Tag Archives: entrepreneurs

Think Inside the Box

think-inside-the-box

Think Inside the Box – Where is your Food Coming From?

Strolling the many beautiful aisles of BiG (Ben’s Independent Grocer) in Kuala Lumpur earlier in the year with an awesome Aussie food client I was suddenly struck by one product that jumped right off the shelf and slammed me in the face!  Amongst a sea of 50,000+ products (the average number of skus in a supermarket) and BiG is one of the best supermarkets I have ever visited and that’s quite a few in quite a few countries.

What captured my attention from One Degree Organic Foods was firstly a QR code front and centre of pack with a call to action to discover the ingredient story and what’s actually inside the box!  Funny you would think you could just read the ingredients panel for that information wouldn’t you?  You might also expect to see the usual blah blah blah statements that hide the truth on that same ingredient panel. Statements like “made from local and imported ingredients”, “sourced locally where possible”,…etc etc.  Not here, the family who own and operate One Degree Organic Foods are farmers themselves or as I like to call them farmpreneurs – the new breed of farmers who are entrepreneurs taking their value added brands and food products directly to consumers and baring their all in the name of authenticity and pride and passion!

We can not say it better than the owners so I will just quote what they say on their website: “We’re not a conglomerate, nor a big-box retailer, nor a chemical company with a food division. We’re a family who cares deeply about family farmers and the integrity of your food.” Does that resonate with you? It did with me in a busy brilliant independent grocer in KL, Malaysia in a cereals aisle that had local and imported options from the 4 corners of the globe to choose from.  I ended up standing at the shelf scanning QR codes and watching engaging YouTube videos of Pecan farmers in Peru, Buckwheat growers in central Canada and connecting with the passion these farmers showed to their land and the ingredients inside the box!

This is example is not only good social business its smart business and its smart marketing.  The best of the best in my mind.  Brilliantly efficient and transparent in a modern age where BIG is bad – who trusts large Multinational Profit Shifting Corporations anymore these days?  In fact in food, many have resorted to ‘faux branding’ creating cottage brands and hiding behind PO Box or Head Office Addresses with ABC Pty Ltd passing off a mass produced food item as something akin to a cottage industry startup family food brand.  If they are not creating ‘faux brands’ they are buying the genuine article and bringing them into their fold – founders and all to run alongside their mainstream food brands.  I have spoken  and written about this recent trend at Food&DrinkLive! in Sydney, Australia 2015 and in an earlier CreatoBlog Think, Act, Adapt and Innovate like a Startup!

Shoppers and consumers are asking nowadays – where is my money going? When I shop whether locally at an independent grocery store or with a major national supermarket chain they are already making a decision as to where they invest their hard earned $$$.  After get to the supermarket shelves or jump online you faced with 100s upon 100s of brands to chose from before you make another decision as to which company will you support. That support is being consciously or unconsciously driven more towards small, independent, family owned businesses more than ever before and there are many reasons for those choices.

Think about your own shopping decisions you take.  Of course price is important and as the famous jingle goes “everyone loves a bargain! ”  However do you also think of the following factors in your decisions at the shelf or when shopping online?

  • How is this food grown? How are the animals treated? Is it sustainably farmed?
  • Is this a genuine real article?  How much has my food been processed, added to, tampered with and packaged up?
  • Where is this food from? What about the ingredients that go into making it? Is it safe to eat and feed to my family?
  • Who am I supporting here? A large multinational or a family owned or small business?

Brands BIG and small need to start to think! act…and adapt to these fast changing times.  Technology is making it practical and cost effective for small to meet BIG and beat them on the playing field. Why? Because they come from a place of realness and not marketing puffery. Consumers connect with founders and their startup stories cooking on the stovetop, growing and processing their own farm produce and packaging up and telling their story in a way that is authentic and real.  You can not copy that if you are a large Corporate and it outpositions BIG as BAD and small is GOOD!

The examples we can list of brands that are doing this well is long and numerous but the list of brands NOT doing this is 100+ times longer.  Why not, take the opportunity to use technology to connect with consumers and customers and share your story? The time is now – there has never been a better time to be a farmpreneur or a small food producer. Here is a few other great examples you might like to explore and if you are interested in taking your own business to the next level of consumer connectivity give us a call or drop us a line.

