Business is Timing + Innovation coupled with small Pivots and large Plays
A good business does require particular elements that are the foundations of the organisation. These elements include innovative thinkers with great imaginations and realists who turns visions into reality. However, that is not all, for three other factors make a business. One is timing, the other is adaptability and the last major requirement is the capital. When all these elements are at play, then the real interesting stories unravel. The midway part of running a business is the most fun, and this is when you must pivot to maintain viability in the market and to continue on course toward your great plays or ultimate objectives.
In the quest for innovative ideas and the secret formulas to run successful businesses, entrepreneurs have turned to professionals in every industry. Even then, success is limited. Links between inventors, implementors and investors are ones that must align to achieve the type of success that is sought after by those who seek to build substantial businesses. You do not have to be a large organisation to achieve great things, but you do need to have a vast imagination to be innovative enough to make an impact.

There are certain times in the market when being small plays to your advantage. Not only can your business be quick and nimble but it can pivot more precisely to counter market change. The best part of being small is that you become valuable to select investors. Small business is seen to be less of a massive outlay than the investment required for medium to large scale companies. A new business model in a promising industry, that’s when the odds swing in your favour. The type of investors who are looking to make significant gains off small business are the ones who see value in new ideas. These are generally the investors who have imagination and who are not deterred by risk. They play their odds at hedging bets that are finely tuned in your favour, as they have identified the value in you and your business. Capital for equity is usually the trade-off at this early stage but giving away stake to attract the right fit capital can be a recipe for success or disaster. The disaster can hit when you find that you have given away too much equity for too little investment or when the equity partner begins to steer your business model on a path that is different from the intended direction. As “Ray Dalio” suggests, you should live up to your principles as well as the laws of the organisation you have created. You can compromise on the intermediate gameplan but not on the end goal. If your initial plan for the business was not on point or certain circumstances arose that forced you to relook at the company, then this is the time to pivot and maneuver into a more favourable position. Once you have substance in your business model, then the value will be created around it.

To attract investment, all you have to do is think like an investor. What would entice an investor to take the risk on you and your organisation? Would you invest in yourself if all you had to go by was your pitch and presentation? Many factors at work culminate to a quick yes, or a no but the deeper understanding is that you should continue to learn from either response. Why did I get a yes or why did I get a no? All investors are different, but they all expect a payback on their investment at some stage. Increased performance, market share expansion or industry expansion, can be the more direct identifiers of growth or investment return along with the profits. However, if investors can’t see the path to the desired gain, then you are bound to receive a no. Alternative investors seek returns from the greater good of society and the improvement of earth health. So what makes a small company investable? Is it the ingenuity and creativity within the business, is it the people or is it the vision and direction that the industry is heading that makes it appealing? Could it be all of the above? The outcome will probably contain a mix of all of the above as every piece of the puzzle turns into a complete picture.
On a much larger scale investment banks have whole teams to analyse big stocks like Apple, Amazon, Google and Tesla, for example. Odds are they are going to get those valuations right because they are so focused on the gains in between, so you will not have an edge in these calculations. Whereas when your business is still small, you are bound to be off the radar. You will only get noticed by deep seekers or when you begin to market in a space that has an audience tailored to your desired outcomes. My advice is to be prepared to be visible, and have a game plan that works in the limelight otherwise wait it out until you are more prepared especially if you have something of extreme value but are not quite sure of how to position it into the market.

The best way to prove your worth as a new business is to have a positioning strategy that aligns the core of your business to the objectives methodically. You can utilise this strategy when innovating in new markets to scale your business or you can identify new ways of doing things to improve efficiencies in diverse markets. There is a market for almost everything; the hard part is locating it. You could partner with companies who possess what you lack as long as there is no conflict of interest and the outcomes benefit both ends of the deal. The cost of business could be shared too if you were able to identify and align the perfect brand partner or partners.
Entrepreneurs often ask so when do I need to pivot or when do I seek to get noticed by the bigger players to attract a viable growth partner or position for acquisition? The answers differ according to the business model, the environment, the entrepreneur, the changes in the economy, the capital on hand, the longevity of the model and the uptake of the product or service. However, there is always a way to navigate forward the only variants are creativity and time.
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