New Business Venture
Many companies gather high-performing employees and form a “New Business Venture” team. This team is leading a startup – a new product and market.
The team is often a collection of individuals with readily available resources and no accountability. For them, expenses are part of corporate overhead, and revenue is an afterthought. All this while the team is pretending to develop a new product to enter a new market.
The whole endeavor is far removed from the realities of starting or operating a new business. Revenue generates cash inflow. The expense is a cash outflow. Either make cash inflow higher than the cash outflow, or your venture is dead, period.
Corporate and sometimes equity-financed new ventures ignore this fact. They have no skin in the game. There is no urgency to turn a profit and be an actual, sustainable high-growth enterprise.
As an executive coach, I have heard some say, “Oh! Let’s make a perfect product. We will worry about making it a major market success and profitable later.” These people are delusional. A venture without a clear path to capturing a meaningful share of a new market and making a profit isn’t a business. It is a daydream.
I would love to hear about your experiences! Please share your stories here.
Thank you.
Satish Mehta
Author, Speaker, Coach
Blog
Knowledge Letter Sign Up
