Principle 2
Identifying Hot Trends in the Marketplace
Any sufficiently advanced technology is indistinguishable from magic.
—Arthur C. Clarke
In the last chapter we talked about creating your own product or service that you can market to the world. In this chapter we are going to talk about ways you can judge whether your product or service is hot or not. The best way to make this determination is to keep an open mind, study trends in the marketplace, and then ask yourself whether people want to purchase the products or services you are offering or plan on offering. Additionally, you will learn how Cornelius Vanderbilt and others made a fortune by following their guts and riding the wave of a major trend in the transportation industry.
We all know things that were hot in the past but are no longer hot today. For example, CDs and CD duplication are now being replaced by video download. In other words, the technology used for creating the CD product for storage of content is soon going to be outdated just like vinyl records, eight-track tapes, cassette tapes, big box TVs, and typewriters. Desktop computers are being replaced by laptop computers, which are being replaced by smart phones and new technologies such as the Apple iPad.
As you look into the future, ask your teenagers what they see as hot products in the marketplace; chances are they will have an edge up on you since they are closer to the new and hip products of tomorrow.
In fact, I am sure this chapter will soon be outdated due to the new advances in technology right around the corner. Below are some items I firmly believe will continue to increase in popularity, so the question must be this: Are you keeping up with technology and trends or getting behind?
Telecommunications, wireless connections, social media, health care, transportation, technology, computers, cell phones, and other areas all have trends that continue to expand with no end in sight. All of these are hot today, and I believe they will continue to be strong trends for years to come. So ask yourself: Does your product or service fit into any one of these categories?
Investigating and studying the market to recognize what is hot will save you time and money because it will place your business in an industry with a proven record in a growing market. There's an old saying: “A rising tide lifts all boats.” You want to get in on that rising tide! Through learning more about this principle, you'll be able to determine whether your product or service will sink or sail. As an entrepreneur, one of the most important skills you need is the ability to evaluate a business opportunity.
Trend of Collecting Gold and Silver Coins
Due to the recent real-estate and mortgage collapse and the loss of millions of dollars by investors, more and more people worldwide are diversifying their portfolios by purchasing gold and silver. These people are not just buying any form of these precious metals, but are buying them in the form of currency (collectible, minted gold and silver numismatic coins). Numismatics is the study and collecting of legal tender coins produced by the world's government mints.
The gold and silver collectible coins industry has grown into a $10 billion per year industry in the United States and a $100 billion industry worldwide. In years past if you did not know how to get started purchasing numismatic gold and silver coins, you may have been overwhelmed and not participated in this trend. However, today one company is pioneering the sale of graded silver and gold numismatic collectible coins. Numis Network (based in Tampa, FL) has made it easier than ever for you to get started in this trend and begin collecting minted numismatic gold and silver coins from government mints throughout the world. Numis' vision is to become the largest retailer in the world of certified and precious metal coins. Their goal is to help you create wealth, collect wealth, and preserve wealth.
For years Robert Kiyosaki, wealth guru and author of Rich Dad Poor Dad, has been preaching a diversification strategy of buying gold and silver as a way to protect yourself from the fluctuations of the dollar. What attracted me to Numis is that it is ahead of the curve by helping ordinary people not only to get started in collecting gold and silver graded numismatic coins, but it also has allowed and encouraged its customers to become part of this booming trend while actually earning money by introducing others to this industry and helping them to start their own collections. What a concept—earning money while collecting it! As a result, Numis Network only sells coins that have been certified by the largest and most trusted coin grading services including ANACS, NCG, and PCGS. For more information on this trend and to learn how you can start your collection of numismatic gold and silver coins, visit www.NumisNetwork.com/PatrickSnow.
