Today, I’m talking about building a passion based business and what you’re going to need to make that happen.
Over the years, I’ve been able to help hundreds of entrepreneurs start or grow passion based online businesses.
Since it became a common practice, I built a framework out to help me repeat the process over and over again.
Passion Based Business Framework
Let me breakdown the framework and we’ll discuss each.
- Market Opportunity
- Market Research
- Identifying The Big Problem
- Ideal Client & Customers
- Leverage Paid Traffic
- Tracking And Analytics
Before you do any work, you need to make sure your big idea works. The big idea being this passion you have, can it be turned into an online business?
You can’t lead with your passion here, many business owners make that mistake and their left with a failing business.
All passions can’t be turned into a profitable business, your passion may fall into that category.
The last thing I want you to do is to invest time, money and effort into a business that has no market opportunity.
Validate Your Business Idea First
First, identify the passion you want to turn into a business. Once you know what that is, you need to test the concept.
It’s your responsibility to do your market research. Here’s some questions to answer;
- Can you identify other businesses having success with this passion?
- Can you find any income reports, data and analytics that support that success?
- Is there a lot of people talking about these businesses? Passion?
- What products and services are being offered? How do people feel about them?
- Is this a market segment that has upside? Long-term or short-term potential?
How do you validate your business idea? Go get feedback! Build a community, use surveys and talk to your audience.
Can This Be A Profitable Online Business?
My passion has always been teaching and helping others, that’s why Teaching Online Business is here.
However, I also the market opportunity. By 2021, the digital marketing industry is going to be worth $120B. That’s a huge market and I knew that was a big opportunity for us. My goal is to build an international brand and help tens of thousands of people.
That’s why I built the Digital Marketing Accelerator, a program that teaches my audience to start or grow an online business.
Now, you don’t have to be in a $120B industry to have success. There’s thousands of niches out there that can be very profitable.
Identifying The Big Problem And Saving Time
Big problems need solutions. If your product or service can solve a big problem or save time, that’s what you’re looking for as this is where some of the greatest opportunities are.
What’s the biggest problems in your market?
What’s the biggest concerns and issues?
In my niche, entrepreneurs and business owners struggle to build a profitable business.
Ideal Clients And Customers
Once you’ve identified the market you will serve, it’s time to begin finding your ideal clients and customers.
For this, you’ll need an ICA, also known as Ideal Client Avatar.
In order for your content to be successful, you need to know who you’ll be speaking to and what manners you need to communicate with them. That’s where your ICA will help.
Who do you build a customer profile? Here’s some things to get you started.
- What is their age?
- Where do they live?
- What is their occupation?
- What is their marital status?
- How much do they earn?
- Where do they hang out online?
- What books and magazines do they read?
Once we know everything we can about our ideal clients, we’ll be able to create content they can relate with.
Building Your Online Business
Once you’ve did the initial groundwork, it’s time to build the foundation of your business.
You’re going to need systems and processes in place.
If you have a service based business, I always recommend using ClickFunnels. You need several types of funnels, from lead funnels to sales funnels.
You also want the ability to automate as much of the business as possible, especially the client acquisition.
In order for you to grow and scale your business, you need a process.
For an Ecommerce business, this process is different.
You can still automate a majority of the business, but profit margins are usually smaller as compared to that of service based businesses.
Having the ability to use paid ads and traffic is important but not always easy.
Using Paid Traffic
Paid traffic can help you immediately be in front of your target audience.
Two of the most popular are Google Adwords and Facebook ads.
I always use paid traffic to validate ideas and concept. I use paid traffic to identify my best targeting options.
I also use paid ads to build awareness, generate leads and grow my business.
Again, paid advertising is the quickest way to getting results. If you’re going to master any specific digital marketing skills, it should be paid traffic.
If you can learn how to turn a dollar into two dollars, you’ll never have to worry about money again.
Knowing that, which skills will you focus on to build your business?
Tracking And Analytics
Lastly, you need the proper tracking tools to gather data and analyze your performance.
When you know what to track, you’ll have the ability to see what works and what doesn’t. That way, you can do more of what works and less of what isn’t getting results.
These key metrics, we often call them KPIs (key performance indicators) and they can differ depending on the type of business you have.
Some KPIs can be found in every business, such as total sales, net profits and LTV (Life Time Value).
For those that have an online business, you need to know;
- Landing page conversion rate
- Sales page conversion rate
- Optin conversion rate
At the very least, you should be tracking your online business with Google Analytics. GA is free, easy to implement and can give you a wide range of insights into business performance.
There’s conversion software, user software and a number of tools out there that can help you track data.
My recommendation, focus on what matters.
If you can implement all of these in your passion based business, the sky is the limit.