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7 myths of business speed

  1. Who am I  10 Start-ups, 6 countries, 8 wins, 1 loss, 1 I am trying to figure out  Professor new product marketing (KU Leuven) and Entrepreneurship (Solvay)  Fast Bridge: I didn't have a good business idea, so I decided to help others ▫ A network of people that want to help start-ups ▫ I see lot's of business plans and hopeful entrepreneurs ▫ We work with about 1 in 40 ▫ We don't have the right business model yet (I am open to suggestions !) 2
  2. 3  Pick a direction  Be committed to your ideas  Get cash now  Get partners you can trust  Make sure you are first  Go as fast as you can  Do more and more And success will follow… What you’d expect me to say about speed ..
  3. “If things seem under control, you’re just not going fast enough.” —Mario Andretti
  4. Wrong .... 5
  5. 6 These are comfortable, logical ideas and what we have been taught…. But, they are not the whole story
  6. 7
  7. 8 Focus on needs, keep your options open Myth: Pick a direction and stick to it.
  8. 9 Needs first, not ideas first ! Develop a solution Find a need Find a market Ideas First Success Rate* 5-10% Find a need Develop a solution Find a market Needs First 70 % * According to Strategyn research on outcome driven innovation…
  9. A test... Who are these companies 10 personal podcasting and sharing audio content
  10. Answers… 11 personal podcasting and sharing audio content Paypal Facebook Flickr Twitter
  11. “If people are not buying they are not stupid… they might not want what you’re selling.”
  12. 14 Don’t drink the Koolaid Myth: Be committed to your ideas
  13. The biggest 2 mistakes of Entrepreneurs/ Innovators 1. Investing in the wrong business 2. Staying too long in the wrong business.. (after you should know it is time to change…)
  14. • Lots of products only a mother could love • Think in terms of base rates: 9 out of 10 products fail • Be prepared to be wrong (more than once) 16
  15. The big innovation Paradox Whoever Makes the Most Mistakes Wins Richard Farson & Ralph Keyes 17
  16. Costs per stage
  17. Introduction 19
  18. A checklist …  Talk to 20 people (that are not your friends)  If no one hates the idea, be scared  Ask people “if this fails” why would it fail (you’ll get a lot more information than asking what they think of the idea !)  Keep it simple … check do people really understand
  19. 21 Stay lean, until your business model is proven Myth: Get cash now
  20. You lose money
  21. Lessons learned (the hard way) • Way too much time spent looking for cash • Fail fast, fail cheap • Go for cheap and easy on the cash, prove your business then cash will come to you 23 Failure is easy !!! Are you spending more time looking for money than building your business model
  22. 24 Learn to trust almost everyone Myth: Get partners you can trust
  23. The facts... • Ideas are cheap • Original ideas are rare • Great ideas are built through friction 25 A question: Is there any idea someone hasn’t talked about on the Internet (If they haven’t talked about yours be scared… )
  24. Innovation = Size ^ power value Power value Cities Companies 1.3 0.7 Innovation output 1 100% 100% Size 5 690% 309% 25 4759% 952% Innovation per person 1 100% 100% Size 5 138% 62% 25 190% 38% Source: Geoffrey West: The surprising math of cities and corporations 26 The Power Laws of Innovation As cities grow and contact increases… innovation increases (25 X bigger = 2X more innovative) Why: contact increases … As companies get bigger and have more resources… innovation falls (25 X bigger = 60% less innovative ) Why: contact decreases
  25. 27 Imagine this… BMW has some of the best designers in the world and sells their designers by the day below cost Why: to build creativity…
  26. 28 Fast seconds are also a viable option Myth: Make sure you are first
  27. The glory of fast seconds … • A fast second lets other companies innovate and experiment to create new market. • Entry just as the dominant design is about to emerge, helps create dominant design, and uses its [size] position to capture the market • Famous fast seconds – Desktop printers (HP) – Disposable diapers (Pampers) – Discount shopping (Walmart) – Search (Google)… 29
  28. 30 Build in pauses and time to reflect Myth: Go as fast as you can
  29. Operational speed vs. strategic speed • A study by Economist intelligence unit 312 companies ▫ Go, go, go ▫ Companies that paused at strategic moments ▫ 40% higher sales, 52% higher profits 31 6
  30. Build in tripwires to stop and think • Set up times for decisions • Define how you will be decision before the time comes... (1000 sales might be great, but not if you predicted 25,000) 33
  31. A detailed contract for companies setting up the installations Buried deep “M&Ms, but no brown ones” If they found a brown M&M they wouldn’t play
  32. Do less to do more (write a do not do list) Myth: Do more and more
  33. The productivity Paradox • Even good people, spend most their time doing the wrong things or things wrong 36 Right thing Right thing Done wrong Done Right Wrong thing Wrong thing Done wrong Done Right
  34. “With so many things to do and so many great ideas… what we decide not to do is infinitely more important than what we decide to do” – Steve Jobs
  35. Research on innovation 211 companies Worst Avg Best Top vs. bottom % of revenues from new products 17% 28% 47% 2.76 % of profits from new products 11% 25% 44% 4.17 % of products that meet profit targets 43% 48% 66% 1.53 Go / Kill criteria set up front 26% 57% 85% 3.28 Decisions are objective / fast based 15% 42% 57% 3.85 Decisions are made in review meetings 26% 51% 60% 2.32 Cooper, Robert G. "Perspective: The Stage‐Gate® Idea‐to‐Launch Process Update, What's New, and NexGen Systems*." Journal of Product Innovation Management 25.3 (2008): 213-232.
  36. 39 Summary Pick a direction Focus on needs, keep your options open Be committed to your ideas Don't drink the koolaid Get cash now Stay lean, until your business model is proven Get partners you can trust Learn to trust almost everyone Make sure you are first Fast Seconds are a not bad Go as fast as you can Take some time to think Do more and more Do less to do more (write a do not do list) And success will follow...