The fastest way to build a profitable business from scratch is to come up with a product that sells. 

That obviously seems easier said than done.  However, I don’t view product creation as insurmountable as I used to.  The key is simplifying your thinking and then turning the process upside down.  Timothy Ferriss explains this upside-down process extensively in The 4-Hour Workweek.  In short, he says it’s a two-step game:

1) Think of a market.

2) Come up with a product.

Ferris explains these steps exhaustively in his book.  (If you ever decide to buy the book, the sections dealing with this process are the most important reading you will ever do.)  

I’m going to add an additional, intermediate step in between #1 and #2 above, and I’m going to simplify these concepts even further so that they fit within the space of this blog post. 

In my view, the process is as follows: (1) think of a market; (2) think of a problem within that market; and (3) think of a product that solves that problem.

1) Think of a Market

Most people try to come up with a product by . . . thinking of a product.  What they don’t realize is that the thinking should start at a much broader level. 

You need to start with a target market in mind.  The easiest way to do this is to think of something you know.  Don’t think that a new protein powder will sell great if you’ve never exercised or lifted weights before.  Instead, focus on an industry with which you’re familiar. 

For example, since I’m an attorney and want to build a business around a product, I should first concentrate on the legal industry because I’m heavily involved in it for hours upon hours every day.  I understand it and the problems and needs lawyers have.  

If you’re a waiter or waitress, think of the restaurant industry.  If you run a lot, think of runners as a market or, more specifically, long-distance runners or short-distance sprinters.  Heck, even if you’re a stay-at-home mom, you have your market, i.e., mothers or stay-at-home moms. 

The possibilities are endless.  You belong to so many different groups, and all of those are examples of niche markets.  Swimmers.  Hunters.  Stockbrokers.  Mutual fund managers.  Students.  Teachers.  Pick one that you know and understand and that fascinates you, and make that your target market or niche market.

2) Think of a Problem

Once you have identified your market, think of a problem within that market.  

Everyone is a consumer.  Lawyers need products to facilitate the administration of their profession.  Doctors need products that help them carry out their services.  Racquetball players need products to help them play racquetball.

The participants in these industries or markets always need something or could use improvements in various areas.  Think of a problem that they encounter every day.  If you’re a runner, what issues or problems do you deal with every time you run.  What do you wish you had to make it easier?  Is it a new type of knee brace?  Is it something extra on your sneakers?  Is it a different type of post-workout protein shake? 

Think of that problem as a need or as something that is missing a solution.  Once you do that, the final step (coming up with a product) is much, much easier.

3) Think of a Product 

Now that you have your target market in mind and the problem or need you want to solve, it’s time to come up with a solution. 

This part might seem difficult at first, but it’s much easier once you’ve completed steps 1 and 2 above.  You have a specific need in mind that you want to solve.  Because you have narrowed down the possibilities of solutions, the space within which to brainstorm is much easier to manage.

Moreover, because you participate in and are very familiar with your tarket market, you are well-versed in the types of products that already exist.  This knowledge helps you either improve an existing product, put a twist on a product, or come up with something completely new.

It’s easier than you think.  The crucial steps are picking that target market and thinking of a problem within that market.  That narrows your thinking and reducing the realm of possibilities to a few manageable ones. 

Again, for a more extensive discussion of these concepts and even more ideas for how to work with them, read The 4-Hour Workweek.    

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