🚀 What Business Do I Start?

Discover how to start a business from scratch, identify your target audience, and gain your first customers using a proven five-step framework.

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Summary

Discover how to start a business from scratch, identify your target audience, and gain your first customers using a proven five-step framework.

Highlights

  • 💡 Identify your “what” using the three Ps: Pain, Profession, Passion.

  • 👥 Define your target audience based on shared experiences or needs.

  • ⚙️ Understand the “how” by outlining the benefits and drawbacks of your solution.

  • 📊 Create a compelling unique mechanism to differentiate your business.

  • 🚀 Follow a simple outreach strategy to secure your first five customers.

  • 🌐 Join a supportive community for additional guidance and resources.

  • 💰 More than half of participants in the program make their first dollar online.

Key Insights

  • 🛠️ The Three Ps Framework: Businesses often stem from personal Pain, a current Profession, or a Passion, guiding you to discover viable ideas.

  • 🎯 Narrowing Your Audience: Focusing on a specific demographic leads to stronger connections and higher conversion rates, allowing for premium pricing.

  • 🚀 Value Proposition: Highlight both the positive outcomes and negative experiences your target audience wants to avoid, making your offer compelling.

  • 🌟 Unique Mechanism Importance: A distinctive method or process can set your business apart, making it memorable for potential customers.

  • 📞 Effective Outreach: Personalizing outreach efforts increases the likelihood of engagement and helps in acquiring initial customers.

  • 🤝 Community Support: Engaging in a supportive network can provide invaluable resources, accountability, and encouragement during your entrepreneurial journey.

  • 💸 Proven Success Rate: Many individuals find success in their business endeavors when following a structured framework and seeking help from established communities.

The Ultimate Rivalry: Uber vs. Lyft

Financial Comparison (Fiscal Year 2023)

Category

Uber

Lyft

Revenue (USD Billion)

$35.00

$4.50

Net Income (USD Billion)

$1.50

-$0.70

Operating Income (USD Billion)

$2.50

-$0.50

Market Cap (USD Billion)

$95.00

$4.00

R&D Investment (USD Billion)

$2.00

$0.60

Global Market Share

70%

7%

Active Users (Million)

137

20

Number of Employees

32,000+

4,000+

Analysis:

  1. Revenue & Market Position:

    • Uber: Uber dominates the ride-hailing market with significantly higher revenue and a broader global presence. It has diversified its offerings through Uber Eats, Uber Freight, and other services, contributing to its strong financial performance.

    • Lyft: Lyft, while primarily focused on the North American market, generates far less revenue. Its business model is more narrowly focused on ride-hailing, which limits its revenue streams compared to Uber.

  2. Profitability:

    • Uber: Uber has turned profitable, achieving positive net income and operating income in 2023, driven by cost-cutting measures and revenue growth across its diversified services.

    • Lyft: Lyft, on the other hand, is still struggling with profitability, posting a net loss and negative operating income. The company has faced challenges in scaling its operations and achieving economies of scale.

  3. R&D Investment:

    • Uber: Uber invests heavily in research and development, particularly in areas like autonomous vehicles, AI-driven logistics, and advanced mapping technologies. This investment supports its long-term growth strategy and competitive edge.

    • Lyft: Lyft also invests in R&D, but at a much smaller scale. Its focus has been on improving its ride-hailing platform and exploring autonomous driving technology, although its limited resources constrain its ability to compete with Uber in this area.

  4. Market Cap & Global Reach:

    • Uber: Uber’s market capitalization is significantly higher, reflecting investor confidence in its global reach and diversified business model.

    • Lyft: Lyft’s smaller market cap is indicative of its narrower focus and challenges in achieving profitability. It remains a key player in the North American ride-hailing market but lacks the global presence of Uber.

  5. User Base & Market Share:

    • Uber: Uber has a much larger user base and global market share, making it the dominant player in the ride-hailing industry. Its extensive reach across multiple countries and regions contributes to its market leadership.

    • Lyft: Lyft holds a smaller market share, primarily in North America. While it has a loyal user base, its growth is limited by its geographic focus and competition from Uber.

Forecasts:

  1. Uber:

    • Short-term: Uber is expected to continue growing its revenue through its diversified services, including food delivery and freight. The company’s focus on profitability and expanding its global footprint will likely lead to further financial improvements.

    • Long-term: Uber’s investments in autonomous driving, AI, and new mobility services position it well for long-term growth. Its ability to adapt to changing market conditions and expand into new markets will be crucial for sustaining its competitive edge.

  2. Lyft:

    • Short-term: Lyft will likely focus on improving its profitability through cost-cutting measures and enhancing its core ride-hailing services. However, competition with Uber and its limited geographic reach may continue to challenge its growth prospects.

    • Long-term: Lyft’s future growth may depend on its ability to innovate within the ride-hailing space and potentially diversify its offerings. Expanding into new markets and leveraging partnerships could help it gain a stronger foothold in the industry.

Conclusion:

Uber and Lyft are both major players in the ride-hailing industry, but Uber’s global presence, diversified services, and profitability give it a significant advantage. Lyft remains a key competitor in North America, but it faces challenges in achieving profitability and expanding its market share. Investors may view Uber as the stronger option due to its broader scope and financial stability, while Lyft’s focus on the North American market may appeal to those looking for a more niche investment.

Article to Read

1. Get in the Right Mindset

  • Consistency: Understand that success isn’t an overnight phenomenon. Consistent effort matters more than headlines.

  • Take the Next Step: Break down your goals into actionable steps. Always focus on the next move.

2. Determine Your Business Concept

  • Monetize what you love, but also consider profitability and your expertise.

  • Craft a dynamic business plan—it’s your roadmap.

3. Research Your Competitors and Market

  • Understand your target audience and analyze competitors.

  • Spot gaps and opportunities.

4. Choose Your Business Structure

  • Decide on your legal structure (e.g., sole proprietorship, LLC).

  • Legal terms matter—optimize your understanding.

5. Register Your Business and Get Licenses

  • Officialize your business by registering it.

  • Compliance is crucial for search engines.

6. Bootstrap and Be Resourceful

  • Use existing resources and minimize costs.

  • Leverage your skills—what can you offer without additional investment?

7. Embrace Digital Marketing

  • Content marketing, social media, and SEO are your allies.

  • Optimize your website for search engines.

8. Start Small and Test

  • Launch a minimum viable product (MVP) to gather feedback.

  • Adapt based on customer insights.

9. Seek Grants and Competitions

  • Research small business grants and participate in contests.

  • Explore local opportunities.

10. Collaborate and Partner

  • Joint ventures and bartering services can benefit both parties.

  • Build relationships within the entrepreneurial community.

Remember, resourcefulness and persistence matter more than a fat wallet. Take these steps, celebrate small wins, and keep moving forward! 🌟

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