Entrepreneurship Masterclass: How to Make $10k - $1M per Month - Daniel Priestley

Added: Sep 2, 2023

Entrepreneurship

Entrepreneurship is the process of starting and running a business venture with the aim of making a profit. It involves taking risks, organizing resources, and creating a concept that meets a market need. Entrepreneurship can be categorized into two types: lifestyle businesses and performance businesses. Lifestyle businesses are small-scale ventures that prioritize fun, freedom, and flexibility. Performance businesses, on the other hand, aim to become large and valuable, often with the intention of selling the business in the future.

Concept Development

When developing a business concept, it is important to consider the origin story, mission, and vision of the entrepreneur. The origin story refers to the background and experiences that have shaped the entrepreneur's interests and passions. This can provide valuable insights into potential business ideas. The mission is the high-value task that the entrepreneur wants to accomplish, while the vision is the desired future outcome of the business.

Origin Story

The origin story is a crucial element in developing a business concept. It is often rooted in a moment of empowerment or realization during the entrepreneur's formative years. This moment can be positive or negative, but it serves as a driving force behind the entrepreneur's desire to start a business. By identifying their origin story, entrepreneurs can align their business concept with their personal experiences and passions.

Mission and Vision

The mission of a business is the most high-value task that the entrepreneur can focus on at any given time. It is the immediate goal that will contribute to the overall vision of the business. The vision, on the other hand, is the long-term desired outcome of the business. It provides direction and purpose, guiding the entrepreneur's decisions and actions.

Idea Generation

To generate business ideas, entrepreneurs should focus on solving problems and identifying market needs. It is important to consider who is willing to pay for the solution and how much they are willing to pay. By combining passion, problem-solving, and profitability, entrepreneurs can develop concepts that have a higher chance of success.

Testing Ideas

Once a list of potential ideas has been generated, entrepreneurs should test them as quickly and cheaply as possible. This involves pushing the door and seeing if people respond positively to the concept. The goal is to find an idea that generates demand and opens doors for further development. Testing ideas allows entrepreneurs to gather feedback, make adjustments, and determine if there is a viable market for their concept.

Profitability

Profitability is a key aspect of entrepreneurship. While passion and problem-solving are important, a business must also generate revenue and provide a return on investment. Entrepreneurs should consider the potential return on their product or service and ensure that there is a clear imbalance between what customers pay and what they receive in return. A ten-to-one return is often a good indicator of a profitable concept.

Testing Ideas

Priestley emphasizes the importance of testing ideas before fully committing to them. He suggests three effective ways to test ideas: running an intro event, conducting a quiz, and creating a WhatsApp group. These methods allow entrepreneurs to gauge interest, gather feedback, and validate their business concepts.

An intro event serves as a simple introduction to the business idea. It provides an opportunity to present the concept to potential customers and gather initial feedback.

A quiz, such as "Are you ready to blank?", helps assess customers' readiness and interest in the product or service. By answering a set of questions, customers can determine if they are a good fit for the offering.

Creating a WhatsApp group allows entrepreneurs to engage with potential customers and build a community around their business idea. By offering early access to exclusive content or benefits, entrepreneurs can attract and retain interested individuals.

Choosing a Non-J Curve Business

Priestley advises against choosing J curve businesses, which are capital-intensive and hard to scale. Instead, he recommends focusing on service businesses that offer high-value solutions to customers. These businesses typically involve selling a package or solution for a significant price, resulting in higher profit margins.

Sales businesses involve selling high-value solutions to a limited number of clients, while volume businesses rely on selling a large quantity of low-ticket items. Sales businesses offer better scalability and profitability.

To build a successful non-J curve business, entrepreneurs should target customers who have a high net worth and are willing to invest in solutions that address their specific needs.

Sales as a Professional Skill

Priestley highlights the importance of developing sales skills as an entrepreneur. He emphasizes that sales is a science and a valuable skill that can be applied to any profession. By adopting a professional approach, entrepreneurs can build trust, understand customer needs, and provide tailored solutions.

Professional salespeople ask relevant questions, provide guided advice, and demonstrate product knowledge. They listen actively, understand customer needs, and make sensible recommendations.

Priestley draws a parallel between sales and being a doctor. Just as doctors diagnose patients, recommend treatment plans, and guide them towards desired outcomes, sales professionals diagnose customer needs and offer solutions to bridge the gap between current and desired realities.

Entrepreneurs should follow a structured sales process, including lead generation, appointment setting, presentations, and closing sales. By maintaining a rhythm and tracking progress, entrepreneurs can effectively convert leads into customers.

Starting a Business and Reaching $10k per Month

Priestley discusses the process of starting a business and reaching $10k per month in sales. He explains that at this stage, the business is typically run by two to four people. Priestley emphasizes the importance of establishing oneself as a key person of influence in order to attract customers and differentiate from competitors. He advises entrepreneurs to stay curious, embrace criticism, and not take things personally. He compares the process to conducting experiments and encourages entrepreneurs to approach it with a mindset of curiosity and learning.

Establishing Yourself as a Key Person of Influence

Priestley highlights the significance of becoming a key person of influence in order to grow the business from $10k to $100k per month. He explains that being a key person of influence means being the face of the business and building a personal brand that people can connect with. This involves speaking at conferences, appearing on podcasts, publishing content, and creating products that align with the personal brand. Priestley gives examples of well-known key persons of influence such as Richard Branson and Cristiano Ronaldo, who have built successful businesses by leveraging their personal brands.

Building a Team and Expanding Product Offerings

As the business grows, Priestley suggests expanding the team to include a salesperson, customer service representative, bookkeeper, and administrator. He advises entrepreneurs to look for rebels and misfits who may not fit into traditional corporate environments but have the passion and skills to contribute to the business. Priestley also emphasizes the importance of building a product ecosystem, including gifts, products for prospects, core offerings, and products for clients. He gives examples of businesses that have successfully implemented this strategy, such as Nike and Apple.

Scaling a Business through Assets

Priestley emphasizes the importance of assets in scaling a business. He explains that assets can include intellectual property (IP), media, and technology. These assets play a crucial role in boosting productivity and making the business run more efficiently. Priestley suggests that businesses should focus on developing and leveraging these assets to achieve scalability. He also mentions that data is another valuable asset in today's digital age.

The Challenges of Scaling a Business

Priestley acknowledges that scaling a business can be challenging, especially as it grows larger. He explains that as a business expands, it becomes harder to maintain coordination and alignment among team members. He also highlights the impact of external factors, such as investors and debt, on the decision-making process. Priestley advises businesses to carefully manage expectations and be prepared for the increased complexity that comes with growth.

The Potential of Partnerships and Equity Deals

Priestley introduces the concept of partnerships and equity deals as a means of scaling a business. He suggests that businesses can partner with other companies to leverage their brand, contacts, and connections. By applying their own expertise and resources, businesses can help these companies grow and ultimately benefit from their success. Priestley also mentions the possibility of raising capital through equity deals, where investors join in on specific deals and share in the profits.

Balancing Freedom and Commitment in Life

The conversation concludes with a discussion on the trade-off between freedom and commitment in life. Priestley acknowledges that as an entrepreneur, he values freedom, autonomy, and independence. However, he also recognizes the desire for long-lasting fulfillment that comes from building a family and having children. He advises individuals to approach life in chapters, recognizing that each chapter brings its own set of trade-offs and opportunities for growth.