The right time to start a business
Success Formulas, and When and Why They Work and Don't Work
I’m sure that you’ve all heard of a successful formula that says that if you want to promote a product that you have to write a blog about it, or get onto social networking, or do this or do that. I’m sure you’ve also all heard that selling a particular product is a sure winner because this person or that person made millions, and then you tried it, and it didn’t work. Let me explain to you why a success formula works sometimes and why a success formula doesn't work other times. It’s all about the timing and the saturation.
Step One: THE INNOVATOR: The Winner’s Prize Setting the Pace for the Success Formula
This is the lucky innovator who understands the pulse of the people. This person creates a product and it takes off big time. This person makes millions. We all know them. They created Windows software. They created the telephone. They invented a car. As I said, we all know them. Not only did these lucky people have the capacity to come up with something that other people would want and need, but they knew the right people to get the money, and the right people to market the product. More importantly, they knew how to work with people to get their product to market and into the hands of the people.
Step Two: THE COPY CAT: Taking Advantage of the Success Formula
Every product has a shelf life. It starts off and rises until it reaches a point where it is a best seller and where everybody wants it. Somewhere, between the time that the Innovator brought his product to market and the market hit mass media appeal, the Copy Cat went to work. He saw a good thing and imitated it. In other words, he was using a success formula.
While he didn’t make as much money as guy number one, he made it pretty big because he was in a rising market. A lot begins to be written about how these guys are all making so much money and two things begin to happen simultaneously. The first is that the market for this particular product has hit a plateau, and the second is that every Dick, Tom, and Harry out there is beginning to hear how these people made money. They are now all keen to learn this success formula and now a new market arises. It is the market for the 'success formula.'
Step Three: THE LOSER: Everybody Knows the Success Formula and the Market is Saturated.
Now is the time when the Copy Cats begin to write books telling how they made money out of this and how you, too, can make money out of it. They will tell you that it is a sure success formula and you only have to look at them to know that this is a success formula that really works.
What they omitted to tell you was that they are writing the book because the good days are gone and they’re not making as much money as they used to. In other words, this particular success formula no longer works. However, you don’t know that, and they can get the last squeeze out of the remaining rag and make a little more money before kissing their asses goodbye on that one.
This is the place where the wannabe’s tell you that you’ve got to have a blog, that you’ve got to invest in social networking,that you’ve got to create an app, that you’ve got to do this, and that you’ve got to do that. So all the losers are blindly reading the books on this particular new success formula and telling each other how much money they’re going to make in this new venture because all the evidence is there. Just look how much money Bill Gates made. Just look how much money this person made. And now they know how to do it, too! They've bought the book for this particular success formula. They've followed the steps blindly, and they've told all their friends in a very knowledgeable way, how the success formula works.
However, the little birdie has flown. Nobody makes money when the market is saturated. The bottom line is when the market is saturated and when too many people are doing the same thing, there is no more money to be made. That particular success formula is dead. The reason that the earlier people were able to make money was because there wasn’t that much competition and the market hadn’t yet been saturated.
So Where Are You in this Cycle?
Before you start out with a business or a product to sell, check where you are in this cycle. If you're in stage one or two of the success formula, you're in a good place. If you're in stage three of the success formula, don't bother. You're highly unlikely to make any money. So, let me repeat this... If the market is already saturated, it’s a bad time to get in. It he market is just starting out, it’s a good time to get in. If you’ve had a brilliant idea, and you’ve got the connections and the money to run with it, go for it! After all, you want the easy life…
© 2014 Tessa Schlesinger