Transcript

00:00:00Ladies and gentlemen, welcome back to the channel.
00:00:01So in this video, we're gonna be talking about
00:00:03what is the best, easiest business to start
00:00:05as a complete beginner if your goal is financial freedom.
00:00:08And the video is broadly split up into three parts.
00:00:10We're gonna talk about the price and people equation.
00:00:12We're gonna talk about the service to product spectrum.
00:00:14And we're gonna talk about exactly how to find a niche
00:00:16and an offer that's playing business on easy mode
00:00:18rather than on hard mode.
00:00:20And if you're new here, hello, my name is Ali.
00:00:21I'm a doctor turned entrepreneur.
00:00:22And since 2017, I've been making videos on this channel
00:00:24documenting my journey from broke medical student
00:00:27to then working full time as a doctor
00:00:28to ultimately building my own lifestyle business
00:00:30that's allowed me to reach financial freedom,
00:00:32time freedom and creative freedom.
00:00:33And this is Freedom Fridays,
00:00:34the somewhat regular series on the channel
00:00:36where we talk about books, ideas, strategies and tools
00:00:38that can help you ultimately achieve the goal
00:00:40of financial freedom
00:00:41so that you can live life on your own terms as well.
00:00:43Okay, so if you're watching this video,
00:00:44then you will probably like to be financially free.
00:00:48Maybe you want financial freedom,
00:00:49you would love to have time freedom as well,
00:00:51where you can spend your time broadly however you want.
00:00:52And you would also love to have creative freedom
00:00:55where you can work on stuff that fulfills and energizes you.
00:00:58And that begs the question, okay, well, how do you do that?
00:01:00And maybe you've realized through watching maybe my content,
00:01:02maybe other people's contents that like start a business
00:01:05is a much nicer way for most people
00:01:07to get to financial freedom
00:01:08compared to follow a normal traditional career
00:01:10and get a job, for example.
00:01:11But then that begs the question of,
00:01:13okay, bro, like which business do I start?
00:01:16I wanna introduce you to a simple equation
00:01:17for basically how to make money.
00:01:19And that simple equation basically has two variables.
00:01:21It's basically your number of customers,
00:01:23i.e. how many people are buying your stuff.
00:01:27And then the price point of your stuff.
00:01:29That is literally it.
00:01:30And so when you're coming up with a business idea,
00:01:32you wanna figure out how many people do you need
00:01:34for your business idea to be viable?
00:01:36And what kind of price do you need to sell things at
00:01:38in order for your business to be viable?
00:01:40And there is a graph that I would like to show you
00:01:41that helps us figure this out.
00:01:43This is a graph of people versus price.
00:01:44So let's say you wanna make $100,000.
00:01:46Let's say that's your goal.
00:01:47If you wanted to, the way you can make 100K
00:01:50is you could sell something for 100K to a single person, right?
00:01:53So we've got one person over here,
00:01:55and this is kind of like our price over here, right?
00:01:57That would be one way of making 100K.
00:01:58Alternatively, you could sell something for $10,000
00:02:02to 10 different people.
00:02:02Alternatively, you could sell something
00:02:04for $1,000 to 100 people.
00:02:06Alternatively, you could sell something
00:02:07for $100 to 1,000 people,
00:02:09or you could sell something for $10 to 10,000 people,
00:02:12or you could sell something for $1 to 100,000 people.
00:02:14Now, these are all theoretically different ways
00:02:16of making $100,000 following this equation
00:02:18of it's basically number of customers,
00:02:20i.e. people multiplied by price.
00:02:21Now, back when I was a noob to the world of business
00:02:23and I was a beginner,
00:02:25I was laboring under the delusion
00:02:28that it should be easier, right,
00:02:30to sell things for $1, $10, $100,
00:02:33rather than to sell something for $10,000 or $100,000.
00:02:36Because as a normal person, I've bought stuff for $1.
00:02:38I bought this Coke Zero for $1.
00:02:40I've bought stuff for $10.
00:02:42This Donner kebab with chips was about $10.
00:02:44Actually, more like $5, but whatevs.
00:02:45And I've also bought things for $100.
00:02:47But when you start getting into the $1,000 ranges,
00:02:49that's like a MacBook or something like that,
00:02:50and $10,000, that's like a really expensive car, 100K.
00:02:54The only thing that you can spend 100K on is a house, right?
00:02:56This was my conception of the world.
00:02:58And so I thought that if I were to start a business,
00:03:00I should sell cheap things for $1, $10, $100,
00:03:03and just sell loads of them, right?
00:03:04Because that is easier.
00:03:05And that could not have been further from the truth.
00:03:07And this is very counterintuitive,
00:03:09but actually, if you wanna make $100,000,
00:03:11it is way easier to do it selling, for example,
00:03:1410 copies of something for $10,000
00:03:16compared to selling 10,000 copies of something for $10.
00:03:20The volume is way harder than the price.
00:03:22Yes, of course, on an individual level,
00:03:24it's easier to sell something for $10 than to $10,000.
00:03:26Like, I probably couldn't sell you a $10,000 thing.
00:03:29I could probably sell you a $10 thing.
