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If I Wanted to Make My First $100K… — Ali Abdaal shadowing | TryShadowing
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Ali Abdaal
If I Wanted to Make My First $100K in 12 months, I’d Do This
If I Wanted to Make My First $100K in 12 months, I’d Do This
Ali Abdaal
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34:57 · Apr 9, 2026
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In
this
video,
we're
going
to
go
over
the
five
step
process
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0:00
In this video, we're going to go over the five step process
0:02
that you can follow to build a hundred thousand dollar a year lifestyle business
0:06
in under 12 months
0:07
and which you can work through to build a million dollar business in hopefully
0:10
around three to five years.
0:11
So, if you would like a step-by-step process that you can follow,
0:14
let's dive in.
0:15
All right, so this is what the road map looks like for building your
0:18
multi-six figure or even low seven figure lifestyle business.
0:21
Over here, we have a line of roughly what revenue is going to be.
0:23
Everyone starts out at zero.
0:24
Over here, we have an inflection point at a hundred thousand dollars a year.
0:28
Over here, we have a plateau point at around 10 million.
0:32
Over here, we have 1 million a year.
0:34
Over here is about 3 million a year.
0:36
And you can see the graph starts to plateau out around about this level,
0:39
which highlights the fact
0:40
that generally lifestyle businesses don't really scale beyond 10 million a year.
0:43
So, if you're okay with that, then we can continue watching this video.
0:46
And then over here between 100K and a million, we've got about 300,000.
0:49
And in general, every tripling of a business revenue is
0:52
when things start to break
0:53
and when like the paradigm shifts
0:54
and when like things become a little bit different.
0:55
So, that's why we're sort of dealing in triplings rather than in other kind
0:58
of units of numbers.
0:59
This here is what we call phase five, freedom.
1:03
This is where you have true financial freedom
1:04
because you've got a business that's doing somewhere between 1 million
1:07
and probably 5 million in revenue.
1:08
Maybe it's somewhere between 50 and 80% margins.
1:11
So, you can do the math on that.
1:12
It's a pretty good place to be.
1:13
Over here, we have phase four, which is leverage.
1:16
This is where you're scaling from about a hundred thousand a year to about
1:19
a million a year.
1:20
And this process takes about two to three years.
1:23
Um some people do it sooner or quicker than that.
1:25
Some people do it like slower than that.
1:26
This phase, phase five, you kind of hang around in phase five forever.
1:30
Because if you have a lifestyle business,
1:31
then once you hit like the seven figure mark,
1:33
you actually just kind of want to be hanging out in this range for
1:36
the longer term.
1:37
And so, really this kind of range here is our ultimate destination.
1:39
We want to become a lifestyle business millionaire.
1:41
In order to get that,
1:42
we have to spend a few years in phase four scaling from 100K to
1:44
a million.
1:45
But most of the people watching this video are not yet at 100K yet.
1:48
So, now let's explore the initial three phases.
1:50
So, we've got phase one, phase two, and phase three.
1:52
Phase one is called ideation.
1:54
Phase two is called validation.
1:56
And phase three is momentum.
1:58
The ideation phase, we ideally want to last around 1 to 2 weeks.
2:03
The validation phase generally lasts about 1 to 3 months.
2:08
And then the momentum phase, generally 6 to 12 months,
2:11
depending on how much work you put into it.
2:12
So, if we're doing this well
2:13
and we are stacking the unfair advantages
2:15
that we have,
2:15
it's actually fairly doable getting from 0 to 100k a year in business revenue,
2:19
which is an $8,333 a month run rate.
2:21
And it's fairly doable getting there within 12 months
2:23
if you do the right things
2:24
and if you willing to put in the work.
2:25
I'm going to say
2:26
that overall our goal here is about 12 months to go all the way
2:30
from 0 all the way through to 100k a year.
2:34
When I first did this journey,
2:35
it took me 2 years to go from 0 to 100k,
2:37
but I knew nothing.
2:39
I'd never read any books about business.
2:40
There was no videos about entrepreneurship.
2:42
And if I knew what I knew now,
2:43
I'd probably be able to speed run
2:44
that journey in probably about 3 months even
2:46
if I had no audience
2:47
as long as I had the skills
2:48
that I have.
2:49
I have a bunch of friends who've made that journey.
2:50
Some of them have gotten there within like 3 months.
2:52
Some of them have gotten there within 6 months.
2:54
Some of them 12 months.
2:55
So, I think 12 months is a good kind of middle-of-the-road target to shoot
2:58
for.
2:58
Obviously, some people are going to get there way quicker
3:00
and some people are going to take a bit longer to get to 100k
3:02
a year.
3:02
So, within phase one, we have two key milestones.
3:05
The first one is we figure out what is our niche.
3:09
And once we have figured that out,
3:10
the next thing we need to do is we need to figure out what
3:12
is our offer.
3:13
And this is a first draft offer.
3:16
Niche answers the question of who am I helping
3:18
and what am I helping them with.
3:19
And then the offer answers the question of what am I actually trying to
3:23
sell to them.
3:23
And the reason it's a first draft is because in this phase,
3:26
we're spending 1 to 2 weeks doing a bunch of brainstorming,
3:28
doing a bunch of research,
3:29
maybe talking to AI to come up with a niche and an offer.
3:32
But it's only when we put it out into the market to validate the
3:35
offer that this becomes a more solidified offer.
3:38
And then we get to the single hardest part of the entrepreneurship game,
3:40
the least fun part, which is validation.
3:42
And what we are trying to do there is we are trying to get
3:45
our first sale.
3:46
So, until you get a customer to actually give you money for the thing,
3:50
all of this niche and offer, it's all theoretical.
3:52
You need someone to give you money to validate your business idea.
3:55
In between this process of like coming up with a first draft offer
3:58
and getting our first sale,
3:59
what we're going to be doing is we're going to be taking a bunch
4:02
of discovery calls.
4:03
We are going to be speaking to people in our target market
4:05
and we're going to be doing some market research on those calls
4:07
and we're going to be trying to understand what their problems are
4:10
and pitching them or presenting them our offer
4:12
and then refining the offer based on feedback.
4:14
Because then once we have a first sale, we're now in great territory,
4:17
we're now in momentum mode.
