MANUEVERING THE TURN IN CHANGING ; ...Q.: Do you think the sequester will have a chilling effect on start-ups in this area, or just larger companies?
Elana Fine: I’m sure most people won’t agree with me, but sequester could end up being one of the best things to happen to this region. I don’t mean that we should be cheering for furloughs, but there is a federal spending bubble that is going to pop. Our region has been insulated from the impact of the Great Recession. Rather than starting high growth technology businesses, our top talent is working for government consultancies. There is now a higher risk to working in/for the federal government, so the trade-off to start a business has changed. If you are sitting at your desk right now, unsure of what lies ahead, and see a market need that matches your skill set, start thinking about starting something of your own!
Define ‘start-up’
Q.: Are all new businesses considered a start-up or is that term reserved for new businesses that are breaking ground by offering something new?
Elana Fine: Start-up has typically referred to a technology company in a high growth field. We rarely hear the phrase “I have a start-up nail salon” or “start-up dry cleaner.” They are considered small businesses. (Rightly or wrongly so — I’d love a start-up nail salon that can figure out how to get me in and out in 10 minutes — huge market and I’d pay a premium!) Both are just as hard to get going and are risky.
Daily deals
Q.: I am interested in starting a daily deals site for guys in their 20s and 30s. I have also read about the troubles of Groupon and LivingSocial. Do you think that this market is oversaturated? I have a great business plan and believe I have some seed money.
Elana Fine: I’m just going to answer this with one word: YES. These companies have shown the customer acquisition and sales costs are very high and unsustainable. Hyperlocal is hard. Merchants haven’t seen the kind of customer loyalty they were promised. People are tired of daily deal e-mails and can’t get through the noise. Plus, there are already a few companies out there targeting that space.
Intrapreneurship
Q.: I don’t want to start my own business, but I often think of new initiatives I’d like to launch within the company I work for. What do you think is the best way to go about introducing my ideas without stepping on any toes?
Elana Fine: Like launching a new company, starting something new requires a lot of selling. You need to be able to pitch your idea to the right people, to build coalitions, identify your target customers and their pain points. You also need to be able to identify resources needed within the organization and a clear road map to get a minimal viable product. Be clear on the “what’s in it for us” — does it help the company beat out a competitor, get to market faster or produce cheaper? Just like a start-up, you need to be tenacious and often not accept “no” for an answer. ... CONT/-
MANUEVERING THE TURN IN CHANGING ; ...Q.: Do you think the sequester will have a chilling effect on start-ups in this area, or just larger companies?
ReplyDeleteElana Fine: I’m sure most people won’t agree with me, but sequester could end up being one of the best things to happen to this region. I don’t mean that we should be cheering for furloughs, but there is a federal spending bubble that is going to pop. Our region has been insulated from the impact of the Great Recession. Rather than starting high growth technology businesses, our top talent is working for government consultancies. There is now a higher risk to working in/for the federal government, so the trade-off to start a business has changed. If you are sitting at your desk right now, unsure of what lies ahead, and see a market need that matches your skill set, start thinking about starting something of your own!
Define ‘start-up’
Q.: Are all new businesses considered a start-up or is that term reserved for new businesses that are breaking ground by offering something new?
Elana Fine: Start-up has typically referred to a technology company in a high growth field. We rarely hear the phrase “I have a start-up nail salon” or “start-up dry cleaner.” They are considered small businesses. (Rightly or wrongly so — I’d love a start-up nail salon that can figure out how to get me in and out in 10 minutes — huge market and I’d pay a premium!) Both are just as hard to get going and are risky.
Daily deals
Q.: I am interested in starting a daily deals site for guys in their 20s and 30s. I have also read about the troubles of Groupon and LivingSocial. Do you think that this market is oversaturated? I have a great business plan and believe I have some seed money.
Elana Fine: I’m just going to answer this with one word: YES. These companies have shown the customer acquisition and sales costs are very high and unsustainable. Hyperlocal is hard. Merchants haven’t seen the kind of customer loyalty they were promised. People are tired of daily deal e-mails and can’t get through the noise. Plus, there are already a few companies out there targeting that space.
Intrapreneurship
Q.: I don’t want to start my own business, but I often think of new initiatives I’d like to launch within the company I work for. What do you think is the best way to go about introducing my ideas without stepping on any toes?
Elana Fine: Like launching a new company, starting something new requires a lot of selling. You need to be able to pitch your idea to the right people, to build coalitions, identify your target customers and their pain points. You also need to be able to identify resources needed within the organization and a clear road map to get a minimal viable product. Be clear on the “what’s in it for us” — does it help the company beat out a competitor, get to market faster or produce cheaper? Just like a start-up, you need to be tenacious and often not accept “no” for an answer.
... CONT/-