ScalePassion Blog
ScalePassion Blog
World is Your Oyster Disease
I love the passion that entrepreneurs bring to their business. I love the fact that they put it all on the line, they risk their own money, they pour all their time and efforts into birthing and then raising "the baby." This entrepreneurial spirit is where innovation comes from - it is why I do what I do!
However, there is one quality of an entrepreneur that I think limits them - it has been called "A.D.D." or lack of focus or being "spread too thin" - I prefer to call it "world is your oyster disease." I believe that entrepreneurs inherently love their ideas so much that they often over-extend themselves. I see it all the time - entrepreneurs taking their company in too many different directions in the early going - too many different channels, too many product launches too quickly, talking to too many potential partners, launching too many brands or logos or trademarked terms...
I have worked with entrepreneurs that have had their $5 Mil companies in six different customer channels (all with different models). I have worked with entrepreneurs that had their $10 Mil companies in three different sectors, i.e. retail, direct to consumer and multi-level - all competing with one another!
This is all totally normal and it is why an entrepreneurial business is often called "the baby." Entrepreneurs must love their ideas like their own children in order to pour everything into them, which is the only way they will succeed. This is totally normal but it all gets way too confusing!
The problems that result from 'world is your oyster disease' are significant and they are also understandable:
•Entrepreneurs feel a need to grow, to pay their employees, to keep pushing and generating revenue.
•Sometimes it is easier and more exciting for the entrepreneur to think of new products, ideas and directions than it is to focus on one, clear path.
•Often the entrepreneur thinks so highly of the baby that they believe their company is ready to play on a much larger stage - I have written about this in my blog, Mass Appeal.
•Many times because their focus is so broad, they have issues narrowing their marketing enough to make a real impact with any one target segment. It is hard to describe any one benefit for your product or service if you are trying to explain it and appeal to everyone!
The issue is that the confusion within the company, and more importantly within the marketplace, can smother a small company. Even large companies struggle with this focus issue... The smaller your company, the fewer the resources you have (time, money, people, energy). The broader your focus the thinner your resources are spread. The analogy I use often is that the light in this room is very useful at allowing me to see my laptop, but narrow it into a tight beam and I can burn down a house! Think of the energy... think of the impact!
Focus is the answer to "world is your oyster disease." Here are four ideas for focusing and avoiding "world is your oyster disease":
1.Drive focus by defining your passion and using data - It is important that you ask yourself why you started your company. Who are you trying to serve? Get specific. Once you have defined who you are trying to serve, now go gather as much data as you can on that target market. The beautiful thing is that gathering data is now easier than it has ever been (ever heard of Google?). I also recently wrote a blog on crafting a great mission statement - it has a ton of ideas on how to drive focus into your mission and link it to your passion.
2.Bake some accountability into your business - You can do this by hiring a coach if you are a small company or sole proprietor. If you are larger, consider hiring a General Manager or COO to truly drive focus. If you are an entrepreneur, recognize that you might have problems focusing and hire someone and then give them the ability to hold you accountable to the proactive, focused plan that you have designed. The key is that someone is asking you the tough questions related to focus.
3.Play to your lifecycle - Companies have normal lifecycles. If you are a start-up ($1-1,000,000 in sales) or smaller company (less than $10-15 Mil in sales), then you can only focus on one core target market and a very specific offering to satisfy that very specific market. The tighter your target customer the easier it will be to market! Stay in one focused channel, stay committed to serving that one market until you reach significant size. Make a commitment to serving only one market, know them better than your competition, innovate for that one market - this will set your company apart. If you are larger than $15 Mil in sales, then you might have the ability to broaden your focus just a bit - but not much. The best companies stay focused on owning one market through one channel.
4.Consider a "skunk works" - If you are a larger company and have new innovative ideas that do not serve your current market, then you should consider a skunk works project... The term "skunk works" was coined and made famous by Lockheed Martin and represents a project that operates outside of normal bureaucracy and has a high level of autonomy to work on new innovations. They are separate from normal operations and do not have a seat at the table with current management. This is huge because it keeps your normal operating teams focused while also keeping your skunk works team unfettered by the normal processes needed in a scaling company. CAUTION - Do not attempt this if you are smaller than $25 Mil in sales, you don't have enough resources!
Listen folks, Procter & Gamble made soap and candles for their first 22 years of existence - until they reached $1 Mil in sales. Apple created one simple product, the Apple 1 motherboard then focused in on one computer design to get off the ground. The best companies in the world recognized the importance of focus early on!
The benefits of avoiding "world is your oyster disease" are significant:
•Everything is easier! It is so much easier to market to a clearly defined target market - say moms or kids - your mission is easier, your packaging is easier, your web site is easier, the places you decide to go to market your product becomes easier, it all becomes easier!
•Your employees can be turned loose to operate! If there is less confusion about the target and the message, then you are able to trust your employees because there is less to prioritize and less confusion around what gets done first, for who, etc.
•You will drive more revenue! More clarity, clearer messaging, more specific and appealing packaging, all of this leads to your target market connecting more easily with your product or service. When they connect you win with more revenue!
So, how do you gain some focus? Check out the intro to the ScalePassion truisms video for starters. Also, ask your employees or key stakeholders. If you truly seek their advice, they will tell you if resources are spread too thin and also point you in the right direction toward focus based on those customers that are most passionate about your product or service. Another method is to perform an 80/20 analysis of your top customers - understanding who you are serving best today is a great way to clarify and focus.
The world can really be your oyster once you realize that narrowing your offering and target market can focus your time, energy and resources in order to produce real, change-the-world results!

Monday, December 7, 2009