4:18
Well, now it's just a case of like scaling from first sale to 10K
4:21
in revenue,
4:21
from there to 30K in revenue,
4:24
and then it's not too bad getting to 100K revenue.
4:26
100K revenue a year is really only about $8,300 a month.
4:30
So, if you are selling something for let's say $3,000,
4:32
you only need three clients a month in order to hit 100K range.
4:36
If you're able to sell a retainer package for let's say $2,000 a month,
4:39
you only need four
4:39
or five clients period to actually get to the 100K a year rate
4:42
because you're selling a recurring like retainer package.
4:45
Of course, if you're selling cheap things like $10 ebooks
4:47
or $27 courses or you know,
4:48
template packs or anything like that,
4:50
you need to get more sales in order to get these sorts of numbers,
4:52
which is why I'm generally an advocate of recommending
4:54
that you sell expensive things rather than cheap things.
4:56
Okay, so let's start by zooming into phase one where we are figuring out
4:59
our niche and our first draft offer ideally within one to two weeks.
5:02
The thing to keep in mind here is
5:03
that if you want to start a business
5:04
and you want to make money in any way,
5:05
you only make money
5:06
if you solve problems for someone else who's willing to pay you to solve
5:10
that problem.
5:11
All money is given to you in exchange for simply solving problems.
5:14
Now, the first step here is to figure out our niche.
5:16
What a niche is it is this this sort of overlap between a group
5:20
of people and a problem.
5:22
And the overlap between the group of people
5:24
and the problem that they have is known
5:26
as a niche.
5:28
For example, with my first successful business back in the day,
5:30
the people I was serving was students applying to medical school in the UK.
5:33
And the problem I was helping them solve was
5:35
that I was helping them prepare for the BMAT,
5:37
which was this like medical admissions exam.
5:39
So, they were a group of people who had a problem
5:41
and they were willing to pay me to teach classroom courses teaching them how
5:44
to ace this exam
5:46
so that they could get into med school. of my friends,
5:47
Sahel, he has software that helps video editors.
5:50
They are the people with the problem that video editing takes too damn long.
5:53
And so, video editors are willing to pay him for his software
5:56
that helps to speed up video editing.
5:57
The way you make money is by solving problems for people who are willing
6:00
to pay to have those problems solved.
6:02
And that is the first thing
6:03
that we really need to figure out with our business.
6:05
Now, how do you figure this out?
6:06
Well, there's a lot of different things you can do.
6:08
Um the way that I recommend you do it is, firstly,
6:10
you identify what are your craft skills.
6:13
I.e., what personal or professional expertise do you already have
6:18
that could help someone solve some kind of problem?
6:20
You want to ask yourself, what are the things that you're good at?
6:22
What's the stuff on your CV?
6:23
What is your current employer actually paying you to do, right?
6:26
If you've solved problems in your personal life,
6:28
if you were overweight at one point and then you managed to lose weight,
6:30
like one of my friends does like this stoic weight loss type thing where
6:33
he helps basically overweight people solve the problem of weight loss.
6:36
He's got the personal experience at having lost a load of weight himself,
6:39
and so now he's able to help other people solve that problem.
6:41
So, what you want to do is you want to make a list of
6:42
your craft skills.
6:43
What are the skills or expertise or experiences that I already have?
6:47
Because starting a business based on pre-existing skills means
6:50
that you can get to you can get to this 100k year mark a
6:54
lot quicker.
6:55
That's not to say you have to have pre-existing skills.
6:57
It is totally possible to enter a brand new niche
6:59
and then figure out what problems they have
7:01
and then develop the skills to solve those problems.
7:03
But, life becomes easier
7:04
and quicker if you're trying to make money
7:05
if you are serving a niche
7:07
that is served by skills
7:08
that you already have,
7:09
rather than skills that you have to learn from scratch.
7:11
Essentially, what we want to do is we want to make a long list
7:14
of people and problems
7:15
that we could potentially help using our craft skills.
7:18
The way we do this for our students in the Lifestyle Business Academy is
7:20
we ask them to come up with a list of 15 to 20 potential
7:24
niches.
7:25
The way this looks like is we give them like a worksheet type of
7:27
thing where there's like a table.
7:29
Um >> >> there is a column that says person, like who is the person,
7:32
what is their problem, what is your promise.
7:35
And then, we ask three questions.
7:37
I have to give a shout out to one of my mentors, Toki More,
7:39
for giving me these three questions cuz these are great in terms of like
7:41
narrowing down a niche
7:42
and those three questions are do I like them,
7:45
can I actually help them, and will they be happy to pay?
7:48
And generally what I recommend for our students is you ask yourself will they
7:51
be happy to pay at least $2,000
7:53
because again life becomes easier
7:56
when you're trying to build a business getting to a 100k a year
7:58
and beyond if you are selling expensive things
8:00
and I define expensive
8:01
as about $2,000 or above.
8:03
You can certainly get rich selling cheap things it just takes longer.
8:05
So this is an excerpt from one of our workbooks where you can see
8:08
we've got person problem promise like help
8:10
and pay.
8:10
For example, the people could be chiropractors,
8:12
their problem could be not enough customers
8:14
and so the promise
8:15
that our business delivers is we help them get more customers.
8:17
And then we're ranking like help and pay in terms of red, yellow,
8:20
and green.
8:21
Red is like no definitely not.
8:22
Yellow is kind of like maybe and green is like oh yeah definitely.
8:25
So in this context do I like chiropractors?
8:27
Uh not really.
8:27
Can I help them get more customers?
8:29
Maybe.
8:29
Will they pay?
8:30
Well, yes they'll definitely pay
8:31
because like it's a business
8:32
and we're helping them make more money
8:33
so that one's easy.
8:34
And so what we want to do is we want to get good at
8:36
problem hunting because again business is about solving problems for people who willing to
8:40
pay to have those problems solved.
8:41
So a by starting with our craft skills
8:42
but then also by thinking what are the sort of people
8:45
and problems that we are already familiar with.
8:47
Let's say you've worked in tech
8:49
and so you're quite familiar with other people working in tech
8:52
and also probably the customers of your tech company.
8:53
You would then be trying to figure out what problems do those people have
8:56
that I could potentially solve.
8:57
And what you want to do is try
8:59
and generate around 15 to 20 different niche ideas.
