Does your business need more growth? You're not alone. Who doesn't want more growth?
While organic growth is necessary, sometimes it's not enough. When your core business is maturing, or is being disrupted by changing market conditions, business leaders need to look outside their current business model for new sources of growth.
In general, there are three common ways of growing outside your current business model. Unfortunately, each option comes with its own set of challenges.
1. Mergers & Acquisitions - You can buy your way into a new market, but you will likely pay a premium for it. 90% of all acquisitions fail to achieve their financial objectives.
2. Venture Capital - You can create a corporate venture fund to invest in promising startups. But the VC business is a difficult one. The vast majority of venture funds fail to outperform the stock market.
3. Internal Innovation Teams & Accelerators - While these efforts are noble, often times they fail because companies use existing personnel and processes, which lack the necessary startup experience and are better suited for executing a proven business model.
So, each of the common options for creating external growth are problematic and often fail in achieving their objectives.
That's why we've developed a fourth option.
4. Hire experienced entrepreneurs to build your own startup.
By hiring an external team of proven entrepreneurs, you dramatically improve your innovation capabilities and your odds of success. We think entrepreneurs, and they entrepreneurial spirit, energy and grit they bring, can create an exciting fourth option for growth outside your existing business model.
With the cost of technology falling every day, startups are cheaper than ever to build from scratch. Most companies don't realize how capital efficient it can be to build their own startup. While startups have a high failure rate, this risk can be mitigated by taking three important steps.
- Stage the investment with quarterly reviews and requiring customer traction
- Use experienced entrepreneurs
- Follow lean startup principles
When used together, these three things can dramatically improve the odds of success. In fact, by using these techniques, I created five startups in a row and achieved profitability with very little capital investment. Yes, it can be done. With our help, you can do it too.
You can start by hiring a single EIR (Entrepreneur-In-Residence). We make this easy with Entrepreneurs On Tap, our solution for injecting real entrepreneurs into existing businesses.
You can expand by creating a small, highly-focused startup team, seeded with experienced entrepreneurs. We make this easy with our Innovation Outpost solution.
Does this resonate with you? If so, contact me today for a free, 30-minute opportunity assessment.
Founder & CEO