00:03:30Like, maybe you wanna buy my book for about $10.
00:03:32But if I were trying to make 100 grand,
00:03:33it's so much harder for me to find 10,000 of you
00:03:36to sell my $10 book to
00:03:37compared to just finding 10 people
00:03:39to sell a $10,000 service or package or product to.
00:03:42Oh, and by the way,
00:03:43if you wanna speed up the learning process from this video,
00:03:44we have actually trained a custom GPT, a custom AI tool,
00:03:47that can literally help you do all of this stuff.
00:03:50And it's completely free.
00:03:51There's a link down below.
00:03:52You can check it out.
00:03:52You need an open AI account, like a Chad GPT account,
00:03:54which you have already.
00:03:55You don't need to be paying for it, don't worry.
00:03:57And you basically talk to it.
00:03:58And it's trained on my materials
00:04:00that we have in our Lifestyle Business Academy
00:04:01on how to figure out your niche and your offer
00:04:03so that hopefully this can give you some clearer ideas.
00:04:06And it'll sort of talk you through the process
00:04:07and it'll help you figure out
00:04:08what business you wanna start
00:04:09that will be playing on easy mode rather than on hard mode.
00:04:12So that'll be linked down below
00:04:13and there's a QR code on screen somewhere
00:04:14if you would like to check that out.
00:04:15Again, it's completely free.
00:04:16And so what this means is that
00:04:17when we're trying to figure out what business to start
00:04:19if we are a beginner
00:04:20is you wanna be avoiding this zone.
00:04:23This is the red zone.
00:04:25Trying to start a business in the red zone
00:04:26where you're selling cheap things that are like high volume,
00:04:29that is playing business on hard mode.
00:04:31It's not to say you can't do it.
00:04:32It's not to say it can't be done.
00:04:33It's just playing business on hard mode
00:04:34and your chances of success are a lot lower,
00:04:36especially if you're a beginner.
00:04:37Similarly, as a beginner,
00:04:38you probably don't wanna be in this kind of range
00:04:40because this is called having a job.
00:04:42When you sell one thing for $100,000,
00:04:45that might be your reasonably well-paid job.
00:04:46But the zone we wanna be in is in this zone, right?
00:04:49This zone of we're selling stuff.
00:04:51Ideally, that's between the 2000 to the $20,000 price point.
00:04:55I think this is a very good place to be
00:04:56when it comes to trying to build a business.
00:04:58Because like I said, the hard part is getting the customers.
00:05:00The hard part is a lot less charging them lots of money.
00:05:03And so when it comes to figuring out
00:05:04what business idea to start as a beginner,
00:05:05you really wanna be thinking,
00:05:07what is the thing that I could sell
00:05:09for at least 2000 US dollars?
00:05:11And that is gonna seem scary.
00:05:13You might be thinking,
00:05:14but I don't have skills worth $2,000.
00:05:15Like, wow, 10K, 5K, 20K, what the hell?
00:05:18Like, this is completely impossible.
00:05:19And this is exactly what students
00:05:20in our Lifestyle Business Academy,
00:05:21which is like my online kind of business school,
00:05:23go through that I coach them through all the time,
00:05:25as does everyone on my team.
00:05:27And we really try and get them to figure out
00:05:29something that they can sell for at least $2,000.
00:05:31Because trust me, when you're selling expensive things,
00:05:33it becomes so much easier to build a business
00:05:35that hits six figures in revenue,
00:05:37compared to when you're trying to sell
00:05:38large volumes of a cheap thing.
00:05:39Now, once you start and grow your business
00:05:41and you make all this extra cash,
00:05:42you're gonna need a place to invest that money
00:05:44for it to compound passively over time.
00:05:46And that is where the sponsor of this video comes in,
00:05:48Trading 212.
00:05:49Trading 212 is an online trading platform
00:05:51that lets you invest in stocks and ETFs.
00:05:54Me and my wife have both independently been using Trading 212
00:05:56to manage a portion of our portfolio for absolutely years,
00:05:59since way before they started sponsoring the channel.
00:06:01And what I love about it is that it makes it super easy
00:06:03to invest in stuff without having to pay commissions.
00:06:06They've also just launched that Trading 212 card,
00:06:08which lets you own 1.5% cashback on your daily spending.
00:06:11There's no monthly fee, there are no hidden fees,
00:06:13and you get currency conversions at the true interbank rate,
00:06:16which is fantastic if you travel
00:06:18or you buy things online in lots of different currencies.
00:06:20The card integrates with your Trading 212 Invest account
00:06:23so that your uninvested cash can earn compound interest
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00:06:28Plus, Trading 212 still offers their wonderful pies
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00:06:35They've got zero commission investing with fractional shares
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00:06:38And as an extra bonus, if you sign up using my link,
00:06:40you can get a free fractional share worth up to 100 pounds.
00:06:43So it's free money, you might as well.
00:06:45So if you'd like to get started,
00:06:46head over to trading212.com/join/ali
00:06:49to claim your free share.
00:06:50That'll be linked down below as well,
