December 2020 Middle of COVID lockdown My dropshipping business viral Romeo just hit 7 lakh in revenue 3000 customers and my inbox had one email that changed a bit Dear Nvision I was rather shocked to see this thing His name was Ravi Men and he was shocked because in five years of shopping online no one had ever saved Five years Hundreds of dollars Thousands of Disney spent and does tell it ever sell it everything is continuous While they do ask me for feedback I get to the Steam and Matter Therefore I found this as a two step right step right that's what basically that And here's the thing I was making 7 lakh but I was dying inside because I knew something really did it I knew that the order he has placed it was going to take 45 days to arrive I knew it was dropshipped from a random supplier from China I knew the quality was pushed I had the patch for it I had the revenue I even had great but I didn't have one thing that separates 10 lakh business from 10,000 of these I had never answered three questions six months later I started it out not because it wasn't profitable but because I had a skip those three questions questions that 89% of Indian entrepreneurs skip question that separates 10 lakh sustainable business from 10,000 hobbies that burn out today you are going to answer those three questions the ones I wish I had asked before standing that email the ones that helped different students avoid my mistakes the ones that had turned multiple passion premiers into profitable business because grateful customers aren't enough you need a business with the new passion business podcast where we talk about passion business and profits how you can really data and today's topic is the passion profit test why 89% of Indian entertainers ignore the one framework that separates 10 lakh businesses from 10,000 of hobbies and let me tell you the truth is that 90% of the people confuse passion with entertainment and today's you know podcast we are going to understand that at a deeper level so let's start with the three question framework the question number one that you need to understand is what is your passion so your passion is something that makes you lose track of time you see the approach is you need to test yourself that you know what are the activities you know that you do without any external motivation that means no one asks you to do but you are doing it you know the topics you research at say 2 a.m you know no one is paying you but you're still going on a computer or on a mobile and you are going to search it out you look for news articles and all of it so do the interesting passion test what you're really passionate about right the skills that you have developed not because the college the business or the profession demands you but because of the pure curiosity right so those are the important things you need to look at it and when you go through those you know uh your loved articles not only love but the thing that you know you're doing it by default you know it seems like you're guided by some uh external entity altogether you are all built inside to work on those topics you lose track of time you know suddenly you are looking at a few articles or or you know you you're doing the stuff that you love about so take an example for me uh I am into sales funnels so I would mostly be tweaking you know how we can really make this funnel better you know what is the different criteria for A B testing so I lose track of time I don't know if one hour two hours or three hours has already passed so that is the interesting uh you know passion test that makes you lose track of time and the reality check is here you know just look at your browser history you know and it is going to reveal what you're obsessed with right and when you go deeper inside when you think inside at a deeper level you would be able to come up with the answers you know what really makes you lose track of time and the common draft that you should avoid is see watching videos or you know watching Netflix movies that is in a particular niche it means you are consuming that. So when you consume more of those content it doesn't resonate with the passion. You cannot say that hey I I I love medicines because you know I watch a lot of doctor related series or movies because your consumption is not passion. So this is a common trap to avoid the other trap is aspiration is not equal to passion you know you could be wanting a lot of things you might have multiple ideas but those are aspiration those are not passion you want you love that but that is not your passion. Your childhood dreams you know you wanted to do something uh you know is is is not your uh current passion so always do a reality check look what you are obsessed with right now look what you are curious about look what you do without any external motivation right so that's the question number one the question number two that you need to ask is what problem can you really solve so out of what you really do when you lose track of time right when you do that what kind of problem is it really solving right so look at your skill inventory what kind of a skill set you have you know take a uh notepad pen and paper and start drafting what kind of a skill set do you have are you an IT professional are you uh a consultant you know what kind of a skill set you have do a draft work of all of it right for taking example I'm into automation I'm into testing in business role I've uh helped e-commerce dropshippings I have uh you know helped coach to scale their business so a lot of this draft has to go on onto the paper because the more you put it on paper the better you would be able to you know understand it because this thinking in the mind is not going to help so skill inventory mapping is going to help you what kind of problem you can really solve right so once you have that mapping ready look for the skill set that you have written down and you need to apply this principle that is better than most principles. You know