Increase chance of business success
Business success is elusive for the vast majority of people that give it a go. Probably the biggest problem faced by entrepreneurs is not having the proper foundation laid in order to vastly improve their chances at success.
Whether it's starting a business from scratch, joining affiliate programs, or even investing in stocks, this secret is the key to gaining the knowledge needed to make informed decisions on the validity of ideas, products and services.
In this article we'll look at the most vital element of a business that provides the greatest chance at achieving success.
What is the secret?
Before I reveal the secret, I want to let you know that it would be a mistake to underestimate it because it sounds so simple. The reality is that all business success is based upon this one principle.
So, what is this big secret? It's discovering a problem that must be solved, and then providing a product or service that solves it at a price people or businesses are willing or able to pay. That's it! Any successful entrepreneur and/or business has this as the foundation of their success. Without a problem that is solved, there is no business.
One key thing to understand in taking this into consideration is, it doesn't necessarily mean creating something brand new from scratch. It could mean that, but usually it's looking at problems people face and finding better ways of fixing it than the market offers at this time. In other words, look to ways of solving problems in a way that it differentiates from competitors.
Solving a problem can be as simple as figuring out ways to do the same thing a competitor does at a cheaper price while still making a profit, without sacrificing quality.
Amazon (AMZN) disrupted the retail sector when it did this with its e-commerce business. Before that, Wal-Mart (WMT) did it by launching numerous retail stores in underserved rural areas, which its competitors didn't consider a serious threat to their business model. By time Wal-Mart was ready to move into urban and suburban areas it was too late for its competitors.
In the cases of Wal-Mart and Amazon, they both found ways to improve the retail experience for consumers and generated enormous wealth for itself and shareholders.
Those are to big examples that readers can understand, but this can be done at successfully at much smaller levels.
I remember years ago when reading about an entrepreneur that was targeting the older demographic as baby boomers in the U.S. started to age. He mentioned when he was walking around observing things, he saw numerous challenges facing mature people that would struggle with things as simple as opening bottles and numerous other problems that would have to be solved. There was no end to the ideas he came up with that would provide a better life for seniors as they age. You get the point.
The major takeaway is to be on the lookout for problems that need to be solved, and once you find them, provide products or services that are the solution.
How this applies to affiliate offers
The interesting thing about this is, as mentioned earlier, you don't always have to think in terms of starting from scratch when solving problems. As a matter of fact, you don't even have to have your own product or service in order to make a good living with a business.
That's the case with affiliate offers, which many people have leveraged to large incomes for themselves. But I'm not going to get into the idea of affiliates, but rather, how we can take the idea of solving problems and use them as a filter to vet the potential specific affiliate programs offer.
There are so many affiliate programs out there, that many times when people start to research them, they give up because of analysis paralysis, which the sheer volume of potential opportunities can overwhelm the senses.
One way to reduce the many offers is to ask yourself this question: "What problem is this affiliate program solving?" The following question should be: "Is the market for the product or service big enough to generate meaningful revenue?"
The point is, it doesn't matter if you're starting your own business or joining an affiliate program, the issue of whether or not what is offered solves a specific problem is the key to determining whether or not to join. There are other issues of course, but that's the foundation to filter the affiliate program through before spending a lot of time doing research concerning the details of the program. If the affiliate program doesn't prove it solves a problem that differentiates itself from its competitors, then you're going to struggle to make a good living.
How it applies to investing in stocks
The key to applying the fact that solving problems is the secret to business success at the foundational level, is that it is the major filter to use when analyzing opportunities, and in the case of investing in stocks, the companies you're considering investing in.
What needs to be understood here is it doesn't matter what aspect of business you're researching, the issue of solving a problem is the key to making informed decisions on the future growth opportunities, whether it's starting a business, going the affiliate route, or investing in stocks.
As for stocks, again, what we're looking for is a company that has differentiated itself in how it is solving a particular problem. A company that can't differentiate is called a commodity company, which means any competitor can duplicate a product or service and compete on price alone. Those lower margins and earnings, without any way of knowing how a company will grow, let alone survive, in the future.
An important thing to consider when investing in stocks is, there is always going to be a couple of winners at the top, and they can usually be identified, at least with companies that have been around awhile, but their ability to increase dividends over a prolonged period of time. That doesn't mean their industry can never be disrupted, but their long-term success confirms they do in fact offer products and services that solve specific problems.
The key to improving chances off starting a new business, joining affiliate programs or investing in stocks is, using the filter of whether or not the product or service offered solves a very specific problem.
Understand that filtering for problem-solving significantly improves the chances of success, against those that respond to the poor advice of doing something you love. That sounds wise, but in reality, it's a terrible way to decide whether or not to launch or buy a business.
That doesn't mean you won't love what you do, only that even if you love to do something, it has to pass the filter test of solving a problem. If it does, then you have an opportunity to make a living doing what you love. On the other hand, there's been many a shipwreck of hope that came from faulty advice that doesn't include problem-solving.
For those thinking of starting a business, buying a business, joining an affiliate program, investing in stocks, or any other creative endeavor that is for the purpose of serving customers while making a living, be sure the first thing you do is use the filter of solving a problem as the foundation you build on. It will increase your chance of success exponentially, against those that aren't aware of the important of this foundation to business success.