Pickaxe, Boulders and Growth

I spent the better part of the weekend extracting boulders with a pry bar and pickaxe from a 10 foot patch of earth that is to become a new garden, hopefully supplying me with tasty asparagus and strawberries. Glacial till they call it around here, also known as the stuff the glaciers didn’t bother to push into the oceans. So after two days of toil I had a nice square of reasonable dirt surrounded by 40 feet of stone boundary. Those with healthy depths of topsoil must be puzzled by this amount of effort just to get a few plants into the ground.

This gap between what is expected and what is actually needed often appears when companies want to enter new territory. Grand ideas of potential new sources of revenue drive the initial excitement and help to create momentum in the process. The trouble comes when this initial view of the opportunity is used to craft the proposed outcomes. Like many public works projects that come in at 5X the initial estimates, your project or program will exceed your initial view in both scope and costs. You will encounter many 100 pound boulders as you dig in. You will need more than a spade and hoe; you will need the heavy tools.

This not to say that growth through new endeavors is to be viewed with suspicion, but rather that more care needs to be exercised in the early stages of the efforts. Here are a few points to consider that may help bring out the potential challenges that lie hidden beneath the surface.

• If you are developing a new product, get all the stakeholders involved as early as possible. Gather all input, and listen to the marketplace. If needed, spread a few seeds to see if they take hold, before you plant the whole field.

• If you are looking at new partnerships, run a small program to see if you are equitable partners. Building the relationship over time is a basic fundamental much like the finite growth rate of a plant. This will help to flesh out the nature of your relationship so both parties will prosper.

• If you are going to new markets or geographies, be sure to have clear input from the feet on the ground. Only they will know whether the soil is deep or rocky.

• Finally if you are looking to find a nice exit where a strategic buyer will pay a premium, be prepared for some challenges. The path may appear smooth, but from the buyers view there may be rough spots to overcome. Be sure to allocate at least 9-12months and significant effort.

So if the thought of some new fresh sources of revenue and partnerships are getting you excited, be sure you have your big tools ready. It is likely that you will encounter some hefty boulders along with the fertile ground that you cultivate.