00:06:51and you can check out the card as well.
00:06:52So thank you very much Trading 212
00:06:54for sponsoring the video and let's get back to it.
00:06:55All right, so now I'm gonna go one level
00:06:56slightly more complicated, but I know you can keep up
00:06:58because you're very smart and very good looking.
00:07:00This was how to make $100,000.
00:07:02But if we wanna make $100,000 a year,
00:07:04you know, a six figure business,
00:07:06we need the per year to come from somewhere.
00:07:08It can either come from the price
00:07:11or it can come from the volume.
00:07:12So for example, if you were to charge $10,000 per year
00:07:16for something, let's say, I don't know,
00:07:18you're selling expensive health insurance.
00:07:20People are paying $10,000 per year,
00:07:22so now you only need 10 customers, 10 customers period,
00:07:25to be able to make $100,000 per year.
00:07:27But let's say you're not charging a subscription.
00:07:29Let's say you're, in my case,
00:07:30selling a course on how to do YouTube for $1,000,
00:07:32but it's a one-off, it's a one-off product.
00:07:34Like it's not a recurring subscription,
00:07:36it's not a membership, it's not anything like that.
00:07:38In that context, the per year would need to come
00:07:40from the number of customers.
00:07:41So I would need to get 100 new customers per year
00:07:44in order to build a 100K a year business
00:07:46selling $1,000 things.
00:07:47Mostly for beginners, this is like overly complicated.
00:07:49You don't need to worry too much
00:07:50about are you selling subscription?
00:07:51Are you selling 2K per year?
00:07:52Are you selling 2K one-off?
00:07:54I would say start off trying to figure out
00:07:55what is the one-off package or something that you could sell
00:07:58for two to $20,000.
00:08:00And then you can always worry about the,
00:08:01how do we turn it into a subscription further down the line?
00:08:04Okay, so at this point, hopefully we have established
00:08:06that the goal is to sell stuff for between two and 20K.
00:08:09This is really, really helpful
00:08:10because this massively narrows down
00:08:12the list of potential business ideas
00:08:14that we could feasibly start.
00:08:16And the reason I'm making this video
00:08:17is because I've done a couple of events here in Hong Kong
00:08:19over the last couple of weeks,
00:08:20and I've stayed behind for hours and hours
00:08:22to speak to people after the events.
00:08:23And people come up to me always asking for advice
00:08:25about their business ideas.
00:08:26And they'll either say they don't have any ideas at all,
00:08:28or they'll say, more likely these days actually,
00:08:30that they've got so many business ideas.
00:08:32And I'm making this video because this is the video
00:08:35I would want to show all of these people
00:08:36who are coming to me with all these different business ideas.
00:08:38Because for the most part,
00:08:39the ideas that I hear are playing business on hard mode.
00:08:43I was speaking to a girl the other day,
00:08:45and she had a few different business ideas.
00:08:47One of those business ideas
00:08:48was she wanted to start a fashion brand
00:08:50that was excessively priced,
00:08:52that helped a sort of modest fashion wear
00:08:55for women who are into running in Hong Kong.
00:08:57'Cause apparently there's loads of women
00:08:58into running in Hong Kong.
00:08:59And she was like, there's not that much
00:09:00modest fashion available for them.
00:09:01That is a business that's operating on hard mode,
00:09:04primarily because she's trying to sell cheap stuff.
00:09:06She's probably not selling thousand dollar packages.
00:09:08It probably being, I don't know,
00:09:08somewhere between the 10 and $100 range
00:09:10for a modest sports bra or leggings or whatever.
00:09:13That tends to be the price point for those things,
00:09:15which means in order to build a viable business,
00:09:17you need a ton of volume.
00:09:18And volume is really hard unless you're already famous.
00:09:21Similarly, we've got one of our students
00:09:22in our Lifestyle Business Academy who came in,
00:09:24and initially what she wanted to sell
00:09:25was some kind of digital membership
00:09:28for people who want to improve their lives.
00:09:29I was like, okay, interesting.
00:09:31What kind of price point are we thinking about?
00:09:32She was like, I was thinking maybe like $20 a month
00:09:34or something like that.
00:09:35That is, again, playing business on hard mode
00:09:37because when you are trying to sell anything
00:09:38for $20 a month, again, in order to build
00:09:40a viable business off it, you need a ton of volume.
00:09:42And now if she had loads of followers on YouTube
00:09:45or Instagram or LinkedIn or email lists or whatever,
00:09:47it becomes a viable business model.
00:09:49But if you're a beginner, you probably are not famous
00:09:51on the internet, and so it will be really, really hard
00:09:53for you to get customers and really hard
00:09:54for you to find that kind of volume.
00:09:55But now let me give you some examples of businesses
00:09:57that are operating on easy mode.
00:09:58So we have this married couple in our program,
00:10:01Elias and Haya, and what they're doing
00:10:02is they're selling a service that helps accountancy practices
00:10:05in London speed up their onboarding time for new clients
00:10:08so that they save lots of time and lots of money
