21. Step 1: Segmentation
21
Chain Gyms
(Discount/Mains
tream)
Chain Gyms (High end) Varsity Athletic
Weight Rooms
(College)
Professional
Weight Rooms
Home Gyms Rehab Facilities Apartment/Hotel
/ Offices
Olympic
Training
Facilities
High End
Non Chain
Gyms
Examples • YMCA, Gold’s
Gym, Anytime
Fitness,
Planet
Fitness, etc
• Equinox, LA Fitness,
David Barton, New
York Sports Club
• School Facilities • Team Facilities
• Home Gyms
• Private Training
Facilities
• Home Gym • Joint Ventures
(etc), Brigham
Young Women’s
Hospital (etc)
• Finance/Consultin
g Offices
• High end
apartments/hotels
• Training
complex in CO,
NC, etc
• Velocity
sports
performanc
e, etc
Pros • Market size
• Expand to
other
locations
• Prioritize top of the
line
• Expand to other
locations
• More money
• Care about athlete
improvement,
health, and safety
• Easier to expand to
follow on markets
• Care about
athlete
improvement,
health, and
safety
• Easier to
expand to
follow on
markets
• Prioritize safety
• Wealthy
• Large market
• Expand to other
locations
• Prioritize safety
and patient
improvement
• Progress tracking
is huge
• Some not
supervised –
safety is important
• Expand to other
locations
• Care about
athlete
improvement,
health, and
safety
• Easier to expand
to other markets
• Care about
athlete
improveme
nt, health
and safety.
Cons • Value Proposition
• Limited funds
• Value Proposition
• Limited funds
• Contacts
• Difficult to expand
to other colleges
• Contacts
• Difficult to
expand to other
facilities
• Want things for
free
• Difficult to expand • Funds may be
limited
• Patients do not
typically lift heavy
weights
• Not a main part of
business
• More serious
athletes do not
frequent these
locations
• Contacts
• Market size
• Difficult to
expand to
other
locations
• Trainers
usually
there to
spot and
track
Motivations (for
economic
buyer)
• Money – bringing
in new
customers,
retaining old ones
• Money – bringing in new
customers, retaining old
ones
• Image
• Athlete
Improvement
• Recruiting athletes
• Athlete
Improvement
• Safety
• Athlete Improvement
• Money
• Athlete
improvement
• Less time spent
monitoring and
tracking patients
• Money –
Attracting
customers or
employees
• Happiness/well
being of
employees
• Athlete
Improvement
• Money –
Attracting
new
customers
• Athlete
Improveme
nt
Regulatory
Climate
• Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated
Competitive
Environment
• Highly
Competitive
• Highly Competitive • Highly Competitive • Highly
Competitive
• Highly Competitive • Less competitive • Highly
Competitive
• Highly
Competitive
• Highly
Competitiv
e
Early Adopters • No • Yes • Yes • Yes • Varies • No • No • Yes • Yes
22. Step 1: Segmentation
22
Chain Gyms
(Discount/Mains
tream)
Chain Gyms (High end) Varsity Athletic
Weight Rooms
(College)
Professional
Weight Rooms
Home Gyms Rehab Facilities Apartment/Hotel
/ Offices
Olympic
Training
Facilities
High End
Non Chain
Gyms
Examples • YMCA, Gold’s
Gym, Anytime
Fitness,
Planet
Fitness, etc
• Equinox, LA Fitness,
David Barton, New
York Sports Club
• School Facilities • Team Facilities
• Home Gyms
• Private Training
Facilities
• Home Gym • Joint Ventures
(etc), Brigham
Young Women’s
Hospital (etc)
• Finance/Consultin
g Offices
• High end
apartments/hotels
• Training
complex in CO,
NC, etc
• Velocity
sports
performanc
e, etc
Pros • Market size
• Expand to
other
locations
• Prioritize top of the
line
• Expand to other
locations
• More money
• Care about athlete
improvement,
health, and safety
• Easier to expand to
follow on markets
• Care about
athlete
improvement,
health, and
safety
• Easier to
expand to
follow on
markets
• Prioritize safety
• Wealthy
• Large market
• Expand to other
locations
• Prioritize safety
and patient
improvement
• Progress tracking
is huge
• Some not
supervised –
safety is important
• Expand to other
locations
• Care about
athlete
improvement,
health, and
safety
• Easier to expand
to other markets
• Care about
athlete
improveme
nt, health
and safety.
