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

Sharpen The Angle How smart entrepreneurs quickly go from good idea to great idea and to profitability. Good IdeaGreat IdeaProfitability

How Does David Beat Goliath

The Audit Checklist Sharpen the Angle Need to Believe Reason to Believe Blows Away Expectations Quantifiable Support Unique Product Claim Ride Horses Do you have powerful help Benefactors Beta customers Anchor customers Rabbits and elephants Heroes Positive mojo culture Play Big Feed a frenzy Underdog benefits Catch phrase Touch points Web of advisors Do an Event Experiential events Love fest Compelling product demonstrations Reap the Rewards Sell, sell, sell Lower barriers Value price Right channel Augment core

Successful BYU Student Entrepreneurs

My Entrepreneurial Experiences

Lifestyle Happiness OccupationOverall well-being Source: Gallup-Healthways Well-Being Index 2009 Note: Scores are based on respondents’answers to six categories of questions about work and life quality Business Owner 72.5 Business Owner 72.5 Professional 71.5 Professional 71.5 Manager/Executive 70.9 Manager/Executive 70.9 Farming/Forestry 67.8 Farming/Forestry 67.8 Sales 67.6 Sales 67.6 Clerical 66.1 Clerical 66.1 Construction 65.0 Construction 65.0 Installation 64.4 Installation 64.4 Service 64.0 Service 64.0 Transportation 62.6 Transportation 62.6 Manufacturing 62.1 Manufacturing 62.1

Motivation to Write the Book!

Lessons Learned Entrepreneurs are Tactical (botton-up) not Strategic (top-down) Incremental Innovations Creativity Loves Constraints Key to Success is Developing Angles

Must Be Tactical not Strategic Corporations are obsessed with “what they want to do.” Companies set the strategy first and when if fails, they try to figure out what they need to do is adjust the tactic. Entrepreneurs win or lose at the tactical level, not at the strategic level

Incremental Innovations “Entrepreneurs seldom invent and market radically distinct products; rather, they build their ventures around incremental innovations and modifications.” --HBR 1998

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

Creativity Loves Constraints! Plumber Truck

Creativity Loves Constraints!

Let’s Test Your Creativity to find a New Product or Angle using the Process of Constraints! New Umbrella New Hot Dog New Watermelon

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

What You Do Need! 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 a large, addressable market for the large, addressable pain?

The Right Question: Quotes to Live By The question is not what you look at but what you see. Henry David Thoreau If I had asked my customers what they wanted, they’d have asked for a faster horse. Henry Ford Never ask a consumer what they want, ask them what problems they are trying to solve!

Klymit Solves the Problem

Klymit

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 - Are the benefits easy to demonstrate not just describe? 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

Develop a Reason to Believe! Invent a new soap for parents that will “make them believe” children really are washing their hands!

Squid Soap Teaches Proper Handwashing! Press pump & get "inked" (non-toxic, child safe ink) wash for 15 to 20 seconds Ink's gone - hands are clean and healthy! Cleaner hands. Healthier kids.™

Five Dimensions of an Angle 1.Need to Believe - Is there a large, addressable market for the large, addressable pain? 2.Reason to Believe - Are the benefits easy to demonstrate not just describe? 3.Blows-Away Expectations - Is there a specific usage situation or consumption experience being targeted? 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

Five Dimensions of an Angle 1.Need to Believe - Is there a large, addressable market for the large, addressable pain? 2.Reason to Believe - Are the benefits easy to demonstrate not just describe? 3.Blows-Away Expectations - Is there a specific usage situation or consumption experience being targeted? 4.Quantifiable Support - What are the numbers supporting the relative advantage? 5.Unique Product Claim - How is this unique compared to the closest competition?

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.

Mini Case: Aprons Make Them Unique!

Flirty Aprons

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

Super Law # 2: Ride Horses Best Practices: Benefactors Beta Customers Anchor Customers Rabbits and Elephants Heroes Positive Mojo culture

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 Ride Horses!

Horses and Endorsers are not the Same! Power to make choices Recognition for contribution Credibility among peers Stock to increase wealth Being part of a winning team A-List Horses cost... A-List Endorsers cost... Hard cash Long green Scratch Wampum Mucho dinero Entrepreneurs must earn passion and make heroes because they can’t afford to do otherwise! But I Can’t Afford a Horse!

Want a Horse? Why would a Horse want to be associated with a new angle in the market? 2 Trade Association President 3 Local expert in your State Looking smart and up-to-date 1 Industry Guru Angles with “wow factors” put them on the cutting edge Looking credible because he/she is a “thought leader.” Experts love to jump on a winning bandwagon Good angles attract powerful horses!

Student Gets a Horse

Super Law # 3: Play Big Best Practices: Feed a Frenzy Be an Underdog Hatch a Catch Phrase Reach out with Touch Points Build a Spider Web

Play Big--Be a Puffer Fish Perception is Reality Uninflated Spiny Puffer Fish Inflated Spiny Puffer Fish

Why Puffer? Customers want to see a stable company, but you are not established Advisors want to work with a viable company, but you are not proven Suppliers want to partner with the industry standard, but you are a niche player Partners want to team up with a reputation-builder, but you don’t qualify So Play Big even though You’re Not

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

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

Will It Blend

Gary Rhoads Stephen Mack Covey Professor of Marketing/Entrepreneurshiptephen Mack Covey Professor of Marketing/Entrepreneurship kendallhunt.com Thank you Marriott School Brigham Young University