The Entrepreneurial Journey Part 5 – Can You Execute?

Sep 7, 2021 | Gazette, The Latest

The Entrepreneurial Journey Part 5 – Can You Execute?

Tuesday, September 7, 2021, by Dr. Frederick Crane

Go-to-market strategies for most new ventures are usually fatally flawed. And, they are usually fatally flawed because they are not grounded by voice of customer (VOC) research. You cannot execute successfully without truly vetting the elements of your go-to-market strategy. This is where the rubber hits the road. Planning is nothing without execution! And, executing based on assumptions and guesswork is folly. So, your execution must be validated by your customer.

First, determine your suite of offerings for your addressable market. Find out exactly what the customer wants In terms of a product/service suite. Single offerings are considered one-trick ponies to investors. They want to see a portfolio of offerings to different types of customers with different use cases. Yes, your starting point is a beach-head with a core customer and a core use case. But, you have to plan for adjacency plays – new customers, new applications etc. So, determine what will be your first offerings to the first customers and then build out from there.

Second, determine you pricing strategy using VOC. Do not use cost-plus pricing or competitive-based pricing, instead use demand-based pricing. In other words, back into your pricing using customer input. Find out exactly what your customers are willing and able to pay. In essence, do not say “our costs are X therefore are price should be Y.” Or, “our competitors are priced at ABC, therefore we should price accordingly.” No, allow your customer to set your price ceiling. They will tell you the value that they attach to your product/service.

Third, determine your channels of distribution using VOC. Engage your potential customers and determine where they currently shop for solutions like yours. And, are they happy with where they have to shop for them? You need to gain market access to your customers so find the right channels and then slot your products/services in those channels. Also, be mindful that most investors want a venture that has planned on multiple channels of distribution. Multi-channel is actually a must today so forget your notion of a single D2C channel – your own website only. Pure-plays such as this limit your access to customers; cost a lot of money re: customer acquisition; and scare investors!

Fourth, determine your marketing communications strategy by using VOC. This execution element is perhaps the most critical. The wrong media mean missed opportunities. Remember, no one knows you, your venture or your brand. You need to reach your customers. So, you need to determine exactly what media your addressable market consumes – what they read, listen to, and watch. You will not have enough budget to shotgun this. So, narrow-cast – focus – and hit your customer directly. If you know precisely the type of customers that are part of your addressable market, talk with them and ascertain their media habits. If they say, “we watch Oprah”, then, you better advertise on Oprah. If they say, I learn about product/services like this on Instagram”, then you better be on Instagram!\

A cohesive, integrated execution strategy is a must if you are going to have a successful entrepreneurial journey. And, it is possible. Just do the work and enjoy your success!

Author

Frederick Crane serves as a Senior Project Manager for the International Council for Small Business (ICSB).

Dr. Crane is an Executive Professor of Entrepreneurship & Innovation at the College of Business at Northeastern University; Former Editor of the Journal of the Academy of Business Education; and co-founder of Ceilidh Insights LLC – an innovation management training, intellectual property consulting
and consumer insight company. He was formerly a professor of marketing and entrepreneurship at the University of New Hampshire and a Chair and Full professor at Dalhousie University.

At Northeastern, he developed the graduate new venture creation course; the undergraduate innovation course – which is now taught campus-wide; and developed the online MBA course on innovation and enterprise growth. He also serves as the Faculty Advisor for the Private Equity and Venture Capital Club. Every semester at least one of his teams from his new venture creation course goes on to commercialize a business.

Citation of Article:

Crane, F. (2021, September 7). The Entrepreneurial Journey Part 5 – Can You Execute? The International Council for Small Business, Small Business Gazette. https://icsb.org/the-entrepreneurial-journey-part-5-can-you-execute/

Education and Humane Entrepreneurship

Sep 5, 2021 | The Latest

Education and Humane Entrepreneurship

Sunday, September 5, 2021 by Dr. Ayman El Tarabishy

Education sits as the cornerstone of creating socially and environmentally conscious entrepreneurs. When we imagine the future of humane entrepreneurship, it includes empowered employees and well-educated entrepreneurs making intelligent decisions to heal the environment and benefit the world. To enable entrepreneurs to make these changes we envision, we must educate them on the issues that truly matter, such as integrating social entrepreneurship with sustainable entrepreneurship and employing business practices that protect our planet, communities, and future generations.

First, we must consider the significance of climate change and the role that government officials and entrepreneurs play in preventing further damage to the planet. Although governments are making changes to reduce negative impacts on the environment, we are still concerned about whether profitability and sustainability can coexist. We must educate all stakeholders about climate risk and their duty to promote sustainability in response to this. As observed by Dr. Mariya Yesseleva-Pionka, Global Certificates Manager for ICSB and adjunct professor at University of Technology Sydney, “With every new business venture comes a great responsibility for making climate-friendly decisions.” Therefore, we need to continue developing and supporting eco-friendly solutions such as green start-ups, fin-techs, and sustainability reporting and educate entrepreneurs on how to implement SDGs and sustainable business practices properly. It is imperative to note that long-term profits will not matter if the planet deteriorates due to climate change.

