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Dan Lok Show

How Do You Know If Your New Business Idea Will Actually Work?

Dan Lok Show

Dan Lok

Entrepreneurship, Careers, Management, Business

4.9825 Ratings

🗓️ 27 May 2020

⏱️ 5 minutes

🧾️ Download transcript

Summary

Most people who start their business focus too much on the product instead of the market, and that’s why almost 95% of small businesses fail within the first 5 years. Before entering a new market, there are 3 things Dan Lok looks for to find out if his business idea will become profitable and successful. So if you want to know what those 3 things are, listen to this episode now.

Transcript

Click on a timestamp to play from that location

0:00.0

Assuming you have an idea and you have a product or service that you want to get out in the

0:19.4

marketplace, how do you know you are selling to the right market? Because the last that you want to get out in the marketplace, how do you know you are selling

0:22.1

to the right market? Because the last thing you want to do is you spend a lot of time and money

0:26.5

and effort starting a business, taking your idea to the marketplace, and then find out actually

0:32.4

no one wants to buy your stuff. That becomes a problem. That's a very costly mistake.

0:38.0

So here's what I look for whenever I enter into a marketplace.

0:41.8

I'm gonna give you some criteria.

0:43.3

Now these are very, very simple questions,

0:46.2

but they are not easy to answer.

0:49.1

They actually require some thoughts.

0:52.1

You gotta think it through before you answer it, okay?

0:55.2

So the first question is this,

0:56.6

before I enter any marketplace,

0:58.8

before I enter into any market,

1:01.1

I would ask this first question.

1:04.1

Is there paying sense of urgency or irrational passion?

1:10.3

Is there a pain sense of urgency or irrational passion? Is there a pain sense of urgency or irrational passion?

1:14.7

What I am looking for are not just rational needs,

1:18.8

not just logical needs, I'm looking for emotional needs.

1:23.3

If there's pain, in other words,

1:26.0

I much prefer to sell painkiller than vitamins.

1:30.4

I wanna sell cure to a problem,

...

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