I work with early-stage Entrepreneurs on a daily basis and we talk about a variety of subjects ranging from Customer Discovery to Product Market Fit to Scaling. All immensely important subjects to be obsessed with at any stage of business. However, the one question that seldom gets asked of me in the early stage working with an entrepreneur but should be is this; How to build the perfect framework for a business?
More specifically, how should someone go about refining an idea so that it has multiple market segments, has broad appeal over a defined market, has multiple products and even service segments and has strong repeat customer opportunities.
In the world of business, the type of venture that meets all of these benchmarks would truly be the ultimate business opportunity. Although many people may scoff at the fact that there’s even such an animal that exists out there, the reality is that there’s not only a business like this…there’s several business verticals that are like this.
So what is the perfect framework for a business?
Let me provide what I would suggest is the perfect framework for a business:
1. There’s a broad and passionate user base
The example that I like to use to make this point is that I have identified my example business venture as being in the bass fishing space.
2. There are multiple market segments
The perfect business is one that can have both products and services that it sells it customers. To further refine my idea, my business is going to sell a line of products and accessories to people who fish for bass. These products will range from items such lures to tackle boxes to apparel and gear.
In addition, this business will also provide ancillary items such as flashlights, knives, camping gear and related outdoor camping and recreational gear.
3. The business allows for affiliates, other brands and self-branded items
This business will be able to sell other companies brands where appropriate and focus on an initial product item or product line that is self-branded in the company’s name. This allows for revenue to be created for the company either from other better know companies in the space but to help create the opportunity to build brand identify in a particular product vertical.
For example, the company may carry all the products of other brands in the lure and fishing gear space but might want to start to build a particular following by creating a self-branded product in a niche such as outdoor cooking gear.
4. The business has enough depth to provide for services
To add to the lineup of offerings, the company will also provide professional services such as guide services and fishing expeditions.
5. There are opportunities to provide educational/instructional products
In order to reach a different market segment, the company will offer online courses and instructional programs covering several different areas of bass fishing that are popular subject areas that individuals in this space are eager to master.
6. The business provided for repeat customers in the different product/service categories
It would be reasonable to believe that a customer who has an interest in this type of a business topic would purchase multiple items from the fishing gear and tackle, apparel and even the educational/instructional product offerings over the years. This could well establish a high Customer Life Time Value (CLTV) for our company.
7. The company can be run by one person but can be scaled
Our business venture described herein could easily be created and run by one individual if that was envisioned, or it could be as easily scaled by bringing on employees or partnerships in the different areas of the business.
As a recap of this framework, let’s put all the pieces together. Essentially what we have here is a solopreneur business venture where an individual who is knowledgeable about bass fishing can start an online entity that carries an array of physical products directly related to fishing and those tangential areas that support fishing, such as apparel and outdoor gear, that are manufactured by other companies and that are also self-branded.
The company could also provide a variety of direct professional services to interested customers such as guided tours and or guide services to enhance a customer’s efforts or in interest in a specific category; lakes, streams, ponds, etc.
In addition, the company will offer a full array of educational products such as online courses, instructional videos and one-on-one instruction if appropriate and where possible.
Conclusion
It’s easy to see how compelling this type of a framework for a business is for an individual that is knowledgeable in a topic area to build a robust multifaceted business that eventually could be scaled. As a result, this business can be easily run off an online ecommerce platform and can be quite easily enhanced by a blog or a YouTube channel pushing interested customers to the company’s website.
So how could this framework work for another industry or topic matter? Quite easily in fact. For example, take an individual in the personal fitness training space. They can easily establish an online business that offers physical products and professional services, educational and instructional products, one-on-one coaching and consulting,
Or how about someone in weight loss? The same. They could create both a physical products and professional services company that provide educational instructional and one-on-one programming all from an online ecommerce business that drives traffic from social media platforms.
What about interior decorating? Financial education? Yup, these too.
In fact, this framework while may not work for every industry or sector does work for a lot of the types of businesses that individuals are interested in starting and have an interest in growing.
