Business Development
Reach for the Stars, but Stand on the Shoulders of Your Existing Business
Leverage your gold
The poem by Joseph Parry (1841 - 1903) starts out with a verse that most of us have heard since elementary school: "Make new friends, but keep the old; those are silver, these are gold." If CEOs always remembered this adage when they are trying to reach into new markets or develop new products, they would be far better off. Your existing customers and products are truly gold, and the fastest way to develop new business is to take stock of their value and leverage them as much as possible. That's not to say that you shouldn't reach outside of your existing business. In fact, as Parry wrote, "but old friends, alas! may die; new friends must their place supply." The only question is how to break into new business areas most effectively, with the greatest chance of success.
Make the connections before you spend
Something about the unknown makes it a magnet for money. We will agonize endlessly over expenditures that we understand completely, but turn around and throw money thoughtlessly at things about which we know very little. Unfortunately, this tendency persists in even the most sophisticated business circles. And there are plenty of very public examples of this behavior. A less risky approach to developing a new business is to think through the connections that the new venture has with your existing business. Force yourself to map out the path from your existing customers and products to new ones, before you make any significant investments. Chances are that you will end up with a solid plan that leverages your strengths.
Connect the dots to get to your ultimate goal
This is not a conservative approach to business development, in the sense of limiting your business aspirations. However, it does force you to take smaller steps. When you first look at a business area, it may not have any connection with your existing operations. Nevertheless, if the business case is compelling enough, you will be able to find a way to reach your goal by defining intermediate objectives that are connected to each other. In essence, you can construct a continuous path from the known to the unknown by connecting the dots.
Make sure that you never have very far to fall
Using a stepwise approach to new business development, you will find that the cost of failure at any point is greatly reduced. There will always be a relatively short distance to get back to solid ground -- to where there's gold. As you build and reinforce the path to success, you will also create other long-lasting business opportunities that will pay off in the future. According to Parry, "new-made friendships, like new wine, age will mellow and refine." Enjoy the journey.
The poem by Joseph Parry (1841 - 1903) starts out with a verse that most of us have heard since elementary school: "Make new friends, but keep the old; those are silver, these are gold." If CEOs always remembered this adage when they are trying to reach into new markets or develop new products, they would be far better off. Your existing customers and products are truly gold, and the fastest way to develop new business is to take stock of their value and leverage them as much as possible. That's not to say that you shouldn't reach outside of your existing business. In fact, as Parry wrote, "but old friends, alas! may die; new friends must their place supply." The only question is how to break into new business areas most effectively, with the greatest chance of success.
Make the connections before you spend
Something about the unknown makes it a magnet for money. We will agonize endlessly over expenditures that we understand completely, but turn around and throw money thoughtlessly at things about which we know very little. Unfortunately, this tendency persists in even the most sophisticated business circles. And there are plenty of very public examples of this behavior. A less risky approach to developing a new business is to think through the connections that the new venture has with your existing business. Force yourself to map out the path from your existing customers and products to new ones, before you make any significant investments. Chances are that you will end up with a solid plan that leverages your strengths.
Connect the dots to get to your ultimate goal
This is not a conservative approach to business development, in the sense of limiting your business aspirations. However, it does force you to take smaller steps. When you first look at a business area, it may not have any connection with your existing operations. Nevertheless, if the business case is compelling enough, you will be able to find a way to reach your goal by defining intermediate objectives that are connected to each other. In essence, you can construct a continuous path from the known to the unknown by connecting the dots.
Make sure that you never have very far to fall
Using a stepwise approach to new business development, you will find that the cost of failure at any point is greatly reduced. There will always be a relatively short distance to get back to solid ground -- to where there's gold. As you build and reinforce the path to success, you will also create other long-lasting business opportunities that will pay off in the future. According to Parry, "new-made friendships, like new wine, age will mellow and refine." Enjoy the journey.