Edmonton Business Coach | 1% Market Share is all You Need
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The risks that you would have to take to accomplish this revenue are akin to the risks you would have to take to generate tens of millions of dollars at Las Vegas blackjack tables.
Yeah, I can see the whole why with the two [inaudible] cause it’s not.
Hi, thanks for tuning in for another episode of ask Sperl CPA. Today is the EBITDA business coach. We’re talking about how 1% market share is all you need as the MD business coach. Again, we’re talking about how 1% market share is actually all you need. And I have Michael here with me. Michael, how are you doing? I’m good. How about you? Oh, pretty good. So this is Michael’s first day on the job and we made him do a youtube video that ever happened you before, Michael? No, no. For the first time. Yes. Trial by fire for sure here. So, uh, the quote that we have here today, it’s a Gary Vaynerchuk will and it says even if you’re ambitions are huge, start slow, start small, build gradually and build smart. And the statistic that we have here at 50% of all Canadian businesses go out of business within five years, at 42% of these failed business owners, we’ll list the inability to attract enough customers. One of the primary reasons for their failure making, the inability to attract enough customers as the single most common reason for business failure. And the story that we have here are entrepreneurs. They come to us and they have plans of generating tens of millions of dollars of sales within their first five years. They’ve watched a lot of shark tank episodes. They think that the next Facebook, and they think they’re going to generate tens of millions of dollars in the next five years, the first five years of their business. So Michael, what are the questions that you think these business owners should be asking?
Um, how long have you been studying running and advising businesses as one of the best Edmonton Business Coach?
So I am now been either running, studying or advising small businesses for 21 years. So I might be dating myself a little bit, but 21 years I have been, you know, a either studying, running or advising or combination thereof. Normally a small
businesses. How many businesses start doing tens of millions in your first five years?
Um, zero that I have ever seen. So zero that I have never seen. And if I knew how to do it, I would have done it. So a zero that I have ever seen, but there’ve been so many more, um, that tried and maybe think that’s the normal. And, and you know, sometimes it’s a little bit of that pop culture that probably thinks them falsely that that is the norm.
Next, what sorts of risks do you believe would be necessary to accomplish this revenue from an Edmonton Business Coach standpoint?
I think the risks that you would have to take to accomplish this revenue are akin to the risks you would have to take to generate tens of millions of dollars at Las Vegas blackjack tables. Um, you know, any sort of a sports betting. Um, it is possible, but the level of risk that you’d have to do is significant. I mean we can make tens of millions of dollars on the lottery as well. Um, but the level of risk and this, the statistical chance that we’re going to achieve that goes dramatically down. So I believe that, you know, some of the, the, the risks that you’d have to take in order to affects, um, the rate of success, does that level of risk almost guarantee failure? I think, yeah, certainly that level of risk is almost going to guarantee you that business owner is going to succeed. You know, if they took a more moderate approach to the risk that they were willing to take, they probably have a higher chance of success, but they wouldn’t have that, you know, uh, lightning in a bottle home, run a rate out of the gates, sort of speak.
Will a successful small business generate more well than most people realize? Yeah. Here’s what most people don’t realize. They think that they have to do, you know, 10 million, 20 million, 30 million, 100 million, just certain generating, you know, real significant wealth. What they don’t realize that even a successful small business will probably make them, you know, statistically the richest person in their family. It will make them more money than they would make it any other profession. Um, you know, it’ll translate into a, a seven figure, um, sale when they eventually sell the business, when they retire, you know, $1 million or more. Um, the types of wealth that it’s going to facilitate. You know, a lot of small businesses, I define these successful small businesses as you know, you’re able to make $100,000 more, so six figures more than if you had a job in that industry. Uh, and you know, you’re able to sell this small business, uh, you know, 10 years later or retirement at, you know, $1 million or more.
You know from an Edmonton Business Coach perspective, these are successful small businesses and they’re going to put you in the top 1%. They’re going to probably make you richer than anyone you know, or anyone in your family. All you need is a successful small business. What does their revenue normally look like in these successful small businesses? Yeah. So often, like the revenue in these successful small businesses is, you know, single digit millions or even sometimes, uh, hundreds of thousands. A lot of times we’re looking at half a million dollars or more. These businesses start to develop, you know, real, you know, market value. You can actually sell this business for a significant sum once it’s, you know, delivering $500,000 or more and that’s value that you otherwise would never have if you were, you know, working for someone or operating a business that was really, really small. So, uh, oftentimes we’re looking at your 500,000 or a million or 2 million or 3 million and that starts to generate real significant wealth that most people would otherwise have no shot at.
Are these the revenue numbers normally less than 1% of the entire local market?
