Dan Martell - October 24, 2016


How To Discover Your Drafting Strategy In Business

Hosted by
Dan Martell
Mentioned
Lululemon Richard Koch Gary Halbert Stripe Draft Mike
The 5 C's of SaaS Metrics How To Create a Simple Financial Model For Your Business

Episode Stats


Length

7 minutes

Words per minute

208.21

Word count

1,606

Sentence count

69

Harmful content

Misogyny

1

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In this episode, I talk about how to think about your market to find opportunities of growth so that you can insert your product or service in there and get a bunch of benefit of an existing market and where it's going. I really think that most entrepreneurs work way too hard trying to build a product that's a me-too thing, that's not unique, it's not differentiated, it isn't focused on a niche, and essentially because of that they have to work so much harder, sometimes a factor of 3 or 4 to finally make their business work. In this video, I'm going to share with you 3 ways to think through your market and how you can find opportunities to grow in there.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.000 Let's just talk about this 4-Hour Workweek.
00:00:02.960 It was a great hook for a book title.
00:00:05.520 But nobody that could work a 4-Hour Workweek
00:00:09.360 to build the infrastructure, to build a business,
00:00:11.120 to support a life, I think would work a 4-Hour Workweek.
00:00:22.920 Drafting on growth strategies.
00:00:24.880 In this video, I'm going to share with you guys
00:00:26.160 ways to think about your market, to find opportunities
00:00:29.280 of growth so that you could essentially insert your product
00:00:32.160 or your idea or your service in there
00:00:34.120 and get a bunch of benefit of an existing market
00:00:36.560 and where it's going.
00:00:38.060 I really think that most entrepreneurs work way too hard
00:00:41.700 trying to build a product that's a me too thing.
00:00:44.100 It's not unique, it's not differentiated,
00:00:46.040 it isn't focused on a niche and essentially because of that
00:00:49.260 they have to work so much harder,
00:00:50.700 sometimes a factor of three or four
00:00:53.100 to finally make their business work.
00:00:54.840 The other day I was in New York shooting
00:00:56.240 a Facebook Live video and I was just talking about
00:00:59.000 this trend that I saw with some of these software products
00:01:01.760 that choose a niche but they do it strategically
00:01:04.500 where the other platform itself is growing
00:01:07.240 and because they're in that platform
00:01:09.400 that they get to grow, so like early Facebook products.
00:01:12.480 If you think about the one that I was seeing
00:01:14.500 was Stripe Payments, like there's a lot of companies
00:01:16.920 out there that are saying we're integrating with Stripe,
00:01:20.200 we're using their product as the hook,
00:01:23.780 the product hook is what I call it,
00:01:25.100 and then that way anybody uses Stripe,
00:01:26.800 As they grow, they're going to be introduced to our products.
00:01:29.260 So you see this with integrations, FreshBooks integrations,
00:01:32.980 Shopify integrations, and I think that it's such an important
00:01:36.980 way to think about deploying or integrating your product.
00:01:39.740 So that's what I want to share with you because right after I
00:01:42.080 shared that video, Mike, this guy from the UK, followed up and
00:01:45.420 recommended a book by Richard Koch who created, I knew the name
00:01:48.680 because he wrote the 80-20 principle, but it's called
00:01:51.400 Rising Star.
00:01:52.000 So the first principle I want to share with you guys to help you
00:01:54.560 Draft off of growth is one that comes straight
00:01:56.740 from his book called Rising Stars.
00:01:58.500 Now, I used to call this transcending vehicles
00:02:00.880 because of my buddy Gare, but it's the idea
00:02:03.060 that if you can attach yourself to a market
00:02:06.540 that's growing, that you'll do really well.
00:02:09.040 I mean, to me, it's the idea of high ties rise all boats.
