to map it. Okay. The attention, okay. I mean, that's the thing you have to constantly improve on yourself. It's not as complicated as you, is. We just have to be determined. So what do we want to do at this point is what I want you to do. The channels you're going to use to acquire your customers. Again. 10. How do you specifically plan to generate revenue: Okay, Let's talk about money. Okay? Let's talk about how do you make money. So the price, how do you price your product? Because the way you praise your product will determine a lot of things that will determine whether people are going to spend the money on it. I mean, even if the product is valuable, all the thing that product is going to add the value if it is poorly praised, we're going to spend the money on it because it doesn't really make sense for them. I mean, what is the cost of the alternative? So the business model you use will determine a lot of things about making money. For instance, you could praise your product as x, but then you just don't sell it direct. I mean, you sort of have to figure out, okay, maybe you sold it, but then the question is, how do you make them buy again? So let's say you use something like a hook and B8 model. There are many businesses models that you can use. So I'm just giving an example, hook, bait, meaning you sell them one product, but that is not really how you're going to be making money. You're going to be making money by them, by other products are supported that cell a printer. Yeah, the, the printer, they're gone. But in order for them to use that print out the need cartridge or well, depending on the type of printer you're using, could say toner, but they need to buy the cartridge is, so money is in the cartridge. Okay. You buy a phone. Good. Where's the money? The money is in the amount of money you're going to spend every day, every month to make that call data plan. Okay, those are the recurring costs. So when people buy your product, how do you really plan to make mine? Do they just buy once and go away in order for it to be super profitable you needed to. You can turn it into a recurring theme. Now if that's not possible, then you can think of upselling them. They bought fries, don't eat, well, then you can also buy soda. Okay. I'm not talking about health reasons, whatever. I'm just I'm just giving an example. Okay. They bought this food and this is an accompaniment, okay? They decide to use your restaurant. And then you say, okay, now that you know you can eat, you also have taxi services. That's another way of making money. The point is, you need to come up with various ways of making money. Tech blog, for instance, you can make money through AdSense, which is the easiest. And again, that is not the most profitable. Anyway, believe me, I've tried. You can have the blog posts, but then in the blog itself, you can sell other products, your digital products. You can sell affiliate programs on the same thing. So those are ways to make money. Okay? So my point is it's not just on need one way like these service and they must have paid me, I'm done unless your business is restricted to that. But in order for it to be super profitable, I don't want it to be restricted are anti to be the sort of business that can generate multiple revenue from multiple sources of income as you, as you go along. And so if it's just going to be making money once, then can you think of a way of turning it into a B2B business to business sort of, you know, the business rather than just a business to plant. Because if your class are businesses or other businesses, then you can charge them more as opposed to if you're just dealing with one person. Again, I'm not really saying profit should be the main drive, but what I'm actually saying is look at how the course is titled, how to turn your idea into a profitable business. So that tells you something. Okay, so think about that. Now, what do I want you to do at this point is what I wanted to do. Make a list of ways or just a way in which you intend to generate revenue? I exactly do plan to make money and don't say by selling a, B, C, D, there is just one. Okay. After you've sold, How else do you make money? I mean, the De Maria, the better. That's pretty much the same. And also don't just read a lot of things to make your list look good that are not really going to do in order to be realistic. Okay? Remember these not college assignment, you're not giving you a grid CIA. This is you telling your idea into profit and then you gain. Okay? This is not a college paper that you just write things and then I'll be like, Okay, I'm a more planned to give you a distinction near or something. I'm just telling you it's your business. Figure out how else are going to micromanage, what is your revenue generation plan? And if you're stuck again, I told you something else. There are many business models out there. Figure out which one works best for your business, can understand your business. And so if you, again, if you're stuck, there is a comment section in this course, you can just comment or you can, you know, we are here at land. By doing. So, don't just get stuck there and become frustrated and say discourses, don't even walk, not be willing to ask for help. Okay? And anyway, the point is just do that. What does the assignment in this case make a list of ways or just a way in which tend to generate revenue, right? So let me see you, or I'll see you in the next video. 