In übersättigten Märkten trotzdem gewinnen

0:00Let's imagine that you're in the absolute biggest red ocean, right? Red ocean big, it's super populated, there's blood in the water, right? Do you think the business advice niche is populated? Do you think there's a lot of red ocean in business advice? Yeah, probably. Right? And so, should I have not gotten into this?

0:26The bloodier the water, it means the more fish are there. And so, where there's the fiercest competition, there's also, oftentimes, the biggest rewards. Now, that being said, how do we merge this concept with the idea of you should niche down? Wait, Alex, I thought you wrote a book that said, "Hey, the riches are in the niches," right? So, how do we merge these two ideas? Let me explain, cuz I get questions about this.

0:50In the beginning, you want to artificially constrain the pond that you're going after, so that you can compete in a place where the sharks aren't swimming. Okay? So, you want to be the biggest guy in a puddle. That's what you want to do. Biggest guy in a puddle. And then, you say, "You know what? I'm going to go from a puddle to a pond, because I think I'm I'm too big for this puddle." And so, you grow, and then you go to the pond. And then, once you go from the pond, you say, "You know what?

1:18I'm going to go to a lake." Now, I'm in a lake, because I'm a even bigger fishy, right? Now, I'm in a lake. And then, eventually, you get to the point where you say, "You know what? I think that I'm big enough to go into open class, open market, and fight in the ocean." Now, if we were to look at this trajectory, I started as a trainer.

1:42And I talked about nutrition and stuff. And then, I talked about gym stuff. And then, I started talking about business stuff. So, you're going to have evolutions where you can get big enough for a pond that you can move on from the pond to the lake and the lake to the ocean.

2:05It's just that it's directly correlated with your skill and your experience. And so, the reason that the the riches are in the niches is that when you're there, number one, you're competing against fewer people. And so, the upside is capped typically. Now, it's usually capped at way higher than you think it is, but it is capped to a degree and that's okay. But as a result, because we are in this niche down, we're able to charge niche prices which give us more profit, more pricing power cuz there's fewer people there's fewer things to compare you against, right? And so, there does come a time where you can go uh move the market, right? Move your market rather um to go after a different segment or a broader segment. So, let me walk walk through what you can how to think through this evolution for a business.

2:49So, let's say that your current business is this little dot here, okay? There are five directions that we can move with this dot. We can go So, let's imagine this is a we've got a triangle of a marketplace, okay? So, this is where you This is where you inhabit. You can go up market. All right? So, for example, um in my gym launch days, I could instead of surveying single location fragmented gym owners, I could go to franchisors, right? Multi-location owners and franchisors. So, I have one-off gyms here.

3:23Now, the next direction, so this is direction number one I can do. Direction number two is I can go down market, which should be that I could go after trainers. There's way more trainers, they have way less buying power, but there's a lot of them. There's fewer franchisors than there are gyms and there's fewer uh and there's fewer gyms than there are trainers. Pyramid, right? So, that's the second thing we can do. The next thing we can do is we can go adjacent.

3:49So, instead of gyms, I say, "You know what? I think I can help. Kyros. That's what I think I'm going to do. I'm going to take my systems and I'm going to chiropractor. That'd be an adjacent market. I could also go broader. Right? Which would mean that I would look at this way. Which means instead of gyms, maybe I talk about health and wellness in general. And so that means that I could go after Kyros, med spas, anybody, you know, weight loss clinics.

4:21Oops. All of these things are now broader. Or I can go narrower. So, instead of gyms, I say I'm only going to work with spin studios. I'm only going to work with dancing studios. So, this is our fifth. This is our fourth. This is our third. So, that gives you five directions that you can go in to change the direction of the market that you choose to play in. Now, I outlined this and what's interesting is that most people who are especially small business owners have never even defined this to begin with and they pretty much just accept people's money as long as they have a pulse and a credit card. There's obviously two requirements. Well, let's say pulse is optional as long as they have a credit card. Kidding. Um that that uh that they accept. But the thing is is that like you want to get really really clear on this.

5:14Um because if you don't, your customers will be confused because they won't know what you're really about.