Issue #142: Riches In The Niches Framework 💰️👀

Welcome back to the 12,172 investopreneurs joining us for this issue!

Today we are going to simplify how you can find where to fish in your market to uncover riches in the niches.

This is something I came up with myself once upon a time when I was personally reviewing dozens of potential investment ideas every day/week.

I needed a simple, fast way to decide if what I was looking at had any merit before investing the time to go deeper.

What I landed on was a pretty easy-to-adopt framework that I have found works in pretty much any market - specifically B2B, which is where I specialize.

Riches In The Niches Framework 💰️👀 

I’ve found that pretty much every “buy” (or purchase) decision comes down to one of two things:

In regards to the “something”, well that usually is a solution to a specific problem.

Typically the framework around the DECISION to pay money to solve that specific problem comes down to a perception of Time : Pain.

Simple Key

If it is something they ‘Can Do It’ and ‘Don’t Mind Doing It’ themselves & it is Lower Pain + Lower Time Cost, then they tend to use it as an excuse for positive procrastination and Do It Themselves.

• Small amounts of money here that you can get by selling simple things that help them do it themselves. Remember, it’s low value and done on a budget, so the price points here need to be low and sticky.

If it is something they ‘Cant Do’ and ‘Dont Want to Do’ & it is Low Pain + High Time Cost, then they tend to just Ignore It entirely (not important).

• There isn’t any money here. Ignore it as well.

If it is something they ‘Can’t Do’ and ‘Don’t Mind Doing’ themselves & it is High Pain + Low Time, then they tend to Learn How to Do It Themselves.

• This is where you can build a solid 6, 7, or even 8-figure business by selling ‘the pick axe to the gold miner’. Often these solutions can be productized in a scalable manner and sold on a recurring basis, which makes for a really nice ‘simple, profitable niche’ to play in. From a pure ‘investopreneur’ portfolio play - these are great places to focus. However, the key is to identify business models that have a sticky enough moat to discourage churn and keep retention numbers high, otherwise, this can be a difficult market to build wedge equity in.

If It is something They ‘Can’t Do’ and ‘Don’t Want to Do’ & is High Pain + High Time Cost, then they will Hire / Pay for the solution.

• This is typically where you will see the largest contract sizes, however, it also is where the expectations on delivery are the highest & the burden on a scalable infrastructure canbecome expensive. From a ‘simple, profitable business’ perspective, these make for nice lifestyle businesses when small - and to get to a level of effective scale requires investment into a better business system to productize into the highest possible recurring revenue.

Business System Value Ladder

1. Leverage ‘Does It’ quadrant as lead magnets to build an audience

2. Leverage ‘Learns It’ to monetize and open up next-level problems

3. Leverage ‘Hire It’ to productize into the best unit economics

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