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I think it’s very interesting. And also I agree 100 percent with then where you focus your energy. So that’s especially important, I think. So be selective on. Yeah. What a word. Or what do you engage on. So because then if you’ve tried to do it well and go all in. So you cannot get put all your energy or part of your energy in stuff that is not going to work towards your main goals or or long term goals. So you need to be really careful with that because like, let’s say, if you are entrepreneur on new KAB this or you are building or or you have by nature this mindset of solving problems, but then, yeah, you could be distracted by trying to solve problems that. All right. Actually, not as important. So especially nowadays I like with this coronavirus bun global pandemic. So so like millions of people losing their jobs, relatives in many cases. Or maybe you got there the virus or whatever. I mean, you have tons of uncertainty, screws up many things. So it can drain your energy for sure. Lots of the new sun and stuff that’s going on. So I would say it’s it’s also related to prioritise to just prioritise what’s most important now. So if you don’t have a job or we are now on Gorman benefits and your income dropped from one hundred fifty or two to like 30 K on benefits then which may stop anytime soon. So if you don’t have a clear path forward, just prioritise what’s important, what you don’t need for sure and just get removed that completely from your attention span or your daily life. Focus on your relationships matter. Yeah. I’m building that the solid base you need if even if you need to start work.
Yeah, think it’s one of those areas of life where the Paretta principle applies, though, the 80-20 rule, which is, you know, you get 80 percent of the benefit from 20 percent of the effort. You know, just so there’s diminishing returns. So like, by all means, do that do the sort of the 20 percent, but don’t take it any further than that.
Another tweet which caught my eye was from a guy who we’ve talked about his tweets before on the podcast. I am going to attempt to pronounce his name today because I saw on Twitter. He was telling people how to pronounce his name. So this is Jay Verson Saroja. And he was talking about if you’re starting out in business or you’re starting out in your entrepreneurial path and you’ve got no money. With which to sort of invest or do anything like that, like what’s the what’s the best path to follow in order to sort of like achieve success and achieve wealth? And his tweet was a hell I’m willing to die on. If you’re starting your first business and have zero dollars, you should start a service business. That is, if your goal is to build wealth through entrepreneurship.
And essentially what he’s saying there is, is that when people start out, you know, they have grand ideas, grand plans, and they have things that they want to do. And even if you have, like, an amazing idea or you have a real urge to go into maybe some sort of direct to consumer product or a sofa as a service business or something, where your aim is to sell lots of items or lots of lots of services, products to a very wide audience. But for a relatively small amount of money. So let’s say you’re selling widgets for ten dollars a time if you’re trying to do that without any investment in terms of like marketing and things like that, it’s going to take a very long time for you to ramp up to where you want to be because you don’t have the ability to invest in the growth of that kind of thing. And so in SAS, the classic here is the long, slow sass ramp of death, which is, you know, it takes a very long time for that hockey stick sort of curve SAS to kick in. And you spend ages and ages and ages at the low end just gradually fighting for each individual new consumer. Until you get to like a weight of. Knowledge like your brand is known in the market enough that you’re able to attract sort of natural organic traffic to your site to actually sell, to sell to these kind of people. And so what he’s basically saying is it’s like even if you’ve got these sort of grand plans for what it is that you do or this great idea that the best place to start is you’ve got no money out of the service business, because with service business, you can go and sell to relatively few customers and you can sell a very high ticket, relatively high ticket product. So, for example, you know, you could go out and you could try and find a thousand dollar retainers from 10 customers. And so you could then have ten thousand dollars income monthly, your servicing 10 customers. This is gonna be high touch sales. So you’re going to be doing it personally. You’ve got to go out and do it. But you can hit that 10 grand a month mark far easier and quicker by investing a lot of time in selling high ticket services than you can do in attempting to try and sell sort of very low ticket individual products or things like that. And then once you’ve got that income, you’ve then got some money that you can then turn around and invest into the smaller you’re the next stage of your sort of business, which is okay. This is the actual thing I passion about. This is the thing which I think is the real kind of moonshot, big ticket thing that I want to go after. I use the income from the service business to fund the next the next stage of your the next product business or SAS business or whatever it might be. You can follow the money into marketing growth and you get to kickstart that that curve. You can basically go into sort of you can move into wider markets and smaller ticket items. Have you had an experience like this?