Matching Your Passions to Today's Trends
Combining your passions to the current trends of the time is so very important if you truly want to become an Affluent Entrepreneur. As an author, speaker, and coach, years ago I decided to pursue my passion in these industries not only because I love them, but also because they continue to grow year after year with no end in sight. Let me share with you some numbers that drive home this point. The Association of American Publishers estimated that in 2009, book sales reached $23.9 billion, and each year this number just keeps growing.1 For that reason, I am in a growing business that is consistent with my passions. The American Society of Association Executives has estimated that the conference and meeting industry in the United States is $56 billion a year,2 and these events require public speakers to attract attendees, so again I have a product to offer—myself as a public speaker. Finally, in 2006, the personal development industry was estimated to be at $8.9 billion a year; in 2010 it has reached over $19 billion with estimates that it will continue to grow as much as 50 percent annually.3 I'm sure with numbers like these, you understand why I am in these industries that also provide me the opportunity to pursue my passions.
My point is this, match your passion with the trends of the day, and you will create a recipe for great wealth and career fulfillment, while at the same time providing a solution to a problem or need in the marketplace. When you do this, you will discover the key to spending the rest of your live living your passion, making great money, living your dream, and making a huge contribution to the world.
Identifying Other Trends but Not Working in That Industry
One of the key traits that Affluent Entrepreneurs possess is the ability to recognize opportunity and take quick action. Now this action doesn't necessarily mean that you yourself need to change completely your company's products or services to adapt to new trends in the marketplace. Bottom line is that these trends may be in a completely different industry—maybe even in an industry you are not qualified to participate in as a manufacturer or service provider.
But that doesn't mean you can't participate in this trend as an outside investor. What am I getting at? Well, you don't need to understand how all the circuitry, vias, traces, components, or chips all work together in harmony in order for you to recognize the upside potential of the iPad. The same is true with an iPod. If you enjoy customizing your own music with no annoying advertisements, then chances are other people will, too. Perhaps then, Apple would be a good company to invest in to diversify your portfolio.
A Personal Transportation Trend
One technology that has always fascinated me, although I can't comprehend it (perhaps because my degree is in political science), is the “flying car” industry. You may not be aware that we are closer than ever to having “flying cars” as part of our society. I am intrigued by this sector of the transportation industry for two reasons. First, I live on Bainbridge Island, Washington, and it is a 35-minute ferry ride to travel across the Puget Sound to arrive in Seattle. Second, I will soon have a second residence in Hawaii, meaning I will be distant from the outer islands I may need to visit.
I can't wait until I purchase and experience my first flying car so I can travel to Seattle by air in 5 to 10 minutes instead of 35 minutes by ferryboat. Furthermore, it will be very exciting to go island hopping in Hawaii with my second flying car parked in my garage at my vacation home. My point is this: You and I don't have to understand the technology behind the industry; what we need to understand is the buying habits of consumers in this industry to determine whether or not flying cars will take off as a trend. Let me share some insights with you on the evolution of this sector of the transportation industry.
Without question, the leading manufacturer and engineering firm in the world that is spearheading the effort to one day make the “flying car”—or Personal Air Vehicle (PAV) as it is better known in the industry—into a reality is Moller International (www.Moller.com), founded by Paul S. Moller and located in Davis, California.
I had the unique privilege of personally interviewing Dr. Moller by phone regarding this technology and the acceptance (or lack thereof) by large aircraft manufacturers and governments alike. Just as the case with the Wright Brothers in 1900 when inventing the first airplanes, the push-back in the PAV industry has been no different.
A quote on the Moller web site's home page says it all: “New technology goes through three stages: First it is ridiculed by those ignorant of its potential. Next it is subverted by those threatened by its potential. Finally, it is considered self-evident.”
I asked Dr. Moller about the operator's ability to pilot such a vehicle. He responded, “In the future, the aircraft operators will not need to be pilots. They will simply know how to program a location by putting in their desired destination and letting the aircraft's computer system take over flying the PAV from point A to point B.”
Next I asked him about the timing of production and how long it will take for these PAVs to be embraced and become a regular part of our society. Let's face it, I watched The Jetsons cartoon on TV growing up so I am eager to learn how close we are to seeing this technology as part of our everyday lives. His response was that he and Dan Goldin (former head of NASA) had testified a few years ago in front of a congressional hearing, and they both believe that “within ten years, 25 percent of the U.S. population will be able to afford to access the technology and within 25 years, 90 percent of the U.S. population will be able to access it.” Something to keep in mind though is that when he says access it, it may mean that you either own one or you rent one for your convenience, similar perhaps today to renting a car.
