Featured Coaching Excerpt - Notes & Transcript, Part 1
16 Steps To Creating A Dream 100 List: 3. Determine Where They Live
Notable Quotable: "What I tell founders is not to sweat the business model too much at first. The most important task at first is to build something people want. If you don't do that, it won't matter how clever your business model is." - Paul Graham (One of the four founder of Y-Combinator that has helped to launch Dropbox, AirBnB, Reddit, etc.)
Ask Yourself: Where do my likely buyers live?
-So this third area is, you want to determine where they live, where they live. And I'm going to read this quote to you, OK? It says, "What I tell founders is not to sweat the business model too much at first. The most important task at first is to build something people want. If you don't do that, it won't matter how clever your business model is."
So what we're talking about, is Paul Graham is saying, you want to build something that your users want, that your customers want, but how are you going to do that if you don't know where they live or who they are, or you haven't defined them?
So as an example, I live in Oklahoma. There's just not a whole lot of hockey players here. Now there is some, my son played hockey for awhile, but we don't have a huge hockey industry. Do you guys have a lot of hockey up there in Oregon?
-There's a little bit, not much.
-But if you lived in Minnesota--
-And you were a sports store, you'd probably want to carry a ton of a hockey paraphernalia. So you'd want to carry a ton of hockey apparel. You'd want to have the hockey shirts, the hockey t-shirts, to hockey hats.
But if you're in Tulsa, you probably don't want to have very many. So you have to decide, OK, where do my customers live? And if you're that store that only specializes in hockey apparel, maybe you don't even want to be in Oklahoma because they all live in Minnesota. And so you need to ask yourself, where do they live? Does that make sense?
-Because if you do what Paul Graham says here, and he says, "The most important task at first is to build something people want," what if you build something people want but the people that live right around you, or the people you're marketing to, don't want it?
MALE VOICE: So what about for-- let's say I've been doing commercial for businesses, like promote social videos for businesses. There's businesses all over the place, all over the United States. Where do I want to market that most at? Do I want to go to the bigger cities? Do I need to like-- I guess that's my question, because bigger cities means more businesses.
-I will say this, this is a stereotypical statement that's, if you're living in [BLEEP] you're greatly offended by this, I'm sorry. But here we go. Where I grew up, in [BLEEP], there's a lot of great people there, but the video quality wasn't very good.
I don't think very many local companies outside of the car dealerships even ran commercials, and if they did run them, they weren't awesome. And so the market for a really well done video is really not that strong, because people are like, well, my video looks good enough. And you're like, your video looks pretty terrible. But they go, no, it looks good enough. But in the cities, it's more competitive. And so now a high quality-- because I know what you do is make high-quality videos.
MALE VOICE: Yeah.
-Yeah you're probably going to have a lot easier sell for a high-quality video in a market that values high-quality videos. So I would recommend that you would focus on more of the cities around you.
MALE VOICE: Because I'm aiming for the big businesses that have the money, or for the people that have money. And so, that's what you're saying. If I go into the bigger cities, I can find people with more money.
CLAY CLARK: Yeah. But if you're watching this and you specialize in selling chickens-- you know, my wife and I own all these chickens now. Well, as it turns, all the people who are raising the-- I don't want my secret getting now, babysitter sort of thing.
-(WHISPERING)Once you know a good babysitter, you never want other people to know about the babysitter. But here's the deal. All the people who are selling chickens, all of them, do not live downtown.
MALE VOICE: They don't?
-(WHISPERING)No. So if you had a chicken business where you sold chickens, baby chickens, you probably don't want to be in the city. You know what I'm saying?
MALE VOICE: Makes perfect sense.
-(WHISPERING)Yeah, the thing is, you just want to make sure that you, as you're thinking about marketing your business, that you are thinking about where do my ideal and likely buyers live? And maybe you just had an epiphany, but you probably want to be there.