9:02
The reason we want to do
9:03
that is because generally
9:04
when it comes to niche selection we want to start out it's sort of
9:08
this kind of thing.
9:09
It's a three-step process I think of as diverge, converge, and emerge.
9:14
This by the way is a general principle for creativity in almost every every
9:18
field and is the exact concept
9:19
that we have on these like fancy pens
9:20
that we've designed with Baronfig diverge converge emerge anyway.
9:24
This very much applies to niche selection
9:25
because diverge is like we're thinking very broad
9:28
and we're thinking divergently about the 15 20 ideally even more potential niches we
9:33
could serve.
9:33
We are then following a process to converge on like our gold silver, bronze,
9:38
our top one, two, and three niches.
9:40
And usually in the process of doing that, the correct niche emerges over time.
9:43
And then we pick a niche, we stick to it for a while,
9:45
we develop expertise within a niche, we craft an offer within that niche,
9:48
we do validation within that niche, we serve customers within that niche,
9:51
and then we have a successful business that gives us fun, freedom,
9:53
and flexibility to live life on our own terms.
9:54
Oh, by the way,
9:55
if you are enjoying this video and you haven't yet subscribed to the channel,
9:58
um you might like to.
9:59
It's completely free.
10:00
I think you click on my channel name and you hit the subscribe button,
10:02
and then you're more likely to see stuff like this.
10:04
Plus, it lets me know that you like this sort of thing.
10:06
Once you figure out your niche,
10:07
you then have to come up with a first draft offer.
10:09
So, your niche answers the question of who do I help
10:11
and what do I help them with?
10:12
Your first draft offer answers the question of what do I think I want
10:15
to actually sell to them.
10:17
Crucially, you are not building any kind of product yet.
10:19
We need to understand the difference between an offer and a product.
10:22
Let's take my book, for example.
10:23
The product is the book itself.
10:25
It is the text in the book, the writing in the book, etc., etc.
10:28
But the offer is the packaging of the book.
10:30
It is the title, it's the subtitle, it's the world's most followed productivity expert,
10:34
it's the quote from Mark Manson.
10:36
The stuff at the front and the back of the book is the offer.
10:38
When someone goes to the bookstore or goes on Amazon to buy the book,
10:41
they are not actually buying the product.
10:44
They are buying the offer, and then what they get is the product.
10:47
Now, the mistake that a lot of noob entrepreneurs make is
10:50
that they will jump to building the product before validating
10:53
that people even want the offer.
10:55
And it would be such a tragedy
10:55
if you spent three years writing a book only to
10:58
then realize that no one wants to read it.
11:00
This is, in fact, the single biggest reason why most businesses fail.
11:03
At least in the early days,
11:04
they are trying to sell something that no one actually wants.
11:06
So, you really do not want to take the approach of build it
11:09
and they will come.
11:09
You instead want to create an offer,
11:11
which takes like a day
11:13
because it's not that hard coming up with a title
11:14
and a subtitle and like a elevator pitch.
11:17
And then you present the packaging of the thing to your prospects,
11:20
and you see if they're interested.
11:21
And if lots of people are like, "Oh my god, that sounds amazing.
11:23
Sign me up." and are willing to pay you money for the thing before
11:26
you've even built it,
11:27
that is when you know you have demand.
11:29
That is when you know you have a viable business.
11:30
But you really do not want to be building first.
11:32
This is an a thing
11:33
that I wish would get into the heads of more people who are trying
11:35
to start businesses.
11:36
You want to validate your offer first before you try and build the product.
11:40
Now, the offer is made up of what I call the six P's.
11:44
We have person.
11:45
Who is the person who is the absolute center of your bull's eye?
11:48
The way to think about this is like let's say this is a dartboard.
11:53
And >> >> this this is your kind of your niche, right?
11:56
It's sort of like the people and problem that you're solving for,
11:59
which we figured out in step one.
12:00
In the offer step,
12:01
what you're trying to do is you're trying to define who is at the
12:04
absolute center of the bull's eye.
12:06
Now, that's not to say these are the only customers you serve.
12:08
But, like if you're throwing darts,
12:10
you're going to be aiming for the bull's eye.
12:11
I mean, in reality you're going to be aiming for triple 20,
12:13
but let's forget that.
12:14
Let's assume you're going to be aiming for the bull's eye
12:16
and like some of your shots are going to hit on the bull's eye,
12:18
but you know, they might land here
12:19
or here or here
12:20
or here or here
12:21
or there or whatever.
12:22
By aiming for the bull's eye,
12:23
you actually end up landing somewhere on the dartboard.
12:25
So, what we are trying to do is define who do we think is
12:28
the absolute dream client,
12:30
our perfect future client,
12:31
the customer that will absolutely benefit from the thing
12:33
that we potentially want to sell
12:35
and who has the money to pay for it.
12:36
Once we figure out the person, we sketch out details about the problem.
12:40
Like what is the problem that they have and why is it really painful?
12:44
We want to sketch out the pain.
12:45
Pain is not one of the six P's.
12:46
Maybe it could be.
12:47
It could be a seven P's.
12:48
Once we've defined a person
12:49
and problem in more detail
12:50
because we kind of knew
12:51
that from our niche,
12:51
we then come up with a promise.
12:53
Now, the promise is like less than 10 words
12:56
that explains what we actually do.
12:57
And the goal of the promise is to be sufficiently intriguing to the person
13:02
with a problem that they want to find out more.
13:03
So, for example, let's take my lifestyle business academy,
13:05
which is sort of like our online business school.
13:07
The person we're targeting is like the corporate professional who's got skills,
13:10
they've got expertise, they're probably earning over 100K a year,
13:12
they're probably living in the US or maybe the UK.
13:14
And the problem that they have is
13:15
that they feel unfulfilled
13:16
and they feel a lack of freedom
13:18
and flexibility in their life.
13:19
They maybe like the idea of traveling and being able to work remotely,
13:21
all that kind of stuff.
13:22
What they're optimizing for is freedom.
13:23
And so then our promise is we'll help you build a $100,000 a year
13:27
lifestyle business in under 12 months.
13:29
Now, for that particular audience who has that particular problem,
13:32
that is an That's a compelling promise.
