Historical Perspective and Business Models
What Founders Too Often Ignore When Launching A Business
As someone raised in New York state during the 1990s, I was subjected to a standardized math curriculum known as CSMP.
Often, when given a worksheet for homework, there would be an example problem at the top of the page showing a full walkthrough of how a formula is executed and a problem is solved. The summation of the lesson at the top of the worksheet always ended with the same seven words: “The first one is done for you.”
As someone who identifies as a visual learner, I always appreciated the walkthrough of a problem I could compare against my own work as I progressed through the worksheet. Without a doubt, it helped me work faster and become a better student.
While I went on to become a history major in college and attended graduate school for business administration, those words from the math worksheets have helped me more than anything else I’ve learned with regard to sales perspective.
“How?” You might ask.
Consider this: two men – one a 19th century denim maker and the other a 21st data scientist – brought about spectacular change in their respective industries due to their insight on human motivation; not because they knew anything about salesmanship or persuasion.
As you read this, you may be wearing Levi’s jeans. What most people don’t realize is that Levi Strauss’s denim brand endures today due to his understanding of his customers’ motivations. In 1853, Strauss moved from New York to San Francisco to sell supplies to miners headed to the gold fields of California. Knowing these workers required dried goods, durable clothing, pans and shovels to seek their fortune, he needed only to be in the right place and sell quality products for his business to flourish. There was no sales pitch: the workers needed Strauss’s products more than he needed to market. Thus, the success of Strauss’s venture was founded on motivated buyers as opposed to emphasis on price, quality and exposure.
In 2016, the citizens of the United Kingdom faced a referendum: should the country remain in the European Union or leave?
This referendum – colloquially known as Brexit – was highly polarizing.
The “leave” campaign, employed the leadership and expertise of data scientist Dominic Cummings. Cummings was a mercurial figure who refuted traditional political arguments and the help of active politicians in favor of a more modern and acute, Realpolitik-style campaign. Cummings work with the research company Cambridge Analytica inferred that over 51% of UK citizens actually already supported leaving the EU. Thus, to win the referendum, Cummings needed only to drive action as opposed to appealing to voter logic.
Thus, while Cummings’ opponents in the Stay campaign pitched ideological “better together” rhetoric to provoke thought, he promised his supporters victory through simple action: “Take Back Control” … by voting.
In the end, Cummings’ message and strategy won out.
As business leaders, we’re taught to consider “the four Ps” – Product, Price, Place and Promotion – when it comes to correctly positioning a product in the market. However, it’s most important to summarize what is certain about your target audience – their motivations, actions and beliefs.
So remember: when it comes to launching a business or finding a new product’s ICP, if you commit to discovery through due diligence and market research, “the first [part] is done for you.”
