Tag Archives: opportunities

Focus Early on the Value Proposition to Help Manage New Market and New Product Risks

By Karen Utgoff

Savvy small business owners and startup teams take time to develop, test, and validate assumed value proposition(s) before making a significant investment in a new market or new product. This is a cost effective way to learn whether — and how — to best pursue opportunities. Be smart. Include this step early in your new product development and/or market launch planning efforts.

Is this really necessary? The further a new market or new product is from your current business, the more value-proposition-based, hypothesis-driven approaches are likely to increase your probability of success, help avoid missteps, and minimize the cost of failure. It’s better to recognize a gap between what you think and what your market needs while you have the flexibility to improve product-market fit; if there is an incurable mismatch, it’s better to “fail fast and cheap,” especially if there would have been a big investment. Concerned that this just adds to your costs? Consider the wasted resources and employee demotivation associated with failure of a new product, especially when better alignment between product and customer needs might have led to success.

Before sinking dollars and employee time into a new market or product/service offering, develop a hypothetical value proposition. Use this as your starting assumption as you test, revise, and pivot to achieve the best possible fit between product/services, new target customers/markets and your business goals. Many believe this type of effort is just for startups but it’s very useful for any company ambitious to grow beyond familiar territory. This is different from the process Laurie Breitner describes to take advantage of the existing customer relationships and knowledge a team accumulates over time to clarify and confirm value propositions for established products in well understood markets.

Test your hypothetical value proposition to corroborate, refute, revise, and reinvent before making a big commitment. While methods for doing this aren’t foolproof, you will be amazed at what you can learn. The fundamental idea is to get feedback from customers and influencers early in the process. While this may reveal painful truths, it’s much better than discovering them after building the wrong inventory, focusing on disinterested customers, or setting prices too high or too low.

Three low-cost methods are within reach of most small businesses and new ventures. Each has its strengths. They are not mutually exclusive and are most effective when customized to apply to the particulars of each situation. In all cases, focus on learning not selling.

  • Observe potential users going about their daily routines. See how potential customers currently solve a problem and why they might value your alternative solution. These opportunities take some finesse to structure but cost little and — with the right frame of mind — can deepen your understanding of customers, improve your product, and clarify the value proposition. If you are contemplating entering a new market with an existing (or new) product, this method may work best as a next step with your interviewees (see below). If you are developing a new product for existing customers, it can build on established relationships.
  • Interview potential customers, influencers, distributors, and partners to gauge their attitudes and get their input. Your hypothetical value proposition embodies assumptions about what problems are important to potential customers and what they value in a new solution. One-on-one interviewing lets you test those assumptions and make changes to the value proposition, change the product design, and/or redefine the target market. Plan on devoting significant effort to interviews and to processing what you hear from each interviewee. These videos provide a good general guidance on planning, conducting and learning from interviews as a starting point; different situations, products, industries and customer segments require variations on this approach.
  • Test a pre-commercial (prototype) product by putting it in the hands of potential customers. Recruit a small group of thought leaders, early adopters, and (if you have them) interested customers to individually give you feedback on a prototype. There is nothing like getting an early version into customers’ hands to learn if the form factor, instructions, and performance meet their needs and it’s much better to improve the product before investing in inventory, advertising, and other expensive aspects of a product launch. Interviewing and observing this group maximizes learning — there is no survey that can follow up on interesting remarks or probe for more detail the way a skilled, well-prepared, objective, and curious interviewer can.

Who says you never get a second chance to make a first impression? All three of the above methods enable you to test your ideas, assumptions and decisions. To make the most of them and to preserve your chance for future “first” impressions, follow two rules:

  • Don’t argue with or disparage the expertise of interviewees or others with whom you engage. Be sure not to insist your assumptions are correct or preach that your product is “better.” Instead, acknowledge that you don’t have all the answers and appreciate the opportunity to learn from them. If you need to drill down for more detail, resist the urge to dissect the details in favor of asking open ended questions such as: “Why?” “How?” or “Can you tell me more?”
  • Be considerate. If interviewees are interested in spending more time with you than planned, be encouraged; but do not stay past your allotted time unless invited to do so. Be sure to thank everyone for their time and help. Ask if you may come back to clarify, ask more questions, or share future progress. An enthusiastic “yes” is a good indicator that you are on the right track.

When to begin? It is essential to begin early in the product or market definition/development process while you still have the flexibility, time, and resources to pivot. When well done, using hypothesis-based methods to craft, test, and refine an initially assumed value proposition can help to assure that product development and market development efforts are well-aligned and attuned to customers in initiatives that move forward. This increases the likelihood of success while reducing the risk that further investment will be off target.

