This blog post is based off an article on entrepreneur.com that details three main mindsets that are found in people who have started successful companies based on the internet.
The first: Focus on your 1,000 true fans
The message behind this first set is quality > quantity. The author behind this article and who actually wrote a book on what he took away from these entrepreneurs, worked with a company who dealt in a specialized industrial equipment. The specific piece got about 400 searches a month on Google, which costs about $400. At a quick glance, this doesn’t seem like a viable target market and one that you can build a strong healthy company around. The truth, there is millions of dollars to make with a business centered around capitalizing on this specific specialized equipment. The author explains that if you have a 1,000 true fans – you’re business can become a major success. A true fan is described as anyone who is willing to spend $100 plus a year buying what you produce. 1,000 fans paying $100 per year equates to $100,000 of revenue.
In order to achieve these true fans, you should focus on building a loyal base through trust with content marketing. 1,000 fans is, overall, a lot more achievable than going for a hundred thousand or a million fans to start. Gathering on true fan a day will take you roughly three years to have a 1,000 in your ranks. That piece of farm equipment with 400 searches a month and at a price of $400 can bring in just shy of two million dollars a year. The riches are in the niches!
The second: Do things that don’t scale
The majority of your time in the early years of your business is going to go towards things that equate to zero growth and scale. This time spent, though, and the losses in the short-term should equate to long-term success and future dividends. A company called Stripe is used as an example in this case. They would go to coffee shops or bars if they were interested in using their payment system and would set it up on the spot for them on their laptops if they were. It took them two years to get their first 100 customers!
The author explains that the truth of the matter boils down to that most internet businesses have very humble and small beginnings. You have to chart out your growth properly and plan effectively, not too small or too big. He recommends charting out ways to 10x your current business. Don’t think too small and don’t make the goals unreachable. Think how to go from 0 to 10 fans, to 10 to 100.
The third: Stay on the bus
The third belief is all about sticking to what you’ve been doing and seeing it through. Keep plugging and chugging. Don’t get distracted by what other entrepreneurs have done and measuring their success or where they are in their journey compared to you. The dividend will come if you are persistent. If you believe in yourself and what you are trying to accomplish, stay on the bus!
Alan, I recently just wrote on the great benefits of content marketing compared to traditional marketing. I think it’s extremely important as new entrepreneurs to focus on those who are willing to actually buy into our product or service, rather than the trivial many that barely affects the bottom-line to begin with. Good post!