🔍 Big Ticket Niches

Yes. This is the City Chad, your wealth whisperer, unlocking the secrets to abundance in the language of money. Let’s get the show rollin’!

In this week’s edition:

• Markets: 🦍 Come Back

• Article: 🔍 Big Ticket Niches

• News: 👩‍🎓 Gen Z and Work

• Chad Of The Week: 🥶 Sir Ernest Henry Shackleton

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MARKETS: 🦍 COME BACK

We finally saw green across the board. It feels weird typing this as it has been so long.

Stocks have made a comeback as we entered earnings season. The time every three months when companies give us their report cards.

How have public companies they so far? It’s been a mixed bag. 

But was has been driving the uptick has been a dose of optimism at the start of this week. After the latest FED meeting, investors are now expecting an 89% chance that rates won’t be hiked any more this year.

Less rates hikes = less pain for investors.

I think we’ve all had enough rate hikes for now.

Bitcoin continued its spectacular run in the last few days. I think the anticipation of the next bull run is creating the FOMO that is driving up prices. 

Have crypto fundamentals changed? Not much.

Have people become less greedy? Never.

ARTICLE: 🔍 BIG TICKET NICHES

TLDR: Before you start doing anything, how do you know how to assess a good business opportunity? It's not spending hours on end doing surveys. It is identifying your skill set, creating the right product and approaching the right customers. Finding big ticket niches may hold the key to starting your entrepreneurial journey the right way.

• Introduction

• The Main Asset

• The Right Product

• The Right Client

• Taking Action

• The Takeaway

We all must start from somewhere in our entrepreneurship journey.

And starting a new business venture is exciting. But it’s not always rainbows and butterflies.

Its success will depend on more than passion and dedication.

And the first crucial step is finding the right business niche to work on.

This might be the most important choice for your business since everything you decide from now on will depend on what market you are in.

So, keep reading to make the foundation for your business the right way!

The Main Asset 

Even before your business exists, there’s something that will make it unique.

That’s you.

So, when contemplating different niches, try asking yourself the following questions.

1. What do I like doing?

2. What can I do better than other people?

3. How can I combine my different abilities?

First, you have to like what you are doing.

If you are in just for the cash, you'll probably end up doing a job that doesn't stand out at all.

Then, consider what things you are good at.

Whatever it is you do, there's likely a way to leverage it to your advantage.

Next, there must be a way for you to combine your skills to stand out even further.

This will pigeonhole you into a niche where you can thrive in.

Shaan Puri, mentions the example of a bear on a unicycle in his podcast.

What's special about a bear? Not much, and the same goes for the unicycle.

But a bear on a unicycle is something you don't see every day. 

Combine your talents to find a niche where you can be #1 at.

The Right Product

You have found something you can offer. That’s great. 

Now you must see if people are willing to pay for it consistently and profitably.

Some things just sell better than others.

This is a very important point. 

You may be very talented and good at offering something. 

But if it won’t allow you to reach your goal of financial independence or living from it, then it is probably not worth pursuing.

Let me give you an example I have seen many times.

Offering baked goods or hand-made fashion items. Those are simple businesses that many people can realistically create products for.

But, the problem is that, even if the profit margins are great, the volumes are usually too low. The scalability is limited. And the competition is plentiful.

So if you are starting on your own, and can only make a limited number of sales, you want to be in a market that has a big ticket size.

Big ticket size means that every sale is for at least 3 digits (4 is better). $100 to $10,000 minimum.

Rather than trying to sell 100 cupcakes to make $100, sell 1 physical product or service for $400.

High volume (i.e. many sales) and low margin businesses are usually better suited for large companies (i.e. a supermarket).

If you want to succeed as an enterprise of 1 you have to make every sale move the needle for yourself.

The Right Customer

Now it goes without saying that someone needs to give you their money to make a sale.

And you want to make it as easy as possible for that to happen.

Not all customers are created equal.

This sounds obvious but you want to go into a niche that has customers who are already willing to open their wallets.

The easiest way to find them is by looking for customers who are already spending money on what you have to offer.

So let’s say you have identified a high ticket niche like enterprise software. 