00:10:10to onboard new clients.
00:10:11And they're charging like $8,000 for this.
00:10:14This is amazing.
00:10:14They are playing business on easy mode.
00:10:16It sounds boring AF, right?
00:10:18To sell an onboarding improvement service
00:10:21for a new accountant and their practices.
00:10:23But they know accountants, they've got a background
00:10:26in like accountancy, so they know the problems
00:10:27that accountants face.
00:10:28Accountants are a business that are willing
00:10:30to pay a lot of money for that particular offer
00:10:31because it will save them a lot of money.
00:10:33And so that particular boring-ass business
00:10:35is an example of playing business on easy mode.
00:10:37And so this is a video about what kind of business
00:10:39to start as a beginner.
00:10:40Principle number one is that you wanna be aiming for things
00:10:42in the 2K to 20K price point range.
00:10:45Principle number two is the general idea
00:10:47that service businesses are much, much, much easier
00:10:50to start than product businesses.
00:10:52This is another massive thing that trips up beginners
00:10:54in the market.
00:10:55'Cause if you think of what is a business, right?
00:10:57When you imagine starting your own business,
00:10:59you probably imagine creating some kind of cool product.
00:11:02I'd like to sell products, I'd like to sell hoodies,
00:11:04I'd like to sell tote bags, I'd like to start
00:11:05a fashion brand, I'd like to build apps
00:11:07that's selling a product, for example.
00:11:09I'd like to sell doner kebabs, you know,
00:11:10that's selling a product.
00:11:11You probably don't imagine selling a service.
00:11:14Man, I'd really love to be a boutique web design agency.
00:11:16Man, I'd really love to help accountancy firms
00:11:18improve their onboarding processes.
00:11:19Man, I'd really love to be a sales training service
00:11:22facilitation for businesses doing B2B sales
00:11:25that are selling through conferences.
00:11:27Those are service businesses, and if you think
00:11:29of all the businesses you know of,
00:11:31probably 99% of them are product businesses.
00:11:34This is one of these cognitive biases that we have
00:11:35where if you imagine business, you probably think of Apple,
00:11:37they sell stuff.
00:11:38You think of Starbucks, they sell stuff.
00:11:40You think of Sony, they sell cameras.
00:11:41You think of the doner kebab down the road, they sell stuff.
00:11:44Most of the businesses that you come into contact with
00:11:46on a day-to-day basis are selling products.
00:11:48But what you don't realize is that product businesses
00:11:50are really, really, really hard to start
00:11:52because generally the products are cheap
00:11:53and then you have to go for big volumes
00:11:55and it's really hard to do volume.
00:11:56What you probably don't come across
00:11:57is the enormous list of businesses that are selling services.
00:12:01I think most of the economy, most of the GDP
00:12:03generated by the economy in most developed countries,
00:12:05especially in places like the UK,
00:12:07certainly in places like Hong Kong,
00:12:08are based on services like financial services,
00:12:10legal services, accounting services.
00:12:12There are all sorts of services businesses out there
00:12:15that are making way more money in the grand scheme of things
00:12:17compared to product businesses.
00:12:19But the product businesses are the ones that are cool and sexy
00:12:21and that you see marketing for everywhere.
00:12:22Whereas you very rarely see, as an individual,
00:12:24as an individual consumer, you very rarely see marketing
00:12:27for service-based businesses.
00:12:28Now the difference between a service-based business
00:12:29is that, you know, basically these are really
00:12:31the only two types of businesses.
00:12:33A service business is where you do something
00:12:35for your client or your customer,
00:12:37and a product business is you make something
00:12:39which does something, right?
00:12:42Ultimately, the only reason people buy stuff
00:12:44is because they want a problem to be solved,
00:12:46they want a job to be done.
00:12:47This doner kebab that I'm currently eating
00:12:49that's getting a little bit cold right now,
00:12:50this is currently doing the thing of alleviating my hunger
00:12:53and helping me have a good time.
00:12:54It is a product business.
00:12:55But unfortunately, the guy running the doner kebab shop
00:12:58is very unlikely to become financially free
00:13:00from running a doner kebab shop,
00:13:01unless they sort of expand to like multiple locations
00:13:03and build out a team and all that sort of stuff.
00:13:06Because he's trying to play the volume game
00:13:07and it's very hard to play the volume game,
00:13:09see my point around how that's business on hard mode.
00:13:11So what you want to do is you want to start
00:13:13some kind of service business.
00:13:14Now, when it comes to services,
00:13:16there's a little bit of a spectrum.
00:13:17Now, if we imagine something like a web design,
00:13:20you know, let's say you want to build a business
00:13:23that helps people get websites.
00:13:24Let's say that helps e-commerce brands
00:13:27have better conversion rates on their website.
00:13:29Now, the easiest way to do that as a beginner
00:13:32is to do it done for you.
00:13:33You are doing the work for them.
00:13:35You are a full service provider