 

 

© Copyright 2017 Karen Utgoff. All rights reserved.

When Better Isn’t Good Enough: An Entrepreneur’s Tale

By Karen Utgoff

2017-06-04 Mousetrap_patent_model_3_-_National_Museum_of_American_History_-_DSC00350

By Daderot (Own work) [CC0], via Wikimedia Commons. Exhibit in the National Museum of American History, Washington, DC, USA. Photography was permitted in the museum without restriction.

Many believe that if they build a better mousetrap customers will beat a path to their door, but it isn’t necessarily so. Inventors, small business owners, or startup teams confident that their vision of a better product, service, or technology will automatically lead to business success should balance that confidence with healthy skepticism. Testing product-market fit with potential customers, users, partners, influencers, and others could make the difference between success and failure. Consider this (made-up) cautionary tale.

Howie Ketchum, inventor and CEO of Ketchum Mousetraps, was in a somber mood after reviewing disappointing revenue numbers and similarly troubling web and mobile traffic statistics. Unique first-time visitors were plentiful and many made their way through all of the technical information detailing the advantages of his Internet-of-Things (IOT) enabled mousetrap with smartphone apps to enable monitoring from anywhere in the world. However, pitifully few signed up for more information, or even returned for a second visit let alone ordered the product.

The patented Ketchum IOT Mousetrap added an accelerometer and Wi-Fi connectivity to a traditional mousetrap. When a mouse triggered the trap the accelerometer determined its “status” and notified the owner via the IOT Mousetrap app. The company’s primary target market were home owners, who could buy traps directly from Ketchum. Companies with sensitive facilities could buy traps in bulk and monitor them with the app to provide a system that would be easily monitored by the maintenance staff. In this way, Ketchum planned to disrupt the pest control industry. Apps were available for all smartphones. In addition to notifications, apps kept statistics on all traps in use, allowed users to order new traps, and provided value-added tips on mouse control. If you find Howie Ketchum and his Internet-enabled, Wi-Fi connected mousetrap preposterous, check out this article or this one or this service.

Ketchum’s national product launch had been received with great fanfare including write-ups in top tech magazines and a national tour but did not result in sales. Efforts to improve the marketing and sales process had resulted in more visitors navigating through to the order page but nothing seemed to prompt more lookers to become buyers.

Six months later, Ketchum Mousetraps was out of money and closed for good; the 99,950 of the original 100,000 units of inventory Howie had stocked in anticipation of the product launch sold for 2% of the manufacturing cost. In his final act as CEO, Howie took down the “Build a better mousetrap and the world will beat a path to our door” banner from the reception area and left the office for the last time.

This fictional story illustrates what can happen when “better” isn’t good enough in the real world. Here are some of the (nonfiction) reasons “better” falls short:

Not “better” in the eyes of the customer:  A product or service is only better when it’s better in the eyes of enough customers to support a financially healthy business. Could Ketchum have been successful by offering a somewhat different product packages to the target customers? Or by targeting industrial customers directly? Or by concentrating exclusively on sales through established providers of pest control services? Or by aiming to be a rodent control business rather than mouse control solution?

Contrary to current practices, perceptions, or culture: When “better” involves a change in habits or violates the current culture, it raises rational and emotional objections that may have little to do with the problem the “better” solution solves. For the example of an IOT mousetrap, concerns might include users preferring not to have a phone app declaring they had a mouse problem.

Not invented here: When a customer has a homegrown solution that is already in place, there can be considerable resistance to adopting a new one, especially from a stranger. Whether this resistance is the result of ego or a more objective reason, it’s often impossible to overcome. If Ketchum had talked to  pest control companies, he might have found they already offered low-tech versions mouse control services that allowed for routine operations with well planned, efficient servicing schedules and routes rather than creating a need for immediate, unpredictable service calls as the app might have.

Not a high priority: When the problem is relatively unimportant compared to other issues and/or current situations are pretty good, users often will not take the time to seriously consider “better” offerings. In Ketchum’s situation, most potential customers may see their problem as the occasional mouse rather than a serious infestation.

Switching cost: Any additional burden — even a short term one — imposed by a new solution can easily derail consideration of a “better” product, especially for a low priority situation or where “better” does not result in a measurable financial improvement. For the cautionary case, Ketchum’s app adds a number of costs to the low-tech mousetraps, including giving up personal information, time spent on initial configuration, and the cost of buying new traps.