Yeah. So people are thinking that, you know, they need this huge amount of market share to really make a difference. But really in most businesses, if you’re, you know, the local plumber or a local dentists, or you want to sell hair products or skin products or whatever it is, you probably need less than 1% of not just the, the global market and the national marketing probably need less than 1% of even your local market in most major cities. And you’ll be able to achieve that, uh, that wealth that, you know, probably no one else in your family statistically, um, probably has.
Are there strategies to build this size of business businesses with less or less risk that you have used as an Edmonton Business Coach?
Yeah, so most of these small video building a big business is, you know, there’s only so many Facebooks and there’s only so many googles and Amazons and, and Chevron energies that, that come around. But in terms of building a small businesses, real defined methods that people have used, and if you simply deploy them, um, you, you can increase your chances of success, you know, far greater than if you’re going for that one big home run. Um, you know, so there’s a lot of, there’s strategies out there. They may not be sexy. They may not be, hey, let’s go publican and raise $10 million in immediately hire, you know, a marketing team and spend $5 million on ads or something like that. They’re not like that. A lot of them look like a lot of work and they take a lot of time to execute. But if you’re actually able to stick with these strategies, you know, the chances that you’re going to be able to succeed it are far greater statistically, you know, they’re far greater that you can succeed on that smaller scale than, you know, going for that. Uh, I want to be a billionaire, a type attitude. I’m sure there’s a song there on that one, but, um, yeah, so I think there’s, there’s far less ways to build wealth. Um, you know, a, a degree of wealth and most people will be more than satisfied with,
are sophisticated market studies normally necessary for these businesses?
No, not really. And that’s what a lot of things you, you research and business school and they tell you about, oh, you need a market study. I mean, yeah, if your Coca-Cola and you’re trying to compete with Pepsi and you guys both have a meaningful percentage of the global market in that area, market studies are very, very valuable. You know, capturing, you know, a, another percentage points on that market is astronomically big to the shareholders. And it doesn’t matter if you spend a hundred thousand a million dollars on this market study, you know, it’s gonna pay back 10 fold for those big companies. But when we’re talking about these small businesses, these successful small businesses, I mean these successful small businesses where you, again, you make more than a hundred thousand dollars more than you would if you were an employee in this type of business. And you know, it’s something that you can sell for $1 million or more from what I recall as an Edmonton Business Coach.
Eventually down the road. You can do this with less than 1% of the market share. So, which renders a lot of these sophisticated market studies. Pretty useless. I mean, it doesn’t, it, you can do it with capturing less than 1% of the market. So a lot of these sophisticated market studies are probably not all that useful for a lot of small businesses. Is there any substitute for getting feedback on a monetize, minimal viable product? I don’t think so. I think that that like that is the market study. You get to your minimal viable product as quickly and as cheaply as possible, and you get that out to the marketplace and when you actually sell it to another person, they’ll give you the real feedback. There’s no substitute for that market analysis. You know, some people can say something on a survey, uh, but when it comes time to actually put their dollars down and give you a credit card number or write you a check, you know, everything changes from my experience as an Edmonton Business Coach..
Right? Um, and not just willy do it or not, but sometimes it’s, what’s the feedback that they give, right? There’s no substitute for actually trying the product or service and getting that feedback and developing your product like that. That’s what’s going to tell you if it’s going to work or not. So these business owners are considering, they need your real sophisticated market research. I would encourage you, you know, how much will it cost you just get to your minimal viable product and actually start selling something that you can get feedback on. Do you believe starting small makes the possibility of getting huge more likely? Yeah. So I don’t think you’re giving up on that dream. I don’t think somebody wants to build that billion dollar or a hundred million dollar billion dollar company. I don’t think they’re giving up on that dream by starting small. I actually think they’re increasing their chance of getting there.
And let me put that in perspective. You know, I have, you know, clients and they, they go out in the seek investment capital and the, they go off and then seek investment capital when they have no sales or next to no sales, less than a hundred thousand dollars a year in sales. And they’re trying to raise investment capital. Um, you know, their chances of getting that investment capital throw gasoline on the fire are significantly less. But if that same person goes and builds, you know, $1 million in sales and then goes and asks for investment capital, they might actually get it. You know, that same entrepreneur might actually not, you know, a strikeout. So I think starting small with something that you can control your success and execute proven strategies, uh, to get to a, uh, self-sustaining point only increases your chance of really blowing things up. I don’t believe that decreases it at all. So I think that’s what we have here today. So much for joining us. Again, as always, please hit the like and subscribe button so we can continue to deliver you tips on how to beat the odds at business and we look forward to any comments that you have so we can respond back and use your input for future videos. Thanks very much for being one of the top Edmonton Business Coach.