This sustainability education is inherently tied to education about social entrepreneurship, as both of these entrepreneurial approaches target issues on a human and environmental level. Although there exists an increasing amount of research on social entrepreneurial intention (SEI), or the motivation of entrepreneurs to build new social enterprises, we still lack knowledge about different SEI antecedents, such as personality, cognition, and experience, as well as variables moderating antecedent-SEI relationships, including economic and social influences. According to Dr. Phillipp Kruse, a scientific staff member at the Dresden University of Technology, the solution to these research issues lies in examining SEI in countries with different cultures and economic situations and developing a validated instrument with which to measure SEI. Additionally, social entrepreneurship educators must include more psychological input in university courses to strengthen participants’ motivational ties to social entrepreneurship.

With the amount of power entrepreneurial learners possess to change the future of business and the environment, we owe them the best education, educators, research, and settings. We must listen inclusively to the voices of these learners and new and small businesses alike. As stated by Dr. Norris Krueger, Senior Research Fellow at the College of Doctoral Studies, UOPX & Entrepreneurship Northwest, “Students are our secret weapon. In terms of learning and educating, and especially in terms of the ecosystem.” To provide entrepreneurial learners with the best resources, we must shift from top-down systems to bottom-up, from institutions to people, and from hierarchies to networks. Inclusivity and active listening are the keys to discovering what our entrepreneurial students need to flourish, improve their communities, and shape the future of humane entrepreneurship. In educating entrepreneurs and stakeholders on their sustainable responsibilities, increasing students’ ties to social entrepreneurship at the university level, and providing high quality, comprehensive education, we grant entrepreneurs the tools necessary to implement safer business practices and create long-term, positive change for our environment, communities, and ways of life.

For more on the importance of entrepreneurial education, watch the session below.

Human Transformation: Beyond Digital Adoption

Aug 30, 2021 | The Latest

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The Entrepreneurial Journey Part 4 – Do You Have the Right Brand?

Aug 25, 2021 | Gazette, The Latest

The Entrepreneurial Journey Part 4 – Do You Have the Right Brand?

Wednesday, August 25, 2021, by Dr. Frederick Crane

I have argued for more than 20 years that building and sustaining a powerful entrepreneurial brand is critical if a venture is to survive, grow, and endure in a complex and competitive marketplace. Moreover, a new venture has a relatively short time frame in which to establish its brand. If it misses this critical window of opportunity, it is very likely to fail. Entrepreneurs must focus on creating brands that clearly communicate the value desired by the customer as well as reinforce the intended position the entrepreneurial firm wishes to occupy in the market. Importantly, the brand must be consistent and sustained over time.

One of the most basic definitions of a brand is that it is something of “value” for both the customer and the company. At a practical level, a brand embodies your offer of value—your promise—to the customer. Ultimately, a brand is a blend of what you say it is, what others say it is, and how well you deliver on your promise—from the customer’s perspective. Finally, a brand is a powerful asset that must be carefully developed and managed.

For you and your venture, the brand you select is important because it can set you apart and truly differentiate your venture (and its products/services) from your competitors. But branding brings other benefits to your venture. First, branding can be an integrative tool for the entire venture. For example, the branding process, even the simple naming of your business, forces you to consider very carefully the core “value” you will create and deliver to your key customers. In addition, branding also helps you sharpen your business model (how you will make money and from whom you will make it). Second, branding increases the chances of acquiring your initial set of customers in the early stages of your venture. And, of course, branding will help solidify customer loyalty to your venture in the later stages. Third, branding can increase your access to suppliers and improve your chances of channel support. Fourth, branding can increase access to new venture capital.

While a brand is extremely important to you and your venture, it might be argued that customers, in fact, may benefit most from branding. Recognizing competing products by distinctive branding allows customers to be more efficient shoppers. Consumers can recognize and avoid products with which they are dissatisfied while becoming loyal to other, more satisfying brands. Strong brands reduce customers’ perceived risk when purchasing and can increase their trust with the brand. Finally, strong brands also help the customer visualize and better understand the product or service.

A good brand will possess a number of important characteristics. Keep these characteristics in mind as you begin the branding process. For example, a good brand has the following qualities:

Effectively communicates the distinctive value you wish to offer the customer
Is “relevant” to the customer
Reinforces the company’s intended positioning in the marketplace
Is consistent and unifying
Is easily understood by your customers and your employees
Can be sustained over time

You should consider these characteristics as you begin to ponder your possible brand(s) for your venture. It is clear that brands lacking the above characteristics are likely to be weaker brands that may not survive in a crowded and competitive marketing environment. My advice: test your brand with your potential customers – find out what they think and how they feel about your brand concept.

Author

Frederick Crane serves as a Senior Project Manager for the International Council for Small Business (ICSB).

