I was just thinking about a money losing strategy and the best way to do it. I just read a blog in the Harvard Business Review entitled For Breakthrough innovation, Focus on Possibility, Not Profitability. It is a great article. It points to the success of Google, Keurig and others. And it was written by somebody for whom this strategy worked.
The problem is that it is not always valid. Keurig achieved its success when it was acquired by Green Mountain Coffee Roasters, who had the deep pockets to enable the reduction in costs and acquiring of partner companies to broaden the product line. Keurig was wildly successful for Green Mountain.
Many other companies have gone to the dogs by focussing on possibilities and not profits. If you don’t have the money to lose for longer than you expect to lose it, you may be betting your ranch. If it is other people’s money and they are willing to pursue the strategy, then it may be the making of a good story.
Is a money losing strategy right for your business? Will it pay off in the end? Email me to set up a time to discuss at email@example.com
CEOs need assisting but too many consultants have never been CEOs. That is why I have started my business – to be a CEO Assistant and counsellor. For years, I have enjoyed learning about other people’s businesses. I think it was why I went into banking in the first place – so I could see how lots of businesses do things. For 18 years I ran a manufacturing business and sat on countless boards. I realized how little people who were on the outside knew about running a business. I got lots of advice from people who had never managed another soul, but found it easy to tell me how to do it. My peers on various boards loved my insights and what I brought to them. People who worked with me told me that I helped them with their business, so I am finally formalizing what I have been doing for years. My method is this.
- Tell me what you see your problem to be.
- Let me ask you clarifying questions that we can discuss.
- Let’s agree on what the root cause of the problem is.
- We come up with a structure and plan to solve it that works for you and improves your business’s performance.
If I tell you what to do or what I would do, it might not work for you. But you need someone to ask you those questions that you might not ask yourself. That is why it needs to be collaborative.
The good news is that, as your CEO assistant and councillor, I can help you implement your idea or process or guide you to resources that can. Here is a link to the kinds of things I can do for you.