Neurologist and sleep technology expert Dr. Dan Cohen invented the first automated sleep disorder diagnostic equipment used in sleep labs. He also co-founded CNS, the company that launched Breathe Right Nasal Strips, which he later sold to GSK for $566 million.

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Guest Resource

Soltech Health – Experience the Future of Sleep and Stress Management with the SOLTEC System. Use the code ‘EOFIRE’ to get extra $100 off the current price.

3 Value Bombs

1) Intellectual property is very vital to gain value when you sell business.

2) Its important for a person in business to be receptive to any idea that comes his or her way.

3) Don’t judge too quickly but see how it feels. There is a big difference between knowing and thinking. Knowing is a felt sense and it is in your gut.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: Why 90% of Start-Up Companies Fail

[1:27] – Dan shares something that he believes about becoming successful that most people disagree with.

Intellectual property is very vital to gain value when you sell business.

[2:37] – Dan shares The Breathe Right Story.

He was then working in a public held capital equipment company when his VP in operation came to him to introduce his friend who has this band-aid like product to help in breathing. He wanted it as soon as he saw it although the board of directors didn’t believe in it, he went ahead and grafted a patent for it and had it licensed. He was then replaced from his position in that company and he took the product to the market, thought it through from start to end and it was a very successful business.

[4:40] – Dan gives an idea about the product – the band aid across the nose to help with breathing.

The product is a band aid strip put on the nose and is usually seen with football players. The plastic strip bend and when it straightens, it opens up the nostrils to help you breathe.
They later realize that it is not just a breathing product because when you breathe better at night, you get better sleep. They changes their marketing pitch and talk about improving sleep. The business lifted after it was introduced using football players.
The introduction using football players was novel. First they get into distribution, get the players to wear it by badgering the NFL head trainers until they started to try it. Then they circulated the pictures of those players that were using it and ultimately started to catch in the NFL that they didn’t have to pay a person to wear it.

[8:17] – Dan talks about how he rewrote the playbook for launching a consumer product through radio interviews and NFL player partnerships with Jerry Rice and other athletes.

He wanted to get the product into distribution before introducing it to football players. He visited the top 10 wholesalers in the country, pharmacies and retailers, and to closethe loop between the consumers, wholesalers and retailers, he did radio interviews. He did a total of 400 interviews before they had enough demand and all the top 10 wholesalers have the product for retailers to buy.
When he got the independence, he went to Wall Greens and talked to the cough cold buyer but he didn’t took his product. He went on to talk to the local rep who controls 43 stores in the metro area and he basically took the product and told 4 other regional managers. The cough cold buyer called him back and ordered $200K.
He then took the cheque to the general merchandise broker and told him he will also give commission on it for a favor to contact the 8 best regional brokerage firms in the country and they did. They jump from 3000 independent retialers to 40,000 store across the country.

[13:02] – A timeout to thank our sponsors!

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[15:20] – Dan talks about using mindfulness and meditation to make business decisions.

Its important for a person in business to be receptive to any idea that comes his or her way.
The best way to be receptive is to slow down and listen and watch and see what comes your way.
Don’t judge too quickly but see how it feels. There is a big difference between knowing and thinking. Knowing is a felt sense and it is in your gut. The more receptive you are and getting that strong sense of knowing that its going to work, it usually does work.
He lets his brain formulate questions and let the answer come and that’s the key in making good decisions. He can say that his gut is smarter than his brain.

[17:02] – Dan talks about how he raised capital from high-net-worth investors.

Venture Capital began in 1980 and the venture capitalists are in their 50’s and 60’s tend to be operators who have a lot of experience and has a lo to teach. They were very helpful and they introduced him to the right people. It wasn’t hard to went public early because they needed cash and the market was receptive.
He was then 35 yrs old and he enjoyed being in a public company because of the many access to capital and people knew about you so it was wasy to open the door and reach a broader audience.

[18:32] – Dan talks about the breakthroughs that they make to raise capital for people to say to them that it was a great idea.

Since they were already public, he contacted all the brokers and had samples to get distributed. Its pretty straightforward.

[19:21] – Dan shares the major challenges of creating a new industry and his approach this with his sleep enhancement and stress-reducing technology.

It was more difficult because it was a new and different and people had a hard time believeing it. It took a little while to explain it.
It’s a longer process but you have to get your point across in a clear manner so they have something to hold on to why it would work.
His credibility also helped because he pioneered CNS – the automated diagnostics. He was a sleep expert and a neurologist. The other factor is his success as an entrepreneur.
But still even with those credibility, it was still a weird device and is not cheap. They need to convince the people by demonstrating it to them and started people to buy it.
To launch a product like this is very difficult and he thinks he could’nt do it at the beginning of his career.

[21:27]– Dan talks about the Soltec System.

It’s a close loop system and the key part is a magnetic generate that generate specific frequencies that impact the body and ultimately the brain. It is place under the bed on the floor. You have a wrist wearable that is geared for sleep and stress analysis that is much more detailed like it can tell what stage of sleep you will move in to.
It create s frequencies that support the stage of sleep you are in and the main benefit is it works as a therapeutic device to produce better sleep and watch over time how to improve your sleep.

[24:37] – Dan give his key take away.

Sleep is an interesting topic and has different stages that most people don’t realize.
Deep sleep is the most important because it rejuvenates cells that are damage and correct mistakes in your DNA, supports the immune system and basically everything that is essential to your health.
The bad thing is you start losing deep sleep as you age. Its all about improving your health and technology can literally rejuvenate deep sleep.

[27:01] – Call to action.

Soltech Health – Experience the Future of Sleep and Stress Management with the SOLTEC System. Use the code ‘EOFIRE’ to get extra $100 off the current price.

[28:16] – Thank you to our Sponsors!

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