Files
notes/biz/designing_the_ideal_bootstrapped_business.md
2023-06-02 13:03:21 +02:00

44 lines
1.3 KiB
Markdown

YouTube video "Designing the Ideal Bootstrapped Business with Jason Cohen"
# Make Sure There's a Market
- get 20 or 30 people to give you a check for something that doesn't exist yet
- because it solves a pain they have
If you can't scrape together 75-150 customers over some months, it's never going to be a business.
LinkedIn direct reachouts, AdWords...
# Pricing/Value
It must be valuable, so $70+/mo. on average.
Use pricing tiers or a high price with coupon codes.
Give bloggers coupon codes.
If you're one person ("boutique"), don't hide it.
Annual prepaid: essential. Take the money and re-invest:
- better design
- development
- advertising
There's a lot about pricing here, but the main point is that perception of savings is powerful: coupon codes, discounts for annual subscriptions. Also, price elasticity is lower than you expect. "Raise the damn prices." Double, then double again until sales go down.
ARPU - average revenue per user
Tiers
- 3-4 tiers
- a crazy big one, 'business tier'
No free trials: money-back guarantee instead.
# Type of Business
B2B ONLY.
Only recurring revenue, so no "sell to brides" or "services for event organizers"
- continuous pain
- continuous value
A tool to handle ever-changing conditions, like SEO.
Not real-time/time-sensitive.