chadintraining
Kraken
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A concept from The Millionaire Fastlane by MJ DeMarco, a highly recommended read
CONTROL: Do you have full control of your business, are you relying on any one entity to be present for your business to succeed (can be one platform, one specific store, etc..). Breaking this rule can result in small changes completely nuking your business (store dropping your product, demonetization, etc..)
ENTRY: How high is the barrier of entry for your business, aka, what is needed for someone to start a business in your field (intelligence, skills, money, etc..). The higher the barrier of entry the business has, the less competition you will have. If your business has a low barrier of entry, competition will be cutthroat and you need to really stand out to succeed.
NEED: How much demand is there for your business/product. If there is no need, you will make no money
TIME: If your business is able to run without a constant time investment on your end and can run without it, you have a passive income stream.
SCALE: How large is your earning potential, the higher the better. This can be either through scale (the amount of customers reached) or magnitude (how much the person will be paying for said product). A business with a large potential customer base can sell products that don’t make much in their own and still make a lot of money simply due to how many customers they have (an example of a company like this would be McDonald’s. A business could also have a small customer base, but still succeed if they have magnitude (expensive products), an example of a company like this would be Ferrari.
CONTROL: Do you have full control of your business, are you relying on any one entity to be present for your business to succeed (can be one platform, one specific store, etc..). Breaking this rule can result in small changes completely nuking your business (store dropping your product, demonetization, etc..)
ENTRY: How high is the barrier of entry for your business, aka, what is needed for someone to start a business in your field (intelligence, skills, money, etc..). The higher the barrier of entry the business has, the less competition you will have. If your business has a low barrier of entry, competition will be cutthroat and you need to really stand out to succeed.
NEED: How much demand is there for your business/product. If there is no need, you will make no money
TIME: If your business is able to run without a constant time investment on your end and can run without it, you have a passive income stream.
SCALE: How large is your earning potential, the higher the better. This can be either through scale (the amount of customers reached) or magnitude (how much the person will be paying for said product). A business with a large potential customer base can sell products that don’t make much in their own and still make a lot of money simply due to how many customers they have (an example of a company like this would be McDonald’s. A business could also have a small customer base, but still succeed if they have magnitude (expensive products), an example of a company like this would be Ferrari.