13:33
And that is what you want in your promise.
13:35
You want it to be just sufficiently intriguing.
13:37
Now, of course, once they get into the program,
13:39
then I give all the caveats that like, "Okay, well,
13:41
the 12 months depends on you doing 10 to 15 hours a week of
13:43
work,
13:43
and like there's this whole process you have to follow,
13:44
and then if you don't follow the process,
13:46
it's going to take longer than that, and like, you know,
13:48
you got to do what we tell you, and we're going to support you,
13:49
and blah blah blah blah blah."
13:50
But, in the promise stage, no one cares about the details.
13:52
No one cares about the caveats.
13:53
The promise just needs to be compelling enough
13:55
that they want to find out more.
13:57
The promise for FireCut, which is, you know,
13:59
my friend's a hell's video editing software, the person is video editors,
14:01
the problem is editing takes too long,
14:03
and so the headline promise is something like,
14:05
"Save 4 hours in every single video edit."
14:07
Like that promise is intriguing enough for video editors for them to want to
14:10
find out more.
14:11
Okay, so once we've figured out our promise,
14:13
our prospect is now sufficiently intrigued they want to find out more.
14:16
This is when we tell them the plan.
14:18
Now, the way we can think about this is
14:19
that let's say we've got a person,
14:21
and they are in a sad situation,
14:23
and we want to get them into a happy situation.
14:25
>> >> Let's say, I don't know, they're unfulfilled in their job,
14:27
and they want to build a lifestyle business.
14:29
One way of thinking about this is like they're on this cliff over here,
14:32
they want to get across to that cliff over there,
14:35
but there's this like enormous chasm between these two cliffs,
14:38
which they cannot cross by themselves, or if they could, it would be treacherous,
14:41
and it would be difficult to navigate.
14:43
What our business is trying to do is basically build a bridge for them.
14:47
We're like, "Hey, come along into my business,
14:50
and we're going to build a bridge for you
14:51
that will take you from A to B."
14:52
And this is what we can think of as the plan.
14:55
The promise is telling them is promising them like what's the dream destination.
14:59
And then the plan is like, "Okay, well, step one, step two,
15:02
and step three."
15:02
It's the three or four
15:04
or five-step process that we'll follow with them to get them to the destination.
15:08
We still haven't built our product yet.
15:09
We still haven't really talked about the product.
15:10
We haven't talked about the stuff the the stuff they get.
15:13
What we are giving them is the plan,
15:14
assuming they're intrigued enough by the promise.
15:16
So, for example, in our context with the Lifestyle Business Academy,
15:18
the plan we give them is that, "Hey,
15:19
it's a three-step plan to get you from zero to 100k.
15:21
Phase one is ideation, phase two is validation, phase three is momentum,
15:24
blah blah blah blah blah blah.
15:25
And what we want to get is buy-in from them about the plan.
15:27
We want them to have the clarity that if they follow the plan,
15:29
they're able to get to the promise.
15:31
Once we have gotten buy-in on our plan, at that point,
15:34
we talk about the product, if we want to.
15:36
This is like what you actually get.
15:38
Like with our academy,
15:38
it's like you get one-on-one Slack support anytime you want.
15:41
There's coaching clinics on niches
15:42
and offers and content
15:43
and sales that are happening every day.
15:44
There's like a weekly workshop run by Ali
15:45
that blah blah blah blah blah blah.
15:46
There's like you get this fancy workbook that blah blah blah.
15:48
You know, it's the stuff.
15:49
But the mistake people make
15:50
when they're creating a business is
15:51
that they over fixate on the product.
15:53
And what we need to understand is that the prospect,
15:55
or your hopefully hopeful future customer, doesn't actually care about the product.
15:58
What they care about is the transformation
16:00
that the product is going to get them.
16:02
And instead of giving them more stuff, they would ideally like less stuff.
16:05
Back in the day,
16:05
the way you would sell like let's say a course would be like there's
16:07
300 hours of content in this course
16:09
and 58 different templates
16:11
and this that and the other.
16:12
That just doesn't work anymore because no one's got time.
16:14
Like we're already overloaded with content.
16:15
People would much rather get to the transformation, get to the destination,
16:19
get to the promised land.
16:20
They would much rather get
16:21
that with a course
16:22
that has only two hours of content rather than a course
16:24
that has 200 hours of content.
16:26
Worrying about what's in the product only comes once you've nailed your person,
16:29
you figured out the problem, you found a compelling enough promise,
16:31
you found a plan that like high-level actually gets them to the promise.
16:34
And now we can figure out what's the stuff, the deliverables,
16:37
the things we need to add to our product in order to execute on
16:39
the plan.
16:40
Once we figure that out, this is where we figure out our price.
16:42
And again, my recommendation is that you charge at least $2,000.
16:46
A lot of people at this point are like, "Oh my god,
16:47
I can't imagine charging $2,000 for anything."
16:50
And to which I would say like, "Okay, fair enough."
16:51
But like let's have a little bit more creativity.
16:53
Let's see if we can find a person who has enough money
16:56
and a problem that's painful enough for them to pay $2,000 for it.
16:58
But once you have sketched out your first draft offer in person, problem, promise,
17:02
plan, product, price, you turn it into a kind of one-pager.
17:06
And now congratulations, you have graduated the ideation phase
17:08
and you're and you are now ready to actually see
17:10
if there is a market for your idea.
17:12
At this point with our students in the Lifestyle Business Academy,
17:14
we give them feedback on the one-pager.
17:15
We have like this list of like checklist
17:17
that they go through to make sure
17:18
that like the the promise makes sense
17:20
and like all of this funky stuff.
17:21
At this point, one thing you should definitely do is read Alex Hormozi's book
17:23
100 million dollar offers.
17:24
It's really, really good
17:25
and you can run it through the value equation
17:27
and you can,
17:27
you know, just basically follow the step-by-step process in his book.
17:29
But the key point I want to make is
17:30
that coming up with an offer is actually not hard
17:33
because you haven't had to talk to any customers yet.
17:34
You haven't had to do anything.
17:35
You're just like doing the paperwork.
17:37
It's really not that hard to just run this process of just figure out
17:41
what are some problems you could solve for some people
17:44
and then just read 100 million dollar offers,
17:46
follow the process of the six P's
17:47
and just try and come up with some a few first draft offers.
