Another insightful Sweat Equity Saturday in West Des Moines Iowa for small businesses and startups anywhere in our Total Addressable Market. So many good things to report and so little time.
Multi-sided Markets; what stops people from scaling up; respectable directions besides scaling up; TM, SAM and TAM;Primary Market, Secondary Market, Tertiary Market; a fresh new visual for the Startup Curve; the ol’ Feel Felt Found sales technique was brought back to life; Google’s Zero Moment of Truth was applied to the all important sales funnel; driving traffic to your community directory website; applying the Iron Triangle to opportunities that pop up; where projections come from for a startup; reframing failure during the experimental phase of the startup curve; stop writing job descriptions and start writing job functions instead; sales mindsets and more if you can believe it!
How to get out of the scaling trap of not being able to cover greater sales if you hire first, or not being able to have the help delivering on sales if you boost sales first. Beating the burn rate to the break even punch.
Too many business meetings only have time for surface level discussions and broad stroke coverage. On Saturdays we have time to dive as deep as we want. Down the rabbit hole we go.
Multi-sided markets are basically by a business model that depends on 2 or more customer segments and those customer segments don’t exist without the other. Google, Ebay and banks issuing VISA have multi-sided markets. For example, having a credit card issued by your bank is no good unless merchants accept them. Both the merchant and the customer have to apply and be accepted into the each particular credit card system. Multi-sided markets are very challenging because you most likely need both customer segments to see your product as a solution to a painful need both have. It’s not easy and often times it’s a chicken of the egg battle in the beginning – you can’t have one without the other. So, how do you solve this dilemma? Pick the one with the most pain and the immediate pain and would be willing to part with cash for the chance to relieve it. Be honest, but also prove to them the solution to their problem is right around the corner.
Market Size Assessments:
Target Market, Serviceable Addressable Market and Total Addressable Market (TM, SAM and TAM) are important concepts to grasp especially when pitching to investors. The distinction between those three and Primary Market, Secondary Market and Tertiary Market are arguably unimportant for certain startups. They can certainly be acceptable alternatives to calculate and be mindful of when projecting revenues for your startup. For some Mass Market businesses, to calculate simply research potential customers in your metro area, your state and the whole country (if you engage in ecommerce.)
Ah the ol’ Feel Felt Found Gag:
While some sales techniques are the reason for reluctance to become salespeople, the Feel Felt Found technique is still very much alive and relevant. I was reminded of this recently by a complete amateur, or a natural if you prefer. I observed a friend match a momentarily distraught business owner recount how she was turned down for a growth resource. My friend started in with a seemingly random story which had me wondering if he had just hijacked the conversation for no reason. Why is he talking about this? and Where is he going with this? Dominated my thoughts. Skillfully he wrapped up by saying, “And I realized missing the opportunity was for the best.” In a round about way, he had expressed that he knows how she feels because he felt the same way. Finally, he found the silver lining to the random story.
Projections come from working your way back from costs incurred with achieving your revenue goals. You want to sell $100,000 this year. What would all the costs be if you actually hit that goal. What would have to be spent, purchased or incurred. Fixed costs, variable costs, etc.
Scaling your business requires that you know and believe you can. Consider the finite distinctions between the two. Consider the business benefits of personal development.
Seeing the big picture when your getting your head kicked in isn’t easy. But, knowing the stages of the Startup Curve can help give perspective and give you the leeway to swap “It’s not working, so that means the ship is sinking,” to “It’s not working, so that means I just haven’t figured out how to plug all the holes, yet.” Try it on for size. Check out the new, cute and fun below-referenced Slideshare for more.
BOOKS/RESOURCES REFERENCED and/or SHARED:
btw – We don’t just make stuff up at B.I.N.G. Sweat Equity Saturday. We pull from the direct experiences of people in attendance and pull expertise from published authors who have been there done that. Following were sourced for discussion today.
- SCALING UP by Ash Maurya for how to scale your business.
- HOW TO WIN AT THE SPORT OF BUSINESS by Mark Cuban for awesome quotes and insight.
- SMALL GIANTS by Bo Burlingham for respectable alternatives to obsessing over growth on top of growth in perpetuity.
OPERATING PHILOSOPHIES, BELIEFS, AND MINDSETS:
Modeling Success by eliciting and adopting effective mindsets from people who have been there done that is an important element at Sweat Equity Saturday. The following were brought to the surface today.
- Think Big. Start Small. Scale Fast.
- If it happens it happens, if it doesn’t it doesn’t. – Developing a healthy mindset toward big opportunities.
- Opportunities are a dime a dozen. The challenge is deciding which ones to jump on and which ones to release back into the wild.
- Begin with the end in mind. -attributed to the late great Stephen R. Covey
- You’re not doing your qualified prospects any favors by letting them say “no” for no reason.