Basically businesses spend thousands or millions a year just to use software. They are pretty much forced to do it as you cannot run a business without it these days.

Now what angle can you take to benefit from that fact?

…You could create a simple tool or product that solves a very specific need for a business industry that you know well.

…You can become an expert at implementing a specific software solution that you already use.

…You can consult on a business customer's “tech stack” (i.e. software bundle) in an industry you have worked in. 

Helping clients save money or achieve better results.

What these all have in common is that you are dealing with a client that is already in some way a high ticket customer of the solution you are offering. 

That is where you want to go hunting.

You can apply this principle to other types of high ticket products and services.

For example, how much does a company pay to acquire a customer? Can you find them a customer from a particular niche and earn a high ticket referral fee?

Think companies that high ticket clients themselves. Lawyers, healthcare professionals, IT companies.

Recruitment is another great example. Can you part-time headhunt in a particular industry and earn a 25% commission on the candidates’ salary?

Low sales volume and high ticket sales makes your life easier if you can pull it off.

Now having said all this, does that mean you can’t make money from selling a cheap product to many people (clothing, home goods, etc.)?

You absolutely can.

But building the infrastructure to do so in a scalable and profitable way will likely make your life harder.

The Takeaway

Finding the right business niche and succeeding in it goes beyond passion and dedication.

The first step is looking at yourself, your strengths and weaknesses. Combine them into your genius zone.

Next you will need to explore the market, defining your best possible customers and offering something they simply can’t afford to say not to.

Aiming for the big ticket niches can give you a change to move your needle faster.

Whatever you do: take action. Nothing is gonna happen if you don’t.

NEWS: 👩‍🎓 GEN Z AND WORK

China and its youth are not in a great moment right now.

Following the COVID-19 pandemic many educated young people, Gen Z, aged 16 to 24, cannot find a job. 

In fact, the unemployment rate for that demographic is 21%, a new record. And it could be as high as 46%! If the government was not fudging the numbers.

The West (particularly the US) seems to be having the opposite problem in some ways. 

Unemployment is at record lows in America.

The recovery since COVID has been nothing short of spectacular in the land of the free.

Is this making people more entitled? 

Well this reminds me of the viral TikTok video where a girl complains that her 9-to-5 job is overwhelming.

@brielleybelly123

im also getting sick leave me alone im emotional ok i feel 12 and im scared of not having time to live

The reaction to it was mixed. Some people criticized her for being an entitled cry-baby and not toughening up. 

To be fair I agree that her working conditions don’t seem particularly harsh.

But on the other hand she does seem to have a point. Returning to the office is making people miserable. And commuting is the biggest time waste ever.

My take is that… I can’t really judge her. But everyone should strive to build the life they want to live.

Crying about it on TikTok is not really part of the solution. If you don’t like it, find something you like better. Like a remote job or start your own business.

And accept that nothing worth having comes easy.

CHAD OF THE WEEK: 🥶 SIR ERNEST HENRY SHACKLETON

When we look up to icons of greatness, we usually picture people who have achieved what seems like impossible success.

That’s not always the case though. Sometimes greatness is not achieved by success in the main objective but by endurance and determination.

Today we talk about Sir Ernest Henry Shackleton, a name that has become synonymous with survival against all odds.

Shackleton was a natural born adventurer. His passion to explore the world led him to one of the last unexplored terrains in the world. Antarctica.

In there the weather is unpredictable. During his adventure, water started to freeze, and his ship became trapped in ice. 

This left the crew stranded in one of the harshest environments on Earth.

Instead of succumbing to despair, he persevered, ensuring that every member of his crew made it home safely.

He knew that true greatness isn't about never making mistakes. It's about navigating through adversity and making the best of it.

He had to maintain morale, ration supplies, and make really hard decisions.

That was a situation in which, having the wrong mindset would lead inevitably not only to your death but also to that of your crew.

The captain of the expedition, Frank Worsley, tells the story in great detail within his book Endurance.

We can learn from this absolute Chad and apply it to our own journeys.

Endurance and resilience are critical to achieve greatness. 

Not everything will go your way. But how you face it will determine the final outcome.

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