It has been agreed that growth ultimately means starting new businesses. The challenges are vast, and it's difficult to know how, or even whether, to move forward. New business creation is also known as 'corporate venturing', 'corporate entrepreneurship', 'corporate innovation', or intrapreneuring.
A new venture simply has to prototype its initial concept, get it into the hands of users, assess their reactions, and then repeat the process until it comes up with an acceptable version. So a good experiment begin with clear, explicit objectives. They are designed to produce targeted insights and rapid feedback so that they generate measurable actionable results.
New ventures flourish best in open, exploratory environments, but most large corporations are geared toward mature businesses and efficient, predictable operations. When a company's leaders recognise and support trend setters, encourage diverse perspectives, accept well-reasoned mistakes, and offers resources for exploratory ventures, employees are suitable to embrace entrepreneurship.
New ventures may be necessary for long-term growth, but successes are hard to pull off. Things can go wrong in many ways as starting p of business is not an easy task it's a big risk as lot of resources are used. They can encounter customer failures ( insufficient demand or unwillingness to pay for the product or service, technological failures ( inability to deliver the promised functionality), operational failures ( inability to deliver at the required coat or quality levels), regulatory failures ( institutional barriers to doing what's desired), and competitive failures ( a competitor's entry changes the rues of the game). These sets backs are unavoidable and no one can anticipate them all.
Experimentation is not the only first step in an extended, multistage process of business development. Each stage introduces different sets of questions and challenges. Each stage also demands different talents and perspectives, and new leaders usually have to be brought in as business progress. New businesses are rarely profitable in their early, formative years.
During expansion, measures of market penetration and market share becomes important, as the business becomes established, traditional financial measures can be installed.
New Businesses go through three main stages:
1)Experimentation
2)Expansion
3)Integration
In most cases, the three stages of business creation take years to unfold. Experimentation, in particular, is extremely time-consuming. New concept are difficult to validate, and customers first reactions are not always good predictors of long-term sustainability.
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