The Crucial Entrepreneurial Skill-Set: Igniting Innovation and Revenue Growth
If you were to ask 20 prestigious venture capitalists what is the most important aspect to consider for early stage investment, you’d get 20 of them answering ‘’the team’’. So why do we completely ignore this aspect when building corporate startups?
Relying solely on existing employees is often not the most effective strategy, as many corporate employees lack firsthand experience in building new businesses from scratch.
The entrepreneurial skill set is a unique blend of abilities that is rarely found within the confines of a traditional corporate environment. To truly cultivate this mindset within their organisation, companies should actively seek out individuals with proven entrepreneurial expertise to drive growth.
Successful innovation hinges on the harmonious integration of two distinct skill sets: entrepreneurs who contribute calculated risk-taking, market validation, and business design expertise with corporations that provide a deep understanding of asset bases, strategic alignment, and resource allocation to ensure new ventures flourish within the corporate strategy. To optimize this synergy, it is essential to establish support mechanisms that help overcome bureaucratic obstacles, and create an environment conducive to nurturing new ventures.
New ventures require different performance metrics, leadership styles, and support systems than in the core business operations. Ambidextrous leadership is critical to striking the right balance between entrepreneurial agility and corporate stability. This dual focus enables organizations to manage potential conflicts, streamline processes, and foster a culture of innovation.
Companies should not solely rely on their existing workforce for entrepreneurial prowess. In-house teams may lack the necessary experience or skills to drive disruptive innovation. Therefore, seeking external talent and collaborating with seasoned entrepreneurs is crucial to infuse the organization with fresh perspectives, creativity, and agility needed to successfully navigate the dynamic landscape of new ventures.
By embracing this collaborative approach, companies can break through bureaucratic barriers, enhance employee productivity, and achieve remarkable growth in an increasingly competitive market.
Building teams with a blend of entrepreneurial and corporate skill sets is essential for a few key reasons:
In short, teams with both entrepreneurial and corporate skill sets are well-equipped to drive innovation, optimize resources, and foster sustainable growth while maintaining the necessary stability within the company.
Funding and resource management plays a significant role in the success of innovation projects. Organizations must invest in innovation by allocating sufficient budgets for research, development, and execution. This financial commitment should cover the necessary tools, technology, and support innovation teams require to transform their ideas into reality.
New ventures can benefit from adopting a funding model akin to venture capital (VC) investments. By structuring incentives to minimize downside risk while maximizing upside potential, companies can foster an environment that encourages innovation and calculated risk-taking. This approach often necessitates offering equity stakes to the founding team, aligning their interests with the venture's success.
When implementing this funding strategy, planning exit strategies mirroring those employed by VCs is essential. This ensures a well-defined roadmap for future growth, potential acquisitions, or public offerings, providing clarity and direction for the venture's long-term objectives. By embracing a VC-style funding model, companies can better support new ventures, drive innovation, and unlock untapped organizational potential.
Thus, corporations can better position themselves for business success in innovation by focusing on entrepreneurial skill sets. At Coventures, our team of serial entrepreneurs, founders, experienced product managers, and venture designers can help your organization build new vital business. To learn more, call us at +358 44 328 4647.