Entrepreneurial Insights from Sturgis Motorcycle Rally

Lessons from Sturgis Motorcycle Rally

As I write this post, I have just returned from a motorcycle rally in the Black Hills of South Dakota. This rally is often referred to as “Sturgis.” As always, the trip was full of lessons for entrepreneurs. Now, you may be surprised by that, but stick with me and you'll discover these lessons too.

When I mention Sturgis to the the uninitiated, they think it is one big party hosted by the Hell's Angels with sex, drugs, and rock-n-role. Having been to the rally eight times now, I can confidently say that the hard-core image most people think of when they hear the words “motorcycle rally” or “Sturgis” could not be further from the truth. In the 1970's and 80's, the outlaw bikers may have claimed the rally

Even though the internet has been a catalyst of major change in business issues such as marketing, many people still play old tapes that prevent them from seeing the way things really are.

For example, Harley Davidson was the iconic American ride for years. When someone discovered I drove a motorcycle, they would naturally assume that I rode a Harley. Harley's have been the most popular brand of bikes at Sturgis for many years. However, in the past few years, their popularity has been eroded by Victory and Indian. In fact, this year I took stock of the brands outside our Rapid City, SD accommodations after returning from dinner one night. There were four Victories, three Indians, two Honda's (mine and my son's), and one Harley.

Polaris, a manufacturer of snowmobiles and ATV's, saw the sales Harley Davidson was enjoying and decided to enter the heavy cruiser market. It created its own Victory line and then acquired the old Indian brand in 2011. As each year passed, Victory's product line has grown in popularity, mostly at the expense of Harley Davidson. The lesson here is that you can never rest on your laurels. Just because you have a cult following, and Harley owners are seriously brand loyal owners, it does not mean that you have control of the market forever. The more successful you are, the more the competition targets your brand. In fact, takeover speculation continues to

First, a tool like the Business Model Canvas can be applied to any existing business model. In this case, the Business Model Canvas turned wheelchair seats into motorcycle seats, exemplifying the blue ocean strategy (http://www.stevebizblog.com/applying-the-blue-ocean-strategy-to-the-business-model-canvas/). In the blue ocean strategy, a whole new and profitable business model can be created simply by changing the customer segment. Second, it is always better to sell coffee on a cold day and ice water on a hot one. By understanding your customer segment and offering the right product at the right time, you have the key to successfully marketing your