Last week we covered a lot of ground, including how insane speed requires immense clarity, just like Formula 1, as well as how My Drunk Aunt saw a therapist about her kleptomania.

Speaking of how she says she’s taking something valuable from each session…

I was speaking to Dave this morning and here’s how our conversation went: 

Me: What’s new? 

Dangerous Dave: I recently took a pole. 

Me: And?

Dangerous Dave: I found that 100% of the people in the tent were angry when it collapsed. 

Me: 

In other news from my BCS podcast…

What you do NEXT matters more than what you did last.

Just do it. 

Anyhoo…

Your one PROFIT ACCELERATION THING today is: 

‘MOATS’

If you spend time with a Venture Capitalist (often the richest people in the world), they’ll talk about a MOAT as a prerequisite to investing.

Warren Buffett is borderline infatuated with the concept / importance.

He’s on record as saying if you gave me an endless budget and said knock Coca-Cola off the top of the soft drink world… he’d hand back the money and say it can’t be done. 

Their MOAT is distribution and brand. 

Here are some MOATS for you and your high-end coaching clients to consider (for a local business, do on a small scale):

1. Switching Costs: Geico

2. Growth Loop: Netflix / LinkedIn / Airbnb / Amazon Marketplace 

3. Low-Cost Producer: Walmart / Costco / IKEA / Dell 

4. Cults: Harley Davidson / Apple / Jeep / Rolex 

5. Float: Example, SaaS getting clients to pay for 12 months upfront so they ‘float’ your business. When Salesforce switched from monthly recurring to pay 12 months upfront, they no longer needed to raise capital to grow and new clients financed growth. Amazon’s customers pay upfront and they pay suppliers in 60 – 90 days. Salesforce / Amazon 

6. Flywheel: Amazon / Uber / eBay / Nvidia / Google Search / App Store 

7. Counter Positioning: Avis

8. Network Effects: Visa / Amazon / Instagram / Door Dash / NYSE / Craigslist / Large FB Groups / Focused.com  

9. Complexity: SpaceX / Nvidia 

10. Anti-Fragile (large company with cash on hand with no debt equals anti-fragile): Berkshire Hathaway / Apple / Alphabet / Microsoft / Focused.com   

11. Aggregation: YouTube / Google / Amazon / App Store  

12. Brand: Ferrari / Rolex / Louis Vuitton / Coke 

13. Disruption: AirBnB / Uber / Netflix / Non-Franchise Franchise (Focused.com)

14. Velocity (user generated content makes it virtually impossible for competition to catch up): Facebook / Instagram / LinkedIn 

15. Distribution: Coca-Cola / Sysco / Amazon / Caterpillar / John Deere 

These three below rhyme with each other so I’ll explain… 

Growth Loop: A machine that turns today’s users into tomorrow’s users – it gets more efficient each turn. 

Flywheel: When every customer makes the next customer cheaper to serve and harder to steal. The whole company gets better, cheaper and stickier as it grows – a heavy wheel that is hard to start and almost impossible to stop once it starts to spin in the words of Jeff Bezos.  

Network Effects: When your next customers are the reason the next customer has to choose you. FB Group gets more valuable as they get bigger. 

Tell the others. 

Now, pick up the phone and go help someone.

Obsessed with your business coaching success,

Karl Bryan

Founder

Focused.com

PS. The rarest of all human qualities is consistency.

PPS. Marriages break-up from a lack of money over a lack of love X 100

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