Hello there! This is Ajit
and today we're going to talk about
the most common question I get from entrepreneurs
and experts like yourselves on
how do I know which idea to pursue?
How to not get overwhelmed?
How to not pursue the greatest idea
that I think today I heard?
And how to pick those best ideas, alright?
So I'm gonna share with you
my exact four-step system
on how to evaluate an idea to know
if that's the right idea for you and your business.
I call that system: L E R R.
We're gonna go a bit deeper in that
but here is why you really need to listen into
why LERR is so important for your business.
What happens with us is because we are entrepreneurs,
we are so passionate about what we want to achieve,
we're so driven; we are always looking at
the next way of building our business,
the next business that we want to build,
the next idea we want to pursue
and how to not really limit our impact in the world.
And that can cause a lot of overwhelm.
And all of us have had those moments
where we're just completely lying on the bed and said
dammit, there's so much to do.
When you're starting a business,
when you're growing a business,
there's always so much to do.
How do we know what's the best idea to pursue
and how not to be overwhelmed while pursuing that idea?
Ok so here is how I, when I get a new business idea;
for example, when I started a new business called "Zentrepreneur",
how would I know that Zentrepreneur
is the right business for me to start?
So I'm gonna give you that case study
and walk you through the whole mental process
and the mental journey that I take
to find that idea and to say
is this idea worth it?
or is it something else that I should pursue?
So first thing is leverage.
This is the L of LERR.
Leverage simply means is what you're doing right now,
whatever the current reality that you are in,
the new idea that you're pursuing
is it leveraged on that idea?
or is it leveraged on the idea of what is
already working for business.
It could be, if you're starting a business,
it could be as simple as
is it leveraged on the skills that you have?
So, for example, when we were thinking of going
is Zentrepreneur the right business to get started in,
we already saw that, as leverage that we had,
was that I had a big community of coaches that already follow me
on another business called Evercoach.
And that give me the permission to go
okay, a lot of people who are coaches
also want to become speakers, authors, trainers,
they want to be able to publish books,
they want to be able to publish programs;
and so I can use the community
or I can introduce my community of coaches
to the idea of saying
hey do you want to go beyond coaching
and want to become an author, a speaker,
a digital product creator, whatever that other thing may be.
Which is what Zentrepreneur really addresses,
Zenterpreneur is a community of people
who we call zenterpreneurs
but can also be classified or further the segmented into
authors, speakers, teachers, coaches, consultants,
all of that; and how to really create that ecosystem
is what Zentrepreneur really teaches.
So first thing that we saw is
is there existing leverage in tune with my community,
with my audience, with what I already have
that will help this new idea that I want to pursue.
That's the first thing, you find the leverage.
Second thing that you find is
is it easy enough?
What do you mean by 'is it easy enough'?
So, for example, if I would
weigh an idea of Zentrepreneur,
which is an online academy for experts and for Zentrepreneurs,
if I would weigh it against building a whole software.
Even if I can see that I can leverage
the community of coaches that we already engage with,
it is much harder to do.
So you kind of go, what is easy?
Which one is easy that you can really
execute fast enough and get results fast enough,
is not overly complicated for you to even execute on.
Thirdly, you want to evaluate is risk.
Which is, how risky is this idea?
Are you going to burn if this idea doesn't work?
Can you risk an X amount of dollars
and say 'ok this is the amount of risk I can take',
and if those dollars are not enough
to execute that business idea,
that business idea will get canned
and you won't execute on that, right?
So that's the third metric where you go
how risky is this idea that I'm pursuing right now?
Is it really risky, or a little bit risky?
How much can I invest in it?
How much will I lose if it doesn't work?
What's the worst-case scenario?
And then you evaluate based on risk.
Lastly, you look at what's the return on your investment.
Now what I try to think
is not only in terms of dollars,
but also investment in terms of time
that you're going to put into it.
Is the amount of time that you're going to put
at least bring ten times the reward of what you're investing in?
I like to look at my businesses where I go
can I 10x my return on my investment in dollars
or in terms of time, in the scope of three to six months?
If I can, that idea is what I would pursue first.
Now, of course, the timelines can vary
based on where you are in your business,
how big the business is, how small the business is;
but you get the drift.
You want to look at
what's the return that I will have in my business?
Now I know you might go
okay, I'll put it against leverage, ease, risk and return,
and I should know.
Here's a way, when you're weighing 2-3 ideas,
on leveraging in knowing exactly what is going to work.
I call it "the Grid of LERR".
So what you will do is you'll make a grid,
you'll go leverage, ease, risk, and return,
and you'll put your ideas
idea one, idea two, idea three.
In a grid like this, let's say you have
three ideas that you're working with.
And then, what you would do is
you would rate them from a scale of one to five.