00:02:12.980 One of my mentors, Ken, said this to me.
00:02:14.660 He's like, hey, you just gotta pick the right market
00:02:16.500 to get into, and if you can be mediocre,
00:02:19.520 because it's growing 20, 30, 50% a year,
00:02:22.400 then you'll actually build a business.
00:02:24.280 And I mean, that is probably some of the best advice
00:02:27.160 I've ever gotten is choose the right market.
00:02:29.680 You know, I see this with, you know, Lululemon and yoga.
00:02:34.300 Yoga was a growing industry.
00:02:35.960 Lululemon was an apparel company.
00:02:37.660 They essentially tied themselves to that.
00:02:39.700 They grew and now they're in other categories.
00:02:41.860 One that I've seen recently on software
00:02:43.600 is a product called Zen Planner that's used by CrossFit gyms.
00:02:47.560 And what's cool is obviously CrossFit's this crazy,
00:02:50.680 phenomenal fitness program that's grown to like now
00:02:54.280 I think it's like 16,000 affiliate across the world
00:02:57.240 and they are, most of them are using Zen Planner.
00:02:59.320 And I met with the founders at the CrossFit Games this year
00:03:02.700 and I asked them, like, how did you start?
00:03:04.360 Did you focus on CrossFit?
00:03:05.820 And they said, no, we focus on martial arts studios.
00:03:08.840 We discovered CrossFit because one of our customers
00:03:11.160 was also a CrossFit affiliate owner
00:03:13.880 and then we decided to double down.
00:03:15.560 The company is doing incredibly, I mean,
00:03:18.380 if you're a software SaaS founder
00:03:20.340 and you haven't niched in to a growth market,
00:03:22.860 another industry, or another technology platform,
00:03:27.280 product that's raised a bunch of money,
00:03:28.820 then you're really working harder than you need to.
00:03:31.140 So that's number one, is find a rising star.
00:03:34.340 Second is feed a starving crowd, or starving crowd,
00:03:38.700 I borrowed that one from my buddy Rob,
00:03:40.740 but Gary Halbert once told a story,
00:03:43.100 and it's a really great one to understand.
00:03:44.720 He asked a group of students, and he said,
00:03:47.840 if we were starting a burger joint,
00:03:50.260 and you had to pick one competitive advantage
00:03:54.180 in this burger, what would it be?
00:03:55.980 And some people said, well, I want the best meat.
00:03:59.180 I want sesame seed buns.
00:04:00.940 I want to make sure it's in the right location.
00:04:02.620 They had all these different characteristics
00:04:04.940 of what they considered a competitive advantage.
00:04:06.820 They said, cool, I'll give you
00:04:08.700 all of those competitive advantage.
00:04:10.800 He's like, whatever you want,
00:04:11.920 you can have them to these students.
00:04:13.620 He said, the only one that I want is a starving crowd.
00:04:18.040 Pretty interesting concept.
00:04:19.640 I mean, to me, that really means that there needs
00:04:22.240 to be a need, right?
00:04:23.600 In the market, there needs to be a need.
00:04:25.100 And if you can find that for your product,
00:04:27.140 then you will draft off of the growth
00:04:29.220 of just the need in the market that's not being filled.
00:04:31.860 And as a founder, that is your responsibility
00:04:34.680 to be creative and go deep and continue
00:04:36.840 to ask the questions to finally figure that out.
00:04:38.880 Even if you're not there today,
00:04:40.520 you can reposition the product to find that crowd
00:04:43.820 that's starving, so that's number two.
00:04:45.320 Three is really about fishing where the fish are.
00:04:48.220 This one is such an important part,
00:04:50.180 because especially with platforms like Facebook
00:04:52.280 where you can be super strategic
00:04:53.620 and focus on who your customers are,
00:04:55.900 there's a lot of power in understanding
00:04:58.040 where your ideal customers are.
00:05:00.460 Yesterday I had a lunch with a friend of mine,
00:05:02.720 and he was talking about his tiny homes company.
00:05:05.560 And I was like, man, tiny homes,
00:05:06.700 I never thought about that, but yeah.
