Surge by Mike Michalowicz Flashcards
What does Mike M say is “NOT enough” with regards to niches?
Picking a niche, serving that niche with singular focus, and ensuring your business is profitable with that niche.
Ensuring your business is profitable with your niche is {{c1::mandatory}} but what doesn’t it ensure?
Growth
More than just carving out a niche, what consumer behavior should you anticipate?
The natural direction your niche is moving.
Like a massive heard of animals, your customers may be seeking out what?
A new source of food, or water, or shelter, or comfort, or fighting for survival
Regarding our target market, what is our job to find, and what question are we asking ourselves?
Our job is to find “the surge.” WHERE IS YOUR MARKET HEADED?
What surging trend did skype catch?
The surging trend of people turning cameras on themselves.
What did skype launch as an alternative to?
An alternative to making long-distance phone calls.
How was skype’s growth when they caught the surge?
In 2013, Skype’s growth was bigger than all of the international phone companies combined.
What big surge did Skype catch?
Built in lap top cameras becoming mainstream. Apple did it first with the mac, then everyone else copied.
How much did Skype sell for?
$8.5 Billion
Mike M’s advice on perfect surge timing?
You likely won’t get it right every time.
According to Mike M, where must you shift your focus for collossal success?
You must concentrate your efforts on catching the surge.
What is catching the surge very similar to?
The holy grail of investors: They know if they can get ahead of the market by a day, a week, hours, or even seconds, there is CASH to be made.
What happens when investors can get ahead of the market repeatedly?
There are BILLIONS to be made.
How do brokerage firms invest?
They invest in an endless stream of companies. If they get the timing right even a few times, they make MILLIONS…
What is the story of Google’s surge?
When they launched, they were not a better search engine. Yahoo, Altavista, etc. was there 1st. The problem: Users were becoming distracted by rabbitholes of the news, emails, everything they could fit on the screen. They were frustrated because they just wanted to find what they were looking for. Google simply had a box and a logo.
Better search engines have come around since google’s success, but how has google been able to stay on top?
Google remains on top because the surge has now passed!
Were the founders of Skype the perfect fit to be successful?
No, they did not have the experience, knowledge, or history. But they had TIMING!
What are some examples from history of great timing?
Ford, Edison, The Wright Brothers, Capernicus, Galileo, the inventor of the Wheel [EVERY SUCCESSFUL PERSON EVER].
What epiphany did Mike M have after much trial and error?
He stopped trying to figure out “what’s hot” and ride that wave, since he realized that doesn’t work. It is like watching the waves others are already surfing.
Surge is about “capturing waves,” meaning…?
Spotting the imminent market trend that is on the verge of swelling, then riding it all the way to industry dominance.
What is Mike M’s metaphor about “creating” waves?
Just like you can’t create your own surfable waves in the ocean, you can’t create your own waves in the markets.
Explain the concept of what happens when someone creates a successful app:
You might make a killer app that everyone swarms to, but YOU didn’t make the market wave. The energy was already pent up in the customer base. They were already moving and looking, and they found you due to timing. (Pent Up)
Explain how entrepreneurs falsely assume the cause of their business’ success:
Many entrepreneurs think their solution is what created market demand. But the demand exists. You have to create the solution that people chase.
What should be the goal of your outlook on your customers, and how should you build?
The goal is to look where customers are moving, and make sure that your product or service caters to that.
How does a wave work in nature?
The water isn’t moving, energy is moving through it, causing the surface to rise and fall: STORMS and WINDS, the MOON’S GRAVITATIONAL PULL, even LANDSLIDES and EARTHQUAKES.
What important cultural marketing problem was Ugg founder ingnorant of?
Americans thought UGGs would be UNCOMFORTABLE, because they associated sheep skin with spun wool, so they assumed boots were hot, prickly, and delicate. Australians knew sheep skin, and knew they were breathable and moisture wicking. vs.
In business, how are waves a natural confluence of events?
The changing winds and storms of customer demand. The gravitational pull of the economy The industry shaking quakes caused by advancing technology The landslides of collapsing competition
How do you avoid getting tumbled or left behind?
You must already be moving in the right direction when the wave shows up.
What is the secret to surfing? (catching waves)
You need to start paddeling in the same direction BEFORE it arrives, so the momentum carries you.
As entrepreneurs, how should we look for and approach waves?
Look for these waves as they begin to roll-in on the horizon, then, begin paddeling like MAD in the same direction before it arrives.
What are the 1st 3 steps to “surfing?”
- Be on the lookout for swells in the distance, identify those with the best potential. 2. Paddle IN FRONT OF IT to best match the speed of the wave so it will carry you. Find the “shoulder” which is the least steap and easy to ride. 3. Pop-up: ride calmly
Where did UGG start, and how did it end up here?
The founder of UGG recognized 1 out of 2 Australians wore “sheepskin” boots. He noticed these didn’t yet exist in the US. He brought them to the US.
What was the small wave UGG spotted on the horizon?
Surfers had cold feet after surfing, built “uggs” to keep them warm and fashionable during cooler surfing months.
How receptive were people initially to UGG?
Rejected by retail outlets! Rejected after marketing to the masses! There was clearly NO WAVE in the retail footwear industry.
Where did UGG founder Brian Smith see the wave forming?
With a small, specialized customer base.
