Building Business on Problems
When most of us think about a business, we think about what they provide – services, skills, ideas, or connections. However, I want you to think of 5 businesses that you frequent and come up with the antithesis to what they offer:
What problem to they solve?
When you start to reposition your thinking, and start “solutionizing” opportunities and businesses are often less intimidating. As you start to think about what you might offer in order to set up a second income, there’s a skill to being able to identify and understand the problem and what drives a person to want the intended solution.
To keep your mind sharp, and on-the-ready for the next step to Side-Streaming there are four concepts to understand and master.
- The problem may be inherent (like food) or it may be something that marketing creates. For example, this Beats by Dre commercial creates a problem for you by describing one person’s experience while getting out of the car and getting his headphone chord caught in the door. It’s not a problem you once had, but now you’ve had that experience once, didn’t like it, and now you want their solution (product).
- Problems aren’t often easy to spot, but they should be easier to break down once you do. If you’re considering buying a car, and want to get a car with heated and cooled seats, think about what you might want those for – or what problem they solve. When you start to consider things that are aesthetics, like Daytime Running Lights, what problem to they solve? Often, attention is the bottom line to those decisions, as much as we hate to admit it. Why do you want the nicest Gucci handbag? Why do you want the newest a $4,000 watch? It functions the same as it’s cheaper cousin, but doesn’t come with prestige.
- Problems with small frequency seldom don’t earn as much as problems that are common and widespread. That’s not to say niche, niche is different. Would you pay extra for fridge magnets aren’t strong enough to hold heavy cardboard, or would you just use more than one?
- People will pay for solutions to problems if the solution saves them time, effort or money. This seems so straightforward, but it’s actually quite complex. A lot of services offer you a solution that saves you one of these – car insurance companies compete for this (15minutes can save you 15%), offering microwaveable meals, even employees are hired for the sake of time. Many times, paying money on item A can save you money compared to Option B. You have to be critical and dissect on this one!
So, how can these concepts make their way into your consciousness?
How do you master anything??
Well, it takes practice that’s directed and disciplined.
First, start with this awesome list that Side Hustle Nation put together. The blog, run by Nick Loper, dives into ways you can earn on the side of a full-time job. He talks about a TON of interesting business concepts, and the best part is you can use this to practice the above 4 identification skills.
1. Print his list out. You’ll need just a few pages 😉
2. Print this worksheet out. Solutionizing Worksheet
3. Scroll to any particular idea that Nick shared. Write down the answer to the questions for each box, based on the principles from above. In no time, you’ll have a really good understanding of businesses, and what they offer a solution for.
I’ve written in my thoughts on the first of Nick’s list, Affiliate Marketing. (My answers are also on the worksheet!)
|Is the problem an existing problem or one that is created with good marketing? AM: Existing; I would pay if you can send sales to me.||What is the simplest way to describe the problem? AM: Sales|
|Is this a common problem, or is it widespread and frequent?AM: Common, many people want to raise sales||Does the solution save time, money or effort, or something else? AM: Effort; take away my marketing work. Time; take away my time spent finding new clients. Money; save me from advertising costs.|
nce you’ve got a good number of these done, you’ll start to notice that there’s such simplicity in most solutions.
What SOLUTIONS do you have to offer as a Side-Streamer?