Boom Start Super Laws of Successful Entrepreneurs Gary Rhoads Stephen Mack Covey Professor of Marketing/Entrepreneurshiptephen Mack Covey Professor of Marketing/Entrepreneurship Lessons Learned from 10 years of research with Entrepreneurs

Successful BYU Student Entrepreneurs

My Entrepreneurial Experiences

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Proprietary idea Exceptional qualifications Significant capital What You Don’t Need

What You Do Need! Angle Horse Events

Entrepreneurial R&D Rip-off... identify a good idea from your neighbor where there is significant pain or opportunity Design... modify, add to, take away, make it harder, use it differently, or completely change the product by sharpening the angle

Method 1.Take something out of your product 2.Put something in your product 3.Answer to consumer gripes 4.Visible difference 5.Make the task easier 6.Use products in a new way 7.Product substitutability 8.Don’t be literal, be creative 9.Look overseas Example Royal Crown removed caffeine Adding fruit juice to soda “Locked my keys in my car” “Same old cereal” Time-consuming oven cooking Wine mixed with seltzer Cereal substitute for cereal-avoiding teens A healthy Popsicle Healthy Breakfast Result First decaffeinated cola Slice Warning bell Adding X’s to the O’s in Cheerios Jet Stream Oven Wine coolers Total Breakfast Bars Dole Fruit Juice Bars Yoplait Yogurt Nine methods for Developing New Angles/Categories

Super Law #1: Sharpen The Angle

Five Dimensions of an Angle 1.Need to Believe 2.Reason to Believe 3.Blows-Away Expectations 4.Quantifiable Support Unique Product Claim

Big Problem = Big Opportunity Nobody will pay you to solve a non-problem! Sharpen the Angle - NTB 1.Need to Believe - Is there enough pain or opportunity to make people pull out their credit card?

What are the problems with keeping warm & comfortable when skiing?

Klymit Solves the Problem

Klymit Products

Five Dimensions of an Angle 1.Need to Believe - Is there enough pain or opportunity to make people pull out their credit card? 2.Reason to Believe - Does the product “touch the human sense of believability” with a compelling proof- point? My mama always said, “seeing is believing!”

Which has the better RTB? Golfers want to putt the ball straight... so which putter has the strongest reason to believe? A B

Strong RTB = Strong $ale$ GOLD (EDITOR'S CHOICE) ODYSSEY WHITE HOT XG 2-BALL SRT STREET PRICE: $200. SPECS: Eight Versions (White Steel, White Hot and regular 2-Ball). KEY TECHNOLOGY: The 2-Ball uses golf-ball- size discs on the top of the putter to help the user align square to the target. The SRT has an alloy ring that pushes weight away from the center of gravity in the aluminum head, providing support and increasing moment of inertia. PANELIST COMMENTS: "It has become the standard others are measured against.... This well-worn design just keeps getting better every time they redo it.... The insert is an improvement over the White Steel in terms of feel." JUDGES' VERDICT: It's almost impossible to remember what putting was like before the 2-Ball. It's not a gimmick, certainly not in its latest technological form. The ring improved moment of inertia last year, and the White Hot XG insert creates a favorite feel this year. Golf Digest - Hot List Again

Five Dimensions of an Angle 1.Need to Believe - Is there enough pain or opportunity to make people pull out their credit card? 2.Reason to Believe - Does the product “touch the human sense of believability” with a compelling proof- point? 3.Blows-Away Expectations - Does the product dominate a situation and deliver superior value? Dominate the situation to nail the need!

Dominate a Usage Situation Single working adults Married no children Married with children Quick gut fill Too tired to cook Weekend reward Time to celebrate Person Situation

The Challenge Facing Technology Firms Failure to Dominate

Suppose General Motors makes an electric car, and Ford and Chrysler follow. Let’s assume the cars work like any other, except they are quieter and better for the environment. Now the question is: When are you going to buy one? Technology Adoption “Not until hell freezes over” “When I have seen electric cars prove themselves and when there are enough service stations on the road.” “Not until most people have made the switch and it becomes really inconvenient to drive a gasoline car.” “I want to be first on the block with an electric car.” Innovator/ Early Adopters Late majority Early majority Laggard

Crossing the Chasm:Winning Over Pragmatists (Early Majority) 1. Target a very specific niche market (person- situation). 2. Assemble the invasion force (partners, allies). 3. Define the battle (USP). 4. Launch the invasion (marketing mix).

Five Dimensions of an Angle 1.Need to Believe - Is there enough pain or opportunity to make people pull out their credit card? 2.Reason to Believe - Does the product “touch the human sense of believability” with a compelling proof-point? 3.Blows-Away Expectations - Does the product dominate a situation and deliver superior value? 4.Quantifiable Support - Are there facts and figures to enhance product claims? 5.Unique Product Claim - Does the product earn its way to occupy a unique position in a customer’s mind?

How do you compete with... Coca-Cola and Pepsi? Create a new category and dominate a situation--extreme sports!