Yeah, I agree on the advice because I went for it myself. I started with digital relationships and then start will marketplaces and companies with teams and shareholders and all that. So, yeah, it’s definitely very different. So the good thing nowadays, even if it’s also selling your service, is the way to go. That is the fastest and cheapest for sure. And you get the best margins because all the oil goes to you. Basically, if a service provider and then you need it’s more time consuming, though, and therefore less scalable. So the agency, you only see if it’s yourself then as a freelancer or if you build an agency. So every time you need more people to provide more services, therefore the margins shrink. Give me a year to build up a big business. You need to have a higher than hundreds of people or dozens. So you end up your role, end up being like a cha, more than like a service provider. So. So then. So it’s harder to scale. But the service business is great because you don’t have all these stock inventory management on all these tariffs, which nowadays is a big issue. All the supply chain. So all that crap, I will tell you always, buddy. Yeah. That’s because I prefer a service business. It doesn’t mean so we. Services, though, the sales are less predictable. Unless you have a subscription model. But as you said, it takes time to have a predictable income on a profitable Braco income on a subscription business model. Whereas with products that demand these, you know, it’s out there. So people eat food, for example, or buy stuff. So and there is more of fine tradition on the retail end. No. Which, you know, is transitioning very quickly to e-commerce. But there are still we talked in previous podcast, an opportunity to get to some niche e-commerce for niche products or niche niche audiences. But as a starting point, I would agree. Services is the easiest entry option for entrepreneurs. And I also agree that you should build that safety net. You know, our our own experience as well. Or let’s call it positive cash flow or just cash flow. And then evolve into another larger investment idea. So if you need investment from third parties, then you can show some cash flow that will be useful. You can also show experience and we’ll be more comfortable for you as well. On the transition. So, yeah, it it you shouldn’t underestimate how much money takes from a distribution point of view to sell by more sophisticated probes or new brands. So it takes a lot of time and money to market yourself out there. So it’s not all about the product. Even if there are Davidia. So you should be prepared for that long, right. The best way would be with that cushion, you know, on some basic income or cash coming that you can, you know, a plan on more solid foundations.
Absolutely. I thought we could brown things off this week by talking about a classic business problem.
Which I. I’m pretty sure that we have slightly differing opinions on. But I thought it be interesting to discuss anyway, which is so you’re starting a new business. And one of the things that people always get bogged down in. Even people who have a very experienced starting new businesses is choosing a name. And this is choosing a name for your business, like your legal entity, but also it’s choosing a name for your product or service or what you might trade as or something like that.
And there are so many moving parts to this and so many different kind of opinions as to how important or not that is. So. So let’s say, for example, you and I have just started a brand new business and we are selling something e-commerce, some sort of like widgets. Why are e-commerce like what? What would be your take on choosing a name for a business and a product, business like that?
So first of all, you need to initiate the company name. It is way less relevant than the brand. So what I need doesn’t need to be the same name. So the company name is just an institution. Could be name whatever you want. It doesn’t need to be the face, you know, company face brand to your customers. But then when it comes to your trademark, that you should look into registering it as well, which includes your brand and your logo. So, yeah, usually. So some even if there is no RSVP, you want to keep it short, memorable. And ideally, if it’s if it cast some kind of link to what you’re trying to sell, that will make it easier to communicate to customers for obvious reasons, because no one knows you, because by definition, your brand new. So if you come up with an acronym to sell those widgets, then you need to explain that that acronym is the brand of widgets where if you got it. I don’t know which it li or something like that. Immediately it will tell what you sell. And that’s very useful. It will shorten your marketing message. So remember that also you people are bombarded with ads. So they have limited attention span. So it’s more you need to play more around with images unless text. So you want to have a lot of text to explain what you do or what you sell or why they should choose you. So if you have a memorable, catchy name that people understand what you’re talking about, it’s helpful. But with that said, most of those short, catchy names are taken already. So. So that could be an issue. And you can get dragged into, you know, spending too much time on trying to come up with the best possible name for your brand. That could be a big issue because it’s not something you should really spend a lot of time on. So, yeah, I think it’s it’s important, but not as important. Usually people think it is.
Yes. No. Obviously, it varies by circumstance. I so my opinion.
