Innovation with limited resources and rethinking risks
In “The Innovator’s Solution,” Clayton has mentioned that more than 60% of all new product development efforts are scuttled, and of the 40% that makes it to the market, 40% fail to become profitable. You do the math, and that’s a total of 76% of efforts wasted for no return.
While the right growth strategy can deliver stability, security, and long-term profits, the many available options make it challenging, especially with limited resources. Cash constraints are the biggest factor limiting growth, and overtrading can be fatal.
Making the best use of your finances should be a key element when pursuing new opportunities. On top of lacking extra resources to burn, having little experience within leadership teams setting and executing growth strategies will starve your core business.
So how do you know when is the right time to grow, are market conditions ripe for growth opportunities, and what strategies should you use to facilitate growth?