Daniel Fazio (creator) presents a short YouTube video advising beginners on the best online business to start for 2023. He contrasts product (e-commerce) versus service businesses, argues services are better when you have time but little capital, introduces 'market sophistication' levels to motivate choosing low-saturation offers, and recommends creating short-form video content (TikToks, Reels, YouTube Shorts) for businesses as a Level-1 opportunity that requires mainly time and basic editing skills. He outlines learning paths (watch tutorials, practice, offer free work), outreach (Twitter/LinkedIn direct messaging, landing page), likely client types (course creators, software companies, coaches, agencies), and mentions a community resource (InternetMoneyGroup).
Chapters
Hey, so if you're watching this video, you're probably a normal person and you have a lot of time, maybe not a lot of starting capital, and you want to start a business going into 2023, but you're not sure what to do. So in this video, what I want to do is break down what I believe is a really good opportunity to start right now. Even if you don't have a lot of starting capital now, there's no business on earth that's going to require no time. You will have to put a lot of effort into this, but it can be easier. And what I want to do in this video is break down why this particular business I think is the best to start for a beginner, right. First I need to explain to you why I think this is the easiest one. So what we're going to do is we're going to hop into our trusty Google Doc and I'm going to break it all down. And then at the end of the video, I'm going to tell you what I believe is the best business to start in 2023, particularly as a beginner. So let's get right into that. Okay? So the first thing I want to go over about the best business is understanding a product business versus a service business, right? So if you're running a product business, think of like an E commerce store. You have invent are selling a physical item to somebody, right? If you're selling a physical item to somebody requires capital to purchase the inventory and then it requires ad spend for the traffic, right? So this means that a product business is low capital efficiency for low margin. And you can visualize this like this. So you make a $100 sale minus $30 for the product, minus $30 for the advertising cost, which is going to leave you with $40 for profit, right? And now we can compare this to a service business, right? A service business requires time instead of capital for fulfillment. What that means is that you particularly sell this to other businesses, right? Think like a social media marketing agency, right? You it requires time to fulfill the service. So if you have more time than you have capital, it's pretty efficient to just use the time, right? It does also require ad spend if you're using using ads to grow the business and acquire clients. Or the particularly nice thing about a service business is that you can replace that with outbound marketing time. And what I mean by outbound marketing is directly messaging businesses or directly emailing businesses. And if you have some balls, you can do some cold calling, right? So if you have not a lot of money, but you have a lot of time. You should make a service business. There's no business on earth where it's not going to require time and it's not going to require money. That's never going to happen. You have to put a lot of effort into to this, right? So this leads me to what's the best service business to sell right now? Because things get saturated, people do things, it becomes harder and harder to get clients. So you have to understand this first. And I talked about this in my 0-30k a month video that I'm going to link up above in the corner, all the way over there. And it's market sophistication levels. And what you have to understand about market sophistication levels is as more and more people come into a particular offer, it becomes more and more difficult to get clients for it, right? So we're looking for something with a market sophistication level of 1. Basically nobody is doing it and basically everybody wants it, right? So this is like this was Facebook ads back in 2014 or 2015. We'll run your Facebook ads for you. Was huge, right? And then as you get to level two, more and more people do it and you have, your claims have to go higher and you have to have more proof that you're better, right? And then you get to level three, more and more and more people keep coming on, right? So now your sales tactic becomes showing customers how it works. And this is where people start introducing courses and whatnot. The claims become exaggerated and you have to show them how it works and you have to introduce more mechanisms, right? This is where like offshoots come off. So a good example of this is software that makes using Facebook ads better or, or services that just provide you with the creatives for the ads, right? These are where offshoot start to come in. Level four is cold war. Your thing just has to be faster, cheaper, faster, cheaper, faster, cheaper. Just continuously. Level five is storytelling. Basically the only way to get clients with an offer that's a market sophistication Level 5 is because people are purchasing it from you as opposed to purchasing the service. They are more interested in working with you as business. And this is, this is where personal brand comes in. The only way you're going to get clients if people are just buying it from you, right? Because it's so commoditized. So what we're looking for is something that doesn't require a lot of capital and something that is market