X-Factor

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X Factor what is X factor? X Factor in our world is that thing that gives you a 10x advantage in the marketplace. It's the thing that it's like your secret sauce. It's your 11 herbs and spices or it's your secret recipe to being better, to making more money, to growing faster than anyone else. And it's not an easy thing to figure out. And when you figure it out, you gotta keep it a secret. You gotta use it as long as you can because it doesn't last forever. So a great X factor will expire, it will get figured out by people and it'll get copied, maybe not by everyone, but by enough that it will lose its advantage. So it'll give you something for a while and then it may become obsolete. The way that we want to figure out our X factor for any business is gotten a whole lot easier than.

It used to be.

So the first thing to think about I think is is it supplier demand? Right? Is your limitation to growth your obstacle, your barrier, your constraint? More about the supplier demand side, do you have just an abundance of people that would buy what you've got if only you could make more of them? And what's scarce is your product or service, Then it's a supply side issue. Or is it that you've got a cool thing and you could get lots of it, but you just don't have the customers. You gotta figure out where to market, where to get them from. Maybe that is too takes too long or is too hard and what you have is just fine. So it's one or the other. So we want to pick the most important one. The other place to look is what's the common problem for everyone in your business? So we might ask, you could go out to ChatGPT, you could go out At Google, what are the most common problems, barriers, obstacles or challenges of whatever your industry is, of the lawn care industry, of the coaching industry, of the managed services industry, of the restaurant industry? Like, ask what the key barriers are and see what answers you get back.

You want to distill those down into.

A few major themes and then think about, which one are you going to solve in our world, in the world of scaling up. Barrett Ercek is famous for going through the old birthing of giants program with Vern Harnish at MIT back in the day and saying, you know, the hardest thing, Vern, for us is we just like, it takes so long to sell someone. We get a lead and then we have to go see the property and then we have to measure their yard and we have to figure out, then we have to give them a quote. For lawn care, it just takes a long time. It takes hundreds of dollars and lots of time to get out there and to visit people. If we could figure out how to sell people on the phone, how to know how big their yard is and what the issues are, then we could just quote them right then and there and it would be really fast to grow. We could run lead gen programs and sell and convert all boom on the phone without ever going out. And Vern's like, great, so think about how to solve that. And fortunately, he was in a program. And this is the value of being in some kind of program with other people because somebody else from a different industry was sitting right there near him and heard this conversation, heard him talking about this and said, you know, Barrett, I know something about computers and that kind of thing. And she said you could use satellite imagery and geolocated satellite imagery to identify a yard, take measurements of it and it and then quote people right over the phone. He was like, oh, my God. Now today, right? Remember I said, these things expire today. That's pretty common. We could all figure that out. You've got things like Google's solar roof project that could look at your roof and help connect you to suppliers and that kind of thing. We have all kinds of things like. But for a while, this was revolutionary. So ran his campaigns, he got leads in, they talked to people right on the phone. They sold them in minutes. And they quickly sold out of all their capacity. They actually didn't have enough trucks and teams to go service all the lawns that they had just signed up lawn care for. So they turned off the thing. They kept their mouths shut about what they'd figured out. They started to invest in teams and trucks and then they turned it back on. Barrett grew his company for a bit and then he sold it profitably and he went on to start and run other companies and act as an investor and he's active in that today. But that's the key to doing it. So you want to figure out what's the key problem that everybody has in our industry and is really limiting our growth and then figure out a really sexy, unique, innovative way to solve that problem. And when you figure that out, run it as long as you can and keep it as secret as you can until you've run its course and it's time to create a new one. And then either you're going to sell the company or you're going to create a new one. So you want to sell the company before it's run its course while it's still on the upper and that's a great way to use the X factor and it's a real fun thing when you figured it out. Hope that's been helpful. We'll talk to you again soon.

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