17:50
Going through this process will
17:51
then give you a firmware update on how to come up with business ideas.
17:55
Like even if you don't have any ideas right now
17:56
and you just sort of pretend follow this process to come up with the
18:00
first draft offer for like a random thing.
18:02
I'd say, I want to help people in Hong Kong who've got a problem
18:04
of like they don't want to walk their dog
18:06
and I'm going to help my promise is going to be I will walk
18:08
your dog for you.
18:08
It's like, okay, that's kind of random, but like sure,
18:11
let's just craft a pretend first draft offer just to get in the reps,
18:14
to get in the experience of seeing what it actually takes to craft an
18:18
offer for something.
18:18
Oh, by the way, quick thing.
18:19
If you're enjoying this video
18:20
and you want to find out more about our mentorship program,
18:23
the Lifestyle Business Academy,
18:24
there's a link down below to the wait list
18:26
so you can totally sign up to the wait list.
18:27
So anyway, at this point,
18:28
we have our niche
18:29
and we have a first draft offer
18:30
and hopefully this has taken less than two weeks.
18:32
Unfortunately, we do have some students in our academy
18:34
that overthink this process despite how much we try
18:37
and help them not overthink the process
18:39
and kind of like the graph we show them is like this is like
18:42
how much thinking you do
18:43
when it comes to your business idea.
18:44
This is like and this range is one to two weeks.
18:47
If you spend less than about a week,
18:49
mostly our students have like full-time jobs
18:50
and stuff so like they're putting in 10 to 15 hours a week.
18:53
So maybe like 10 hours.
18:54
If you're spending any less than around that time thinking about your offer,
18:57
it's probably not enough time.
18:58
This is probably under-thinking
19:00
when it comes to your niche
19:00
and offer cuz it is like a really important part of the business.
19:03
This is the sweet spot, but then over here, we have over-thinking.
19:05
Yes, the niche and the offer is really,
19:07
really important and it is the foundation of your business,
19:09
but it is all theoretical until it comes into contact with the market,
19:12
and that is what happens in phase two, validation.
19:15
Now, the validation stage, as we talked about,
19:17
can often take 1 to 3 months, sometimes less than that,
19:20
sometimes a bit more than that, just again,
19:21
just depending on how much work you put into it.
19:23
And the goal of validation is to validate our offer.
19:25
To validate, is there actually a market for people
19:27
that actually want to pay for this thing
19:28
that we have theoretically constructed on a Google Doc.
19:31
Now, basically, the way the validation process works,
19:33
we want basically have at least 10 discovery calls.
19:36
Ideally, ideally 30, maybe even more than that, but ideally 10 discovery calls.
19:40
And these are 10 calls where we are presenting our offer to someone who's
19:44
genuinely in the in the target market for
19:45
that particular offer.
19:46
So, we got our niche, we got our offer,
19:49
and now we're going to have these 10 different conversations with people,
19:51
and as a result of the conversations, we are going to refine our offer.
19:56
There's this phrase in the military
19:58
that no plan survives first contact with the enemy.
20:00
The idea being is that like, sure,
20:02
you can theory craft a plan all you like, but like,
20:04
once once you actually get into the arena, things are going to change.
20:07
Similarly, I like the phrase that no offer survives first contact with the market.
20:11
We can do all the work we theoretically like to come up with the
20:13
best first draft offer,
20:15
but until we put it in front of real people who actually have the
20:17
problem that we think we're solving,
20:19
and we are able to present our offer to them to get their feedback,
20:21
and maybe even to try and land a sale, until we do that,
20:23
we won't actually know if our offer is any good.
20:25
This is why the validation process is in many ways the most important part
20:28
about starting a business.
20:30
It's also the hardest.
20:31
It's where you have the maximum amount of imposter syndrome
20:33
because you have no idea
20:33
if your offer's any good.
20:34
You haven't yet made any sales,
20:36
and so you're still sort of in the red in terms of you've invested
20:38
some time and maybe some money into the process.
20:40
You haven't yet made a return,
20:42
and you're having to go
20:42
and talk to people
20:43
and sort of present your offer to them to see
20:45
if they would actually want to buy the thing.
20:47
Now, there are different ways of taking the pressure off of discovery calls.
20:49
Uh the way we teach our students is
20:50
that there's sort of three frames you could use for your discovery calls.
20:53
Frame number one, you could do a market research frame.
20:56
You could go up to your network or to people that you know,
20:58
and you say, "Hey, um Johnny, uh you know,
21:00
I'm thinking of starting a business in niche X helping X solve Y problem.
21:04
Would you be open to a quick coffee conversation
21:06
or a 15-minute call where,
21:07
you know, I know that this is somewhat relevant to you.
21:09
Not trying to sell you anything.
21:10
I just really want to understand more about the problem just just
21:13
so I can do some market research.
21:14
That's a very chill way of doing market research on an offer.
21:17
There's a wonderful book by Rob Fitzpatrick called The Mom Test,
21:20
which is basically about how to run conversations like this
21:23
so that you actually get real feedback from people about your business idea.
21:27
And it's called The Mom Test
21:27
because it's like your mom will lie to you about about whether your idea
21:30
is any good.
21:31
Generally, if you ask friends
21:33
and family and you don't know the process of how to actually pitch them
21:36
a business idea,
21:36
they will just lie to you be like, "Oh yeah,
21:38
that sounds like a good idea."
21:39
And then actually it sounds like a terrible idea
21:41
and they're just trying to not hurt your feelings.
21:43
So, what you want to do is you want to learn the process for
21:45
how to have a good market research conversation
21:47
and then have a bunch of market research conversations.
21:49
Frame number two you could use is you could use the frame of a
21:52
free coaching call.
21:53
So, one of our students in the Lifestyle Business Academy, Kelsey,
21:55
she helps these tech people get promoted.
21:56
And so, what she did is she posted on LinkedIn basically offering 10 free
22:00
coaching sessions.
22:00
That did super well.
22:01
People a bunch of people signed up for her free coaching calls.
22:03
And as a result of the free coaching,
22:05
a bunch of people spontaneously asked her, "Hey,
22:07
can I actually work with you on more of a paid basis?"
22:09
So, she was able to make sales without having to feel salesy about it.