And this could be a gut-check,
sometimes you will know it, of course,
and sometimes it'll be a little bit more
where you have to go
which one is what number that I have to give to it?
But usually you would get the right answer,
once you've actually total it all up.
And I'll show you how it's done.
So, for example, if I was to evaluate an idea of say
starting an ecommerce store,
starting Zentrepreneur which is an academy for experts,
or if I had to do build a software.
I'm gonna evaluate those three ideas
and let's assume that those are three ideas that you're in
and you can put whatever the ideas are, ok?
So first thing: leverage.
Do I have leverage if I build - and let's say
Idea1 is Zentrepreneur, Idea2 is a software,
Idea 3 is an e-commerce store.
Do I have leverage knowing that,
knowing what you know about the business,
let's say Evercoach.com is the only business
that I have right now;
So leverage-wise, can I use that community
or can I use that business to actually pursue
and make my Idea1 really, really successful?
I would say on a scale of one to five,
it's a five because it's easy, it's right there.
On a scale of one to five my software,
if I make that software related to coaches
or useful to coaches maybe that will also be a five.
But for e-commerce store, maybe I can't really leverage
on my own existing audience.
Maybe a little bit so let's give it a two.
Gut wise, that's what I feel.
Then I go: easy.
So I go, is it really easy or really complicated?
In this scenario because of the technology
that I've already built for Evercoach.com,
it's very easy for me to actually deploy a new domain
which is like an online university for zentrepreneur.
So what I will do is, the more easy it is,
the higher rank it gets or higher number it gets.
So for me to execute Zentrepreneur
may be a little bit difficult because I have to find new experts
to create trainings for other experts, etc
so maybe I'll give it a four.
Because its easy, but not that easy.
Software I'm like oh man, I have to build a whole new thing for this.
This is complicated, it's going to be hard
if I'm building something which is completely different
so that's going to be maybe a two.
E-commerce store again, I don't have technology for it,
I don't have a team that already understands this,
this is probably going to be a one.
Now third, I will go ok, what's the risk?
What's the risk, what's the worst that can happen
if I actually start a domain that is related?
I would go okay, maybe it will not work.
Maybe I will invest thirty, forty thousand dollars
building the first program, getting the whole video crew,
creating all that material,
so I would say it is low on risk.
And the lower the risk, the higher the number
because it's $30,000, it's not that much investment
in the scope of things that I am thinking;
so let's still say ok, it's a little bit risky
but not that much let's give it a three.
It's like medium risk, right?
This, on the other hand, is really risky
because software, I don't know,
I have to invest like $100,000, $150,000
to make anything half decent
which means I have to rate it low, only a one.
So, higher the risk, lower the number.
Then e-commerce store, their software is all ready for it
so maybe it's not that risky,
the investment is not so high
because I can white label things.
Maybe a three here.
Last is reward, can I really excel on all these things really, really fast?
Can I 10x my investment in the scope of three to six months?
On Zentrepreneur, maybe not 10x
but I can definitely 6x my investment
so I will give it a four.
On software, I can actually get a lot of return
if I actually do a good job at it,
maybe a four again.
And then Idea3, e-commerce,
I'm not sure if I can get that much return
because e-commerce take time to pick up
and all that kind of stuff.
Maybe I'll give it a two.
Now here is the obvious answer
that you would see once you total it all up.
(doing math)
That's 16, that's good right?
And this, though....
12!
Not winning.
And this, is even worse!
Eight.
But, now you can see clearly that this idea
is the one that you want to pursue,
it's the highest score.
This may be the next best and this is the worst idea to pursue.
So now you know exactly
how to really know which idea is the best idea
that you want to go for,
based on what you already have
and what is easy, what is risky,
and what is going to give you the maximum reward.
And that's how you can prioritise
taking away overwhelm from you
and giving you and your team a lot more power
to work on ideas that will always give you higher return.
So here is the LERR system that you can use right now
to evaluate all the ideas that you have in your stack
and you're trying to pursue and go at them at the same time;
you can actually go no, no, no.
Let's hold back and let's see which one's the one we go first at.
Then second, then third, then fourth and prioritise it
based on the overall scheme of things that is
going to be better for your business.
So now you have the LERR system
to make sure that you know what idea to pursue
and what idea is going to give you the maximum return
on the time and money that you will invest in it.
You also now have a system that will
allow you not to be overwhelmed.
To get more systems like these, what I request you to do
is ask me the right questions.
You know the quality of our questions define the quality of the answers.
What I request is, in the comments, go ahead and ask the questions
that are troubling you right now in your business
so I can go back to the
understanding and study and make sure all the systems that we have or our friends
have exports have our mastermind members have books have to bring them to you so
you can grow your practice and create your impact far beyond but you already
created impact so go ahead in the comments box below
go ahead and ask the questions that are troubling you right now so we can give
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to solve your problems