MODULE 2: BORING, DIFFICULT & EXCITING BUSINESSES
DIFFICULT BUSINESSES
WHAT IS A DIFFICULT BUSINESS?
- ALL BUSINESS IS DIFFICULT
- BUT THE FOCUS HERE IS ON THE BUSINESS ITSELF BEING DIFFICULT
- NOT NECESSARILY THE WORK BEING DONE IN THE DAY-TO-DAY RUNNING OF THE BUSINESS
- THE FOCUS IS ON A BUSINESS THAT HAS MASSIVE PROPORTIONS OF DIFFICULTY IN ENTERING THE SPACE
- BE IT CAPITAL, BE IT INTELLECT, BE IT THE RESOURCES TO GET THE BUSINESS OFF THE GROUND
- THE MORE DIFFICULT THE BUSINESS IS, THE HIGHER THE CHANCES OF FAILURE
- INDICATORS OF A DIFFICULT BUSINESS ARE WHEN TWO OR MORE PLAYERS ARE THE ONLY ONES TRYING TO SOLVE THAT PROBLEM
- THIS IS USUALLY DUE TO IMPOSSIBLE BARRIERS TO ENTRY
- DUE TO CAPITAL, INTELLECT OR TECHNICAL KNOW-HOW
- WHY START WHEN THE CHANCES OF FAILURE ARE SO HIGH?
CHANCES OF BEING A MULTI-MILLIONAIRE
- IF YOU HAPPEN TO BE ONE OF THE LUCKY FEW THAT CRACKS A DIFFICULT BUSINESS, YOUR CHANCES OF REACHING MULTI-MILLIONAIRE STATUS ARE THAT MUCH HIGHER
- THE MORE DIFFICULT THE BUSINESS IS, THE MORE REWARDING IT ACTUALLY IS IF YOU CAN MAKE IT SUCCEED
COMPETITION IN A DIFFICULT BUSINESS
- THE MORE DIFFICULT THE BUSINESS IS, THE FEWER THE COMPETITORS THAT EXIST IN THIS MARKET
- CHANCES OF SUCCESS BECOME EQUALLY HIGHER WHEN THERE ARE ONLY 2 OR 3 PLAYERS TRYING TO ATTRACT THE MARKET
- THE DEFENSIBILITY OF DIFFICULT BUSINESSES IS THAT VERY FEW PEOPLE CAN DO WHAT IS REQUIRED FROM THEM
BORING BUSINESSES
CHANCES OF SUCCESS
- AS SEEN IN THE GRAPH ABOVE, THE MORE BORING THE BUSINESS IS, THE HIGHER THE CHANCES OF SUCCESS
- THE DEFENSIBILITY OF BORING BUSINESSES IS EXACTLY THAT, IT IS BORING, THEREFORE, NO ONE WANTS TO DO IT
CHANCES OF MAKING A SUSTAINABLE LIVING
- A BUSINESS IS REWARDING BECAUSE IT CAN AFFORD YOU A SUSTAINABLE LIFE
- THE MORE BORING THE BUSINESS IS, THE HIGHER THE CHANCES OF MAKING A SUSTAINABLE LIVING
COMPETITION IN A BORING BUSINESS
- THE MORE BORING THE BUSINESS IS, THE FEWER THE COMPETITORS IN THE MARKET
- BORING BUSINESSES HAVE NO COMPETITORS BECAUSE THESE ARE THE THINGS THAT NO ONE WANTS TO DO
- IT IS THEREFORE A VERY UNCOMPETITIVE SPACE
EXCITING BUSINESSES
CHANCES OF BEING A MULTI-MILLIONAIRE
CHANCES OF SUCCESS
THE MORE EXCITING THE BUSINESS IS, THE HIGHER THE CHANCES OF FAILURE- THE DEFENSIBILITY OF AN EXCITING BUSINESS IS VERY LOW
- SIMPLY BECAUSE EVERYONE WANTS TO DO THEM
- THE MORE EXCITING THE BUSINESS IS, THE HARDER IT IS TO BECOME A MULTI-MILLIONAIRE FROM THAT BUSINESS
- BECAUSE THERE ARE MORE PLAYERS IN THE MARKET
COMPETITION IN AN EXCITING BUSINESS
- THE MORE EXCITING THE BUSINESS IS, THE MORE COMPETITORS EXIST IN THIS MARKET
- THIS IS BECAUSE EVERYONE WANTS TO START AN EXCITING BUSINESS