We love working with independent family owned fast growth businesses @Creatovate.  In fact, we have by accident or choice managed to specialise in it with a focus on the twin pillars of sustainable (profitable) growth – Innovation and International Business – what are you waiting for? Get out and tell your story – its real, it’s authentic and consumers and customers want to hear from you!

If you are interested to come and hear Dermott talk about creating value for consumers and customers in consumer packaged goods you might like to come to Changing the Landscape – The Flexible Packaging & Label Makers Association on 10-11 November 2016 in Melbourne, Australia.  Dermott will give a keynote talk on 11 November titled – Creating Value for your customers in the 21st Century for FMCG’s

Dermott Dowling is Managing Director @Creatovate, Innovation & International Business consultancy. Creatovate help businesses create, innovate and growth through sustainable innovation processes and spreading their wings outside their home base.

Bibliography & Additional Sources:

http://www.consumerreports.org/cro/magazine/2014/03/too-many-product-choices-in-supermarkets/index.htm viewed on 16/9/2016

The Big Group: http://thebiggroup.co/BIG/?p=about

Transperant Supply Chain https://www.onedegreeorganics.com/transparent-supply-chain and our team https://www.onedegreeorganics.com/our-team

 

 

 

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Aim, Fire! Adjust :-) Lead, Learn & Innovate like an entrepreneurial startup

You don’t have to be a start-up to learn, lead and innovate like one…

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1. Entrepreneurs are built, not born 

By correlation we can imply all businesses have innovative capacity and building that capability can be through strategy, resource allocation, process, culture and leadership.  Most importantly having a go!  After all is not the best form of learning the practical as opposed to the theory.

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2. Start-ups are unique

They are not small versions of large companies and hence traditional business thinking tends to stifle the start-up.  Likewise if a large organisation is looking to innovate and ‘learn by doing’, they need to be open to start up ways of working, managing, funding.  Less ruling by command & control and more by seeking, solving, encouraging and seed funding.

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3. The Search for a Business Model

Under lean start up models the founders search for repeatable and scalable business models, rather than settling on one when the venture is launched.  For larger corporates they tend to apply new ways of doing things through existing business models more often than not as the ‘status quo’ police of middle management apply traditional ways of reaching customers and consumers.  Instead a healthy start point might be a small venture team based diverse group of individuals starting with a blank sheet of paper literally and saying ‘without constraint’ what is the best way we can create value from this idea/insight/trend/unmet need and take our product or service to customers and consumers in new and innovative ways.  Senior leadership should give encouragement for the venture teams to take this approach and be open to growing some babies or children outside the corporate home or traditional business model.

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4. Run Fast

Successful start ups observe when their business model is struggling, respond to new facts, decide which parts of the business model require urgent change, and act.  Less time on detailed business planning and more time on testing in market with real live tests.  How often do you sit in board rooms with your peers either a) presenting or b) picking apart detailed business cases on products or services with 5 year business revenue and profit projections that could be better spent on inquisitive questioning like “how can we test this for small dollars to get large learning”.  What are some creative entrepreneurial ways we can find out if this is going to work before we scale it and go full blown national launch for example?

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5. Pivot and Turn

Pivoting is about iteration, testing and validation, and can be as simple as realising you have priced a product or service incorrectly.  Start up founders realise that several pivots maybe required in the early years to reinvent the venture.  They ensure the culture and staff are flexible enough to turn on a dime if required.  By correlation in many corporate cultures its often launch and leave or launch and run in case things don’t go well.  Culture is an integral part here of creating a testing, learning and adaptive team based culture where the venture teams are kept together post product/service launch and report back in frequently with learning and recommendation to pivot, stop, start again, push harder, invest more/less, etc.  Some large businesses realise that traditional leadership structures or meetings and forums do not allow for this type of learning and iterative process and set up incubators, skunk works, or get senior grey haired veterans to run these entrepreneurial business units.  Cell based structures may also be appropriate and leaders will need to work out how and when the satellite businesses are brought back into the mother ship or scaled and grown by the battalion as opposed to continuing to operate like the special forces.

