The

Machine Method

Dyrdek Machine has developed a highly intentional process to turn raw ideas into viable businesses. We call it The Machine Method. This company-creating concept connects our core principles and fundamental business elements into a unique shaping system built to output successful, thriving companies.

The Machine Method is comprised of three interlinked components:

  • The Machine Principles
  • The Machine Elements
  • The Machine System
The Machine Principles

The Machine Principles

The Machine Principles are made up of four core values that every business we create must have. We believe products that are created to serve a unique need to a target audience—built with strong unit economics and multiple revenue advantages with a holistically skilled leadership team—will always create the most consistent ROI. We are constantly adapting, adjusting and strengthening our principles as we develop an opportunity from concept to consumer.

Do-Or-Dier®
Leadership

A business must have a Do-Or-Dier® leader or leadership group that has experience, market expertise, a clear vision, and the internal or external resources that excel in the seven foundational business capabilities. Тhat include brand and product vision, integrated media, sales and marketing strategy, and operational and financial design.

White Space
Concept

The business must serve a unique value proposition to a targeted consumer with a product that appeals to a broad audience. This can be accomplished in a multitude of different ways, including proprietary innovation and unique marketing.

Clear Path
to Liquidity

The business must have a clear business model with strong unit economics and high growth potential. It must have a cost structure with a precise path to creating and distributing dividends, or high growth in a market with significant M and A activity.

Multiple Revenue
Advantages

The business must have a multitude of advantages that create an accelerated path to revenue. These can come in many forms, including strategic investors, manufacturing and distribution relationships, influencer network, industry expertise and consumer access, just to name a few.

The Machine Elements

The Machine Elements are the foundational elements of vision, strategy and design that all businesses must have. These elements include brand and product vision, integrated media, sales and marketing strategy led by consumer insights, as well as operational and financial design—all of which are executed by an experienced management team. The Machine Elements act as the essential parts of the core business engine and lacking any element is detrimental to the success of the business. These elements will constantly be refined and optimized as a business finds its product market fit and scales.

CORE-TO-MORE CONSUMER

Our Core‑to‑More customer philosophy is rooted in the belief that a company can create a product with a value proposition for a core consumer that can scale to a mass consumer. Clearly identifying this core and developing the consumer relationship is the essential building block of a business. When a company is built around a Core, it creates an authenticity that ensures meaningful, recurring product innovation and long-term consistency.

Core-to-More Consumer Segmentation

A framework for identifying who exactly you are building your product or service for and how that consumer base will scale with the business. The Core‑to‑More philosophy is rooted in the belief that a company should be able to sell products to the masses without wavering in their commitment to the loyal core.

Core-to-More Consumer Universe

A roadmap of every possible touchpoint a brand can use to reach the core and the more audience. Clearly understanding exactly how to connect and build awareness with the consumer by understanding exactly where and how they shop, what media they consume and who influences them. This will act as an integrated media and distribution guideline.

BRAND VISION

Brand is the true north star of creating a meaningful business with long-term customer value and loyalty. Putting the brand first ensures the strength of the core business and its ability to thrive forever.

BRAND Soul

The foundational blueprint for a company’s success, answering the questions who, what, why and how. It defines all aspects of what the brand stands for and why the products have been created.

BRAND Design

The visual representation that knits together the brand soul. Take concepts & ideas from the brand soul and bring them to realization. The pieces of the brand design show what the brand stands for.

PRODUCT VISION

Product Vision is a direct reflection of the core consumer. This ensures all innovations and developments deliver on the very specific needs of the core and can scale to the more.

Product Line Strategy

A product strategy draws from the ultimate vision of the product. It states where the product will end up so you can plan the route to achieving the final goal. By setting a product strategy, you can determine the direction of your product efforts including how the product can scale into a suite of products and distribution.

Product Design

Product design is a concept that encompasses a systematic generation and development of ideas that eventually lead to the creation of new products for sale. Product experts work on concepts and ideas, eventually turning them into tangible products and inventions.

Integrated
Media Strategy

The seamlessly integrated owned, paid, earned and influencer strategies. A multiplatform media approach allows brands to deliver a compelling, unified voice across every touchpoint and in every communication with the consumer.

Owned/Earned/Paid Media Strategy

A complete strategy for how the brand will manage its content and storytelling on social channels and digital assets including website. A strategy that allows a brand to think comprehensively about the content they create and how it will engage consumers.

