Be an Entrepreneur With Innovation
11 things every entrepreneur should know
An innovation that revolutionizes your life is the dream of every entrepreneur. But that dream may die hard if you don’t have the right expectations.
What sort of expectations should you have? Well, you can start with these eleven:
1. Innovation demands the right business model
Obviously the very first thing you need to do for your company is figure out how you are going to make money. Advertising or direct monetization through licensing or subscription are the typical business models.
But what’s not so obvious is that making the right decision about the business model is critical if you want to create sustainable adoption for your product. Let’s look at apps to show you what I mean.
Which model will work best? Here are three more to think about:
- Cost-plus pricing: a common pricing strategy is to set the price at what it costs to produce, including expenses, plus your target profit margin.
- Target return pricing: you set your price to get back all the money you invested in the company based upon the projected sales.
- Value-based pricing: your price the product based on the value it gives to a customer.
Without the right business model you will not generate enough money to continue innovation once it’s started.
2. Innovations will run their course
Companies that gain leads because of innovation typically are out front for no longer than a decade for two reasons:
- Copycats often take over the space, eating away at the margins.
- Some companies get too busy focusing on what got them there in the first place.
3. Innovations come from non-conventional views
If you think about most new technologies that change the way we live and work you’ll notice they usually come from left field. When these products are first introduced people scratch their heads.
4. Innovations can be derivatives
To create a derivative innovation, simply look at an existing product and ask yourself “How can I make this better?”
Derivatives are not the strongest innovations that a company could create, but it’s possible to start with a derivative innovation and build it into a revolutionary one.
5. Innovation is driven by creative destruction
Don’t be afraid of competition within your own company to outdo your best product. Like I mentioned above, an innovation will eventually run its course and you need to be prepared for the next product to take its place. Creative destruction will help you do that.
6. Innovation isn’t planned
Some people will tell you that true innovation isn’t centrally planned. However, I think they are wrong because you can build a culture in your company that makes innovation an important characteristic.
7. Innovation does not listen to the customer
It’s important that you get feedback from customers on a product, but in the early stages when you’re trying to innovate, do not ask customers what they want. They’ll ask for better, faster and cheaper, which is nothing more than the same old thing, except with a 10 or 15 percent improvement.
That’s not innovation. That’s not even a derivative of an old idea.
Revolutionary change occurs when you create something that breaks with the past and creates a whole new curve in how we live and do things.
8. Innovation demands dictator-like confidence
Because you are not listening to the customer and people are scratching their heads at your ideas, it helps if you are an ego-maniac.
9. Innovation doesn’t demand much capital
In the past ten to fifteen year, information software has been pretty much made free. It started with the open source movement, where everyone is sharing information and products in the hopes that it will become the best through collective work.
10. Innovation demands you hire smart
Startups need a lot of momentum to innovate and succeed, so hiring the right people is very important. Eric Paley suggests you hire a core team of A players and then surround them with B players. There is little room for C players.
11. Innovation demands you work like a slave
Innovation might take years to develop. Or it could happen overnight.
You should plan on innovation to take you for the long haul. You should plan on working hard for a long time.
Besides, first generation products are not usually the best. You will continue to innovate your product as you perfect it.
Source: Geekwire
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
Business Coach in Houston.
Business consulting for women entrepreneurs in Houston, Advice for women entrepreneurs, Business Coach in Houston, Growth strategies for small business, Business continuation for women, Growth for women-owned businesses, Houston business coaching, Financial strategies for small business, Small business consulting in Houston, Business management consultant, Business, Consulting, Women, Entrepreneurs, Houston, Coach, Growth, Strategies, Coaching, Continuation, Owned, Owner, Financial, Consulting, Management,