00:13:36where you are doing the work for them.
00:13:38They are not having to do the work themselves.
00:13:40You are doing the work for them.
00:13:41So you're going into their Shopify
00:13:43and twiddling their whatever and dealing with their analytics.
00:13:46You're doing the work.
00:13:48This is the stuff that you can generally, as a beginner,
00:13:50charge the most money for
00:13:51because you are literally doing the work.
00:13:53One level down from that, one level more scalable,
00:13:55is done with you, where you can imagine for the same thing,
00:13:58you're selling a coaching program
00:14:00with one-on-one support and implementation.
00:14:01So you are supporting them to do the work
00:14:04of increasing the conversion rates on their website.
00:14:06And one level more scalable than that is do it yourself,
00:14:08where you are selling, let's say, a course or whatever.
00:14:11Yeah, a course or an app that they have to use it themselves.
00:14:13Like, they have to do the work,
00:14:14but your product just sort of helps them along the way.
00:14:16Here you are selling information,
00:14:18and here you are selling implementation.
00:14:20You are actually doing the work.
00:14:21And if you are a beginner looking to start a business
00:14:23to get you to financial freedom,
00:14:24I would 100% recommend the place to start should be
00:14:27some kind of done-for-you service.
00:14:29Maybe at a stretch, you go to done with you,
00:14:31or maybe it's a coaching or consulting program,
00:14:33but you probably do not wanna be trying
00:14:35to sell an online course.
00:14:37'Cause generally, just selling an online course
00:14:39puts you in this kind of territory,
00:14:41and we do not wanna be in this kind of territory
00:14:42as it relates to price, because it's sort of hard mode.
00:14:45Also, the way the world is going,
00:14:46I don't think online courses are gonna be around
00:14:48very much longer, because AI slop is a thing.
00:14:51If you wanna learn something, you just ask ChatGPT.
00:14:53If you wanted to just learn how to do it yourself,
00:14:55and people are realizing this,
00:14:56the bar for what is free just keeps going up.
00:14:58People are putting all sorts of really good free content
00:15:00on YouTube completely for free.
00:15:02And so I think the way the world is moving,
00:15:04especially if you're looking to start a business right now,
00:15:05is that more and more towards high-end, high-touch services
00:15:09where you are doing a lot of the work for your clients.
00:15:12And by the way, as a reminder,
00:15:13if you would like to get the completely free custom GPT
00:15:15that we've trained literally on the content of this video
00:15:17so that you can figure out exactly what your service done
00:15:19for you, business idea is gonna be,
00:15:21there'll be a link down below,
00:15:22or you can scan the QR code that's currently on screen.
00:15:24So why are our students in our Lifestyle Business Academy
00:15:27at Ace and High Earth,
00:15:28why are they able to charge $8,000 to accounting practices
00:15:32to help them speed up their onboardings?
00:15:33Well, because they're doing the work for them.
00:15:35If they were like, hey, we'll sell you an online course
00:15:38that teaches you how to do the onboarding for your clients,
00:15:40the accountant practice is gonna be like,
00:15:42bro, I don't need an online course.
00:15:43I'm too busy, I've got other things going on.
00:15:45Maybe they might buy it for, I don't know,
00:15:47$80 or something like that just 'cause
00:15:48and then they would never log in and never actually use it.
00:15:50Because these are businesses and businesses are busy
00:15:52and they don't have much time.
00:15:53But if you can do the work for them,
00:15:55if you can promise them the outcome, the transformation,
00:15:57without them having to do any work,
00:15:58you are able to charge way higher prices.
00:16:00And generally the way you do that
00:16:02is through a service business
00:16:03with a done for you business model
00:16:05where you are trying to do something for someone
00:16:07where they value the outcome.
00:16:09Now all of this begs the question like, okay then,
00:16:14so I'm gonna start a service business,
00:16:15which is a done for you,
00:16:17where I'm charging somewhere between 2000 and $20,000.
00:16:20So then you're probably thinking,
00:16:21okay, well, what sort of service business do I start?
00:16:23And this is where I cannot give you the answer.
00:16:25But I can give you some ways of thinking about it.
00:16:26Now, when we're figuring out our niche,
00:16:28there's kind of two things we need to figure out.
00:16:30It's like, who is the person
00:16:31and what is the problem that they have?
00:16:33Because people pay money to solve problems.
00:16:35And then your business is sort of like the bridge
00:16:38that helps take that person
00:16:39and helps them solve their particular problem.
00:16:41Now, if you wanna play business on easy mode,
00:16:42you wanna find someone who is rich.
00:16:44If the person is rich or if they are a business
00:16:46with lots of money, it is so much easier to charge them
00:16:48two to $20,000 for something.
00:16:50Whereas if you're trying to start a business
00:16:52selling stuff to people who don't have money,
00:16:53it is very, very difficult to do that.
00:16:55So you wanna be finding a problem to solve
00:16:56for people who are rich.
