Innovative Entrepreneurs & Venture Capitalists (VC)

I have the opportunity to talk with a lot of venture capitalists, innovative people and entrepreneurs. What strikes me the most, is the large difference between the two mindsets the people – the idea-makers and the capitalists! Each of these groups, have their own focus and goal of the engagement – which actually is another story to blog about 😉

In a resent discussion, it stroked me how odd some of the innovation entrepreneurs act. Their focus is to be very rich, in a short amount of time, and with probably no work. I am compelled to quote one of me very best friends;

There are no easy money – only focus and hard work!

Entrepreneurs often have a bunch of ideas, and very few of them can actually go into a business model with a séance of success. But the ones that do this – are REALLY good. So how can you as a VC help your fellow entrepreneurs? Well a Danish guy actually invented his own strategy and I would like to share that idea, as I really see the point in this.

“When dealing with these innovation people, I always have a request to get them focused on our common (the business) idea and to get on track with this. So I often start by tying the front man of the new innovation to the company on a 2-5 year business plan. I then transfer USD 500.000 to his account, making him suddenly rich; which actually get the man on track – and only focus on this one idea I share the vision about. All his other ideas disappears and the need to get rich also disappears.”

Not many VC take this risk, by I would give the investor credit for some good understanding of the innovative entrepreneurs mindset and actions.

Take that for an idea 😉

A Business Model for A CopyCat

I have to admit… I am thrilled and very focused on Starbucks as a company, business model – and yes, their Coffee.

Starbucks continues to amaze me, and their business concept is yet so simple, but so very hard to copy. I could not help laughing, when I hard their new product announcement. In 7 months Starbucks didn’t make their sales increasement as projected, and as a result to this – their sales growth didn’t add up. So what will a coffee company do then?

The release a new product. Not just any product. They release the same product!! Yes sir – they released coffee as a product. With this in mind, it can actually tell the story around Packaging and Messaging (thanks to David Ednie). To differentiate your product and story, you have to know the core of your offerings. I really think it is a smart move.

New Coffee?