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6. Lean and Learn 

True learning comes from testing aspects of the business model and market hypothesis early and quickly. Rather than spending months researching start ups get their minimum viable product (MVP) to market quickly and let their customers inform them.  Speed is the imperative and their most precious asset.  In the age of ‘accelerate everything’ where we live by the mantra ‘I want it now!” and I can find it in 7 seconds or less on Google this is a very potent message to large corporations.  Research is often done to reassure internal stakeholders and appease layers of management the homework has been done before the big artillery of $$$ of Advertising and Promotion are spent in the market to support this new product or service.  More thinking can and should be devoted to how multiple controlled live tests can be launched simultaneously for e.g. 7 different products in 7 different states and review and learn after 6 months which 1 or 2 continue and we invest redevelop and roll out.

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7. Feedback Loops 

Start up entrepreneurs create feedback loops to measure customers response to new products, at least at the very start, to decide whether to ‘pivot or perserve’ with their business model.  They constantly source customer feedback and let it  shape their business model.  With the advent of social media this process of continuous feedback loops should arguably be much easier for the larger corporates than the start ups.  They have the millions of likes on Facebook constantly feedback criticism or favourites on new products and prototypes.  Corporates often have very sophisticated customer engagement models and survey tools as well through third party providers.  Turning these tools towards active engagement on product and service beta development, controlled market tests and post launch analysis with equally prompt redesign and redelivery will increase customer and consumer engagement and arguably make the large corporates a more nimble and liked business by their customers.  The challenge is on the big to be ‘small & nimble’ far more so than the other way around in the modern age of instant gratification, response and listening.

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8. The Critical Formula 

Under lean entrepreneurship thinking, chaos + speed + pivots = success.  Start ups  realise they need to operate in environments of extreme unpredictability (chaos), use great skill to change quickly as circumstances dictate (speed) and reinvent aspects of their business model (pivot) to respond to threats and opportunity.  This seemingly choatic, manic, back flipping or zig zagging appearance will not sit well inside many corporations where the mandate is often 10% topline and 10% bottom line growth year on year.  However, entrepreneurship be that corporate or start up is never 10% steady year on year growth and its up to senior leaders to create ‘gambling funds’, set aside intrapreneurial seed capital and manage their own intracompany adventuring like a venture capitalist.  Not all bets come off and provided the company accepts that some bets and teams are like the house money in the casino but that it could be the next one or the next one that comes off they are on the road to learning and the more they learn by doing the more that appearance of fast, pivoting, chaos will start to feel like the new normal around here and that will be a demonstration that culture has come to match the business innovation strategy, they have succeeded in allocating scarce resources to new ventures and they have a process that is producing results.

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9.  Entrepreneurship is Management 

While it may not sit well with many strong minded entrepreneurs or creative innovators, Ries notes entrepreneurship is essentially another form of management.  The start up management style recognises the uncertainty of entrepreneurship with its increased risk and reward profile and the need to adapt and develop a stream of constant innovation.   For many large corporates like conglomerates who operate across different industries, geographies or have multiple business units they are already a great example of using multiple business models and management styles.  To them entrepreneurship may not be new and maybe something we have been doing for years without the name tag e.g. Wesfarmers, Tata, China Resources Enterprise to name a few.  For other large corporates who have not yet tackled this head on or are thinking about tackling it head on I can recommend a couple of immediate things to do.  Step 1 Pick up a copy of Lean Start Up and note down everything as you read that is interesting and new, anything you learn and lastly but most importanly, what you can take and apply to your own context.  Step 2 immerse yourself in the learning process.  Go and see some start ups in action in your industry or adjacent industries.  Go and seek to understand how large conglomerates can operate with multiple entities and entrepreneurial divisions inside a large business structure.  Step 3 and the most important step.  Get the strategy out, make sure it has an innovation strategy component and invest some ‘gambling chips’ into starting some ventures.  Back those ventures and applaud their bravery across the business until what seems unnerving, unnatural and unreal becomes the new ‘way we do things around here’

It might take a lot of guts, determination and persistence but then again so does starting your own business as any entrepreneur out there will tell you over a coffee or cold beer or glass of wine.

Create Innovate Grow 

Dermott Dowling @Creatovate


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