More corporate leaders than ever are sharpening their focus internally to build their next big business. But to make their venture-building investments turbocharge market cap growth, many need to radically change their company’s mindset.
Not surprisingly, ventures that achieve corporate unicorn status are a select few. Why? Despite the many competitive advantages at the disposal of large corporations, scaling an enterprise venture presents a unique set of challenges that requires a specialized approach to business-building. A practical strategy of educating leadership on corporate venture building is to align early with stakeholders and sponsors on what success looks like at different stages of the venture lifecycle. When leaders recognize that KPIs of a new venture will differ from those of a traditional capital expenditure project, the likelihood of success increases substantially.
Large existing customer bases offer data and segmentation capabilities for personalized, targeted offerings. Unique distribution networks can reduce go-to-market costs and enhance customer experience. Having brand equity can increase the probability of trial and extend customer lifetime value. Holding proprietary data and solutions can build competitive moats against both incumbents and disruptors.