Currently, we are experiencing a global start-up and venture boom that is similar to what we saw right after the financial crisis in 2008. More and more people are deciding to take their chances to positively contribute to the future by building a new start-up and solving global problems. On top of that, many established organizations realized that to keep up with the changes in our environment and to leverage the new opportunities of today's times, venture building and creating new businesses from the ground up is an essential part of a modern and successful business strategy.
The harsh reality is, however, that 90% of start-ups and new ventures fail, with the lion's share of start-up closures occurring during the first three years of operation. In terms of corporate innovation, we are also experiencing the phenomenon of what we like to call “idea vanity”.
Companies are investing in design thinking workshops, ideation challenges, and other tools and methodologies to generate ideas but fail to execute them. The outcome: No results are created for the company.
Have a look at some of the major reasons why start-ups fail and why execution is not working below:
No execution process in place
Making products nobody wants
Extreme product focus and disregarding business model, customer, or financials
Rigid, slow, and inflexible development of the business
Focusing on the wrong things at the wrong time
Lacking the right people and team
Most of us, if we are honest with ourselves, will be able to relate to a few of the above-mentioned problems with our venture. Are we really operating in a lean way or are we just using the buzzword? Have we really understood the problem, or did we enter immediately with our solution? Are we all over the place with 1000 things to do or do we have clarity on what to focus on each week? Wha
t can you do about it? &make's hybrid modular approach aims to address the major reasons for start-up failures and overcome the issue of idea vanity in corporate innovation. The approach involves six steps. The first step is to discover the purpose and align all stakeholders with it. This step involves deriving clear impact-driven measurements that act as a Northstar for all innovation activities. The purpose serves as a guide for all subsequent steps in the approach. The second step is to analyze the market and users to discover potential and find problem-solution fit. This step involves identifying opportunities that align with the purpose and potential customers' needs and wants. T
he third step is viability. This step involves building, testing, and establishing solutions in a sub-context, learning from the process, and optimizing the solution. This step ensures that the product solves the customers' problems effectively and efficiently. The fourth step is scaling up solutions and obtaining additional growth capital and funding for growth. This step involves growing the business and ensuring that it remains financially sustainable. The fifth step is engagement and accompanies steps two to four. It involves managing organizational and human risk to ensure success. Plus, it ensures that the team is well-e
quipped to handle the changes that come with scaling up. The sixth step is resilience and exit strategy. This step involves ensuring that the innovation strategy is handed over to an innovation hub to sustain growth. The hybrid modular approach combines venture building and product development with innovation enablement and incubation to provide a comprehensive approach to innovation. By following these six steps, organizations can increase their chances of success and avoid the common pitfalls that lead to startup failure. If you want to learn more about how venture building and product validation methods can help you, get in touch with us today. We'd be happy to discuss our services and show you how we can help you achieve your goals.
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