Creating a lifestyle company
I have been activity trying come up with an idea for lifestyle company, but hesitant to take any action. A blog post by Noah Kagan titled “How to create a million-dollar business this weekend”, was the motivation I needed.
Below are the steps I’ve taken, mistakes made and lessons learned.
Step 1: Find a problem; Create a solution
I live on a busy street with constant noise and light. In order to combat this I purchased earplugs and a sleeping mask. To my dismay, I soon realized that the poorly made mask digs painfully into the ears and the fabric suffocates my eyes with pressure. Frustrated I think, there has to be a better way to block out light from the eyes. Finally, I had a problem that I needed solving. My solution removed the straps and heavy fabric replaced by a thin cover over the eyelid.
Step 2: Discover potential market size
I used Google Adwords to search for terms relating to the product. The goal here is to see if there are enough potential customers to sustain your business. For example, the ad group “Sleep Eye” had 9,160 monthly searches. With Adwords quoting the cost per click (CPC) to be approximately $1.25, I could get a lot of potential users for my budget. First mistake: I did not calculate the lifetime value of a customer, a key metric for any e-commerce business.
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