Switching risk: An unproven solution always carries with it the risk of disappointment. Perhaps it will not work or lead to unintended consequences that cause harm. Will an IOT mousetrap be plagued with false positives or false negatives? Will the app distract users from more important matters? What happens to pest control companies using their system if Ketchum goes out of business?

Too far ahead of its time: One of the most frustrating reasons for “better” falling short is when the improvement is too far ahead of its time. It may be that the time will be right for an IOT-enabled mousetrap when home automation systems controlled by smartphone apps become common.

Refusing to be seduced by the myth of the better mousetrap does not guarantee success but can help both established small businesses and new ventures minimize the cost of failure and live to try another way. My next post will offer thoughts on testing and validating assumed value propositions as a way to do this.

Related links:

Listen to the NPR interview with Professor Bill Hammack of the University of Illinois on “When technology bets fail” and watch his  videos on “How the Sony the Betamax lost to JVC’s VHS recorder” and on “Why the DVORAK keyboard didn’t take over the world.”

Read Nicholas Jackson’s March 28, 2011 article in The Atlantic on “Mousetraps: A Symbol of the American Entrepreneurial Experience

 

© Copyright 2017 Karen Utgoff. All rights reserved.

Want to Have Your Cake and Equity Too? Consider Non-dilutive Funding

By Karen Utgoff

2016-08-24 Non-dilutive fundingRather than taking a piece of your pie, non-dilutive funding sources offer outside funding and/or in-kind resources that let you have your cake and equity too. While it will never take the place of equity investment, secured debt, or bootstrapping, the right non-dilutive resource can be a great precursor, gap filler, supplement, or complement at critical stages. It’s easy to overlook this category of funding but it’s worth considering whether and how it can add value your new or established business.

The right non-dilutive funding at the right time can help finish a product, validate a market, prepare employees for new challenges, or otherwise advance your efforts.

Non-dilutive resources include:

  • Highly competitive grants programs for technology-driven ventures;
  • Small grants open to any business located in a specific state, city or business district;
  • Crowdfunding to build an initial customer-base complete with pre-orders;
  • Training or internship grants to strengthen the workforce;
  • Innovative foundations with grant programs open to for-profit companies with (or occasionally without) non-profit partners;
  • Accelerators, incubators, and competitions; and
  • In-kind resources that provide expertise, tools or connections that would have otherwise required funding.

Non-dilutive resources aren’t free and come with non-financial burdens similar to equity and debt financing.

  • Resources that don’t meet your needs can take your business seriously off course.
  • Non-financial obligations such as administrative, performance, recognition, audit or reporting requirements may apply.
  • Non-dilutive funding takes time and effort to find and use effectively.

Non-dilutive sources offer benefits beyond immediate support.

  • Success with competitive grants or crowdfunding can help you build the technical and business credibility necessary to secure the right investors.
  • Crowdfunding can prime the pump for future interest in your products.
  • Participation may position you for other opportunities in the future.

This post was inspired by my recent MassChallenge talk on the subject. A big thank you to the MC team for inviting me! See the slides from this talk for web links and additional ideas.

© Copyright Karen Utgoff. All rights reserved.

About Crowdfunding: Advice from the Experts and the Experienced

By Karen Utgoff

Courtesy of Wild Rumpus New Music Collective

Courtesy of Wild Rumpus New Music Collective

Crowdfunding is a tantalizing vehicle for overcoming the funding gap for a wide variety of endeavors including arts organizations, new products/services and entire companies. The Kauffman Foundation offers two highly informative videos that give the 50,000-foot summary as well as the view from the trenches.

The first video is 90-minutes long crowdfunding primer (you won’t miss a thing if you fast forward through the first 4 minutes and 30 seconds) and includes:

  • An overview of the crowdfunding space from Jase Wilson, founder of Neighbor.ly
  • The story of their successful Kickstarter campaign from Trellie co-founders Jason Reid and Claude Aldridge
  • Data-driven insights on Kickstarter project practices from Nate Allen, founder and CEO, at the data visualization studio 4 First Names

Key takeaways:

  • The money is a bonus. The opportunity to build awareness and visibility as well as to engage with fans and/or customers is equally or more valuable.
  • Effective marketing is crucial. You need a plan to bring the crowd to your project. It will be hard work.
  • Conducting a crowdfunding campaign will take more time and work than you expect.
  • Pick the platform based on your project, needs, and target crowd.
  • Be mindful of the work that will be required and costs that will be incurred to fulfill incentives, meet obligations, and communicate with backers if your campaign is successful.