00:16:58And ideally, this is a very painful problem for them
00:17:01because the more painful the problem is,
00:17:02the more motivated they are to solve the problem.
00:17:04Therefore, when your business positions itself
00:17:06as the solution to that problem, for example,
00:17:08hey, you know how every time you onboard a new client
00:17:10for your accounting practice,
00:17:11it takes you weeks and weeks of onboarding time
00:17:12and you say, and you waste all this time
00:17:14and waste all this money, that's really painful, right?
00:17:16You know, it's a painful problem that accountancy firms have.
00:17:18And so when you position your solution
00:17:19as the solution to the problem,
00:17:20then it becomes much easier to sell something like that.
00:17:23In a dream world, the problem that you have identified
00:17:25is a problem that if solved either helps that person
00:17:29make money, helps them save money.
00:17:31For example, if you can start a service-based business
00:17:34that charges between two and 20K,
00:17:36and the thing, the problem that you solve is that, you know,
00:17:38you help a business that, you know,
00:17:39is struggling with their sales, get more sales,
00:17:41that means they are literally making more money
00:17:43and therefore you are able to charge some kind of percentage
00:17:45of how much money you've added to them.
00:17:46Those are the easiest things to sell
00:17:48because they lead to a direct and very tangible
00:17:50return on investment for your client.
00:17:51Then along the same vein, if, for example,
00:17:53you are a service-based business
00:17:54and you are saving the customer a lot of money,
00:17:56like, you know, save $100,000 on X,
00:17:58you can probably charge 10, 20, 30, $40,000
00:18:01for that kind of thing
00:18:02because you're saving them a lot more money
00:18:03than you are costing.
00:18:04Again, there is a very tangible return on investment.
00:18:07This again is playing business on easy mode
00:18:09when you are building a service done for you business
00:18:12between two and 20K that solves a painful problem
00:18:15for a rich person that ideally helps them make money
00:18:17or save money.
00:18:18Now the problem is you might be thinking that
00:18:21you might not have the kind of skills
00:18:22that can help a business make money or save money.
00:18:24We have people in our program
00:18:26that wanna be life coaches, mindset coaches.
00:18:28I wanna help working professionals
00:18:29overcome imposter syndrome.
00:18:31Those are harder businesses to start.
00:18:33I'm not saying it can't be done.
00:18:34We can certainly mentor people and help them out
00:18:36as best as we can in that process,
00:18:37but they're harder businesses to start
00:18:39because what you are solving, imposter syndrome,
00:18:42is not a tangible problem.
00:18:43It is not a, for some people it might be a painful problem,
00:18:46but a way to improve that particular offer would be like,
00:18:49okay, I help working professionals
00:18:51cure their imposter syndrome
00:18:52so that they can get a raise,
00:18:54so that they can get a promotion.
00:18:55When you tie the intangible to something tangible
00:18:58that they want,
00:18:58then they can see the return on investment in.
00:19:00For example, getting a raise, getting a promotion,
00:19:02therefore making money,
00:19:03we are tying our outcome to a make money outcome,
00:19:05it becomes much easier to charge 2000 to $20,000
00:19:08for the specific thing.
00:19:09Whereas when you have something that is intangible,
00:19:11like I'll improve your mindset.
00:19:12I'll help you find your purpose.
00:19:14I'll help you even be more productive.
00:19:15That's actually quite intangible.
00:19:16I'll help you overcome imposter syndrome.
00:19:18I'll help you get over anxiety.
00:19:20Like these things, the more intangible they are,
00:19:23the harder it is for people to see the value
00:19:25that you're offering,
00:19:25especially when you're trying to price between two and 20K.
00:19:27And so the sort of process that we take our students through
00:19:30is basically like a lot of back and forth
00:19:32around how can we tie this intangible transformation
00:19:35that you're offering to something tangible
00:19:37so that people can see the value of it.
00:19:39And then people generally don't tend
00:19:41to want to buy internal transformations.
00:19:43They tend to wanna buy external results,
00:19:45external transformations.
00:19:46They want their life to improve in measurable ways
00:19:49that are obvious to other people.
00:19:51And of course, along the way,
00:19:52you have an internal transformation,
00:19:53but it's hard to sell an internal transformation
00:19:55for a large amount of money.
00:19:56And if you want way more information on exactly how to do this,
00:19:59then I have a video over here,
00:20:00which is the four books you absolutely need to read
00:20:02if you wanna become financially free.
00:20:04If you read those four books,
00:20:04I guarantee they will, again,
00:20:06teach you the principles
00:20:07that I've just taught you in this video.
00:20:08And they will also help you figure out
00:20:09what is the business that you're gonna start
00:20:11that's gonna get you to financial freedom.
00:20:12So check that out over there.
00:20:13Thank you very much for watching.
00:20:14Have a lovely day, and I'll see you in the next video.
00:20:15Bye-bye.

