A Book Everyone Needs to Read

**greggomatic76** · 02-07-2007 06:49 PM

I have only been on this forum a few months and have really enjoyed my time here. I have learned quite a bit and have seen some pretty awesome ideas come out of some of the posts which is awesome to see.

However, it seems that by and large the main ways people on here are trying to make money are the same old things over and over again. I recently read a book called "Blue Ocean Strategy" (just do a quick amazon or google search and you'll find it) that totally changed the way I thought about my businesses. The basic gist is, instead of starting a business that will just have to duke it out every day of its life against similar competitors, start a business that opens up unique markets where you won't have competition.

It won't give you too much more of the plot, but I would highly recommend it. It helped me take a business idea I had and turn it into a $1k a week company that only has one competitor in the WORLD! Just thought I would pass along the info, hope it helps someone.

**akula** · 02-07-2007 07:09 PM

thanks for sharing

myth 101 confirmed! the real money is in making up management buzzwords. would you like some BOS with your web2.0, sprinkled on some marketing mavens and core competencies?

i'm gonna run this by my friendly, next door venture capitalist, who blew 50mill on 20 shops which "didn't have any competitors"

I'm really sick of saying this:

strong form differentiation (i.e. being heaps unique) is an added risk, which attracts higher returns (if they ever eventuate)

some ventures do have this capacity for greater risk taking, others don't

to throw a blanket suggestion that "all startups have to have strong form differentiation and enter nascent markets with limited competition" is irresponsible advice

it's easy to swallow

when it works out (like in your case) it seems like genius

when it doesn't (my next door vc) it seems like what it is - an added risk

now....I wonder what management buzzword I can come up with

**akula** · 02-07-2007 07:17 PM

yep...just as suspected

the book makes case studies of publicly listed, going concerns (i.e. large companies with track records)

is there a problem with saying "look, Microsoft did this, so you should too"?

of course

MSFT, like the other companies in BOS, have a greater capacity for risk taking than startups

their initiatives are underwritten by millions of shareholders

they can afford to try new things, gloat when things work out, and offer "no comment" when they don't

with startups, entrepreneurs don't have the same risk capacity, and must therefore look to alternative advice

can you beleive this bullshit? what would you tell me if I asked you to draw a "strategy canvas"

you'd tell me to go to hell, or do lunch with a middle manager at GE who can spare the time to engage in such nonsense

**skyjoe76** · 02-07-2007 07:41 PM

I had not read the book, but I agree with Akula on this. Opening new market with no competitors seems so good. Yes, the opportunity is huge and so does the risk.

Opening up new market requires educating consumer. That will take a long process, and huge sum of cash. With start up, you simple don't have the money to do this.

**greggomatic76** · 02-10-2007 10:55 AM

It appears I was not clear with my synopsis of the book. It is not saying "open up a totally new and different market" it is saying that you should create a unique market based on a preexisting market that creates new elements never before seen in the market and gets rid of useless factors that customers really don't care about. For instance, some guy sells widgets that are chrome plated, with custom graphics and buttons. A company does some market research and finds out that nobody cares about the custom graphics, chrome, and buttons...they care about quality. So they start a company selling higher quality widgets without all the fanfare. They are now not competing with Company A, they are selling a similar yet unique product. I hope this all made sense.

I would guess that because your neighbor lost $5 mil on 20 shops that his problem is not lack of competition. If you can't figure out your mistakes on the 20th try of doing the same thing you have got problems.

You talk about differentiation being a risk. However, you are failing to notice that building a cookie-cutter copy of another company is a huge risk because to make money you have to take customers from a well established business. There is risk either way. With my businesses I have found differentiation to be the key to most of my success.

**Joe426** · 02-10-2007 11:52 AM

I've never heard of that book. I'd like to reccomend another book I'm reading right now - Guerrilla Marketing for Free: Dozens of No-Cost Tactics to Promote Your Business and Energize Your Profits

check it out:

http://www.amazon.com/gp/product/061...SIN=0618276793