The Connector's Route

Scenario

·         Have an idea: ü

·         You or your partner possesses a unique skill set : ü

·         Have relevant industry experience: ü

·         Have relevant industry contacts: ü

·         Have capital: X

Strategy

Which approach did you use to work out the business idea? Is it causation or effectuation? In causation, you start by identifying a problem or market gap then see what resources will be needed to address that market gap, while in effectuation, you look at your skills, experience, contacts, and then see what market need can be addressed with what you already have. Former is recommended as entrepreneurs usually use it in contrast to a causal approach.

In effectuation, you ask yourself what type of business my means (skills, contacts, experience) allows me to start. In the light of the answer you set a goal, and then consult the contacts that can help you in setting a business, take their feedback, and evolve your proposition. The customers are also from within your contacts, so are the suppliers, vendors, or any third-party contractors.

So your focus is to find a synergy between all stakeholders, satisfy a particular customer need which you can satisfy with the help of the suppliers, vendors, or third-party contractors in your network. It’s an iterative process as in the process of meeting your customer demands you will discover new opportunities, and will eventually find a way.

It’s like constructing a big jigsaw puzzle when you don’t know how the final picture will look, also when each puzzle piece keeps changing itself as well …

Lack of capital can be a barrier, and strength as well. Opportunity because it forces you to think more creatively, and leverage the resources existing in your network. You eventually realize that your credibility with stakeholders is your greatest asset which needs to be strengthened as you proceed …

Do not think of investing in fixed assets, if manufacturing needs to be done, try outsourcing, at every step which would require capital investment, one must find creative ways to leverage the resources in one's networks to get the job done.

It takes a while (one or two years, sometimes three) to reach a point where you settle down with a portfolio of products with a continuous stream of revenues.

• If it’s a service, then identify potential customers to deliver the service. If you cannot find partners in your immediate network, you might have to partner with someone who has the necessary connections (click here to see how to grow your network).
• Further, if your service requires help from third-party contractors, then better search for them as well. A prior connection with all stakeholders is a must. Focus on ways to build credibility (click here to know how to build credibility) with the potential stakeholders before you begin to work with them.
• If your proposition needs refinement, then you must engage with some potential customer to give you feedback on your offering (click here to know how to validate you business idea)

Once you are connected with all the stakeholders and can deliver a product or service to a target audience in your network (click here to know how to identify a target audience), focus on one customer at a time! Remember your goal is to gain experience in the market, customer behavior, and behavior of other stakeholders. Let growth happen slowly, and gradually, let happy customers bring more customers by generating positive word of mouth which is considered to be the best marketing strategy by business experts. Now gradually build your customer base while reinvesting profits.

Hire people to help you only when you think you can't meet customer demand on your own! (click here to learn employee hiring strategies)