Sharpen the Angle - UPC Unique Product Valued by Customers Flop Low Price

Your unique claim must be valued by the customer.

School Tipline

Believing in Yourself and Working Hard: Is the Key to Entrepreneur Success, Right? All things come to those who hustle while they wait. Thomas Edison

–High –Med –Low Ride Horses! The key to success in life is learning to believe in and rely on others Find the sort of horses that you can ride to the bank A fast set of horses increases your speed to market It’s not about “what you know”...it’s about “who you know” A good horse will be a champion for your “blue ocean” angle ‘Stand Alone’ Success Factor

Super Law #4: Throw an Event Best Practices: Get Experiential Have a Love Fest Make Demonstrations Compelling

–High –Med –Low Marketing Events Marketing tactics are really marketing events Events can be activities, exhibitions, hoopla, happenings, gatherings, tournaments, competitions, matches, races, games, etc Having a focus on throwing Marketing Events reminds us that we are selling a consumption experience and not just a product ‘Stand Alone’ Success Factor

Will It Blend

–High –Med –Low Success Factor What to Demonstrate! Blow Away Expectations by Showing off the relative advantage and fit with the day-to-day

Entrepreneurial Quote to Live By If I had asked my customers what they wanted, they’d have asked for a faster horse. Henry Ford

Text How Entrepreneurs Do Research?

How Entrepreneurs Do Research! 100%gut-feeling Could be very risky 100% research “Analysis Paralysis” Gut Intellect Entrepreneurs often use their instincts to make quick decisions Some basic data can be relatively easy and inexpensive to collect helping to educate the intuition Analysis Paralysis can defeat you

Is Marketing Research Worth the Expense? A survey of small business managers in Texas revealed that 84 percent of those who conducted formal marketing research projects in the past three years felt that the information obtained was worth the money spent. Overall, 58 percent said that they were able to incorporate the research findings into their decision-making process. Only six percent reported that they were not able to implement the results. Consequently, when small businesses do engage in marketing research the benefits usually exceed the costs. -David J. Snepenger, Montana State University College of Business ( ) A survey of small business managers in Texas revealed that 84 percent of those who conducted formal marketing research projects in the past three years felt that the information obtained was worth the money spent. Overall, 58 percent said that they were able to incorporate the research findings into their decision-making process. Only six percent reported that they were not able to implement the results. Consequently, when small businesses do engage in marketing research the benefits usually exceed the costs. -David J. Snepenger, Montana State University College of Business ( )

Win the Swing! ✓ Need to Believe ✓ Reason to Believe ✓ Blows-Away Expectations ✓ Quantifiable Support ✓ Unique Product Claim But, use the Love Group to Sharpen the Angle by pinpointing the passion! LoveSwingHate Yes, the Swing Group is the biggest opportunity...

Used “gut-feeling” Single biggest mistake they made in the beginning was not collecting data on customers First 7 of 9 books failed Could have saved hundreds of thousands of dollars and years of efforts Used “gut-feeling” Single biggest mistake they made in the beginning was not collecting data on customers First 7 of 9 books failed Could have saved hundreds of thousands of dollars and years of efforts

Always Look for a Better WayDo Things Faster, Better, Cheaper!

TESTING IDEAS THAT STICK Test multiple concepts to h ide your “big idea” Reveal the concept, step-by-step, and watch for reactions! Ask for a summary and clarifying questions, but don’t be defensive about objections - smile and explore! Measure the WOW - are they ready to pull out their credit card and buy? Use the Six Thinking Hats on your favorite concept - carve yourself out some blue ocean!

What’s the WOW Process?

The “WOW” Factor Does your Angle Create Interest in the Market? Ideas are the new currency in corporate America. Walter Wriston

Six Thinking Hats ✤ White Hat - Facts ✤ Red Hat - Emotions ✤ Black Hat - Negative Judgement ✤ Yellow Hat - Positive Judgement ✤ Green Hat - Alternatives and Creativity ✤ Blue Hat - Thinking about Process Edward de Bono Hats... How do you get consumers to be creative, and stop being persistently negative or positive? The six thinking hats is a questioning approach to get consumers to be creative in seeing the total picture (positive, negatives, opportunities, and potential problems) when developing and discussing new products or ideas.

Wow Factor

Six Questions You Need to Know Who.....is going to buy the product? What....is the benefit they are buying? When...do they make their purchase decision? Where...do they expect to find this product? Why......buy this vs. other brands/substitutes? How.....do they buy and the use the product?

Gary Rhoads Stephen Mack Covey Professor of Marketing/Entrepreneurshiptephen Mack Covey Professor of Marketing/Entrepreneurship Michael Swensonihael Swenson ForFord Professor of Marketing Professor of Marketing DavDavid WhitlarkdWhitlark J.C PJ.C Penny Professor of Marketing kendallhunt.com Best Wishes for Success! Marriott School Brigham Young University