Latest / GTM Made Simple / 3 Zones That Determine If Your Business Survives
Transcript
- 0:00One of the big reasons why companies fail is because they do not know what zone of the
- 0:05business they are in. I'm literally going to show you what zone of business you're in. And typically
- 0:11there are three zones winning zone, competitive zone and instability zone. Let's just walk through
- 0:16one at a time. Once you figure this out, you'll be able to move through these zones very easily. And
- 0:21most importantly, you're going to avoid the trap that we call the muddy middle, where most
- 0:27companies go to die. So let's start living. Let's start moving. The three zones are the winning zone,
- 0:33the competitive zone, and the instability zone. Now, the winning zone is really interesting because in
- 0:38winning zone you have companies that are either attributable or transformational. Attributable
- 0:43means that at this point you can charge whatever you want because you can say for $1 investment
- 0:49you can get $3 back. So it's attributable so your customers understand exactly what you do, which is
- 0:54why they're going to say, fine, what do you want to charge? If you want to spend ten bucks, 100 bucks, a
- 0:59thousand bucks attributable is amazing. The other part of this is the transformational, where you
- 1:04promised your customer that they're going to see a transformation in their business. That's like in
- 1:10the case of CRM. Salesforce is a transformational business. Email marketing is a transformational
- 1:14business. Nobody ever asks what is the ROI of email anymore or CRM anymore because it is going
- 1:20to be in the winning zone. It's transformational. So if you are in this green zone, the winning zone,
- 1:25and that's the part where you can charge whatever you want and you are at the top of the top of the
- 1:31top of the business, you want to be in the zone to charge what you want to go after, the customers
- 1:35you want and the way you want to do it. The second zone. This is interesting. It's not a bad zone, but
- 1:41I marked it yellow because this is the efficiency zone or the necessity zone. This is a competitive
- 1:48zone. And the reason it's competitive is because in this zone you will have a lot of competitors.
- 1:52They are going to come in and try what I call ankle biters because they can say, hey, we can do
- 1:57what they do, but cheaper we can do what they do, but differently. So take for an example like in
- 2:04electricity, you know, if you have a Georgia, if you have Georgia Power or if you have water, you don't really
- 2:09change them. So that's necessity. But somebody else can come and say, I can do it
- 2:14cheaper, faster. You might actually change like a bank account. Like you will try to do it, but it's
- 2:18very hard. So it's a good thing to stay in a competitive zone. But you have to be watching out
- 2:24for the ankle biters. Efficiency. Same thing. A lot of folks can come and say, hey, we can do this more
- 2:30efficiently and therefore let's talk about AI tools. Hey, you can now have this AI tool that can
- 2:36use the data, that can enrich data, that can send emails, that can autonomously do X, Y, and z things.
- 2:41And it's cheaper. You might go after that, but there will be 1000 new tools that are going to
- 2:45say exactly the same thing as you, which is why this is a competitive zone. A lot of companies
- 2:51come here, a lot of competition is going to be over here, and you are going to be very price
- 2:55sensitive. You'll be cutting down the price as much as you are in the business. You can stay in
- 3:00it, but try to be on the necessity side, then efficiency. And then my favorite and unfortunately
- 3:06the worst trap, which is the muddy mill. This is where companies go to die. And the reason you go
- 3:12to die over here is because look at this. This is indirect. It's instability where your customers
- 3:17might say, I love the product, but I don't know how to show ROI for it. I don't know what this is. What
- 3:23they're really saying is that it's not attributable. It's not transformational. I don't
- 3:28save money, time, energy, anything. It's not efficient and it's not a necessity. And if none of
- 3:34that is true, then you are my friend in indirect zone, which is the instability zone. This is where
- 3:40companies go to dive. So your business, you have to look at it, what zone you're in. If you deliver
- 3:47solutions that can show $1 invested, can give you $3 back when it changes the business. Good for you.
- 3:53Charge up, go as high as you can in the pricing, and you'll be able to do great business. And it
- 3:58will stay for long periods of time or period of time if you actually become a competitive zone.
- 4:03And if that's what you do, which is efficiency and necessity. Watch out for ankle biters who would
- 4:09come in for a lower price on higher efficiency and drive that conversation forward. And if you're
- 4:14in the instability zone, try to get out of it as quickly as possible. That's your muddy middle. This
- 4:19is where you have to really figure out, how do I do this? How do I focus on it? So I'm just playing
- 4:24around, and I wanted to show this whole thing to you because you need to figure out what zone of
- 4:29business you're in and stay away from the muddy middle. So as you figure out what zone you're in,
- 4:35you can go to run on GMOs right there, and you can do your own assessment and figure out what stage
- 4:41of the business you're in. Are you in a winning zone, a competitive zone or an instability zone?
- 4:45And it will give you a direct assessment for your business with your competition looks like what
- 4:49stage of the business you're in, and you will be able to figure out if this is the zone you want
- 4:53to be or get out of it. It will stop you for sure. Figuring out if you're in the muddy middle
- 4:59because if that's where you are, that's a hard business to be in and it's very hard to get out
- 5:03of it. But there are ways to do it, and that assessment will show you exactly how. Now let's
- 5:08get moving.