We all know of entrepreneurs who have created companies from scratch that have subsequently been sold for significant sums of money. We also know about resounding failures after burning huge sums of money.
Those of us who work in corporate environments know that we have at our disposal a wealth of knowledge, relationships and resources that properly oriented would allow us to build much more value, much faster and with much less risk than any entrepreneur doing it alone. It is our "unfair advantage".
But why is it so hard for us to achieve this? There are three reasons:
- Facing the "blank page" is not easy in a large company.
- We have no know-how or experience in building businesses "from scratch".
- The "corporate antibodies" do their job very well.
All this is greatly simplified if we establish a value creation model from the outset:
- Run to Harvest. A diversification manager's dream. Easy to start up and quick to drive. Builds on the core business to solve the operational challenges of growth.
- Harvest to Premium Sale. It's my favorite, it has the good things from the first and the third. If you like the business you keep it, if you don't like it you sell it at a premium.
- Build to Sell. The most mediatic but the most difficult to execute. If you fail, the hole is important. It is generally applied by entrepreneurs.
For all 3 models we have successfully applied the 7r Playbook. Take a look at our portfolio of companies with corporate partners.. You will quickly deduce the applied model.
These models are useful both for launching new ventures and for "unblocking" those innovation projects that were not initially configured as a venture.
It is important to keep in mind that the value creation model completely conditions the talent needed to lead the project, it also applies to "stuck" projects.
I'll leave the details of how to attract talent depending on the model for another post.
If I can be of any help, please leave a comment.