Finally, I was interested, as any consumer would be, in cost. Currently, to manufacture one of the PAVs, you are looking at $500,000 or more, but eventually as this technology takes off, Moller's vision is that he will be able to price vehicles like these at around $100,000 or equivalent to what a high-end luxury automobile costs today.
As with any cutting edge, leading technology and continuous funding and investment are always part of the equation. Therefore, if you or someone you know is interested in this technology, feel free to contact a representative at Moller International for more specific details on investment options.
Exercise A
What are features of your product or service that address a rising trend today and in the future?
1. _______________________________________
2. _______________________________________
3. _______________________________________
Exercise B
What adjustments can you make in your business plan to ensure that what your product or service delivers will match the current and future trends in the marketplace?
1. _______________________________________
2. _______________________________________
3. _______________________________________
Exercise C
What trends can you identify that you know will continue? Which companies manufacture products or services that supply solutions to meet those trends? Which companies should you considering investing in to boost your net worth and benefit from the rising tide?
1. _______________________________________
2. _______________________________________
3. _______________________________________
Affluent Entrepreneur Profile Cornelius Vanderbilt
Cornelius Vanderbilt was an American entrepreneur who recognized the trend and increased demand for transportation in a pioneering America. Born on Staten Island, New York, in 1794, he grew up working on his father's ferryboat, which operated runs between Manhattan and Staten Islands. He quit school at age 11, operated his own boat by age 16, and soon thereafter, purchased the ferryboat with borrowed money. These experiences led him into a long and prosperous career in shipping, and eventually, he bought out all of the other ferry lines operating in the lower Hudson River area.
In the 1830s, some of the first railroads were being built between Boston and Long Island Sound, where they connected with steamboats to make the remaining portion of the trip to New York City. It didn't take long before Vanderbilt owned these railroads as well. When the California Gold Rush started in 1849, he switched his attention from regional steamboat lines to ocean-going steam ships. Virtually all of the migrant workers heading out West, and all the gold coming back to the East, traveled on Vanderbilt's ships by way of Panama.
After the Civil War, Vanderbilt turned his attention back to the railroad industry, where he soon ran into conflicts with connecting railroads. He solved the problem by buying them out; soon he owned the Hudson River Railroad, New York Central Railroad, Lakeshore and Michigan Southern Railway, and later the Canada Southern. Vanderbilt was also the driving force behind Grand Central Depot on 42nd Street in Manhattan in 1871, now called Grand Central Station.
As a result of his acquisitions over the years in both the shipping and railroad industries, at the time of his death in 1877, Cornelius Vanderbilt amassed a net worth valued at $100 million, which in 2007 dollars would be worth $143 billion. He would go on to make a huge endowment, which would result in Vanderbilt University in Nashville, Tennessee, being named in his honor.
To become an Affluent Entrepreneur, you need to keep your pulse on the trends in the marketplace. Whenever possible, try to match your passions with these trends and then create a product or service capable of providing solutions and solving problems with this trend. In doing so, you will create great wealth and amass a fortune.
Whether it be Cornelius Vanderbilt in shipping and railroads, Henry Ford with automobiles, the Wright Brothers in airplanes, or Paul Moller with PAVs (flying cars), be sure that you study the demand in the marketplace and then position yourself and your company to rise with the incoming tide that lifts all ships.
Better yet, if you are not in a position to offer products or services to these “trendy” industries, consider positioning yourself as an investor to diversify your portfolio. By becoming an investor, you can save time by following your true passions, while not having to spend years and years trying to understand the technology. Save that for the engineers.
2. http://www.referenceforbusiness.com/industries/Service/Professional- Membership-Organizations.html
3. David Allred, “$8.9 Billion Dollar Industry,” at http://www.articleslash.net/Self-Improvement/186887__8-9-Billion-Dollar-Industry.html