So you want to put your old team together, do a few gigs with past clients, get some bread? Bang! Five million bucks.
Here is the litmus test for those aspiring corporate executives and entrepreneurs seeking to “go again” in a new corporate or entrepreneurial venture, based on hundreds of situations I have been privy to:
- Do those market needs that were fundamental to our past success exist today? Can we anticipate market needs for our expertise resulting from impending changes in technology, regulation, demographics, distribution, capital flows and so on? Can we create new market needs for our expertise that our clients have not thought about before?
- Do we collectively possess superior capabilities to address those needs in today’s and tomorrow’s marketplace, not in a prior existence or environment? For example, in an electronic trading environment, a commodities or an insurance broker’s past competitive advantage – their interpersonal competencies (face-to-face negotiation) and “black book” of contacts – has been significantly eroded in this century. Equally, success in a large corporate setting is notoriously difficult to replicate in a small entrepreneurial business, irrespective of time (skills, behaviours, expertise).
- Do we possess the requisite enthusiasm today, and in future, to undertake the work? In other words, are we ignoring the fact that our colleagues aren’t the same people they used to be 3 or 30 years ago. We are constantly changing, as is our interests, courage and risk tolerance.
Only in the movies to paraphrase Elwood, are you not going to get caught out if you cannot sincerely answer “Yes” to all of the above unless you believe you are on a mission from God!
Tags: capital, innovation, new ideas, reinvention, startups, strategy, talent