Page 22 - The Bootstrapper Bible

ChangeThis The flip side of these seven attributes, of course, is what id didn’t do. Here are some ways you can redefine the big guys out of the way on these five attributes: 1 DISTRIBUTION. Never start by selling your product in major stores. Instead, use mail order. Or sell directly to just a few customers for lots of money per sale. Or use the Internet. The last step in your chain is traditional distribution. 2 ACCESS TO CAPITAL. Be cheap. In everything. Donʼt pick a business in which access to money is an important element. That means that building a cable service, a worldwide cellular phone system, or a chemical refinery probably wouldnʼt be on your list. When you do need capital, donʼt pay retail. Borrow from customers or suppliers. Find an equity angel. But donʼt borrow at 18 percent! And donʼt use your personal credit cards. 3 BRAND EQUITY. Position yourself against the brand leader. Be “cheaper than Fritoʼs” or “faster than Federal Express” or “cooler than Leviʼs.” The more the other guyʼs brand gets publicized, the more your positioning statement increases in value. Be brazen in the way you compare yourself to the market leader. Your story should be short, solid, and memorable. Youʼve probably already seen the Internet analogy. Almost every single dot com failure is due to studied ignorance of the points that lie above. Well-funded Net start-up companies didnʼt act like id. They figured that they had enough money to act like a big company. They were wrong. 4 CUSTOMER RELATIONSHIPS. You donʼt have much of a chance of grabbing a big piece of an established companyʼs business away from one of its good customers right away. Itʼs just too easy for the company to defend against you. Instead, you can try one of these strategies: • THE INCHWORM. Get a little piece of business as a test. Then, with great service and great | iss. 6.01 | i | U | X | + | Be bold. Dream up your own manifesto and SUBMIT your idea here. h 22/103 f