The second video on “How to Raise $1 Million in 30 Days” features Indiegogo founder Slava Rubin. He describes elements that are believed to be important in building successful crowdfunding campaigns based on Indiegogo data.

(c) Copyright Sarah Concannon. All rights reserved. Used with permission.

(c) Copyright Sarah Concannon. All rights reserved. Used with permission.

I’m very appreciative that the Kauffman Foundation has posted both of these. They shed more light than heat on crowdfunding as a potentially valuable resource for bridging the funding and awareness gaps that so many emerging businesses, arts organizations and non-profits face. As such, they are must-see material for anyone considering going the crowdfunding route on the innovation trail.

Finally, a big shout out to two of my favorite Kickstarter campaigns:

Congratulations to both on their successful campaigns.

Gap Files 2

© Copyright 2014 Karen Utgoff. All rights reserved.

What’s So Special about You?

I could not have anticipated that a taunt I first heard in grammar school would be a question I’d later ask business owners in all seriousness. Businesses are most successful when they build upon their unique strengths and take appropriate steps to mitigate critical weaknesses.  But recognizing your strengths and weaknesses is easier said than done. Here is an overview.

While it would be impossible to enumerate all attributes an organization might have, the following list will get you started.  As you consider your organization’s strengths and weaknesses, please be absolutely honest.  It’s easy to think only in positive terms, to see only potential or to obsess over weaknesses. However, giving in to one-sided thinking will not result in actionable information. Better to recognize any areas that need attention as soon as possible so that you can address them before they negatively impact your bottom line. On the flip side, don’t fail to recognize where your organization shines. This may lead to discovery of competitive advantages that will help your business to leap ahead.

Expertise/industry savvy and contacts

  • Unique capabilities – what can your organization can do/supply that is not available from competitors?
  • Experience/knowledge of principals and staff – do you offer customers an extraordinary level of expertise or experience?
  • Industry ties – do you belong to and actively participate in industry associations?
  • Influencers – do you regularly engage in two-way communication with industry influencers?
  • Media – would it be likely for the media to contact you were there to be a breaking story in your industry?

Customer base

  • Customer satisfaction/fans – do your customers refer or recommend you to potential new customers?
  • Loyalty – do you receive repeat orders from customers?
  • Diversification – do you have multiple customers in a variety of industries?
  • Are your customers financially stable?
  • Do your customers expect you to compete on price alone?

People

  • Leadership and top managers – is your leadership team complete, respected, knowledgeable and well connected?
  • Overall, do employees have all the skills and qualifications they need?
    • Skill level – does your organization ensure that staff is well trained, up-to-date and knowledgeable?
    • Dedication to quality and customer service – is your organization’s definition of quality and customer service measurable, clear to all members of your staff and considered in every customer interaction?
    • Licenses, insurance and certifications – do you/your staff have all relevant licenses, insurance and certifications?
  • Succession plan/pipeline – do you have a clear succession plan and the means to find and attract sufficient new employees?

Suppliers/raw materials

  • Stable – are your suppliers financially stable?
  • Raw materials – is it likely there will be an adequate supply of raw materials available at a reasonable price?
  • Bench strength – do you have multiple suppliers of key goods or raw materials?

Products/services

  • Are your products and services distinct from those of your competitors?
  • Do you have exclusive agreements to sell products and services in your market?
  • Do you offer a complementary mix of products and services not found at the competition?
  • Is demand for your products and services seasonal and/or tied to events beyond your control? (Weather, subsidies, tax incentives, etc.)

Intellectual property

  • Patents/trademarks – do you own and protect patents and trademarks?
  • Marketing collateral – does your marketing collateral engage and inform your customers base?

Infrastructure

  • Convenience to customers/suppliers – are your organization’s locations accessible to both customers and suppliers?
  • Traffic – if it’s relevant, are you located in a space (either physical or virtual) where your customers are likely to congregate?
  • Visibility – is your organization easy and convenient to find both physically and virtually?
  • Processes and procedures – do you have efficient, documented processes and procedures?
  • Systems – do your systems (computer, telephone, forms, inventory management, etc.) effectively support customers and staff?
  • Technology – do you have all of the industry-specific tools and technology you need to compete for business?
  • Overhead – is your operation efficient?