00:05:08.200 And then this other guy that was with us,
00:05:10.280 another founder said, you know what,
00:05:11.480 I've been thinking of building one
00:05:13.720 that's really interesting that we're having lunch,
00:05:15.700 give me your card.
00:05:16.540 And I was like, you know what,
00:05:17.460 I'm kind of maybe interested in building one.
00:05:20.100 And then he goes, yeah, I've got this piece of land
00:05:23.140 I don't know what to do with,
00:05:23.980 and I thought that would be a perfect solution.
00:05:25.700 And I said, I have a piece of land.
00:05:27.320 I wanted the same thing.
00:05:29.220 It was like, either you get a trailer motorhome,
00:05:30.840 because it's like a camp, you're never there.
00:05:32.820 And then I thought to myself,
00:05:34.800 and I was talking to the entrepreneur,
00:05:35.720 I said, look, look, look at,
00:05:37.600 there's two people out of six
00:05:39.940 that are interested in buying your product.
00:05:41.220 What do we have in common?
00:05:43.480 And he's like, I don't know.
00:05:45.100 And I said, we both have land that's not being used.
00:05:48.120 Now, if that's a potential avenue you could go down,
00:05:51.620 fish where the fish are, could you get a list
00:05:53.940 of everybody in this state or province,
00:05:56.280 depending on what country you live in,
00:05:57.640 that has land that doesn't have a building on it?
00:05:59.660 Can you get that list?
00:06:00.580 The answer is yes.
00:06:02.040 That is your potential customer base.
00:06:03.900 So that is the concept that I wanna share with you
00:06:06.160 in regards to fish where the fish are.
00:06:08.260 So number one, just to recap, rising stars,
00:06:11.040 pick a market or category, an industry that's growing
00:06:14.140 and insert yourself in the product hook is what I call it
00:06:16.840 to make sure that you can grow with that market.
00:06:19.320 Number two is feed a starving crowd. 0.94
00:06:21.540 Make sure that that market has the need for your solution
00:06:25.100 so that they want that more than the features
00:06:27.340 and the benefits and all these other bells and whistles.
00:06:29.620 They just have the need
00:06:30.680 because that'll be the easiest sell you ever make.
00:06:32.480 And then finally, find a place where the fish are.
00:06:36.760 Make sure that you are actually fishing in the right pond
00:06:39.900 and ask yourself, out of my top customers,
00:06:42.040 What are the characteristics, both in their personal life,
00:06:44.480 the way they make decisions, maybe their financial status,
00:06:46.980 that might mean that that's why they are my ideal customer
00:06:50.340 and how can I go find more like them?
00:06:52.500 So my question to you in the comment I would ask you
00:06:54.940 to leave below is what market do you want to serve?
00:06:58.080 Not where you're at today, but if you can think back
00:07:00.480 and ask that question, where do you think
00:07:02.540 you might want to go next?
00:07:03.540 You don't have to tell your company or product idea
00:07:05.520 because you might feel like that's competitive,
00:07:07.320 but I would love to hear from you below in the comments
00:07:10.360 on your market you wanna serve.
00:07:12.040 Where's the starving crowd?
00:07:13.820 Where's the fish?
00:07:15.040 What's your rising star?
00:07:16.440 Hook onto it, grow your business.
00:07:18.180 As per usual, I wanna challenge you to live a bigger life
00:07:20.420 and a bigger business, and I'll see you next Monday.
00:07:22.420 If you like this video, be sure to subscribe to my channel
00:07:24.480 for other tips on how to start and grow your business,
00:07:26.560 and I'd also encourage you to join my newsletter
00:07:28.840 where I share exclusive invites to events,
00:07:32.060 community contests, and other free training videos,
00:07:34.200 and if you're ready to get going,
00:07:35.240 check out these couple of other videos
00:07:36.620 that got queued up for you to go today.
00:07:39.180 Have an incredible day.
00:07:40.020 So blessed to have you here.
00:07:41.560 I'll see you next week.