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Regulation Inflections Framework

Reusability

A method for identifying business opportunities by tracking regulatory changes that unlock previously restricted markets or create new compliance requirements.

How It Works

Regulatory changes create sudden market inflections where entire industries can emerge or disappear overnight. By monitoring policy shifts, entrepreneurs can position themselves ahead of these inflections.

Components

1

Monitor regulatory agencies for proposed changes

2

Identify which changes create new opportunities vs. eliminate existing ones

3

Assess timeline for regulatory implementation

4

Build relationships with regulatory bodies

5

Position business to benefit from upcoming changes

When to Use

When entering regulated industries, planning long-term business strategy, or looking for moat-protected opportunities that competitors cannot easily replicate.

When Not to Use

In fast-moving consumer markets where regulation is stable, or when building products that don't interact with regulatory frameworks.

Anti-Patterns to Avoid

Building businesses that depend on regulations staying the sameIgnoring regulatory risk in business planningAssuming regulatory changes will happen faster than they typically do

Example

Hearing aids going over-the-counter in 2022 opened the market to new players. FAA approving beyond-line-of-sight drone flights enabled delivery services. New York banning Airbnb eliminated short-term rental opportunities.