In our offices we keep a drill brace manufactured in the 1950s like what Rich and I both used as kids. It’s one of those hand crank jobs you don’t see around very often nowadays. It’s a functional invention and eventually gets the job done – but it is painfully slow compared to today’s cordless power drills.
In this chapter, Rich will provide you with several power tools to help you build your business. Rich and I have used these tools over and over again. They are the basics, tried and true. And although they can be a little “academic,” the Five Forces Model and the Competitive Matrix are both effective when you are weighing the pros and cons of a new venture. In addition, Rich will provide some additional power tools—handy processes that have worked repeatedly for him. With all of his startups, Rich has used them as quick sanity checks to help determine the viability of an idea. They have become part of the way we think and act. Taking a practical approach to the models, Rich will walk you step-by-step through a hypothetical business in an effort to help you grasp how to use the tools to analyze the opportunity you’re considering.
We’ll start tomorrow with Rich’s hypothetical business and the Five Forces Model to give us an idea of the process.