22:12
And this works if you have genuine skills or expertise to share with someone.
22:15
If you're approaching a brand new niche
22:16
and you have no skills
22:17
and no experience,
22:17
then yeah, you kind of need the market research frame.
22:19
The the frame of market research is you are doing me a favor by
22:22
getting on this call with me.
22:24
And so, you frame it like that.
22:25
But the frame of a coaching call is
22:26
that it's it's sort of like a win-win.
22:27
Like, "Hey, I've got some experience in the space.
22:30
Let's hop on a call.
22:30
I'd love to help you with your problems
22:32
and in return I'd love some feedback on this business I'm thinking of starting."
22:34
It's a win-win.
22:35
But you can only do
22:36
that if you actually genuinely have some amount of skills
22:38
or expertise to be able to share.
22:40
You don't have to be the world expert in your given niche.
22:42
You just need to be a couple of steps ahead of your target audience
22:44
such that it's actually valuable for them to hop on a call with you.
22:47
And then frame number three
22:48
that you can do is you can actually just go for a sales call
22:50
frame.
22:51
Like at one point we were doing interviews for applicants of our Lifestyle Business
22:54
Academy and I was taking these calls.
22:55
But I was framing them
22:56
as interviews because what I was doing in
22:58
that is I was positioning it
23:00
that I am the expert
23:01
and the student is applying for our academy
23:03
and then I'm doing this interview to see
23:05
if they're the right fit.
23:06
They knew that if they were the right fit,
23:07
I was going to tell them about the offer,
23:08
I was going to give them the pricing on the call,
23:10
but it's not framed as you'll get free coaching from Ali Abdaal.
23:12
It's not framed as, "Hey, I'm starting a business and doing some market research."
23:15
It's framed as, "Hey, you want into this program?
23:18
I'm going to talk to you
23:18
and see if we're the right fit
23:19
and if we are,
23:20
then I'll tell you more details about the program."
23:21
It still doesn't have to feel salesy.
23:23
I did like maybe 30
23:24
or 40 of these calls
23:25
and I don't think anyone felt like I was being salesy on them,
23:28
but it was still a sales frame.
23:29
And this is what you do
23:30
if you have confidence in the thing
23:31
that you're actually selling cuz this is the one that's most likely to get
23:34
you to actually get customers to give you their money.
23:36
What often students tend to do is they start off in the market research
23:38
frame,
23:39
they realize very quickly
23:40
that like actually they do have skills in the niche
23:41
and they transition to free coaching calls
23:43
and then some people transition to the sales call frame,
23:45
you know, once they've landed their first sale and beyond.
23:47
But this then helps solve the problem, right?
23:48
Of like when we don't want to spend bloody ages trying to build a
23:51
product that no one wants to buy
23:52
because we are validating it
23:53
as we go along with our market research calls
23:55
and maybe our free coaching calls
23:56
and maybe our sales calls.
23:58
And as a result, every time we get new data from the market,
24:00
we are we're getting more insights into is the thing
24:03
that we are supposedly trying to sell actually solving a problem
24:06
that someone has?
24:06
Cuz again, the single biggest reason why most businesses in the early days fail
24:09
is what?
24:10
Firstly, people just don't get started because they're like, "Oh my god,
24:12
business is scary."
24:13
Hopefully, this video helps you see the process is not that scary, but secondly,
24:16
it's that they're trying to sell something
24:18
that fundamentally no one actually wants to buy.
24:19
So all this somewhat begs the question of like, "Okay,
24:22
I've got to have these 10 discovery calls,
24:23
but like how how do I get people to have calls with me?"
24:26
And this is where the concept of marketing comes in.
24:28
Like how do you let people know about your stuff?
24:30
The word marketing with the word sales feels very scary to people,
24:32
it doesn't have to feel scary, but broadly,
24:34
there are a handful of different ways to do this.
24:36
Number one is you can and should totally reach out to your existing network.
24:41
The students in our Lifestyle Business Academy who are succeeding the fastest are the
24:44
ones who have a network within the space
24:46
that they are starting a business.
24:47
So for example, back in the day
24:48
when I was starting up my my medical school admissions business,
24:51
on the 2nd of September 2012,
24:53
this is what I posted on Facebook in the WHSP Westcliff High School for
24:56
Boys Medical Society Facebook group.
24:58
Hey guys, at some point in September I'll be running a weekend crash course
25:00
on the BMAT,
25:01
most likely in school.
25:01
If you're applying to Oxford, Cambridge, Imperial, and or UCL,
25:04
you'll definitely want to come
25:04
as the BMAT will be the most important exam of your life
25:06
and can make or break an application.
25:08
One day will be dedicated to sections one and three,
25:09
which are basically about blah blah blah.
25:11
The second day will focus on section two, blah blah blah.
25:13
Sadly, I am going to have to charge for it cuz I need to
25:15
make some money for university.
25:16
It's probably going to be around 100 pounds for the two days,
25:18
which is pretty good considering Kaplan costs 300 pounds and sucks.
25:21
Anyway, if you're interested,
25:22
shoot me a message on Facebook
25:23
and I'll give you more details
25:24
when the time comes.
25:25
This was how I got my first handful of customers for this new business
25:28
that I was starting.
25:28
I just went out to the people I already knew.
25:31
If I was trying to start a business in like a random niche,
25:33
like helping dog owners in the Midwest in the US help like walk their
25:37
dogs,
25:37
and I was like a teenager in the UK,
25:40
it's very difficult for me to have a network in that space.
25:42
And so it's hard for me to start a business.
25:43
But if you start a business in a niche where you already have a
25:46
little bit of a network,
25:46
life becomes easier.
25:47
You can see this was liked by Manesh Srivastava.
25:49
Uh he was actually one of my first customers back
25:52
when he was like 17 years old.
25:53
And now, or what what is it?
25:54
Like 15 years later, he's actually a neurologist working in Oxford,
25:58
last time I checked.
25:58
So, it's, you know, interesting how that works.
26:00
This is an example when Alex Hormozi, the famous business guru,
26:03
was starting his like personal training business.
26:05
And he's basically saying that like, "Hey,
26:07
I've got this business where I'm going to help people improve their fitness.
26:10
If you're interested, drop me a message."
