If you're going to break the model, don't just break it a little

Chris and I have been talking about some of our portfolio companies. We came up with this insight (i.e. the title of the post) today in one of our meetings -- and I thought I'd share it with you.  A number of the companies are innovating on standard business models. Inevitably as they innovate, they also retain part of an existing business to be more evolutionary for customers, investors, and employees.  Our thought today is that we should be encouraging our companies to consider when breaking with a traditional way of doing business -- not to break away in a small manner but to make a full push to innovate. Think about all the cell phone innovations that existed before the i-phone was introduced. You probably can't even recall them -- I can't -- but trust me there were lots of innovations. But it wasn't until Apple broke enough of the model to truly stand out. Another way of saying this : if you're going to make a mess, don't make a small one.

Comments

[thom singer]

I like this advice. As a person who has launched out on my own, this is a good reminder that it is better than "okay" that we are doing things our own way. Seems most people who advise me want me to be more like everyone else in my field... but my gut says to just keep doing it in a new way.

thanks

[Matt Fleckenstein]

Agree with this thinking completely. My big lesson from 10+ years of doing startups/venture capital is very much in line with that -- "there are probably 5 ways to grow your company that can be successful. However, pick either way #1 or way #2, etc. -- don't pick some hybrid model that is designed to "hedge bets." Be decisive...commit...make it work.