sophistication. Level one. It is basically extremely easy to do it right now, right? So you need a service business market sophistication level one. And I'm going to tell you what that is right now, what I believe to be the one right now. So if you're watching this video, the earlier you see it, the more it applies because it will go through this sequence over time. You have about eight to 10 months from the posting of this video until it begins to get to level two and level three, right? And I believe it is creating short form content for businesses, right? Making TikToks YouTube shorts and reels for them. And the reason why is because it's a service business and it requires nothing other than your time. You can use outbound marketing to outreach to businesses. You can directly message them, right? And it's at sophistication level one. So it's extremely easy to sell it. A lot of people want it and it only requires your time and not a lot of capital. You will spend a little bit of money doing like an editing software or, or using some outreach tools like cold email. You will do this. Yes. Every single business is going to require some amount of money, right? But it is not a lot compared to what you would otherwise spend with a product business, right? So if you were to do this business, what do you need to do, right? Well, you need to learn how to do the thing, right? You need to learn how to do video editing. And this has other points where it's like actual editing psychology behind good videos, like what makes a good short video. And you will, you'll find this by observing like if you just scroll, I know you guys are scrolling on tick tock and YouTube shorts all day. Like, don't you? If you just observe like you really have to look what is happening. Why do some videos blow up? And it has a lot to do with the hook and just the way the video is designed. And you want to engineer this to be able to replicate this, right? This is what you're looking for, right? Means become good at the thing, right? And this is going to take a lot of effort. And now you might be asking, well, how do I do this? Go on YouTube, look up, look up tutorial about how to use Premiere Pro or how to use, how to use this video editing software and then scroll yourself on, on real, get a notebook and write down like this is a huge video, why, what happened? And deconstruct what exactly is happening, right? And then go try it on yourself. Like try, try to make those videos yourself or go Offer it to free for someone. I'm going to make a video on that about how to sign clients when you have zero getting your first, when you have no results, you have no social proof whatsoever. I will make a video on that. So if you want to see it, leave a comment below. But then you'll need to set up a landing page with a video on it explaining what you do and then create a Twitter and LinkedIn account and start direct, direct messaging business owners pitching your services. Right. The kinds of businesses that will buy this would be people who sell courses, people who sell. People have software companies, people who sell coaching services or people who do agency services. Those, those are, those are four I'm thinking of off the top of my head. Those would work very well. I know a guy who's doing tick tock marketing for local businesses actually in Singapore which is very interesting. But yeah, this is what I believe is a, is a really good offer to do going into 2023. You have about 10 months until it starts getting more difficult. So if you're seeing it now and you haven't decided on something to do it like just stop, stop waiting, become the guy, like become extremely good at it. And now what's going to happen over time is you're going to, you're going to be working with businesses and then you're going to start to discover the issues they're having. Like oh, they're selling some kind of like course and they're leading people to the landing page. And then the landing page they're collecting an email and then after they submit the email it takes them to a checkout form. Now they might have another issue where it's like well what can I say in the, in the email follow ups to, to help them do more signups. Now you start, you're like okay, now you start watching more videos about copywriting and email flows and you start learning about that. And then you go through this massive sequence that is just years long of figuring this out, then this out, then this out, then this out and then this and half of it you, you're just learning for free on YouTube. Right? But if you do want to be a part of a community of, due to our running businesses like this, running agency businesses, productized service businesses, some software companies, you should go to Internet moneygroup.com I'm going to leave a link in Description. That is my group for beginners and I have this whole course in there called Indoctrination. It's a whole bunch of videos that basically if you're an absolute beginner. You should watch it. 1, 2, 3, 4, 5. And I'm going to email you every day and tell you to reply to me that you have, in fact, watched the video. But check it out. I'll leave the link below, but this is a good business. You should do it. And that's it for this video. Let me know what do you want to see in the next one. Leave a like, subscribe. I would massively appreciate it. And I'll link another video over here if you want to keep watching. I'm going to link my Twitter video, my guide to Twitter video. Combine this, this service with marketing on Twitter. I'm going to link it in the corner over here. Go watch that. And then this will that'll help you. That's it for me today. Farewell, my friends.