Cons • Value Proposition
• Limited funds
• Value Proposition
• Limited funds
• Contacts
• Difficult to expand
to other colleges
• Contacts
• Difficult to
expand to other
facilities
• Want things for
free
• Difficult to expand • Funds may be
limited
• Patients do not
typically lift heavy
weights
• Not a main part of
business
• More serious
athletes do not
frequent these
locations
• Contacts
• Market size
• Difficult to
expand to
other
locations
• Trainers
usually
there to
spot and
track
Motivations (for
economic
buyer)
• Money – bringing
in new
customers,
retaining old ones
• Money – bringing in new
customers, retaining old
ones
• Image
• Athlete
Improvement
• Recruiting athletes
• Athlete
Improvement
• Safety
• Athlete Improvement
• Money
• Athlete
improvement
• Less time spent
monitoring and
tracking patients
• Money –
Attracting
customers or
employees
• Happiness/well
being of
employees
• Athlete
Improvement
• Money –
Attracting
new
customers
• Athlete
Improveme
nt
Regulatory
Climate
• Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated
Competitive
Environment
• Highly
Competitive
• Highly Competitive • Highly Competitive • Highly
Competitive
• Highly Competitive • Less competitive • Highly
Competitive
• Highly
Competitive
• Highly
Competitiv
e
Early Adopters • No • Yes • Yes • Yes • Varies • No • No • Yes • Yes
Key point for this exercise:
• What are the columns?
• What are the rows?
23. Step 2: Beachhead market
23
Chain Gyms
(Discount/Mains
tream)
Chain Gyms (High end) Varsity Athletic
Weight Rooms
(College)
Professional
Weight Rooms
Home Gyms Rehab Facilities Apartment/Hotel
/ Offices
Olympic
Training
Facilities
High End
Non Chain
Gyms
Examples • YMCA, Gold’s
Gym, Anytime
Fitness,
Planet
Fitness, etc
• Equinox, LA Fitness,
David Barton, New
York Sports Club
• School Facilities • Team Facilities
• Home Gyms
• Private Training
Facilities
• Home Gym • Joint Ventures
(etc), Brigham
Young Women’s
Hospital (etc)
• Finance/Consultin
g Offices
• High end
apartments/hotels
• Training
complex in CO,
NC, etc
• Velocity
sports
performanc
e, etc
Pros • Market size
• Expand to
other
locations
• Prioritize top of the
line
• Expand to other
locations
• More money
• Care about athlete
improvement,
health, and safety
• Easier to expand to
follow on markets
• Care about
athlete
improvement,
health, and
safety
• Easier to
expand to
follow on
markets
• Prioritize safety
• Wealthy
• Large market
• Expand to other
locations
• Prioritize safety
and patient
improvement
• Progress tracking
is huge
• Some not
supervised –
safety is important
• Expand to other
locations
• Care about
athlete
improvement,
health, and
safety
• Easier to expand
to other markets
• Care about
athlete
improveme
nt, health
and safety.
Cons • Value Proposition
• Limited funds
• Value Proposition
• Limited funds
• Contacts
• Difficult to expand
to other colleges
• Contacts
• Difficult to
expand to other
facilities
• Want things for
free
• Difficult to expand • Funds may be
limited
• Patients do not
typically lift heavy
weights
• Not a main part of
business
• More serious
athletes do not
frequent these
locations
• Contacts
• Market size
• Difficult to
expand to
other
locations
• Trainers
usually
there to
spot and
track
Motivations (for
economic
buyer)
• Money – bringing
in new
customers,
retaining old ones
• Money – bringing in new
customers, retaining old
ones
• Image
• Athlete
Improvement
• Recruiting athletes
• Athlete
Improvement
• Safety
• Athlete Improvement
• Money
• Athlete
improvement
• Less time spent
monitoring and
tracking patients
• Money –
Attracting
customers or
employees
• Happiness/well
being of
employees
• Athlete
Improvement
• Money –
Attracting
new
customers
• Athlete
Improveme
nt
Regulatory
Climate
• Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated
Competitive
Environment
• Highly
Competitive
• Highly Competitive • Highly Competitive • Highly
Competitive
• Highly Competitive • Less competitive • Highly
Competitive
• Highly
Competitive
• Highly
Competitiv
e
Early Adopters • No • Yes • Yes • Yes • Varies • No • No • Yes • Yes
24. Step 2: Beachhead market
24
Chain Gyms
(Discount/Mains
tream)
Chain Gyms (High end) Varsity Athletic
Weight Rooms
(College)
Professional
Weight Rooms
Home Gyms Rehab Facilities Apartment/Hotel
/ Offices
Olympic
Training
Facilities
High End
Non Chain
Gyms
Examples • YMCA, Gold’s
Gym, Anytime
Fitness,
Planet
Fitness, etc
• Equinox, LA Fitness,
David Barton, New
York Sports Club
• School Facilities • Team Facilities
• Home Gyms
• Private Training
Facilities
• Home Gym • Joint Ventures
(etc), Brigham
Young Women’s
Hospital (etc)
• Finance/Consultin
g Offices
• High end
apartments/hotels
• Training
complex in CO,
NC, etc
• Velocity
sports
performanc
e, etc
Pros • Market size
• Expand to
other
locations
• Prioritize top of the
line
• Expand to other
locations
• More money
• Care about athlete
improvement,
health, and safety
• Easier to expand to
follow on markets
• Care about
athlete
improvement,
health, and
safety
• Easier to
expand to
follow on
markets
• Prioritize safety
• Wealthy
• Large market
• Expand to other
locations
• Prioritize safety
and patient
improvement
• Progress tracking
is huge
• Some not
supervised –
safety is important
• Expand to other
locations
• Care about
athlete
improvement,
health, and
safety
• Easier to expand
to other markets
• Care about
athlete
improveme
nt, health
and safety.
