🏴☠️ ⚡️Learning an Industry in 3x Prompts (Acquisition Concept)
We Acquire and Operate Micro SaaS firms in public. Join us every Saturday morning for acquisition strategies and deal analysis, value creation playbooks, operating concepts and more...
TABLE OF CONTENTS:
TAM & Market Composition
Market Mechanics & Buying Behavior
Customer Journey & Operational Overview
📺 WATCH:
📻 LISTEN:
The Acquire and Operate game is opportunistic for most of us. Meaning we pursue businesses intending to sell, instead of proactively pursuing businesses within a specific industry.
This means we have to overcome learning curves quickly, starting with the industry itself.
We’ve spent a LOT of time refining and standardizing our approach here. And, yet again, thank the SaaS gods we are alive in the midst of the LLM revolution. Pure horsepower for this exercise.
See below for optimized prompts and example output tables using ‘Dental Practices’ as a placeholder.
You can access the notion space with everything neatly organized here.
Let’s dive in…
TAM & Market Composition
"Please provide a detailed overview of the Total Addressable Market (TAM) and market composition for the [insert industry name] industry. The output should be presented in a table format, covering the following dimensions:
Logos: Total number of companies or practices within the industry, segmented by size and type (e.g., small independent entities to larger organizations).
Market Segmentation: Describe the breakdown of the industry in terms of company sizes (e.g., SMB, Mid-market, Enterprise) and their respective characteristics and percentages of total market share.
Revenue & Profit: Include approximate total industry revenue and typical profit margins.
Expected Growth Rate (CAGR): Specify the expected Compound Annual Growth Rate (CAGR) over the next 5-10 years.
Expected Growth: Describe the key growth trends and factors driving industry expansion.
Key Drivers: List and explain the primary factors contributing to market growth and stability.
Number of Customers Served by Logos: Estimate the total number of end customers served by the companies in the industry.
Average Customer Transaction Size: Provide the average transaction size, depending on the type of service or product offered.
Software Expenditure: Estimate the annual software expenditure within the industry, either as a total value or as a percentage of industry revenue.
Format the output as a table, with each row representing one of these dimensions and providing data and insights relevant to the industry. Use industry-specific data and insights to provide a realistic and comprehensive overview."
Market Mechanics & Buying Behavior
"Please create a comprehensive overview of the [insert industry name] industry, focusing on the following dimensions. The output should be formatted as a table, with each row covering one of the dimensions listed below. Provide in-depth and actionable insights for each.
Business Operating Overview & Customer Lifecycle:
Overview: Describe the key services and operational model for businesses in this industry, including the types of services or products offered, the range of business sizes (e.g., small businesses to large organizations), and relevant regulatory requirements.
Customer Lifecycle: Explain the typical customer lifecycle, including how customer relationships are initiated, developed, and retained. Include typical timelines for customer interaction and factors that influence customer loyalty or switching.
SaaS Stack - Usage & Opportunities:
Usage: Detail the common software tools used within this industry (e.g., management systems, record-keeping, billing, and communication software). Include examples where applicable.
Sophistication: Assess the technological maturity of the industry. Identify current levels of adoption for emerging technologies (e.g., cloud-based platforms, AI-driven tools, automation). Highlight opportunities to improve existing processes or adopt new solutions.
Today’s Consumer Experience & Opportunities:
Experience: Provide an overview of the consumer expectations in this industry. What level of service do customers expect in terms of communication, convenience, personalization, and digital interaction?
Opportunities: Identify opportunities to improve the customer experience through better technology integration, personalized services, or enhanced digital engagement. Include examples of potential innovations that could differentiate businesses in this market.
Ensure the output is concise, insightful, and formatted in a table for easy analysis. Use relevant industry-specific examples where possible, highlighting both current practices and future opportunities for growth and differentiation.”
Customer Journey & Operational Overview
"Please create a detailed breakdown of the operations for businesses in the [insert industry name], structured around the customer journey. The output should be in a table format, covering the following dimensions for each stage of the journey:
Stage in Customer Journey: Identify each stage in the typical customer journey, from initial awareness to ongoing relationship management.
Department: Specify which department is responsible for each stage (e.g., Marketing, Sales, Customer Service, Operations, Billing).
Operations & Activities: Describe the specific activities and processes that occur during each stage, focusing on how they contribute to the customer experience and operational efficiency.
Each row should detail one stage of the customer journey, providing an overview of the department involved and the specific activities undertaken. Ensure that the table is clear, concise, and organized for easy understanding."
For the love of the game 🏴☠️ ⚡️
Hit REPLY and let me know what you found most useful this week (or rock the one-question survey below) — truly eager to hear from you…
And please forward this email to whoever might benefit (or use the link below) 🏴☠️ ⚡️