https://www.youtube.com/watch?v=LqC-oXjatmA

and as soon as he switched from selling

newspapers to selling masks

uh in manufacturing he went from a few

million dollars a year

to a few million dollars a week

what's going on everyone what i want to

talk to you about today is a question

that i get

all the time which is how do i know i

have a good market

right which is what are the things i

should be looking for to know i have

a market that i should go after and the

first thing i wanna address here is you

know i had this conversation yesterday

and someone's like hey i'm between uh

you know uh

you know dentists and hearing aid

specialists and pharmacists right

for what market i wanna go after and

serve right and i was like okay

cool well what are the considerations

right and they didn't know how to

actually analyze each of those

businesses

and so the first rule of thumb that i'll

give anyone

is as long as the market is not dying

and is either normal or growing

then which of the markets can you

provide the most value to

all right so most value and that's given

your skill set

so if you have an advantage inherently

or you have experience

working with people in a specific

marketplace or especially if it's

personal experience

then i would usually recommend going

after that market first because you know

their pains

you know what it feels like you will

empathize with them and you ultimately

create a better product that will

provide more value to them

and you'll be able to win now that's a

great scenario but many people i talk to

have basically no experience in any

market

and i'm like okay well then these are

the four things that i look for

all right so they are as follows

the first thing that i'm going to look

for is is the market

in pain all right so do they have a

desperate need

for my product or services right a nice

to have is not something people are

going to take their money out and buy

especially

in a bad economic condition right if

we're in a good economic time when

you're watching this and that's awesome

and if we're in a bad one then you'll

know right so the first thing i'm

looking for is do they have a desperate

need

are they starving for the thing that i'm

looking for right there are some things

that are timeless

right health wealth and relationships

are the timeless needs of humanity

right uh you know are they are they sad

and lonely that's relationships

uh are they broke that's always pain and

uh

health are they are do they feel bad

about how they look and are they

unhealthy right

and so those are three big ones right

but is there key pain that i'm solving

the second is is the market growing

right so i'll give you an example of

this

uh i think i've told the the story of my

buddy who owned the newspaper company

uh he could not figure out why his

company was not growing

um and he called me up and i was like

dude like you're much smarter than i am

uh it's probably because you're selling

the newspapers he's like no no it can't

be that and i was like

no i think it's that and as soon as he

switched from selling newspapers to

selling masks

in manufacturing he went from a few

million dollars a year

to a few million dollars a week all

right same entrepreneur

simply applied it to a growing

marketplace

all right the the next thing that i'm

looking for

in terms of marketplace is

are they easy to find all right and this

is important

because if you're marketing

and you can't find your prospects if i'm

marketing to plastic surgeons for

example and the only people seeing my

ads are nurses

then i'm not going to be able to get my

my my product my service

in front of them or even get my offer to

them if they're impossible to find

and so whenever i'm picking a market i'm

going to try and find one

that i can easily target uh that has

associations

they have groups they have channels they

all watch they're all congregated in one

place

and so that way i can cast my fishing

line there and then i can hook the

clients that can take a step up towards

me

because if you can't find them they'll

never find you right and so

one they have to be in pain two they

have to be growing

three they have to be easy to find all

right now the fourth one is purchasing

power

all right which is do they have the

monies right

now a quick example of this is i had a

friend of mine who was looking at this

and he was like

dude i've got the perfect market i'm

going after unemployed people

and i want to coach them on how to do

their resumes right tons of pain on not

having a job

he said it's definitely growing because

people are coming in and out of the

market so there's tons of people that

are coming in outside

my ads won't get fatigued and i was like

okay he's like they're super easy to

find and i was like that's great

but then he's like no one wants to buy

my stuff because they all say they don't

they don't have jobs

and so he wasn't able to have the

purchasing power

from this target right and so let me

give you an example of of

of two different ways that you could use

this framework right so let's say if i

were a relationship coach i was somebody

who serves uh

couples i'm good at helping people find

love right

well i'm gonna look for a market that

has all four of these things

which means instead of saying i'm gonna

help you know college kids

right for me my service business

find love all right instead of having

that's a heart

college kids find love what i would

probably do is instead

go after seniors right

in maybe their second half of life to

find their next

partner um that would probably be where

i was focusing

and what happens there is seniors have

tons of pain because they're alone

it's growing because people die and get

older every day right they're easy to

find

and i know that senior citizens in

general have far more money than college

kids though

right and so even though i have the same

core value proposition

i'm choosing to serve a better market

that i will ultimately probably make

more money with all right and so this is

kind of the process that i look at

is number one above all else which

market can i provide the most value to

if i have personal experience that's

going to trump

everything now if i don't have personal

experience and i just have a skill of

being able to market or sell or whatever

then i'm going to look at my market in

these in in this

four four piece system whatever you want

to say checklist

and the thing is is you can't just have

three of them right uh in the in the

newspaper example they were in tons of

pain they were easy to find

and they had purchasing power the

problem is they weren't growing they

were shrinking every year

right uh the the the unemployment

example

they were growing they were in pain but

they didn't have the purchasing power

so that's the that's the problem there

uh the nurses and

plastic surgeons example that would be

one or if i can't find them then i can't

display the ads to them

and then obviously if people don't want

your product at all

and it's just a nice to have then they

will not buy it all right and so

you want to make sure that you do not

have one two three of these you want to

have all four in any market you pick and

ideally

pick a market that you already know you

can provide value to and solve a problem

that meets these four criteria

and you'll have the recipe for success

so i hope that made sense that's how i

look at markets that's what i look at

when i'm trying to invest in companies

i look at the founder i see if they

already have experience in this and then

i see if the problem that we're solving

matches these things

and then at that point i say you know

what i think this is a good opportunity

let's do it

hope you enjoyed that and uh see you the

next video

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you
