Posts Tagged ‘assumptions’

Cracks In The Nest

Wednesday, May 31st, 2017

Attached to my Parents loggia at their country home is a retractable sunshade that provides welcome shade to the outside dining area. This winter, a bluetit created a nest in one end of the sunshade, the giveaway was a few cracked shells lieing on the cobbled stones below. This past weekend’s warm weather created the need to open the sunshade and from the nest flew three small bluetits with their Mother hovering nearby. Unfortunately, the cat spotted one of the chicks later in the afternoon and it didn’t make it back to safety.

A huge number of venture businesses are currently incubated in what appear to be “safe” homes for innovation (corporate accelerator, incubator and venture funds), yet the opposite is true. When the overriding “need” arises to focus on the corporate organisation’s key strategic area (sales growth, capital allocation etc.), many of those early-stage venture will be deemed irrelevant, too weak to survive or fall prey to others. Insurance, financial services and the broader “Internet of Things” businesses are particularly vulnerable, yet most people are looking in the exact opposite direction. No one can predict precisely when that might be but history tells us it will happen. What entrepreneurs would be wise to consider is:

  • Why is this the right home for us today, not when we started? (access to capital, talent, innovation, markets, leadership etc.)
  • What changes (foreseen or unforeseen) in the Corporate organisation’s circumstances (balancing short and long-term profitable growth and their investors’ demands) would dramatically change their opinion?
  • Are our preventative (lines of communication) and contingent measures (Plans B and C) sufficiently robust (speed and quality) to safeguard our firm and its’ investors future should our corporate support end at short notice?

Far too many entrepreneurs are so immersed in building their businesses today, they are overlooking the risks attached to “building a home within a corporate home”, at their peril.

© James Berkeley 2017