Page 78 - The $100 Startup_ Reinvent the Way You Make a Living, Do What You Love

Finally, I realized that the target market had nothing to do with demographics
in a traditional sense—the group simply consisted of people from all
backgrounds who wanted to live unconventional, remarkable lives. They were
“pro-change” and interested in pursuing a big dream while also making the
world a better place for others. In other words, I didn’t have to segment or label
them according to irrelevant categories.

You may not want to be a writer, but as you explore different possibilities on
the road to freedom and value, it helps to think clearly about the people you plan
to serve. There are now at least two ways to group them together.

Traditional Demographics: New Demographics:

Age, Location, Sex/Gender, Interests, Passions, Skills,

Race/Ethnicity, Income Beliefs, Values*

In Arcata, California, the husband and wife team of Mark Ritz and Charlie

Jordan own the Kinetic Koffee Company. KKC is a gourmet “microroaster” that
makes great coffee … but these days there is no shortage of great coffee, so they
needed something more. KKC found its legs and became profitable by targeting
a specific group: cyclists, skiers, backpackers, and “pretty much anyone who
enjoys the outdoor lifestyle.” By focusing on enthusiasts, they immediately set
KKC apart in a crowded market.

Mark and Charlie’s connection to the outdoors is natural. Before starting the
business, Mark had spent most of his career working in the cycling industry.
Charlie was vice president of a kayak company, and both of them were active in
the local racing and recreational communities. They were also coffee addicts, so
combining the two passions seemed like the right approach. “We weren’t the
first coffee company to target the cycling market,” Mark told me, “but we were
the first to look at the market from the perspective of the bicycle shops and
outdoor dealers. We have now outlived a number of better-financed companies
who have since left the market.”

Outdoor enthusiasts are KKC’s people, but to reach them, Mark and Charlie
work with bicycle shops and outdoor stores. Maintaining good relationships with
the distributors ensures access to almost every store in the country, and Mark
complements this strategy by visiting trade shows and consumer events.
Donating 10 percent of profits to outdoor causes every year, KKC is a low-six-
figure business.

The Internet has made it much easier to connect with people through shared
values and ideals, but it’s not strictly an online phenomenon. More than thirty