If there’s one lesson I wish I had learned earlier, it’s to go where the masses are.

I spent a big part of my entrepreneurial life trying to find the perfect money making business, thinking of new ways to do things, seeking needs that were waiting to be fixed, and entering niche areas with far too small a market. I figured that’s what you had to do to make money. You have to become the dominant player.

Wrong!

That didn’t help me get ahead. It wasn’t until I realized that it is far easier to be successful as the number 10 player in a crowded market than number one in a small market.

I’m not saying people don’t or can’t make money in a highly targeted niche market, but I found it to be much more difficult. Just think about those inventors that spend all of their life and savings to create a prototype, only to find out nobody wants it.

What has been a far better approach for me is to do what has already been proven to be a successful business model and improve it. Create a similar product or service, but in a way that differentiates you from the others. Maybe it’s a different price point, or maybe it’s some added value, or maybe you it’s your own personal touch.

There are several reasons I believe this is the way to go. To name a few:

1. The big players are doing all of your marketing for you. They are telling the masses why they need a product or service, and all the things it can do for them.
2. Most people prefer to be educated consumers and they will search for the best service or deal. They like options.
3. Other businesses have already done the work for you. You can see what works and what doesn’t, what messages people respond to, and where improvement can be made.
4. There is lower risk because these are markets that have already been identified as an area that people are willing to spend money.

That last point is an important one. Just because there are millions of people that want to learn how to draw anime, for example, that doesn’t mean they are willing to spend money.

While Apple might be making billions of dollars with iPods, there are hundreds of companies in China that produce similar products and are making millions of dollars.

How many different versions of antivirus software are there? How many burger joints do you pass before getting to Wendy’s? How many different books can you find to learn how to flip houses? How many tax service centers do you pass before getting to H&R Block?

I’d much rather compete in those markets than trying to develop and mass market binder clips that have a flashlight on them, or some other obscure product.

Millionaire Money Habit: Sometimes the biggest money making business is staring at us right in the face. Don’t overcomplicate things by trying to come up with the perfect solution. Do what already works and go where the masses are already spending money.

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