Building a business effectively, efficiently and rapidly has always been a challenge for entrepreneurs and the C-Suite.
The current environment has resulted in large businesses sitting on capital and the need to invest further to ensure the capital works for them and gives them the returns.
The typical train of thought would have been to invest the capital in real estate and at best side projects with the hope that they flourish without the right frameworks and isolation.
A global survey pushed out by McKinsey during the covid pandemic suggests that new businesses are being launched with ever greater frequency.
The findings suggest that companies that prioritize business building tend to grow faster than their peers, respond with greater resilience to volatility and economic shocks, and, as they gain experience building businesses, see more success from it. But not all companies succeed: only 24 percent of new businesses launched in the past ten years are viable large-scale enterprises today – McKinsey.
Building future digital businesses within your organization is now a necessity for any businesses. Its no longer a luxury but a necessity and those organizations that don’t invest in future business building activities will lag behind
One must diversify and build a digital business that either complements or competes with your core business.
1) Detach the startup from the large corporate within which it lives.
2) Allocate a healthy budget to a dedicated new team
3) Engage a mentor that can guide the team with an entrepreneurial mindset and
4) Detach management from the process as manager as great at managing
businesses but not too great at building new businesses.
5) Document a process that works
6) Focus on fast go to market MVPs that should hit the market in weeks not
7) Monitor the performance of the unit differently to how other team members in
the organization are reviewed.
We are now in a sink or swim environment and we must leverage the current organizational systems, process suppliers, customers and partners to accelerate the growth potential of the new business.
We fully understand the importance of forward thinking and customer-oriented strategies.