you don't need to be number one in it to really start doing the business you just need to be to the top 10% in your market. So look for the skill set that you have that matches with what is already existing uh in the market right and uh that is how you're going to validate so the validation signals could be you know people are already paying you so look for is is someone paying you back or can you connect with 10 or say hundred people a month or a week based on what kind of bandwidth you have right now and see if they are ready to pay someone asking to get a job done by you at zero cost is not worth the validation only when someone is ready to pay you that is going to violate the signal. So the problem that you can solve you need to talk to say hundred people a week or a month whatever your bandwidth is and then see if they're ready to pay the thing is that are you going to get repeated requests take an example if I am a sales funnel expert am I getting repeated questions that hey my sales are down can you help me out hey can I try XYZ hey can you help me build my sales funnel better hey can you help me my with my sales funnel in this particular niche in a similar way they don't look at what kind of problems you are solving and are people coming back to you so that's the market validation signal right are people giving you reviews you know it can be word of mouth hey you did a great job at what you did right are natural referrals happening it means are the people for whom you are doing the work are they naturally referring to others because they are really really amazed by the work that you're doing right so these are the signals that helps you answer the question what problems can you solve so that was the question number two and if you get answer to this one the next question is will people pay repeatedly right so how you validate this you need to look at the market size validation is your audience growing or sink shrinking right you cannot be in a business where the audience size is going down take an example now this is the era of AI right so if you're doing something and if you think it is aligned with AI you know that the market size is growing right now this is a market of podcasting uh putting content off YouTube so now someone says that hey I am into digital marketing and I only do post that market size is going down right so you need to do validation how you can do that you can go to Google Trends you can search it out you can ask the AI based on your niche what is the market size and based on a last uh two to three years trend what do you see is it a growing niche or is it a downsift niche so you need to understand and specify the niche right and specific enough to dominate see it cannot be one thing yeah you know you could be that hey I am a digital marketer but that is not going to help you will have to get into a niche digital marketer for what do you do digital marketing for e-commerce or do you do for you know uh uh sales and funnel what is it take an example for me I am a sales and funnel expert so anyone who is looking for sales and making funnels in looking at the conversion they are going to come back to me so look for a specific niche take an example if there is a general physician and there is an ENT expert if you got some issue uh you know with your uh ear you know somewhere you are not able to listen properly although it is a minor problem and it can be resolved by the general physician you will still go to the ENT expert if that is nearby and close and you feel like you know out of both to comparison uh you will still you know be aligned towards ENT rather than going to general physician because anyone operating in a specific niche becomes the magnet. So market size validation goes around it right so when you become a mar uh you know magnet and you are also in the right market you will attract more sales so people will pay repeatedly so that's the question number three just think it out at a deeper level and then uh the the next thing in the will people pay repeatedly is recurring revenue potential so do you think it is a one-time payment model or is it a subscription model or is it scalable say if if if you have a low ticket product and if you see that it is really scalable say thousands of clients or you know one lakh in sales that is absolutely fine if it is a high ticket item are you able to see that 10 to 100 clients per month you are getting it right so the revenue target ideally should be close to 10 lakh per month to test it out if this is working and if you feel and you have that feeling that hey it is scalable and I'm going to stick to it. So important is also to sticking to whatever we are talking about here right you can deliver consistently for say 2 plus years then you are in the game because if you are doing it consistently you will know the market better and you will use up the ladder in terms of doing your customers and the more you know the customers the better you will become right and the other thing is just solving that problem exercises you are doing right so this is something if your math is very weak and your plastic career features lasting you may solve math problem it is mandatory for you to do it and at the same time you feel brain you are not excited about it. So what is it that is happening? If you feel that way this is putting more energy into you feel more connected the more you deliver that right so if all of these three questions are answered correctly let me summarize if you know what needs to lose track of time you are excited about it right and you know what problem you can solve and you are already reaching down in your market you already know that you are in the growing trend then that's the batch topic test done that is where you know that you are in the right direction and you tend to full thoughtful on it and drive it you are going to see the senses so that is it guys for this podcast I will see you in the next one till then take care and thank you for