Key Takeaway

To start a profitable business as a beginner, focus on selling high-value services ($2,000-$20,000) to solve specific, painful problems for wealthy clients rather than competing in low-price, high-volume markets.

Highlights

The Price and People Equation: Making $100,000 requires balancing customer volume and price point - it's easier to sell 10 items at $10,000 than 10,000 items at $10

Target Price Range for Beginners: Aim for the $2,000-$20,000 price point zone to play business on easy mode rather than competing in the high-volume, low-price market

Service Businesses Trump Product Businesses: Service-based businesses are significantly easier to start than product businesses because they command higher prices and require fewer customers

Done-for-You Model Advantage: Offering done-for-you services (where you do the work for clients) allows you to charge premium prices, compared to done-with-you coaching or do-it-yourself courses

Problem-Solving for Wealthy Clients: Focus on solving painful, tangible problems for affluent individuals or businesses that generate direct ROI through making or saving money

Tie Intangible Benefits to Tangible Outcomes: Transform abstract offerings (mindset coaching, imposter syndrome support) into measurable results (promotions, salary increases, cost savings)

Volume is Harder Than Price: The common misconception that selling cheap items in bulk is easier than selling expensive services is fundamentally false - volume is the true difficulty

Timeline

Introduction and Channel Overview

Ali introduces the video's three-part structure covering the price-people equation, service-to-product spectrum, and finding a niche that plays business on easy mode. He establishes his credibility as a doctor-turned-entrepreneur who has been documenting his journey since 2017, from being a broke medical student to achieving financial freedom, time freedom, and creative freedom. Ali explains that Freedom Fridays is a regular series discussing books, ideas, strategies, and tools for achieving financial freedom. The introduction sets up the premise that most people want financial freedom but need guidance on the best business to start as a complete beginner to achieve this goal.

The Price and People Equation Explained

Ali introduces a fundamental equation for making money: number of customers multiplied by price point equals revenue. He illustrates that making $100,000 can be achieved through multiple combinations: selling one item for $100,000, ten items for $10,000, 100 items for $1,000, 1,000 items for $100, 10,000 items for $10, or 100,000 items for $1. He challenges the common misconception that selling cheap products in high volume is easier than selling expensive services, using relatable examples like a Coke Zero for $1 or a doner kebab for $5-10. Ali reveals that this belief is fundamentally backwards - finding 10 customers willing to pay $10,000 is far easier than finding 10,000 customers for a $10 product. The key insight is that volume is the true business challenge, not price, making high-ticket offerings more scalable for beginners.

