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Welcome to the belivernomics blog

 

I will try my best to update this webpage with  thought provoking and interesting content, as often as I can.  Please feel free to leave comments as  there is much that can be learnt from the sharing of ideas.

By pa360, May 30 2016 11:57AM

For any new enterprise, the requirement to 'start small' is more likely to be a necessity than a preference. This is because the resource base, competitiveness and market reach, that are so characteristic of larger organisations, take time to develop.


But it is easy to forget that starting small actually offers many important strategic advantages and benefits, which are denied to organisations of greater size and with more plentiful resources. Harnessing these opportunities is crucial, because it helps to ensure that an organisation that starts small, in the short term, will be better able to grow sustainably in the longer term. Set out below are six strategic advantages of starting small.


1. maximises the value of limited resources - if you have little to work with, then you will always look to make the most of what you have. Resourcefulness is so much easier when every penny counts and when every second of productive time must be accounted for. Starting small is therefore the ideal place to learn good habits, apply good principles and model good practice. It is also worth noting that resourcefulness is scalable. As such, the practices that you apply when you are small, can also be applied as you grow.


2. builds character - to truly appreciate what it means to have much, you must first appreciate what it means to have little. Character is what you develop when you are under pressure, face tough challenges and keep going long after others have given up. If you are a small fish in a big pond you are perfectly placed to develop the resilience to survive, the courage to compete and the determination to succeed. But even more than being well placed to achieve success, those who start small are equally well placed to sustain it.


3. enables intimate relationships to develop with staff and customers - big organisations are more likely to know their stakeholders by number, whilst smaller organisations are more likely to know their stakeholders by name. To build loyalty you need to establish relationships and the most effective way to establish relationships is to get to know people and develop intimacy. This is where size offers distinct advantages to smaller organisations who are more naturally suited to developing one-to-one relationships and are therefore more likely to be rewarded with loyalty for doing so.


4. innovation is much easier - as organisations grow, structures fall into place which, over time, can become rigid and unwieldy. Needless to say, inflexible structures are often the most difficult environments within which to develop fresh thinking and implement new ideas. By contrast, one of the greatest advantages of starting small is the freedom it provides to innovate and do things differently. The more you experiment, the more you learn and the more you learn the more confident you can be about what works and what doesn't.


5. decision-making is much quicker - if you do not have to delegate or escalate, then decision-making can be much quicker. If you cannot make a quick decision, it doesn't matter whether or not you know the right answer. Speedier decision-making not only positions you to take advantage of opportunities as and when they arise, it also creates a perception of agility and organisational competence. This is crucial in building confidence amongst employees, customers and potential investors.


6. responsiveness and flexibility - one of the most valuable assets of any organisation is its capacity for responsiveness. Being responsive is more than the ability to reassess priorities and refocus effort in light of changing needs and demands; it is the ability to do so in a timely fashion. By virtue of size, smaller organisations are much better able to surf the curve of change and respond quickly as and when required.


The overarching message of this blog is that there are many distinct advantages of starting small. However, though a business might start small, the longer term aim is usually to become bigger. This is just the natural order of things because growth is an important indicator of progress and progress is an important indicator of success.


By pa360, Aug 16 2015 11:56AM

In the market-place of opportunity, you need to stand out to compete and you need to compete effectively to succeed. For start-ups, the key to sustainable success is the ability to turn all things to do with ‘size’ to your advantage. By doing so you effectively re-define the market-place in a way that makes ‘scale’ work in your favour irrespective of what larger competitors are doing. So how do you do that? Well here are eight top tips for successful start-ups.


1. just because you can’t compare doesn’t mean you can’t compete – successful competition is not necessarily about doing the same things better than others, it is about disrupting the market-place with a unique and distinctive offering. Study your market, don’t just look at what others are doing, look at what they are not doing. These gaps could provide the next big growth opportunity.


2. better to get your strategy right than to get it written – a clear and coherent strategy is the price of admission for success. If you do not know where you are trying to get to, you will not know how to get there or know when you arrive. A strategy that is written to please your bank manager is neither use nor ornament. Invest the time needed to get it right and then use the strategy as a road map to get from where you are to where you need to be.


3. being small and agile has distinct advantages – one of the greatest advantages of small enterprises is their ability to respond quickly to changing demands and the emergence of new opportunities. Use this distinctive trait to best effect by networking with like-minded others to build economies of scale when you need to grow and to spread risk when you need to diversify. The ability to assemble and disassemble as necessary will enhance your operational effectiveness and your strategic capabilities.


4. customers don’t want to know who did it first, they want to know who does it best – if you are going to build on the successes of others don’t imitate - innovate. In 1984 the first commercially available handheld mobile phone was unveiled by Motorola. Today, Motorola controls less than 6 per cent of the global smart-phone market, well below that of its two main competitors. Modern consumers are not interested in history or tradition; they are interested in personalisation, convenience and choice.


5. value is better than volume – establish a reputation for designing products and delivering services that people value. The time taken to ensure that you do not just get the right product, but that you get your product right is an investment in success. Products built on value breed confidence and confidence builds trust. When customers trust you they will follow you and they will bring others. Remember, it is better to do a few things well than to do many things badly


6. slow growth is better than no growth – incremental growth and consolidation is much better than rapid and unsustainable expansion. By all means have high ambitions, but these must be underpinned by realistic targets. As part of your growth journey you need to know what success looks like in the short, medium and longer term.


7. in the market place for ideas, speed of thought levels the playing field – good ideas are not the preserve of blue chip multi-nationals or those with the biggest market share. A good idea can come from anywhere, anyone and at anytime. Keep your mind fertile, be open to new opportunities and constantly assess & reassess consumer and market behaviour.


8. be fluent in the language of data – the data mine as the new ‘Klondike’ of product innovation and business growth. With a better understanding of data you can close the gap in performance between yourself and your competitors, better manage risk and expand into new markets. The importance of understanding data is crucial to sustainable success.


In summary, the most valuable asset available to a start-up is the ability to dominate economies where size gives you an advantage or where size makes no difference. Tactically, this will enable your start-up to compete and win on its own terms.


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