26:12
And it's very chill.
26:12
It doesn't feel that salesy.
26:13
It feels very authentic, very nice.
26:15
But he's going out to his network on Facebook.
26:17
He is known amongst his friends
26:19
and family and stuff
26:20
as like the guy who's jacked.
26:21
And so he gets his first few clients for his new business from the
26:23
people that he already knows.
26:25
This is scary for a lot of people.
26:26
A lot of our students in the Lifestyle Business Academy feel more terrified of
26:29
telling the people that know them
26:31
that they're going to start a business compared to random strangers
26:33
because you're like,
26:34
"Oh my god, I'm going to post on LinkedIn or Facebook.
26:36
Colleagues are going to see this.
26:37
Like, you know, what we try and do is sort of coach, oops,
26:40
coach people through the process of getting over these fears.
26:42
So anyway, you reach out to people in your network.
26:44
And what ultimately happens is you have a DM conversation with them.
26:49
You exchange a few messages back and forth.
26:50
And if they are interested,
26:51
you get them on your call
26:53
or a coffee if it's an in-person in-person generally works better,
26:56
but it can of course just be a Zoom call as well.
26:58
That is method number one for getting people into your discovery calls,
27:01
and is by far the easiest
27:02
and the quickest and the one
27:02
that we always recommend.
27:03
Method number two is you start doing content.
27:06
And back in the day,
27:07
content used to be hard
27:08
because you would have to spend years building an audience before you were able
27:10
to sell anything.
27:11
These days, it's less about social media, it's more about interest media.
27:14
These days, if you
27:15
if your content is actually good
27:17
and is solving a specific problem for a specific person,
27:20
the algorithms on all of these platforms have gotten
27:22
so good that it's actually relatively easy
27:25
if the content is good for it to reach a lot of people who
27:27
are in the target market.
27:28
Again, we've got some students in our program who have just started posting content
27:31
and within about two
27:32
or three weeks of posting every day on LinkedIn,
27:34
they started to get random strangers DMing them to have conversations with them
27:38
that they were able to
27:39
then get onto discovery calls.
27:40
The content was also solving the specific problem for the niche.
27:43
So, let's say my niche is helping like accounting firms automate their onboarding
27:46
or something like that
27:47
so that they can save time.
27:48
The stuff I'm going to be posting on LinkedIn is going to be about
27:50
that niche.
27:51
It's going to be speaking to those accountants.
27:53
I'm it's going to be a post about like how annoying it is
27:55
that like client onboarding takes
27:56
so long and here are three tips
27:57
that you can use to speed it up.
27:59
It's going to be about like how you can use AI in your accounting
28:02
firm to speed up your operations
28:04
or stuff like that.
28:05
Random people aren't going to interact with
28:06
that because they don't like why why would a random person care about like
28:10
helping accountants save time,
28:11
but if an accountant who is like is reading that thing, they're like, "Whoa,
28:15
this is like directly targeted to me."
28:17
LinkedIn the platform the algorithm recognizes that wait a minute,
28:19
that person is an accountant.
28:20
Let's push this post out to similar people like that person.
28:24
And so now more and more accountants are going to see that post.
28:26
It's never going to go viral because there's not that many accountants out there.
28:29
It's not going to get zillions of views,
28:30
but it might get tens to maybe even hundreds of views from people
28:33
that are squarely within your target market.
28:35
And so that is what we are trying to do with content.
28:37
We are not trying to get famous.
28:38
We are trying to become an authority within our niche by posting valuable useful
28:42
educational stuff that helps people.
28:43
As a result of our content,
28:44
we are also going to be having DM conversations with people.
28:47
So, we're going to encourage people to DM us
28:49
if they want to find out more about working with us
28:50
or whatever,
28:51
but also anytime someone likes or comments or engages or follows,
28:54
we're going to send them a message.
28:55
This is why generally I actually recommend people start out on a platform like
28:59
LinkedIn or Instagram rather than YouTube
29:01
because you can't DM people on YouTube.
29:03
It's really hard to make compelling long-form educational YouTube videos.
29:06
It takes absolutely ages.
29:07
Like you got to deal with the editing.
29:08
Yes, there's AI tools,
29:09
but it's still drastically easier to post on LinkedIn
29:11
or Instagram than it is to make YouTube videos.
29:13
So, we have a couple of students in our Lifestyle Business Academy who are
29:15
doing YouTube.
29:16
Um generally those are the ones who took my YouTuber Academy course back in
29:19
the day anyway.
29:19
And so, they already have the skills of YouTube.
29:21
But this is why generally I prefer LinkedIn
29:22
or Instagram if I was starting today
29:24
because it's easier to start DM conversations with people.
29:27
At this point you might be like, "What?
29:28
Why?
29:28
Why do I have to chat to so many people?"
29:29
Cuz what we all want, right?
29:30
Is we we want the passive income dream.
29:32
We want the idea of like, "Oh man,
29:33
I'm just going to wake up to some Stripe notifications.
29:35
It's going to be sick."
29:36
But in reality, like that's just not how the world works anymore.
29:39
Um it kind of does if you're selling like super cheap things,
29:41
but given that it's a lot easier to build a business selling expensive things,
29:45
we're going to need to have conversations with people.
29:46
We're going to probably need to have calls with people.
29:49
And that is amazing,
29:50
especially in the early days where we are still validating
29:52
that there is a market for the thing
29:54
that we are thinking of maybe selling.
29:55
The third source of leads to our discovery call is strangers.
29:59
Now, there's a few different ways to talk to strangers.
30:02
Um the one I like the least is cold outreach.
30:06
We do have some students who are doing it with some level of success,
30:09
but like cold outreach, cold emails, cold DMing people,
30:11
uh that's like a volume game.
30:13
It's a numbers game.
30:14
I've been going through Charlie Morgan stuff.
30:16
He specializes in cold outreach,
30:17
and it's just like you got to send hundreds of messages
30:20
and face rejection every single day,
30:21
and you feel like a bit of a spammer
30:22
because you're like sending cold emails
30:24
and doing cold calling
30:24
and stuff.
30:26
Uh that doesn't seem like my idea of fun.
30:27
But there are other ways of reaching out to strangers.
30:29
So, one thing is you can join and post in communities.
30:32
These could be online communities.
