Hello friends!

In the last decade, I’ve observed hundreds of successful entrepreneurs in my peer group.

Here is what I learned about getting an unfair advantage in business (and life).

Let’s dive in.

Target High-Friction Sectors

While 99% chase the low-hanging fruit. Seek out spaces where the friction is higher.

ASK: How difficult is it for an average person to break in?

Friction is any time you need:

1. Capital to invest

2. Specialized skills

3. Specific experience

4. Time requirement to start

5. Higher level of effort required

6. Networks and strategic relationships

7. Being 10x better (level of excellence)

8. Higher level of strategy and problem solving

9. Patience (remember most need instant gratification)

Sectors with low barrier to entry

Any sector, where virtually anyone can get started with only a laptop and a wifi connection. e.g. social media content, drop shipping, freelancing.

Friction can be something you apply to a “low barrier to entry” industry.

If you are selling physical products consider this example:

Drop-shipping = low barrier (all you need is a product, a website).

This means more people will start, which leads to market saturation, which leads to price competition.

Having Inventory = high barrier (you need capital to get started, warehouse space, staff). Less competition, more advantage and thus can charge premium.

You can stand out in other ways too:

• Get into a niche.

• Find a unique product line.

• Secure an exclusive license.

• Find a business partner to invest capital.

Pursue opportunities that:

• Allow you to gain an advantage by putting in more time. e.g. can you stay late, start early?

• Give double the effort as the best person in that field.

• Use excellence as your competitive advantage.

• Anything requiring Complex Problem Solving

• Necessitate Patience: Choose tasks where patience is essential, countering the common desire for instant gratification.

• Involve Strategic Thinking: Engage in opportunities that require thinking five steps ahead, planning strategically for the future.

• Call for Specialized Knowledge: Focus on areas where your unique and specialized knowledge can be applied effectively."

📓✒️ Reflection Question #1

What can YOU do that most are not willing or cannot do?

📓✒️ Reflection Question #2

What unique, specialized knowledge or skills do I have that set me apart?

📓✒️ Reflection Question #3

How can I strategically use my existing network or build new connections?

To gain an unfair advantage, seek challenges, invest in learning, specializing, and leveraging relationships.

Identify your unique strengths and use them to your advantage.

Thanks for reading!

Till next week,

Noemi