Dr. Crane is an Executive Professor of Entrepreneurship & Innovation at the College of Business at Northeastern University; Former Editor of the Journal of the Academy of Business Education; and co-founder of Ceilidh Insights LLC – an innovation management training, intellectual property consulting
and consumer insight company. He was formerly a professor of marketing and entrepreneurship at the University of New Hampshire and a Chair and Full professor at Dalhousie University.

At Northeastern, he developed the graduate new venture creation course; the undergraduate innovation course – which is now taught campus-wide; and developed the online MBA course on innovation and enterprise growth. He also serves as the Faculty Advisor for the Private Equity and Venture Capital Club. Every semester at least one of his teams from his new venture creation course goes on to commercialize a business.

Citation of Article:

Crane, F. (2021, August 25). The Entrepreneurial Journey Part 4 – Do You Have the Right Brand? The International Council for Small Business, Small Business Gazette. https://icsb.org/the-entrepreneurial-journey-part-4-do-you-have-the-right-brand/

Humane, Sustainable, and Harmonious Entrepreneurship: Shifting to a More Holistic Perspective of Entrepreneurship

Aug 21, 2021 | The Latest

Humane, Sustainable, and Harmonious Entrepreneurship: Shifting to a More Holistic Perspective of Entrepreneurship

Saturday, August 21, 2021, by Dr. Ayman El Tarabishy

Entrepreneurship can be sorted into various sectors of disciplines, each impacting our lives and the world around us in different ways. Alone, each of these practices possesses the power to make long-term, positive change, both in the corporate world and in our communities. However, we must challenge ourselves to push humane entrepreneurship one step further. By integrating these practices and their ideologies, we gain the ability to improve our society in entirely new ways. Intersectionality is vital to humane entrepreneurship, as we cannot practice human-centered entrepreneurship without also taking action to protect our environment and human rights. While we work to combat global issues such as COVID-19, climate change, and inequity, entrepreneurs exist at the forefront of ensuring the health and wellbeing of our communities. By understanding the interconnectedness of these issues, we can adopt a more holistic view of entrepreneurship and actively improve the world with newfound strength in unity.

One of the main objectives of humane entrepreneurship is to produce engaged employees through High-Performance Work Systems (HPWS), which empowers and enables employees to embrace creativity and take innovative risks. Building upon this framework, Dr. Jeff Hornsby, Director of the Regnier Institute for Entrepreneurship Innovation, argues that integrating HPWS with Entrepreneurial Orientation (EO) can “generate human and social capital and produce an innovative workplace culture based on such elements as enablement, empowerment, equity, and empathy.” In addition, Human Resource Management (HRM) greatly impacts the human and social capital within a firm, which is the primary source of innovation in a humane company; therefore, HPWS, EO, and HRM combined ultimately build the foundation for a successful humane enterprise. The result is engaged employees working towards a better society for a company they believe in.

As the fundamental goal for humane entrepreneurship is prosperity for our companies and communities on a human level, we must also consider the state of the environment in which we are building these enterprises. Particularly in our post-pandemic society, we are now being afforded the unique opportunity to reconsider what kind of cities, jobs, and entrepreneurship we genuinely need. Sustainable entrepreneurship uses the Sustainable Development Goals (SDG) 12 as a concrete guideline for tackling interconnected carbon emission footprints, gender equality, and quality education. To uphold these intentions, Professor Analia Pastran, founder and CEO of Smartly Social Entrepreneurship on the SDGs, asserts that we must boost sustainable options, create effective green agendas for the younger generations, and support legislation to provide entrepreneurs the legal framework to implement SDGs. Analyzing SDG 12 in this way, it becomes clear that humane and sustainable entrepreneurship are inherently connected and must work together to create a healthier society.

Considering entrepreneurship and the environment, we need to consider the effects of corporations and MSMEs alike on our planet and communities. Although entrepreneurship can be a strong tool for creating jobs, wealth, and innovation, it can also contribute to environmental pollution and unsafe work environments. The reason for this lies in leaders valuing profit over people and the planet, which points to the importance of educating entrepreneurs on the triple-bottom line. According to Professor David Kirby, co-founder of Harmonious Entrepreneurship Society (HES), “We were put on this planet to look after it. Therefore, we must take care of the human environment, as well as the physical environment.” From this standpoint of compassion, an evident means of protecting both people and the planet is converging economic, sustainable, humane, and social entrepreneurship underneath the umbrella of harmonious entrepreneurship, which is based on the understanding of the planet as one extensive system with many interconnected subsystems.

This intersectionality in entrepreneurship serves as the key for unlocking solutions to the universal issues facing us. By adopting a more holistic view of entrepreneurship, we conclude that no human issue stands alone. In solving problems like climate change and inequity, and advocating for human rights, integrating different entrepreneurial sectors allows us to stand together, stronger and more capable than ever before.

Watch the session below for more on humane entrepreneurship, SDGs, and the benefits of integrating different entrepreneurial approaches.