As an entrepreneur, how to develop yourself when you have no money, no team? part 2

Third: The business model is simple and straightforward. Every business has its own business model. A good business model can be achieved immediately. The automatic business I made started to make money in the first month. After the Ads was released, there were many customers consulting and paying. And all the processes are very simple. From the customer’s initial understanding till their determination to buy, the whole process does not exceed three steps. Once there were specialist had analyzed that the more complex the business, the lower the willingness of customers to buy, and the simpler the business model, the greater the willingness of customers to purchase. It’s best not to exceed three steps from product selection to customer payment, and your customer conversion rate will decrease each step by geometric progression.
Fourth: Marketing. This is the hardest thing, and it is also the threshold that distinguishes most entrepreneurs. Your strong marketing strategy can represent the success rate of your business. I have heard many examples of good products that cannot be sold. Of course, I personally think that marketing is not so ridiculous, there are traces, there are even reference examples, I once wrote an article called how to make potential customers pay, you can see, basically wrote my core marketing methodology, these methods allow me to create and promote my own business without spending a penny.
Fifth: Products. When I put the product to the end, it does not mean that the product is not important. On the contrary, the product is very important. The quality of the product directly reflects the feasibility of your business. However, fortunately, the business I have created so far is still pretty good. In business, many buyers have even helped me to advertise themselves because they feel that they are really worth the money. What exactly is a good product? Let me decrypt it for everyone. If you are starting a business or have an idea ready for implementation, you can compare your product against the following three criteria to determine whether it is feasible or not.
1. High frequency of use
It means the frequency of use of a product must be the highest among the same type of product, for example, there are some people selling soup in the market, other people sell water, obviously the frequency of people who drink water is much higher than the frequency of people who drink soup, so you may hear a lot of big brands of mineral water, but you rarely hear about any big brands of soup. All these two are used for drinking, but due to the different frequencies of use, they get different results. This is the first criteria of a good product. You can rethink how often your product is used. If you don’t use it for once each year, then I suggest that you can give it up. Another example of high-frequency, the two most popular hotel and traveling websites have fierce competition between each other before, are now they are looking back and discovering that their biggest rival is actually Groupon , a food take-out websites. Very simple, the frequency of people use food delivery is much greater than the frequency of they use hotel and traveling, when the user’s frequency of use is high, the opportunity to add other products will increase, when the user habits were developed, then he will keep it. The frequency of use of the products will be the biggest feature and advanced competition edge that the product itself has.
2. The price
A: high price and B: low price
A:high price
The high price of a product means that your income is high, the selection of products is too important, and the meaning of the selection is what you choose to sell. Start-up business or small and medium businesses must pay attention to the selection of products, your selection of products determines the life and death of your business, and whether you have the confidence to stick to it. My personal suggestion is if you are selling a single product. The profit of each product is at least 200 dollars and 300 dollars, so that your sales pressure will be much lower. For example, if you want to earn a thousand dollars a day, you can sell 100 pieces with a profit of 10 dollars. Well, the average person’s idea is to sell small profits and sell cheap things, it can attract a lot of people to buy. But I think on the contrary, think about it, if you sell 100 items and you make 10 dollars profits, you will be more tired and more troublesome, and you need to explain your product to your customers. It will cost a lot of time. This is actually a problem. On the contrary, if you only need to guarantee that at least a single order in one day, there will be 100 dollars profits in one order, and even you deal one order in a single week, you can afford it. In this way, you only need to concentrate on solving the problems of a small number of people, and you will become very efficient. The most important thing is that you will be confident because you only need to guarantee one order per day. This is simple! And extra time can also be saved to operate other projects. Of course, there is another one of the most important factors. In fact, I rarely tell anyone! We all remember that apart from considering the cost of products, the time and energy you spend, there is one most important factor in product pricing that is used to filter customers! There is always a 20-80 percent rule in the world, 20% of customers bring you 80% of profits, and the other 80% of customers will only bring a small amount of profit and a lot of troubles. The higher the general product pricing, the higher the quality of the customers that are consuming and the easier it is to understand each other. It will become very efficient and will be pleasant in the later period. The customers who always are preoccupied, I usually give up. My principle is to rather earn less, and never add more trouble. why? Because our time is the most valuable thing, your today’s time spending determines your tomorrow’s development! You only need to spend energy on a few customers and serve those real customers. You don’t have to be exhaustive. Ok! If you use this principle, it will make your range of choices narrowed again and again. This is a high-priced strategy. In addition to thinking about how to make money, you also need to think about yourself.
B:low price
The meaning of low prices is not the low price of the products you sell, but the high price/performance ratio! For example, to achieve the same goal, customers need to spend 1000 dollars to buy some products, and yours only need 100 dollars here, then you have absolute competitiveness edge. For the customer, it is most important to achieve his goals when spending money, and the process of how to achieve this goal is negotiable. (to be continued)

My thoughts on passive income and my formula

When people see the word, passive income, for the first time and understand its meaning, they may be very excited, as if they have found a path that others have never known, bright, as if financial freedom is at your fingertips. However, they found that they could not even start it. Buying a house to rent it, you need tens of thousands of dollars to pay for the house price. You don’t have that much money, you buy a fund, the annual profits are too low, you can’t even win the inflation rate, and trading stocks are too troublesome.

However, everything has its intrinsic logic. Since there is a concept of passive income, there must be a reason behind it. There are too many people who talk about passive incomes. What they are talking about is nothing more than paying attention to savings, paying attention to investment, and saving some time to do a part-time job.

