https://www.youtube.com/watch?v=LvHDT0ZxSmw

1 00:00:00.000 --\> 00:01:00.000 i get asked all the time about these
nose trips that i wear i wear nose strips so that i don't snore at night
in this video i'm going to break down how i would launch a no-strip
business if i were to launch one and how i would get it to be a 40 to 60
million dollar enterprise and how you can use the same thought process
to apply to any physical products business or service business that you
use to sell stuff to people that you don't know no strip costs pennies
to manufacture you can sell them for a hundred times that price so if it
cost you two cents and you can sell for a buck you're making huge
margins on the actual thing the second thing is that it's sticky quite
literally but also from a recurring standpoint if you can improve how
someone breathes they're gonna buy it again and again and again i could
have auto ship built into it which would be nice and it makes it
convenient for people it's also something that doesn't require willpower
to use you don't have to remember to do it like the problem with
supplements is that people have to remember to take them most people
sleep every day most people don't work out every day and so i'd rather
associate a product with something that people are doing on a regular
basis without willpower it's the reason beauty products to me are more
interesting than fitness products by and large i have deep product
knowledge i've used the

2 00:01:00.000 --\> 00:02:00.000 ones that are like pieces not a huge
fan walk around within the morning and i take it out i put in my pocket
leave it on my kitchen table out of bed to go get the fit i like the
disposable ones and the things that i probably do to make it different
is i'd focus a lot on the product i would also probably try and tie in
some sort of branding element i would put like volume or persist or
endure across the bridge of the nose i'd like to have one that was clear
that had the word so the only thing you see is the word which i think
would be really cool it has to stick all the way through the different
flavors of the nose strips would be the words that people are working on
and so i like having those constant daily subconscious reminders around
things they actually found in sales rooms that having a single word on
the wall affected performance from the team even if it was just huge so
if you just have like one more on the wall then everyone sees that as
this daily reminder that they need to keep it i would want my face to be
the walking billboard for my eye and i would have it spelled backwards
said that in the mirror someone could see it and they could see it every
day and it would remind people of like a word that they're trying to
focus on for a season and so i'll give you a basic estimate of what i
think would end up happening money-wise let's say that we retailed the
product for let's see what uh some

3 00:02:00.000 --\> 00:03:00.000 strips go for real quick so they
currently sell for about 30 cents a strip and i'd probably sell 30 60 90
packs i would want to be a little bit premium 1999 would probably be a
price point that i would look at 24.99 i would split test the price
points there but it'd probably be in that range my cost of goods would
almost be entirely based on the shipping cost that's associated cost to
ship the no strips would probably be in the neighborhood of like four
dollars maybe like two and a half it depends on like the 3pl that we
would use even after the cost of all the no strips which is minimal
let's just say we make 16 of gross margin on a 20 product which is
really good for physical products five options on my upsell one three
six twelve all the way down to maybe fifteen percent off if they buy you
know twelve months worth and then cascading upwards in terms of smaller
percentages off but let's do the math on how much money this would make
let's say ten thousand people a month would go to a page if i said hey
check this out and if i did it consistently probably about ten thousand
people a month just clicks and then we converted five percent of traffic
on that page five hundred buyers let's just keep it at the monthly
rather than getting in the average bundles ten percent churn and it's
not very low for physical but just leave it at that every

4 00:03:00.000 --\> 00:04:00.000 month i would sign up 500 and then i'd
lose 10 percent this business would keep growing with that level of
traffic until we reached 5 000 users because it's 500 divided by 10
which is the churn which is the number of maxed out users at a
hypothetical max we're in equilibrium between number of signups and
number of cancellations i would be at 5 000 users a month price point
was 20 100 000 a month 80 000 a month so a million dollars a year in
profit from the no strips and if i was focusing on like a branding
perspective i would probably go after the entrepreneur community first
because it's obviously a community that i have access to the brand would
actually be more of a personal development brand of like becoming the
person you want to be with the daily actions and reminders of who you
want to become because i'd want it to be mass market i would show
different walks of life working on different problems moms and their
word is patience patience can apply to anyone but like a prisoner who
just gets out is the next con it might be like forgiveness it could be a
much wider brand if you focus on the deficiencies that people want to
fill and then i have to think of some kind of sexy word for the brand
name i don't know i feel like it'd be something around like better be
better nose trips

5 00:04:00.000 --\> 00:05:00.000 short and simple that people could
understand and share you want it to be about the prospect and more
specifically about the problem that we're solving and the person that
they want to become and the promises that we're fulfilling if you can
help someone feel better about who they are people will pay anything for
that feeling and so the wedge product is the idea that we are helping
people breathe better but the brand and the promise is about we're
helping people be better what i would really want to do is build the
capacity to make the words easy to print on there so we could have
people put their own custom word in so you can choose from one of my
five words but if you want to put your own word in it's 30 and i get
this huge premium but it's worth it for a lot of people to have their
own custom words so that would be like a unique competitive moat if you
develop a manufacturing capacity that can like on demand create the word
that someone wants you can literally 2x 3x sometimes the price of the
thing because value is there for people and they would get a text they
would say hey what word you want to work on this month they text it back
it automatically goes into the system and then ships it right out to
them and i would probably ship no strips with two or three variations of
influencers that

6 00:05:00.000 --\> 00:06:00.000 i thought were words that their
communities dug so someone sends me mozination or someone sends me s me
500 someone sends me those terms on a strip i'm going to be like dude
this is dope and then because i have such high gross margins i could say
hey man i'll give you 40 by the way if you're making your own business
if you ran 40 margin on your own audience it's a great business anyways
for me i was able to add a million dollars to business and then you add
100 influencers maybe they're not as big or they're not as no strip
centric like i am but maybe if they did a tenth of the volume that i
could do on average it's 10 times what i'm doing which is 10 million
dollars theirs was only 40 margin to me because i had to give them 40
and there's 20 that was cost so let's cut that in half again so i get
another 20 from the 10x volume that i get from them mind you stuff to
run the business but let's just keep it simple for now so now we're
probably looking at a three or four million dollar ebitda business that
is recurring not dependent on one single face very high gross margin so
that they can go into new channels that has a unique and competitive
moat that allows it to have a premium pricing which i didn't even factor
in like if we sold it for 40 rather than 20. that would be a really
interesting business model that would have huge enterprise values if

7 00:06:00.000 --\> 00:07:00.000 you're curious the final piece is that
what would this business be worth if we're doing 4 million in ebitda for
a physical products business like this this business would probably be
worth somewhere in the 40 to 60 million range mosey money business
breakdown if i were to get into physical products what i would make and
how i would make it to be a cool business it was mostly on the fly