The Safe Zone for Beginners: $2K-$20K Price Point

Ali identifies the optimal price range for beginner entrepreneurs: $2,000 to $20,000 per sale, which he calls the safe zone for playing business on easy mode. He explains that pricing below this range (like $1-$100) places you in the red zone where high volume is required and success rates are lower, while pricing above $100,000 essentially becomes a job rather than a scalable business. Ali addresses the psychological barrier many beginners face, worrying they don't have skills worth $2,000 or more, but assures that students in his Lifestyle Business Academy successfully overcome this through coaching and mentoring. He emphasizes that reaching six figures in revenue becomes dramatically easier when selling expensive services compared to attempting high-volume sales of cheap products. Ali mentions a custom GPT tool (free) trained on his materials from the Lifestyle Business Academy that can help determine the right niche and offer for playing on easy mode rather than hard mode.

Service Businesses vs. Product Businesses

Ali contrasts service businesses with product businesses, explaining that most people naturally think of products (Apple, Starbucks, fashion brands, doner kebabs) when imagining business, but services actually generate most GDP in developed economies. He notes that cognitive bias leads people to overlook the enormous service economy (financial services, legal services, accounting services) because consumer-facing marketing emphasizes products rather than services. Ali provides a concrete example of Elias and Haya from his program, who charge $8,000 for a service helping accountancy practices speed up their client onboarding process - playing business on easy mode by solving a specific, painful problem for their target market. He contrasts this with the fashion brand example of a woman wanting to start a modest fashion line for female runners in Hong Kong, charging $10-100 per item, which requires high volume and is therefore playing business on hard mode. The section establishes that service businesses allow for higher pricing and fewer required customers, making them fundamentally more accessible for beginners seeking financial freedom.

The Service Spectrum: Done-for-You, Done-with-You, and DIY Models

Ali breaks down three service delivery models using web design as an example, arranged on a scalability spectrum. The done-for-you model involves the service provider doing all the work (e.g., optimizing a Shopify store's conversion rates), allowing the highest prices because clients get results without effort - this is what a beginner should target. The done-with-you model represents mid-level scalability, involving coaching programs with one-on-one support where the provider guides implementation. The do-it-yourself model (courses, apps) is the most scalable but requires the client to do the work themselves using the provider's information or tools, resulting in much lower pricing comparable to online courses. Ali strongly recommends beginners start with done-for-you services, possibly stretching to done-with-you coaching, but explicitly advises against starting with online courses due to their low price point and declining market viability as AI tools become prevalent. He notes that as free content becomes more abundant through platforms like YouTube and AI tools like ChatGPT, the market is shifting toward high-end, high-touch services where providers do substantial work for clients.

Finding Your Niche: The Problem-Solution Framework

Ali explains that effective business development requires identifying two elements: the person (ideal customer) and their specific problem that needs solving. The cornerstone principle is targeting wealthy people or businesses with money, as this makes it exponentially easier to charge $2,000-$20,000 compared to trying to serve people without financial resources. He emphasizes that the problem should be painful and motivate clients to seek solutions, preferably problems where solutions directly help clients make money or save money - creating clear return on investment. Ali illustrates the accounting practice example again, where solving client onboarding time-waste (both time and money loss) justifies the $8,000 fee. He addresses harder business ideas like life coaching or imposter syndrome support by demonstrating how to tie intangible benefits to tangible outcomes: instead of vague claims about mindset improvement, positioning coaching as helping working professionals overcome imposter syndrome to achieve promotions and salary raises. He notes that people rarely buy internal transformations but readily invest in external, measurable results that others will notice.

The Tangible Transformation Principle and Conclusion

Ali reinforces that successful high-ticket offers must translate intangible benefits into tangible, measurable outcomes that create obvious external results. He explains that offering vague improvements like better productivity, finding purpose, or anxiety relief makes it difficult to justify premium pricing, as people struggle to perceive value without concrete metrics. By reframing these offerings to connect to specific outcomes (raises, promotions, business growth, cost savings), beginners can justify charging $2,000-$20,000 and attract willing buyers. Ali references his video on four essential books for achieving financial freedom, which further teach the principles discussed in this video and help viewers identify their path to starting a viable business. He thanks viewers for watching and encourages them to apply these frameworks to discover their own easy-mode business idea that leads to financial freedom, time freedom, and creative freedom.

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