{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"Market Friction","description":"Market friction is at the heart of all entrepreneurial opportunity. When you\u2019re looking for a business idea, consider the things that keep people from doing what they want to do. The current product or service might be too time consuming, too expensive, or too confusing to use. Often, there\u2019s a technology solution. You can find friction in markets with lots of uncertainty and ones that require specific knowledge. Internal deadlines \u2014 like an upcoming wedding \u2014 can be a strong motivational currents that lead to market friction. Be-do-have To identify market friction, examine consumer motivation. I use the \u201cbe, do, have\u201d framework: People are motivated to be something, do something, or have something. Apply this framework to your customers to figure out what motivates them and what keeps them from achieving their goals. Strong vs weak currents The best entrepreneurial opportunities have strong motivational currents. Something that a customer needs \u2014 not just wants \u2014 by a certain time is the recipe for a strong current.  It could be a customer\u2019s need to get taxes filed by Tax Day, or fit into a dress in time for a wedding. When you identify the internal deadline, you can now focus your marketing on it. Why me? Once you\u2019ve found market friction with a strong motivational current, ask yourself: \u201cWhy me?\u201d  Why are you the person to solve this particular problem? Do you have any expertise? Do you understand the complexities of the market? Will it grow your identity capital? Next, consider whether the opportunity will grow your \u201cidentity capital,\u201d a concept coined by Dr. Meg Jay in The Defining Decade. This is the accumulation of knowledge and skills you need to be successful over the long-term. Your calculation depends on where you are on your entrepreneurial journey. When you\u2019re early in your career, gaining identity capital matters more than anything else you can do. Under a big mountain of hard work is the only place where you\u2019ll find your passion. Is it worth it? The next question to ask: \u201cIs it worth it?\u201d Is this worth devoting the next decade of your life to? Because that\u2019s how long many businesses take to become successful.  With Royalty Exchange, we saw that, in the U.S. alone, artists were collecting $3 billion a year. If you put a 5x multiple on it, that\u2019s a $15 billion market, large enough to spend many years pursuing. Do you understand the constraints? Just as importantly, you must understand the natural constraints in the market: What are the limiting factors to success? The market opportunity may be gigantic, but if there are major hurdles to being successful \u2014 government regulation, for example \u2014 then it may not be worth it. Do you have a plan to attack it? Next, do you have a plan to attack the opportunity? When I get most excited about a business opportunity, it\u2019s usually because I can see how I\u2019d attack the market in a new way. Often, it\u2019s a unique approach to distribution. It could be a sales or marketing advantage. What\u2019s the first step? For many people, this next step is the hardest: What\u2019s the first thing you\u2019ll do to drive customers to your door? A lot of entrepreneurs get excited about solving problems \u2014 especially when the market is significant \u2014 but fail to see their vision through. You have to be able to define your plan of attack. Be specific. Write down the first thing you\u2019ll do. Ideally, start small and grow. ","author_name":"Smith Sense","author_url":"http:\/\/smithsense.com","html":"