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PROFESSOR: Now, let's talk
about step number two--

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selecting a beachhead market.

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What is this step about?

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The step number two is about
taking one of the many markets

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that we've-- we've laid out in
the market segmentation and now

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choosing one of them that
we're going to focus on.

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And why do we do this?

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Because as an entrepreneur
we have limited resources.

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And we have to consolidate
those resources

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to take on the great
challenges that we.

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We have limited
amounts of money.

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We have limited amounts of time.

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And we have limited
amounts of human capital.

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So we need to take that
and we need to apply it

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in a very focused way.

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So how do we do this
is the question.

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So market segmentation
gave us-- was we started

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with many that we brainstormed.

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We brought it down to
a few-- six to eight.

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But now how are we going
to choose the one market

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that we're going to go after?

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Well, the one market that
were going to go after

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is not going to be the
biggest market most likely.

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It's going to be
the market that's

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going to be the easiest
for us to capture.

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And not only just the
easiest enough to capture.

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It's going to be big enough such
that we will have enough cash

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flow and built up
enough critical mass

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that we will then be able
to move on from there.

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Think about the term
beachhead market.

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In a military operation,
what you're trying to do

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is you're trying
to land on a beach

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and then secure that beach, but
then that beach is strategic

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because then you're going
to expand out from there.

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So it's got to be
big enough so that we

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can land our boats on it.

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It's got to be sufficient
that we can start to build up

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enough people on the ground.

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And then it's got to be
such that we can then

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conquer additional
territories from there.

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So we don't want it to be
the biggest possible market.

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We want it to be the lowest
hanging fruit that we can get,

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but it's fruit that's
big enough that

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will allow us to get to
be cash flow positive,

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and then position us to
win additional markets.

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That's what the definition
of a beachhead market

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is, why we do it, and
generally, how we're

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going to go about doing it.