Brand Content Guidelines

The development, planning, creation and management of content that is meaningful, cohesive, engaging, and sustainable, and able to attract the company's core customers.
This is anchored with a story core that ensures consistent, on-brand content.

Marketing
Strategy

The holistic long-term, forward-thinking plan for acquiring/maintaining customers that maps together product, price, and promotion to show a path to achieving and sustaining revenue.

Consumer Acquisition Strategy

A solid CAS is an essential component of attracting and converting a sustainable customer base. A deep customer understanding results in identifying the most cost-effective marketing strategies with the highest ROI on marketing efforts/spend. The goal is a comprehensive, integrated plan that is sustainable, flexible, targeted and diverse.

Consumer Retention Strategy

We look to build an authentic connection to customers and drive long-term loyalty in the process. The goal is to map out the marketing & sales funnel to identify ways to increase customer retention, which could be through rewards programs, digital engagement, CRM, personalization strategies and mobile apps, to name a few.

Sales
Strategy

Sales Strategy sets out a detailed plan on how to get the product and service in front of the core consumer. We take a comprehensive and methodological approach based on business plans and marketing strategy.

Distribution Strategy

This determines when and through which channels to make a product or a service available to the target customers through its supply chain, based upon an analysis of the costs of acquisition of the individual channel.

Sales Integration Strategy

In order to effectively sell product to the consumer, a business must fully integrate all aspects of its brand communication, media and marketing strategies into a cohesive plan to not only sell product, but to track and optimize what is most effective.

Financial
Design

The success of the business will be determined through a financial lens, so it’s important to clearly define all aspects of how the business intends to use capital—as well as track and monitor the progress towards its liquidity goals.

Tactical Revenue Model

This financial document is a combination of a revenue model and an operating model that becomes the roadmap to financial success on both a micro and macro level. This is a living document that is constantly optimized and updated and should connect all aspects of how the business plans to be operationalized and grow.

Capitalization / Liquidity Plan

This plan will define the path of the capital needed to design, develop and grow the business, as well as the path to creating liquidity. This should be the north star of what success means to the business. The liquidity strategy should define an outline for cost structure that will lead to distribution of dividends or the path of growth that leads to who and why someone will acquire the business.

Operational
Design

This will be the core foundation of how a company will execute. This includes all aspects of execution from people to process to product.

Operational Structure

This includes legal structure and organizational structure as well as processes that plan for what is needed to operate the business—both in its early stages and as the business scales.

Manufacturing Plan

Sourcing plan identifies channels of supply at the lowest total cost in order to yield the most profitable sustainable margin. Developing the manufacturing plan helps identify where constraints exist and highlights areas to improve production efficiency.

Leadership Design

Creating a plan that ensures all necessary people are in place to build, advise and manage the business. The success of the business will rely on having the right team of people with the right skill sets to execute. The more knowledge and experience a team has will elevate the likelihood of success.

Leadership Engine

A successful company needs knowledge and know-how across 7 key capabilities of building and growing a business. This includes a Do-Or-Dier® leader with a clear vision of the opportunity who will constantly evolve and optimize all aspects of the business. This person needs to develop a team of internal and external resources that cover brand and product creation, integrated media, sales and marketing execution as well as operational and financial management.

Advisor and Board Structure

Advisory board is an informal group formed to provide strategic advice to founder about the various aspects of the business whereas the Board of Directors is a group of individuals, elected to represent shareholders that not only provide strategic advice but also decisions on major company issues.

The Machine System

The Machine System connects our Principles and Elements into a unique shaping process that uses agile, test-based engineering to produce successful, sustainable businesses. Comprised of five key phases and 12 sub phases, the system includes checkpoints to continually validate and optimize the opportunity throughout the building process.

Discovery
Phase

Dyrdek Machine creates an immense amount of gravity that attracts opportunity in many different forms. The discovery phase is created as a quick assessment framework to swiftly determine if there is a desire to dedicate resources to determining the viability of a potential opportunity. 

VALIDATION
Phase

This phase is the initial diligence phase of the opportunity. This is not only a time to seek out as much knowledge and expertise to help validate the assumptions of concept, market and opportunity, but it is also a time where the initial investment hypothesis will be developed. This hypothesis will be relentlessly tested and refined until it becomes a thesis.

