What Business to Start in 2023
Summary
- When you're overwhelmed with business opportunities, having a strategy is crucial. Without a strategy, you'll struggle to decide which opportunity is right for you.
- Create a strategy with constraints that act as decision filters to determine whether an opportunity is suitable for you.
- Write down all your potential business opportunities to assess them thoroughly.
- For each opportunity, list the pros and cons, focusing on market growth rate, margins, and market opportunity, and eliminate those with more cons.
- Consider your likes and dislikes for each option. If you have more dislikes than likes, discard that opportunity immediately.
- Evaluate your strengths and weaknesses in relation to each business opportunity. Leverage your strengths and avoid areas where you are weak.
- Craft a mission statement. It's essential to know what you want to do and why before diving into the details. The mission acts as your primary decision filter.
- Select core values that are authentic to you and that will help you achieve your mission. Use these values as additional decision filters for opportunities.
- With your mission and values in place, assess the remaining opportunities. Only consider those that align well with both.
- Consider the worst-case scenario for each opportunity. The best CEOs plan for the worst and choose the option with a downside they can live with.
- Avoid starting a business based on potential profits alone; focus on what you could lose and your ability to handle that loss.
- This framework separates emotion from decision-making in business and emphasizes strategic planning and self-awareness.
Video
How To Take Action
I would suggest implementing a simple strategy to avoid feeling overwhelmed by business opportunities. Start by creating a list of all potential business ideas. Then, for each idea, write down the pros and cons, especially the market growth, margins, and overall market opportunity. If there are more cons than pros, eliminate that option right away.
Next, think about what you like and dislike about each opportunity. If you dislike more than you like, remove this option, as it's essential to enjoy what you do. Also, evaluate your strengths and weaknesses in connection with each idea. Focus on opportunities that play to your strengths, and discard the rest.
A good way to clarify your direction is to craft a mission statement: what do you want to achieve and why. Use this mission as a filter to assess opportunities. Choose core values that reflect who you are and use these as additional filters.
Assess the remaining opportunities against your mission and values. If an option doesn't align with them, it's not for you. Finally, consider the worst-case scenario for each business idea. You want to pick opportunities where you can handle the potential downsides. This approach separates emotion from decision-making, focusing on careful planning and self-awareness.
Using this framework, you prioritize low-cost, high-value opportunities tailored to your strengths, preferences, and values, ensuring a strategic approach to selecting the right business opportunity.
Quotes
"When you lack strategy, you have a lot of opportunities"
– Leila Hormozi
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"Strategy is a series of constraints that you create or conditions in order to get to a goal"
– Leila Hormozi
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"If you have good decision filters, most opportunities are good opportunities; they are just not your opportunities"
– Leila Hormozi
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"The mission is your first decision making filter"
– Leila Hormozi
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"The best CEOs make decisions based on worst case scenario"
– Leila Hormozi
