5 Key Intangibles To Factor Into Your Next Business Venture

In my early experiences as a business executive and advisor, I have often seen new business investors focus primarily on the strengths of the management team , or a sustainable competitive advantage . In reality these are core attributes for every funding equation, and while these are necessary, they may not be sufficient to make your new venture the total success embodied in your vision.

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In the last few years, I am seeing a renewed focus on other less tangible attributes which can set your new business apart. Examples include the Conscious Capitalism? movement, founded by John Mackey of Whole Foods, the B Team, founded by serial entrepreneur Sir Richard Branson , and the Benefit Corporation (B Corp) form of business now available in 35 states.

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I have always struggled to communicate the multiple other relevant priorities, and the other intangibles required for a great execution. I found many of these in the classic book “Great From The Start: How Conscious Corporations Attract Success ,” by John B. Montgomery, which does a great job of laying out specifics and case studies.

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It also starts with a good summary of the intangibles, summarized as the five rules of relevancy, by Mark Zawacki. If you aspire to start your own business or look to join a new venture, you need to heed these recommendations:

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1.???? A business needs to be relevant and stay relevant.? Relevancy for a new venture company is the discovery and understanding of the real addressable market for a product or service.? This is not the total opportunity out there, and not the total target market, but the subset of customers who have and will spend the money you need to cure their pain.

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2.???? A business needs to find a voice relevant to its ecosystem.? These days, you have to foster a community of support for your business.? That means educating targeted supporters is key, even before you start to sell. Selling too early triggers customer defenses and drives them away. Everyone hates being sold to; we all prefer to buy.

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3.???? A business must gain balanced traction.? This is not just sales traction, but a proper balance between resources, product, and customers.? It means building a viable and desirable product before selling, assembling the right team with funding, and recruiting and educating enthusiastic customers who will be your best advocates.

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4.???? A business must form alliances within its marketplace. ?Today’s ultracompetitive global environment demands that you make alliances early. New ventures often pay lip service to strategic partnerships, but then schedule these efforts far down the road.? The right partnership strategy early can make and keep a company relevant.

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5.???? A business must maintain a relevant laser focus. Too many early-stage companies are so desperate for customers that they operate in a frantic and random sales mode. They sell into multiple verticals, or pursue multiple revenue streams, such that they can’t develop a repeatable, scalable sales process, and don’t do anything extremely well.

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Of course, relevancy doesn’t work if you don’t have a winning business model.? In the traditional business environment, this means the priority is an adequate return for your stakeholders, but today it also means your company should provide a materially positive impact on society and the environment.

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Great companies recognize that there are now multiple interdependent stakeholders, including customers, business partners, and social groups, who need to be part of your equation since they can drive or limit your success, in addition to management and stockholders.

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In other words, your new venture needs to be a “conscious” entity, constantly aware of the complex eco-system around it, and the factors driving change and evolution. This requires conscious leaders who are passionately committed to personal and professional growth, as well as the greater good of society. These leaders then cultivate the consciousness of their team members.

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In reality, your people are the consciousness and relevance of your business, and your customers judge your company as they would judge a person. No relevant company can afford to focus on short-term wins over the long-term effects of its behavior on other stakeholders. How much time and how many measures have you applied regularly to the challenges above?

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*** First published on Inc.com on 08-11-2024 ***