30:34
These could be offline communities.
30:35
A good offline example is one of our students, Ronke.
30:37
She's a doctor, and her offer is helping uh corporations deal with employee burnout
30:41
so that they can save like 100k a year in terms of like um
30:44
staff retention and medical expenses
30:46
and stuff.
30:46
And she realized that she didn't know
30:47
that many people in her existing network who were like heads of HR
30:51
and CEOs of big corporations.
30:53
So, what she did is she went to some real-life networking events in London
30:56
where those people hung out.
30:57
And so, she spoke to them, she was a normal person, she was friendly,
30:59
she got some business cards,
31:00
and was then able to have conversations with those people afterwards by following up
31:05
on LinkedIn and then get some of them on calls.
31:07
Another example of the community front is back in the day, again,
31:09
when I started my med school admissions business, I reached out to my network,
31:12
but you know, very quickly I ran out of people
31:14
that I knew or friends of people I knew.
31:16
I think there were like 20 of them who became my first customers.
31:18
I didn't do content at the time cuz I didn't realize content was a
31:20
thing.
31:21
It was only 5 years later
31:22
that I started doing content on YouTube helping people get into med school.
31:24
That was the content play.
31:25
But, in the meantime,
31:27
what I did to get customers was
31:28
that there was a forum called The Student Room.
31:30
This is where university students
31:31
and university applicants in the UK uh would like hang out.
31:34
And there was a medicine subforum.
31:36
And what I did is
31:36
that I took my brother's account on on The Student Room
31:39
and I was just posting really,
31:40
really, really helpful advice.
31:42
I would have I bookmarked the medicine subforum.
31:44
I had like notifications turned on for it.
31:46
Like in school, I was like refreshing this to see
31:48
if there's any new posts.
31:49
I'd get home from school
31:50
and I'd have this open in like a separate window like all day,
31:53
basically.
31:53
And as soon as anyone in the UK posted on this medicine subforum asking
31:57
any question at all about med school in the UK,
32:00
I replied to them within the forum with some really, really, really helpful information.
32:03
I was not advertising my course,
32:05
but I was hoping
32:07
that some of them would check out my profile
32:08
and in my profile I mentioned
32:10
that I was running one of these courses.
32:11
And I managed to get hundreds of customers by literally just being part of
32:15
this community,
32:15
The Student Room, and just being helpful.
32:17
Eventually, 3 years later they cottoned on and they banned my account,
32:20
which was kind of annoying.
32:21
But, like, you know,
32:21
I got hundreds to possibly even over 1,000 customers within the 3 years,
32:24
so like it was fine.
32:25
And because the course was actually good,
32:27
that was the kickstart I needed
32:28
because then mostly it happened through like word-of-mouth referrals
32:30
and stuff,
32:31
which is fantastic.
32:31
But, the point is even
32:32
if you have no one in your network
32:33
and even if your content hasn't taken off yet,
32:35
you can totally join offline
32:36
and online communities where your niche
32:38
and members of your niche are hanging out.
32:39
Be a nice person, be human, serve them, don't come across like a robot,
32:42
don't like take take take, don't try and sell your thing all the time.
32:45
>> >> By having sensible conversations with people, you can eventually follow up,
32:48
get them into DMs, and have calls with them.
32:50
There are other methods of lukewarm outreach.
32:52
Uh one thing that's actually quite good these days is LinkedIn Sales Navigator,
32:55
which is a way to reach out to strangers on LinkedIn.
32:56
You just send a bunch of connection requests to people who are in your
32:58
target market.
32:59
If they accept the connection request,
33:01
you then strike up a DM conversation with them.
33:03
You come across as a normal human.
33:05
Once you've, you know, developed rapport and struck up a conversation,
33:07
you then try and talk to them about your thing
33:09
and be like either using the market research frame
33:11
or the coaching call frame
33:12
or the sales call frame,
33:13
whatever you want.
33:14
And we have some students in a Lifestyle Business Academy who are actually getting
33:16
good success by doing LinkedIn Sales Navigator to reach out to strangers on LinkedIn.
33:20
Ultimately, all of this stuff,
33:22
all of these methods of outreach get you on discovery calls,
33:25
calls or conversations or coffees with people in your target market.
33:28
You And you then end up refining your offer.
33:30
My brother, whose startup sold for like a few tens of millions of dollars,
33:33
for the first 2 years of building the startup,
33:36
they didn't actually build the startup.
33:37
They spent 2 years, or like 18 months, something absurd like that,
33:41
just having conversations and coffees with people in the target market to figure out
33:45
what were they actually going to build
33:47
and trying to make sure there was actually a market for it before they
33:49
started programming.
33:50
If you're starting what is merely a hundred thousand dollar
33:52
or like seven low seven figure lifestyle business,
33:54
you probably don't need to have a hundred and fifty conversations,
33:56
but you probably need to have at least ten.
33:58
Because the more of these conversations you have,
33:59
the more you'll get a feel for like how you can refine your offer.
34:02
And at some point,
34:03
what you're hoping for is someone will actually just give you money for the
34:05
thing because it's so clear
34:07
that it solves a problem
34:08
that they have.
34:08
And now you've made your first sale,
34:10
and then once you make your first sale,
34:11
like life becomes a lot easier
34:12
because now like at least you have a business
34:14
that is somewhat validated rather than just sort of theory crafting in the wind.
34:18
Once you've made your first sale, you now progress to phase three momentum.
34:21
Uh and I realized that this video has gone on insanely long,
34:23
so I will do a video in the future about exactly how phase three
34:26
momentum works.
34:27
If you're at this point in the video,
34:28
I hope you got some value from it.
34:29
Please do leave a comment,
34:29
like what's the one major thing you took away from the video?
34:31
And if you have any questions for future videos in the series where I
34:34
kind of break down more of the details about the road map,
34:37
please do stick them in the comments.
34:38
Now, if you're at this point in the video
34:39
and you haven't yet seen my video breaking down the maths around how a
34:42
business grows and in particular the easiest business model to start for beginners
34:46
and exactly why that is the easiest business model to start for beginners,
34:49
you're going to want to check out this video right over here.
34:51
Thank you very much for being here.
34:52
Have a lovely day and I'll see you later.
34:53
Bye-bye.
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