TMBA 226: How to Know When to Cut Bait? 5 Signs Your Niche Needs Changed

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TMBA 226: How to Know When to Cut Bait? 5 Signs Your Niche Needs Changed post image

The boss man is back this week after a far too long hiatus and his timing is perfect for a topic we absolutely love. Kiri called in with some concerns about whether it’s time to cut her losses with her current business, or if there’s anything she can do to turn it around. Her major problems include a low price point, high shipping, an ungrateful audience, and low margins. It’s a difficult issue, and we’ve got strong opinions on it, Shark Tank style.

Listen to this week’s show and learn:

  • The biggest danger when someone says “sunk cost”.
  • A review of our major recommendations for an apprenticeship.
  • Why using Kickstarter might (or might not) be the right move going forward.
  • How to uplevel a customer to make your business worthwhile.
  • How to cast a net to get your customers to take action in a way that informs us.

People on this episode:

Post ImageMentioned in the episode:

Listening options:

Thanks for listening to our show! We’ll be back next Thursday morning 8AM EST.

Cheers,

 

Dan & Ian

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Published on 01.09.14
  • JakeReed

    If you want a walkthrough hand hold, buy a franchise or go to a slimy multilevel marketing conference. Sheesh. Redditor

  • 유 Soeren Gelder

    Kickstarter and also Indiegogo are a way to go! I used them both and sometimes with success:)

  • JoshFrets

    Thanks for the mention guys!

  • http://FoolishAdventure.com Tim Conley

    Kiri should take a look at my buddy, Marc Spagnuolo’s site TheWoodWhisperer.com. He has made a great mulit-six figure business from teaching the skills needed to do woodworking.

    Teaching just lamp shades probably won’t hit the income level that Marc has, but it could make the equivalent of a full-time income.

  • http://www.ilikethatlamp.com/ Kiri

    Thanks for the tip, Tim. I just checked out Marc’s site. Definitely looks like there are some things I can take away from his model.

  • http://www.ilikethatlamp.com/ Kiri

    Hey guys, thanks so much for dissecting my problem. It helped validate my assumption that this is a difficult niche to turn a profit in. It’s my first venture and I think I have more lessons to learn, so I’m going to stick it out for just a while longer and implement some of your suggestions around improving LTV. I hope your other listeners got something out of it too.

  • http://www.entreprelution.com/ Ryan

    This podcast really, if you pay attention, helps dissect the illusion of building a business or location independent income. Whatever your cause, and or case, may be, it is important to understand the reality of business. It is indeed not just some fairytale journey to success. You define that success through blood, sweat, and tear equity!

    But just know that you are making your dream come true – which is a bonus – and not the dream of corporate conglomerates.

    This is truly a renaissance moment in the world.

    Half the time my office doesn’t come in if it’s minus 20 celsius or there is two feet of snow.

    We’re so close to working from our laptops I cannot even breath some times! :)

    I just want to work for myself and I love the Cali style mentality!

    You guys keep killing it for me!

  • http://bradonomics.com/ Brad West

    In the past few episodes you’ve mentioned the value of networks and apprenticeships. But what if you don’t have a network and what if you don’t know anyone who could offer you an apprenticeship even if they trusted you?

    How about an example.

    You found yourself in a new city where you knew no one. Maybe you grew-up on a farm and everyone you know is a farmer. You’ve decided that farming isn’t for you and want to become an entrepreneur instead. Even though you want to build a business, your only skill is milking cows — you haven’t even attended university. How do you start building a network or get someone to trust you enough to allow an apprenticeship?

    In this scenario I can’t say to an entrepreneur “you need to make these adjustments to your AdWords campaign, and I can help.” You don’t know anything about AdWords.

    Realistically no one is going to start out this way, but it’s an interesting thought experiment.

  • http://www.tropicalmba.com/ Dan

    Thanks Ryan, agreed it’s a unique time for individuals with laptops :) Most of it’s still the same old game– hard work and great relationships with mentors, customers, partners, and investors, it’s just easier than every to get in the game! We’ll keep crackin’

  • http://www.tropicalmba.com/ Dan

    Thanks very much Kiri for reaching out and wish you the best in the future with the business!!! We love to take a look at what people are actually doing.

  • http://www.tropicalmba.com/ Dan

    Really appreciate that Tim, great case study there.

    For those interested in more on this site check out Tim’s interview:

    http://foolishadventure.com/audio/fa011-how-to-quit-your-job-and-live-your-passion/

  • http://www.tropicalmba.com/ Dan

    Thanks Josh, I can’t believe the editor didn’t play more of the song! It’s really good. Perhaps we’ll update the episode.

  • http://www.tropicalmba.com/ Dan

    Game changer for sure !

  • http://www.tropicalmba.com/ Dan

    hahahaha

  • http://www.tropicalmba.com/ Dan

    here’s an interesting and tangentially related article:

    http://swombat.com/2014/1/10/money-and-wealth

    For people just getting started out with no network, it’s often a matter of building the skillet of wealth. and the way to build the skillset is to learn useful / important things. so if you don’t know anything useful, are you going to be able to effectively network with people doing important work? no….

    so what to do? read books. meet people. RUN EXPERIMENTS. and get that damn skillset. The good news is that it doesn’t take more than a few weeks of coffee and super deep diving into things like adwords to provide significant value to others… just being willing to deep dive in the first place puts you in the top 5% of society.

  • JoshFrets

    Ah well. It was still a thrill to be mentioned on my favorite podcast. Rather than update the show, you could put the tune (streaming or download) in the show notes.

  • http://www.tropicalmba.com/ Dan

    cheers that’s a good idea! :)

  • http://www.seedsofmusic.net Kyle Williams

    My niche is independent musicians and artists who want to better market their music and presence online and make more money with their music. It’s a real mix: some are willing to invest, others cut corners, some have music that needs work, some have music that’s actually good.

    I get this is a tough market, but it’s hard for me to imagine ever cutting this market, because the problem that independent artists are experiencing are the EXACT same as incredible artists EX: Jurassic 5, Beck, and on and on. This is a massive pain point!

  • http://www.tropicalmba.com/ Dan

    It’s true, the key here might also be to find specific promotion vehicles that provide results in the 21st century and championing them… those might not even end up being limited to musicans but artisans of all types

  • http://www.seedsofmusic.net Kyle Williams

    I’ll bet you are referring to crowdfunding.

  • http://www.tropicalmba.com/ Dan

    i’m so captain obvious! :P

  • http://www.seedsofmusic.net Kyle Williams

    Well…I did actually call in a similar question a few episodes back ;)

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