DESIGN
Phase

This phase is the initial development and testing of the product and concept with consumers and market. The focus of this phase will be defining and developing the customer, then creating the initial brand and product concepts for testing. Then the product and brand, along with a refined investment hypothesis, will be presented to potential capital partners for go-to-market.

BUILD
Phase

The most exciting yet difficult phase. Even with all the strategic thinking and planning, taking a product to market and growing a business requires an immense amount of energy and determination. Once the product is in market and the company has been operationalized, it is nonstop customer development and hypothesis testing until you find the product market fit and realize your investment thesis.

Growth
Phase

Systems and process now help optimize the refined business model that has been developed in the initial phases.

Discovery
Phase

Dyrdek Machine creates an immense amount of gravity that attracts opportunity in many different forms. The discovery phase is created as a quick assessment framework to swiftly determine if there is a desire to dedicate resources to determining the viability of a potential opportunity. 

Idea Creation

Either created internally or pitched by an outside individual or group, an opportunity will quickly be screened for its Machine Principle fit and potential shaping needs as well as a general hypothesis. If the concept has potential worth exploring it will move to the validation phase. 

VALIDATION
Phase

This phase is the initial diligence phase of the opportunity. This is not only a time to seek out as much knowledge and expertise to help validate the assumptions of concept, market and opportunity, but it is also a time where the initial investment hypothesis will be developed. This hypothesis will be relentlessly tested and refined until it becomes a thesis.

Idea Validation

It is essential to gather as much information and data as possible in validating an opportunity. This includes immersions into both the competition and financial side of the market. The Machine Principle assessment is most important and if it simply does not fit within our core values, we will stop the process. Next, an initial shaping and development of the Machine Elements will create an opportunity thesis.

Opportunity Validation

The opportunity thesis will then be validated and tested by potential customers and market experts. This will be an additional chance to optimize the Machine Principles as well as the refine the initial shaping. The output of this phase will be the initial investment hypothesis.

Co-Founder Investment

After completing development and validation—if Dyrdek Machine believes there is a real opportunity—there will be a negotiation with partners and a capital investment to initiate the design phase. 

DESIGN
Phase

This phase is the initial development and testing of the product and concept with consumers and market. The focus of this phase will be defining and developing the customer, then creating the initial brand and product concepts for testing. Then the product and brand, along with a refined investment hypothesis, will be presented to potential capital partners for go-to-market.

Design and Shaping

The Machine Elements—as related to core-to-more consumer along with brand vison and product vision—will be built out completely for testing and feedback. At the same time, all of the initial strategies for integrated media, sales and marketing will be developed potential key hires and partners for bringing the product to market will be identified. The Machine Principles will also continue to be optimized.

Concept Validation

The product and brand will now be tested with core consumer, and this feedback and data will be used to optimize and adjust all aspects of the business. The output will be a complete package of the vison for the opportunity that includes the brand product and an investment hypothesis.

Seed Investment

After the concept has been fully developed, validated and optimized through testing—and Dyrdek Machine believes there is a real opportunity—then capital partners will be presented the opportunity and the company will receive its seed funding and move to the build phase.

BUILD
Phase

The most exciting yet difficult phase. Even with all the strategic thinking and planning, taking a product to market and growing a business requires an immense amount of energy and determination. Once the product is in market and the company has been operationalized, it is nonstop customer development and hypothesis testing until you find the product market fit and realize your investment thesis.

Create Business

The initial Machine Element shaping has now evolved from development to planning and execution. Key hires and partnerships with manufacturing and distribution are finalized along with the go-to-market plan. After validating the GTM plan, the product is launched.

Product Market Fit

The most important aspect of building a business is finding the product market fit. Once the product is in market there needs to be constant feedback from consumer and market. This feedback will be used to refine all aspects of the business as it relates to all of the Machine Elements. The Machine Principles will also continue to be optimized. Once you have found the product market fit the business will have a true scalable business model based on a defined investment thesis.

Series A fund

After the business has found its product market fit and clear investment thesis, the partnership will seek strategic growth capital to scale the business.

Growth
Phase

Systems and process now help optimize the refined business model that has been developed in the initial phases.

Scale

Amplifying all aspects of the Machine Elements, taking the product from the core consumer to the more consumer.

Exit

Based on the initial liquidity strategy developed as part of the opportunity thesis, the business will seek to be acquired or create a liquidity event.