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Venture Management vs. Managing a Lifestyle Business
Startup venture
is built around
opportunities,
a
customer-driven idea or a new technology, not around a competence-driven
idea.
Building
a high-growth startup is about entering emerging market
that has yet to be recognized and exploited, not about serving
established customers.
Fuzzy front end make results quite unpredictable.
For startups,
speed is above all; they must be
first to market and are willing to sacrifice speed for
thoroughness.
Success is measured by market capitalization, not by
earning.
Market
research
is based on experiments,
adaptation, and rapid response, not on analysis,
review, and methodical consideration of facts.
Management
is dedicated
to identifying and adapting to unmet, unserved
customer needs, not to
delivering an operating plan.
Management is driven
by imagination and faith,
readiness to adapt rapidly and change, not by thorough
planning and plan implementation.
Core competencies
are defined by the ability
to move quickly
from idea
to product to market, not by the ability to perform.
core manager's functions.
Change management may involve turning 180 degrees at top
speed, and resuming cruising speed. It’s not based of formal
procedures.
Decisions are made in an entrepreneurial fashion, not
through formal procedures.
Financial focus is on
cash flow, not on
profits. |
