Alex Hormozi: The Key To Finding a Profitable Market

The video discusses the key factors to consider when finding a profitable market, including whether the market is in pain, growing, easy to find, and has purchasing power.

This video by Alex Hormozi was published on Jan 21, 2021.
Video length: 07:08.

In this video, Alex Hormozi discusses the key factors to consider when looking for a profitable market to enter.

He emphasizes the importance of finding a market that is in pain, growing, easy to find, and has purchasing power. He also suggests that entrepreneurs should focus on markets where they can provide the most value given their skill set or personal experience.

Hormozi provides examples and anecdotes to illustrate his points.

• A good market is one that is not dying and is either normal or growing.
• Four things to look for in a profitable market: pain, growth, easy to find, and purchasing power.
• The market should have a desperate need for the product or service and solve a key pain.
• The marketplace should be growing for the entrepreneur to succeed.
• The marketplace should be easy to target and have purchasing power.

The Key To Finding a Profitable Market - YouTube

Introduction

• How to know if you have a good market?
• Considerations to analyze each business
• Rule of thumb: market is not dying and is either normal or growing
• Provide the most value to the market

Four things to look for in a profitable market

• Is the market in pain?
• Is the market growing?
• Is the market easy to find?
• Does the market have purchasing power?

Is the market in pain?

• Market needs a desperate need for product or services
• Nice to have is not something people will buy
• Timeless needs of humanity: health, wealth, and relationships
• Key pain that the product is solving
• Marketplace should be in pain

The Key To Finding a Profitable Market - YouTube

Is the market growing?

• Example of a newspaper company switching to selling masks
• Same entrepreneur applied it to a growing marketplace
• Marketplace should be growing
• Entrepreneur should apply to a growing marketplace
• Marketplace should be growing for the entrepreneur to succeed

Is the market easy to find?

• Marketplace should be easy to target
• Marketplace should have associations, groups, and channels
• Marketplace should be congregated in one place
• Entrepreneur should be able to cast their fishing line there
• Marketplace should be easy to find

Does the market have purchasing power?

• Marketplace should have the monies
• Example of a friend who wanted to coach unemployed people on how to do their resumes
• Marketplace should have purchasing power
• Entrepreneur should be able to sell their product or service
• Marketplace should have the ability to buy the product or service

The Key To Finding a Profitable Market

• Choose a market that is in pain, growing, easy to find, and has purchasing power.
• Personal experience trumps everything when choosing a market to serve.
• If you don't have personal experience, use the four-piece system checklist to evaluate the market.
• Make sure the market meets all four criteria, not just three.
• Pick a market that you already know you can provide value to and solve a problem that meets these four criteria.
• When investing in companies, look at the founder's experience and see if the problem they're solving matches these criteria.

Watch the video on YouTube:
The Key To Finding a Profitable Market - YouTube