On it is I think it also varies by how you plan to. Get market to your customers as well. Because I think that if you are going to be doing a lot of paid advertising and brand advertising, then the spending a bit more time on it is important because that’s going to be a key part of what your advertising marketing is going forward. And it can have a knock on effect as to how effective those are, but those adverts can be and how how effective your marketing can be down the line. I also think so another thing which comes into it, which is probably my bias, because I’ve got a bit more of a sort of a Web background is to do with search engine optimisation and search. So, you know, are you looking for a domain name, which is, you know, your domain name matching your brand name? Also, like how that plays out in search, because, for example, in Inessa, if you’re choosing a name, oftentimes people will try and choose a product name that is descriptive of what the product is, because the thinking behind that is is OK. Well, if we have a product name, which is. X widgets for cats dot com. Then we’re going to be able to grab some traffic from Google, from the search engines for people who are searching for that thing because it is in the name and et cetera, et cetera. But probably you have there is is that there? There will be people in your competition who are already doing content and who are trying to optimise for those existing keywords. And the fact that you’ve got the domain name, which sort of matches the keyword is is less important in Google’s eyes than other activities that you’ve been doing, you know, from an NCO perspective. So even though you might get an initial higher sort of organic traffic to your site to sell your widget, that. Over time, you’ll have a lot more competition in the search results for those keywords, and you’ll find it harder to rank your own name versus what other people have because other people are sort of, you know, trying to optimise their content for that exact thing. Whereas if you have something that’s bit more of a nonsense name or a unique word or unique. So sounding word or whatever it might be, you have less organic traffic in the first instance. But the Google actually really likes brand queries. So, for example, if you are. Let’s say, for example, my name. James Bell. If you type James Billett into Google, that’s effectively a brand query for me. People are probably looking for me. There aren’t that many people with my name on the Internet. So they’re looking for me or one or two other people. So Google finds it very easy to serve up a lot of relevant stuff about me, too, to satisfy that search query. So if you have a brand, which is a very unique word, which people aren’t randomly searching for already, but will start searching for it because they know you as a brand and as they learnt about you as a brand, then that makes your position much more defensible from a sort of organic search engine perspective. So although you’ll get sort of less organic traffic in the first place, you’ll find it easier to get decent amounts of organic traffic down the line, which could reduce your sort of marketing and advertising spend as you get.
What’s your opinion of naming a product for what it does? So, for example, here in the UK, we have. A company called Wrong Sale. Who do kind of like outdoor DIY products. And so all of their products are named for exactly what it does. And very famously, they do it. They have a tagline, does what it says on the Tensas, like Ron SEAL, quick drying would stay. You know, something that is literally is what it does. Like what’s what’s your opinion on those kind of names?
So I agree on what you said as well. Also, if you if you tried to me to this great descriptive with a product and also you should differentiate your brand from your Prochnik, that’s important. I nyk it’s a brand, but then each other probes could be the runner that this and that on the on the sneakers and they have t shirts on a lot of stuff. So, so I think that provoked their unique level. Could be or should be more descriptive because also like a tick short you short shelf life as bay so that you keep changing the stock and so on. So yeah. And also trends change. So your brand should stay though. And also coming back to the brand. Nowadays, I would be inclined to recommend that it’s not too descriptive because then by trying to be too descriptive, then you will end up being very similar to many others. So then it will like if you sell. Yeah. Beef, steak or meat. And you are like that. You’re your brand, these meat man. And then that is the meat ball, you know. Yeah. Like whatever. But butcher brothers. So but if you, if your name is like something completely different, if it’s like a short name, it will take you a bit longer to kind of heal, to get people to recognise what’s your brand about. But after they do, it could be cooler. Also, you will find it easier to find what domain that that trademark. And that makes a big difference. So it’s just some practical advice. If we are setting up a company in the UK, the first thing you should do. Come up with a company name. You should go checking company cows come by names and then you can cheque on the IPO. Intellectual Property Office. The trademarks. So go cheque for trademarks. They will tell you if there are similar ones, that will could potentially be a blocker of your trademark registration. So I will start from there. And also, you can cheque what the main saying go daddy or any other site. So with those three, you should get an idea on what’s available for what you are looking for. Thus, from a practical point of view, you’re not going to get any suggestions from there. And don’t be put off as well if there are existing names. Was a small most likely to be the case. But you can differentiate by coming out a completely different logo or like an elephant riding a bicycle, as I don’t know. Something something very unique for our life. I think there is these Web Web servers that cocoa drive. I can remember now their name, but I remember that cocoa’s right. So, you know, so yeah. Be distinctive for sure. I would rather try to be distinctive you with the logo or the brand name and then be descriptive with the products or services.
Yeah, so how’s Gator? I think you’re thinking.
Yeah, yeah, that is, yeah.
There we go. So if if I was to leave you the audience with any advice, I would say they choose a market where the sort of brand name isn’t too potent. Just smash your hand on the keyboard a bit and just register that domain name anyway. Right. Thanks so much for listening. We’ll be back next week with some more nuggets of knowledge. In the meantime, please do cheque out our YouTube channel, which is where we post this on our other podcasts. You can search for net workers. Two words where you can find the link in the show notes. If you’re interested in a deeper dive into all things entrepreneurial, including more detailed information, help mentorship and courses, please cheque out our Web site, which is up networkers dot co psionics.
I think you might.