(Excerpt from Your Move by Ramit Sethi)
In the upper right-hand corner of the chart, you’ve got the Golden Goose. Ideas that fall under this section make GREAT businesses. That’s because these ideas have the potential to get a lot of customers and command a high price. Think of companies like P90X and Apple’s iPhone — lots of customers, pretty high price.
Then, in the bottom right-hand corner, you’ll see Mass Market. Under mass market, you can still get a lot of customers, but you’ll only be able to charge a low price. Think of famous books you might read, like The 4-Hour Workweek. There are a lot of customers, but the price-point is pretty low.
Next, in the bottom left-hand corner, you’ve got a Labor of Love. These are business ideas that have few potential customers and can only charge a very low price. Any business idea that falls in this category is doomed to fail — before it even starts. This is your weekend hobby that nobody would pay for (like my dream of teaching people how to eat spicy foods).
Finally, in the upper left-hand corner, you’ve got High End. This is still a great business option because you can charge a high price, but you’ll likely have relatively few customers. Think about companies like Rolls-Royce and Prada.