Financial

  • Financial strength – is your organization on sound financial footing?
  • Banking relationships/access to credit – do you have on-going positive relationships with one or more banks that would be willing to extend credit?
  • Positive cash flow – overall, is your cash flow positive?
  • Terms – are you offered and do you take advantage of suppliers’ best possible terms?

Culture

Culture significantly influences an organization’s ability to attract and retain employees, respond to problems, and to provide a great customer experience. For more on this, read Karen Utgoff’s recent post on looking at your organization’s culture with fresh eyes.

It is often illuminating to involve customers, suppliers and staff in exploring many of the questions above. You can learn a lot by understanding their views. Also, what might have been accurate in the past may not always be true. Support your assessment with facts whenever you can. Refresh this information periodically, more often if your circumstances (market, customers, etc.) are in flux.

Understanding your organization’s strengths and weaknesses will give you a better understanding of internal capabilities. To formulate a strategy, these need to be considered in the context of the external environment. For more on doing so, see this post by Karen Utgoff on sorting out opportunities and threats.

© Copyright 2014 Laurie Breitner. All rights reserved.

Navigating the Innovation Trail: Canyons, Chasms and Sinkholes! Oh My!

By Karen Utgoff

Death Valley (© Dan VanHassel. All rights reserved)

Death Valley (© Dan VanHassel. All rights reserved)

For both innovation-driven new ventures and intrapreneurs in well-established businesses, the road to new business success is frequently rocky and interrupted by gaps large and small. Often the team needs to build the road as it creates the product.  In addition to the significant canyons and chasms along the way, there are many smaller sinkholes that can swallow you and deceptively promising blind alleys that can take you off course. If you decide to blaze an innovation trail, here are some of the challenges you can expect to encounter.

Death Valley (© Dan VanHassel. All rights reserved)

Death Valley (© Dan VanHassel. All rights reserved)

The long, dry valley of death (pdf) between idea and fundable business is treacherous. Your team (and your idea) can die of thirst! Can you convince an angel, venture capitalist, funding agency, your company, or bank to invest, allocate, grant or lend your team what it needs? Can you make your current cash last long enough to see you through or are you counting on “rain” before your checking account runs dry? Be sure to consider carefully what you will need to make it across.

The labyrinth to the first customer is filled with blind alleys that can easily disorient even savvy navigators. Some will never find their way back to the main road. The biggest danger is potential customers who never say “no” but never decide to buy. The sale feels so close. You keep thinking one more meeting will do the trick, making all the time and effort you have invested suddenly worthwhile. It’s so hard to tell the difference between sincere interest from a future customer and someone who simply doesn’t want to offend by saying “no.”

The chasm between first customers and the main market was made famous by Geoffrey Moore in his landmark book Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers, which analyzed the challenges of growing beyond the first few, true-believing customers to achieve mass market adoption. It can be uncomfortable to move beyond your base of support but to achieve significant growth it must be done.

Cash flow sinkholes often develop on short notice. Even well-funded companies fall into them. There are many causes — for example, a new employee who isn’t productive or an unexpectedly problematic feature of the product — that can undermine your cash flow. It’s easy to spin your wheels in a futile effort to move forward but that only digs a deeper hole. The sooner you realize the underlying problem and fix it, the better.

The high growth grand prix comes just as you think you are home free. Suddenly your Gap Files 2business is growing faster than you thought possible and continuing to accelerate. You can’t take your eyes off the road for a second. Threats and opportunities are coming from all directions and with greater speed. You need to develop habits, processes, systems, and instincts to keep you alive and growing. The good news is that, for those who are brave and persistent enough to navigate through, success can be very sweet.

© Copyright 2013 Karen Utgoff. All rights reserved.

To Tell or Not to Tell?

By Laurie Breitner

Your healthcare practice is doing well. After some tough beginning years you’ve added partners and pulled away from the pack by learning not only how to survive — but better yet — how to thrive in a changing regulatory climate.

You and your partners feel it’s time to expand geographically. You found a practice in a nearby town that seems to present an opportunity. Despite their large patient base, they aren’t doing as well as they might financially and the senior partners are ready to retire. A deal is struck and a take over date picked — three months hence. You plan to keep the current support staff and remaining clinicians at the current location, and expect to retain the bulk of the patients, reasoning the key to that is staff retention.

Only your partners and a couple senior staff are included in transition planning. No else one in your current operation and no one at all in the “new” practice is informed, which raises the question: when do we let everyone else know?

A couple of your partners argue for immediate and full disclosure. Get everyone together, share the good news — because it really is good news — and get them involved in the transition.  They feel some staff might leave, but overall, there would be better buy-in.

