This article was written by guest contributor Mike Michalowicz. Michalowicz is the entrepreneur behind three multimillion-dollar companies and is the author of several business books, including Profit First, Clockwork, Get Different, Fix This Next, The Pumpkin Plan, Surge, The Toilet Paper Entrepreneur, and All In.
Let’s face it, just when you have a handle on your industry, it changes. And, since I love analogies, I connected this ever-evolving phenomenon with surfing years back. So hang tight (and ten) as I overwhelm you with surfing puns. I promise the business steps will be better than the puns, too.
When the going gets tough, some folks like to ride it out. But what if you knew the formula to ensure you’re riding in the right direction when the market changes?
When I wrote Surge, I aimed to provide a powerful strategy to navigate a changing marketplace. Let’s dive into a quick overview of the methodology and how it can transform your approach to your industry when the seas are rough (hey, I warned you about the puns).
Understanding Market Dynamics
Unless you’re a lucky YouTuber, trust fund baby, or Google superstar, you’re going to have to work to master your market. Your industry is a moving target, driven by shifting consumer demands. I know, you know. The problem is that traditional approaches—hoping for a lucky break, directly asking customers, predicting based on past experiences, or repeating past actions—often lead to stagnation. So let’s check out some actions you can take to position yourself on the next wave, not just by predicting trends, but by identifying a marketplace wave that’s already formed so you can catch it and dominate.
The Surge Strategy – Let’s Break It Down
To predict the flow of your market, catch the right wave, and master it, you need to SURGE—Separate, Unify, Rally, Gather, and Expand.
Separate
Here’s the fun part—manufacturing luck and identifying your market. Now I know I said we can’t rely on luck, but we can create it! It’s important to understand that good fortune in business isn’t about luck but about recognizing patterns and seizing opportunities.
Success isn’t about stumbling into luck; it’s about manufacturing luck by spotting patterns others miss. How? Take TED speaker and writer Becky Blanton’s story as an example. After being homeless for 18 months, she developed a method based on identifying patterns that enabled her to find money on the street consistently. She found it outside of Walmart, around ATMs, phone booths (remember those?), and grocery stores. She went from couch surfing to renting to home ownership to owning her own business.
Why? She didn’t sit there and wait for the perfect wave, she created it.
Unify
Next, search for patterns in the market that indicate current needs and future trends.
Now that you know where to look for spare change, I should mention that timing is often the most underrated factor in success. Recognizing the right moment to act can make all the difference. Just like my Uncle Bill, who attributed his comedic success to perfect timing, the same principle applies to business. Knowing when to move and when to wait is crucial. You can influence timing to your advantage by identifying existing waves and aligning your actions with them.
While we’re talking about timing, consider Brian Smith, the founder of UGG. He didn’t just look at what was happening around him; he looked to the horizon, spotting emerging trends and anticipating needs. His success story began in the 1970s when he went to California and saw surfers come out of the ocean with cold, wet feet. Smith had identified the demand for comfortable, convenient, and cozy footwear, and evolved his business from there. He saw the big splash—the initial demand for those easy on/off sheepskin boots—and anticipated the ripples that followed, like adding neoprene to keep feet warm. His ability to look ahead and align his business with emerging trends paved the way for his immense success. (I’m not sure he had any idea that by celebrities wearing UGGs the demand would be quite so high.)
Rally
This involves giving your target market a compelling reason to believe in your product or service. It’s about creating a narrative that resonates with them and makes them feel part of a larger movement. Engaging early adopters is crucial in this phase. These are the individuals who are willing to take a chance on your product and can become your most vocal advocates.
Gather
This phase focuses on engaging your audience and leveraging early adopters to help market your product or service. Actively bring together a community of customers who are excited about your offering and who can help spread the word.
Expand
Now it’s time to sell out. And not in a bad way! Reach the sell-out stage and maximize your market presence to solidify your position as the leader in your industry.
Recognize, Act, Leverage
Industry changes make your head spin? Of course. But if you SURGE—Separate, Unify, Rally, Gather, and Expand—you’ll position yourself on the next wave and achieve industry leadership. So recognize those patterns, act at the right time, and leverage the power of your audience to support you as your industry’s expert.
I can’t wait to see what you accomplish.
For more from Mike Michalowicz, see The Habit Hack