But these are all of no use. People who can make big money are never like this. Maybe you now have 5 figure income. You do the same thing every day. Maybe you will be able to do it more proficiently sooner or later, but is it possible to make 6 figures? Impossible. You have to make a difference and think differently. Only in this way you can embrace the 6 figures income, not with the static one. The point of passive income is to change the way you think about things. When you think of something and you need to think differently from ordinary people, maybe you have an illusion of dominance and then maybe you got a way out.

I remember when I graduated from college, I never had the idea of ​​making money or doing my own business, let alone the passive income. For me, a job in state-owned enterprises is the right track. Like many of my classmates in the same age, I began to look for a job after graduation. I later try hard to find a position in a designing institute of a state-owned enterprise. I was doing architectural design. I looked around at my colleagues, engineers and Chief engineers who were middle-aged and had grey hair. I have a spontaneous illusion, that maybe I will end my life here. I started from the bottom position as a technical staff. At that time, I worked overtime every day until very late. I often worked until one or two o’clock and others were all gone. The lights over my desk were always on and I was a little bit lonely. I was just thinking about designing and becoming a master of it and taking the lead. It was a pity that, at the end of the year, I discovered that my bonus was actually only 4 figures, a few thousand dollars. I never thought about buying a house and buying a car and running my own business before, but when my family called me to ask about the New Year’s affairs. By that time, I suddenly had a terrible fear. They thought that I was working in a very high-end company and industry and my income should be quite decent. I remember that I didn’t go home for the New Year that year. It may be self-respect. I told them that there is a big project that I need to do overtime during the New Year. In short, during that time, I began to think about the reality, whether it was important to become a master of architecture, or it was more important to become a rich man.

One day, I casually surfed the Internet and saw the book the poor dad and rich dad. I realized that there were such group of people in the world who actually make money without having to work. At that time, I was brewing, can I do something similar? Of course, afterwards, I did a lot of things. I read a lot of books. There are thousands of books I read. There were as many as ten kinds of business I did, and there were losses and gains, such as dining restaurant and washing machines, online sales of various documents, slowly got to know my own way. Later I began to write something. The process was smooth and magnificent. I remember when I received a profit of more than 8,000 dollars a day, I began to think that money making just should be like that. Ok, no bull shit. Here we go some real stuff.

First, what is passive income?

The passive income I wrote is only for the poor people who used to be like me. Those who have the money to buy a house or invest in stocks can bypass. For ordinary people, I think a reliable passive income is a reliable automatic business. And a reliable automatic business is built on a reliable trouble. The key to passive income lies in the word, passive, which means that you don’t have to spend much time and energy on it. Even if you don’t have too much income, while the effort is extremely low. That is also a qualified passive business.

For example, to open a convenience store, ordinary people’s first reaction is to find a community, do a good signboards, and then try to find ways to increase the products catalogue, and increase its feature products and highlights, such as selling imported products; price-reduced eggs? Or something new to attract more people? Or a more conspicuous store door. Don’t laugh, it’s you! Does this idea feel familiar? Actually, 99% of people in the world had such first response to how to do business. There were too many people who asked for knowledge of entrepreneurship on social medias. Their first choice and entrepreneurial thinking was like this, I was not kidding. Peoples’ most common ideas is simply thinking about which community to choose and what products to sell. It’s like turning around in a pit, but you can never climb out of such pit, because this kind of way of thinking has limited people in the pit. Ok, how can we get out of it? First of all, there must be a clear logical thinking, such as convenience stores (can be split into)=products being demanded + stable visitor traffics. These two points may be the basic components of a convenience store.

Then you need consider the key points of these two components. For example, products being demanded includes how to choose the products, why people buying these products, and what products different people may buy. Stable visitor traffics means thinking about the commonness of customers. For example, if they live in a community, they have common characters, white-collar workers, and white-collar workers who work together. These are commonness.

Well, after analyzing the two basic points, what we need to think about next is how to reach these two basic points. What is the most direct and quick way to solve it? For example, I place a vending machine at the entrance of the community or office building. This is also a convenience store. In fact, several years ago, I thought about putting a vending machine on the corridor of our office building or on the first floor. This is a natural closed environment. There is no convenience store around the office building. Even if there is, everyone will not bother to go out of the building. If you put some cigarettes and drinks in vending machines, there will be a steady cash flow. At that time, I even also calculated the quantity of cigarettes everyone demand, the frequency of drinking water and drinking beverages. Basically, it would be possible to get all your investment back within one or two months.

Actually, doing business equals using the simplest way to solve the most fundamental problems. To solve the same problem, the simpler the method used, the lower the cost, and the lower the time consumption, the higher the revenue will be, and more likely the reproducibility will be expanded. For example, to sell convenience products to people, you may choose opening a convenience store, or you may choose doing a vending machine. For example, to sell information to others, you can choose to sell physic books, you can also choose to sell eBooks. The difference between the ways you choose determines your future way. The process of entrepreneurship is the process of constantly updating to achieve the same result. The simpler, cheaper, and the more attractive your approach is, the greater chance of your success.

Second, the business foundation of passive income.

What is the foundation of a business, in short, traffic. In the final analysis, all business is based on traffic. Whether it is offline or online, for example, a vending machine is placed downstairs or in an office building, which is a business, and the number of residents in the community and office workers in the office building, is the traffic of business. You need to find the commonness of the customers, in turn, the commonness determines the type of products and the business model. In the end, what to do, it is better to start from the areas you are familiar with, or you just develop a kind of feeling slowly. I remember half a year ago I once wrote about how to do a low-cost waste paper recycling business, the results shows soon after the waste paper recycling business works because of the increasing need for express delivery. However, many things have such unclear intuition. If someone had done so, they might have earned it.

In short, a good passive income business=simple, low cost, less time consuming business model + stable targeted traffic.