Others are concerned about staff in the acquired practice seeking employment elsewhere over the course of the next three months. Who would want to stay on knowing that they would have to cope with a transition? Better to tell them the day the transition is effective. There might be some initial discontent, but if they were told on Monday morning, they’d have to pull together to serve the patients scheduled to arrive.

There is no consensus. You’re the one who started this practice. All eyes are on you. What do you say?

First take a deep breath. Ask yourself, what are you trying to accomplish?

This is a long-term play and in the long run you want a larger, financially viable practice. You know that while patients are often loyal to their doctors, it’s the staff that keeps the business on track. Schedulers, billing staff, nurses, and technicians support you and your partners. Can you really afford to keep them in the dark? Is that a way to start a new relationship? How would you feel if the roles were reversed?

Is there another way? You have an opportunity to build a good long-term relationship with the new team, which should minimize possible turnover in your current operation and in the one you’re acquiring. A little selling is involved. So, get the group together and tell them the good news. Plan to have one-on-ones with (at a minimum) key staff — ideally everyone — to answer their questions, make new staff feel welcome, and current staff feel appreciated. Hear, and if possible use, their ideas for the transition. Listen to those who mourn the loss of what was; those feelings will pass more quickly if they are acknowledged. Let everyone know how much you respect and appreciate them. Encourage them to be part of the future you envision.

Remind yourself and others that this good thing for both practices. There will be more opportunity for staff advancement, better job security, and additional coverage. Patients will have more choices of locations and practitioners and perhaps even longer office hours — one office could cover early hours and the other late; there would be many possibilities with a bigger practice.

Keep everyone informed of progress or even lack thereof. Email or written updates posted where everyone will see the latest news will suffice between formal meetings. Show your appreciation for all the hard work and acknowledge the extra work that your current and new staff does to make the transition go smoothly. Consider some kind of celebration to start building those critical relationships between people.

Wouldn’t it feel better to start off this new chapter with honest communication as a foundation for future employee-employer relationships? Once past this hurdle, you can turn to the question of how best to inform future patients and others in your new community.

© Copyright 2013 Laurie Breitner. All rights reserved.

What’s your SWOT Spot?

By Laurie Breitner

In real estate the old saw is that the three most important things are location, location, location. In business — especially a small business — it’s focus, focus, focus. My colleague Karen Utgoff and I have been encouraging business owners to think this way for years, each from our own perspective.

Karen is a market strategist and often looks at businesses through that lens. That is, what are the opportunities and threats that could impact a business? As an operations person, I have a different viewpoint. I consider a business’ strengths and weaknesses. Of course each of us does that within the context of the business’ specific mission and target market. When we work together, we joke that I handle the S-W while she deals with the O-T. It’s our effort to bring a little humor to the topic and it usually gets a laugh.SWOT spot

So, expect to read about ways to determine and operate within your organizations’ SWOT spot — the place in your market where you can take advantage opportunities, mitigate threats, utilize your strengths and minimize your weaknesses.

 

© Copyright 2013 Laurie Breitner. All rights reserved.

Minding the Gaps

By Karen Utgoff

There are many definitions of entrepreneurship. This one is my favorite because it is confirmed completely by my experience:

“Entrepreneurship is the process by which individuals — either on their own or inside organizations — pursue opportunities without regard to resources they currently control” (Stevenson, Roberts, and Grousbeck, 1989)

When a business is in a stable phase of its life cycle, management seeks to optimize expected results within the resources available. In contrast, entrepreneurs, as well as company-based intrapreneurs, seek to overcome or work around gaps in resources, customers, and knowledge to get something new off the ground.

As an operations person, Laurie is especially aware of gaps that could interfere with making the important transition from the entrepreneurial (startup or significant growth mode) to a more stable phase. Putting systems in place to attract, retain and manage employees that consistently and efficiently produce quality goods and services is key.

From a market-oriented business strategy perspective, I’m concerned with gaps in the business model, resources, and reputation that interfere with the ability to start up and grow (new or existing opportunities). A sound approach to developing well-aligned value propositions, competitive differentiators, product/market fit, and marketing/sales tools is key.Gap Files 2

So, expect to read more in The Gap Files about how entrepreneurs leading startup companies or innovation-driven growth initiatives within existing organizations can overcome obstacles, find help, and make do in the face of scarce or nonexistent resources.

© Copyright 2013 Karen Utgoff. All rights reserved.