11. How will you keep track of performance: So if you've made it to this part of the video, just want to say congrats because it means you really are. And I'm hoping that you've actually, you actually are learning something. Now, let's put all that together by talking about how do you measure your progress. You add a business idea. And you've gone all the way to coming up with various ways of generating revenue. But then you need a plan to measure your progress. Because otherwise, how do you know if you're succeeding? The problem with most people is that they tend to set a lot of vague goals like I want to be reached. Why? Because if you say a few set a specific goal, like I wanted to make $2 thousand next week. Then it means depending on when the weekend See you on Friday. You don't have the money. You're like, Okay, I'm a failure. And so you don't want to set a condition for failure. But we weren't kidding ourselves. Okay, we really need to be serious about this thing. So what am I saying? What I'm saying is, it's time for you to start talking about how to measure your progress, okay? Or at least in this case, the progress of beasts of the business metrics are a way to measure performance and to monitor progress towards achieving your business goals. So start by listing numbers that describe your business, what I'm talking about, in fact, that is like your assignment, the last assignment for distinguished. Which numbers matter more to the business? I'll repeat that, that by listing numbers that describe your business. So an example here would be, how many sales do you need to do in a week for you to be profitable? How many subscribers do you need on your list if you're talking about subscribers? If it is an online thing, how many viewers do think you need in a month? The point is, come up with the numbers. If it is production or many units do you need to produce? And of course, how much would that cost you remember DR. both cost. And then what is your production capability quality, or is the level of quality do you think the customers are going to be satisfied with? So you're coming up with metrics and these microstates are supposed to, this, well, the metrics is supposed to help you, okay, to sort of figure out if you're succeeding or if you're failing, okay? You have to be careful here so that you don't end up creating vague metrics like having many clients. That is that only when all that is okay. How how many men or women by many, so define many, okay? I mean you have a target or is your target my target is to make X amount of money, the vast that, okay, So X amount of money, how does that translate in terms of units, in terms of services? How many people do you need to serve in order for you to make that money? That's the number that you need to write down. You want to be specific. That way you can actually look at the results. So how many clans, how many units, how many views by block are you aiming at, etc. all those are some of the metrics that you have to measure. And so you know, by doing that you sort of straight to understand if your business success is succeeding or not, okay? How many calls do you need to make in a day or many calls? Do you need to make an awake in order for it to convert customers? If it is a landing page or many views, how many clicks, what is the conversion rate? You know, it's not easy. Nobody said that was going to be easy. It's never going to be easy, right? And the people succeed at the people don't give up, okay? It doesn't become easy, you just become stronger, you just become smarter, right? So that's the reason why you need to grant, that's the reason why you need to execute. So what I supposed to be doing at this stage, that by listing numbers that describe your business, which numbers matter to your business? Does other things that are going to measure. And remember, the more you succeed, okay? Or the moment you start succeeding, the chances that you're going to be successful will increase as you go on. So there is no giving up. Okay, now that those nine things, or at least those nine videos, are intended to help you turn your idea from just a mere idea into a profitable business. Okay, cool. So again, if you have any question dilemma and well, we'll talk about it. 12. Now that you are done with the videos: Hi, So first of all, congrats for making it all the way to the end of the class because I'm at this point, I'm actually fairly certain that you're in a position to identify the business idea that you had. C, Which problem that idea sort of identifies. Come up with a solution. Understand the customers that you are aiming OK, and be in a position to actually present value to these customers because they're going to pay for, we wouldn't pay because the entropy people pay because they think they're going to get value out of the thing that they're spending money on. Understand what makes your business idea different. What is the cost of doing business? You need to understand that, okay? You also need to be in a position right now. I'm hoping that you're actually in a position to create a plan to actually acquire customers. Tell us or tell somebody how exactly are going to generate income, or tell yourself or you're going to get rid of income. And also been a position to know what exactly you're going to be measuring in terms of performance as far as your business is concerned. Look, it's all going to be easier. So that's not a thing NOT or tell you that it will be easy. You'll have to work hard because at the end of the day, look if it were easy, everybody would be doing it. But then I'm confident enough in abilities to execute. Because otherwise, why would you watch the entire course if you just want to go into do it? So work, they get things done. If you have a question, okay. Don't just sit there with your question. I mean, share. Let's talk about it or talk to somebody else. The point is to just get frustrated and be like, are these things not working? So based on everything that you've done, Lucas, that come up with a plan for how you're going to do in the next one week. And then what you're going where you want to be the next 21 days? Questions is, where do you want to be in the next 90 days? Where do you see yourself in the next one? Yeah, You need a plan for all those ions. And those are just short-term plans. Okay, so do that. And again, thanks for watching the course and I'll see you in my next course. Do have a lovely time and all the best. Remember, execution, that's the key thing.