Cons • Value Proposition
• Limited funds
• Value Proposition
• Limited funds
• Contacts
• Difficult to expand
to other colleges
• Contacts
• Difficult to
expand to other
facilities
• Want things for
free
• Difficult to expand • Funds may be
limited
• Patients do not
typically lift heavy
weights
• Not a main part of
business
• More serious
athletes do not
frequent these
locations
• Contacts
• Market size
• Difficult to
expand to
other
locations
• Trainers
usually
there to
spot and
track
Motivations (for
economic
buyer)
• Money – bringing
in new
customers,
retaining old ones
• Money – bringing in new
customers, retaining old
ones
• Image
• Athlete
Improvement
• Recruiting athletes
• Athlete
Improvement
• Safety
• Athlete Improvement
• Money
• Athlete
improvement
• Less time spent
monitoring and
tracking patients
• Money –
Attracting
customers or
employees
• Happiness/well
being of
employees
• Athlete
Improvement
• Money –
Attracting
new
customers
• Athlete
Improveme
nt
Regulatory
Climate
• Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated • Regulated
Competitive
Environment
• Highly
Competitive
• Highly Competitive • Highly Competitive • Highly
Competitive
• Highly Competitive • Less competitive • Highly
Competitive
• Highly
Competitive
• Highly
Competitiv
e
Early Adopters • No • Yes • Yes • Yes • Varies • No • No • Yes • Yes
Chain
gyms
(High
End)
25. Step 2: Beachhead Market
25
• High End Chain Gyms
• Pros
• Less concerned with equipment price
• More concerned with image
• Easier to expand into other locations
• Easier to expand into follow on markets
• Large Market Size
• Cons
• Current lack of contacts
• Equipment will have to be extremely good quality/high end
• Value proposition – improving athletes isn’t their main motivation
• Other Potential Markets
• Varsity Athletics Programs/Professional Programs
• Home Gyms
• Mainstream/Budget Gyms
26. Step 3: End User Profile
26
• Full-Time Structural Engineer
• 25 Years Old
• Previous High School Athlete
• Lifts at least 4 times per week
• Brings notepad to gym
29. Profile, not persona
29
• Full-Time Structural Engineer
• 25 Years Old
• Previous High School Athlete
• Lifts at least 4 times per week
• Brings notepad to gym
30. Real persona
2013 Revenue:
$514M
Headcount:
1000-2000
BU Headcount:
N/A – 1 BU
Jim’s team
200
Behaviors
• Reports to the BU General Manager
• Manages the software organization (all aspects)
and the associated budget
• Primarily concerned with strategy, leadership,
management – high level
• Relies on direct reports (dev, devOps, SQA
managers) to recommend the right technical
decisions
Demographics
• 48 years old
• Bachelor’s in Electrical Engineering degree
from UNY Stony Brooks
• Has been managing teams for 25 years; last
wrote production code 10 years ago
• Married with high school children
• Drives a Mercedes SUV
• Mac, iPhone 5, iPad Mini, W8 for work
Needs and goals
• Above all: his goal is to meet or exceed revenue goals
for his business unit by releasing software on time
and as planned with marketing and sales
• He wants to keep the staff happy and to attract hot
new talent to join his team
• He needs to conserve budget – fixed $/y to spend on
tools, R&D – zero sums game
31. Step 9: Identify your next customers
• More head trainers @ gyms
• Equinox Dartmouth
• EBF by George Foreman
• David Barton Gym
• BFX Studio
• Commonwealth Sports Club
• Equinox Franklin Street
• Ethos Fitness + Performance
• ZONE5 Fitness
• … etc
31
• More people like Chris
• Mike
• Sam
• Jake
• George
• Sasha
• Steve
• Jeff
• Ben
• … etc
34. If things go well, convergence is rapid
In 5 interviews:
subjects started self-
organizing
In 10 interviews:
Top persona
hypotheses emerge
In 20 interviews:
personas fully
validated
39. Resources
• Martin Trust Center’s First Time Founders FAQ/Knowledge base
http://entrepreneurship.mit.edu/faq
• Quick and dirty market sizing https://miteship.zendesk.com/hc/en-
us/articles/204854316
• How to do secondary market research within the MIT library
system (must be an MIT student to have access)
https://miteship.zendesk.com/hc/en-us/articles/207216396
39