My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Diagnostic Authority Model
When you can diagnose a problem for someone, you gain more authority and sales leverage than if they already know they have the problem
Decision Rule
Prefer products/services where you can educate customers about problems they didn't know they had rather than solving obvious problems
How It Works
People trust those who help them understand their situation better. Creating problem awareness positions you as expert and makes your solution seem inevitable.
Failure Modes
Creating fake problems that don't actually exist
Over-complicating simple problems
Customers reject the problem diagnosis
Regulatory issues with health claims
Example Decision
“Claude Hopkins invented toothpaste advertising by teaching people to feel the film on their teeth - he created awareness of a problem people didn't know they had.”
Related Knowledge
Brand moats are as valuable as technology moats but undervalued by tech entrepreneurs
Entrepreneurs should consider brand-first strategies, not just tech-first
Brand as Moat Strategy
Using brand power as a primary competitive moat instead of technology or network effects, particularly effective in luxury goods where perception drives value.
Correct Lesson Learning Framework
A systematic approach to evaluate whether someone is drawing the correct conclusions from their experiences, rather than just having experiences.
Service-to-Product Acquisition Strategy
Using profits from a service business to systematically acquire better businesses with recurring revenue and product characteristics.
Acquire and turn around distressed luxury brands
Transformed brand with luxury margins (75%+), global distribution, and sustainable competitive moat
Build trusted business relationships entirely through digital interactions
Trusted business partnerships conducting significant transactions without ever meeting in person