It’s been over two months since we first set foot on the grounds of Babson, and with a mere three weeks left till Christmas part of me wonders where all the time went, while the other half buzzes with all the business insight and valuable ‘tricks of the trade’ harnessed from our professors within the classroom walls, and amongst the vibrant company of Boston’s ambitious crowd of entrepreneurial MBA students and business minded net workers.

As time flies by, one of the subjects that pops up in our minds with increased frequency includes the various opportunities which await us once our chapter of the Saltire roller coaster draws to a close next year … If we’ve learnt anything from Babson’s leadership development guru Karen Ayes, it is that the possibilities are close to infinite. For instance we could …

a) Start a business,

b) Help ambitious startups develop a solid foundation for long term growth,

c) Drive global thinking and a positive response to risk taking in small to medium organisations,

or d) Instill a culture of ‘disruptive innovation’ within Scottish multinational companies.

Prior to our Thanksgiving break an inspirational class with Bob Caspe, a high tech consultant with three start ups to his name,  provided some practical insight into starting a new business - with clever little twist.

Bob favours innovation in the b2b sector because unlike the somewhat ‘unpredictable’ consumer market, the business client is ultimately driven by two key factors: less costs and increased revenue. Income per client is also more substantial.

The Common Start Up Approach

For many entrepreneurs the innovation process begins with idea generation and development. This is followed by sourcing the funding needed from various channels – each with different levels of risk - in order to transform the idea into a commercially successful  product. In most cases consumer interest and purchase remains unproven until the product reaches the market.

Bob's Approach

For the shrewd b2b entrepreneur however there is an alternative approach, one which helps them design a much better product, test the market earlier and mitigate funding and sales risks. This involves taking the following key steps:

a) Seeking opportunity in an industry the entrepreneur knows well, one where they are on good terms with at least one key player - who could potentially be a first client.

b) Taking the time to fully understand this CLIENT. Enquire into the ‘how, why, what and when’ of their operations. This way the entrepreneur focuses on the actual problem... rather than the ‘presumed’ one.

c) Put on their thinking cap to come up with a solution for this problem.

d) Approach the key client with the solution - which does not have to be complete! Welcome and implement feedback and approach client again with changes.

e) When the CLIENT is sold on the idea - here comes my favourite part - negotiate commitment to purchase AND advance on purchase order which would be used to complete the development of the product!  

A key benefit of this approach is that the entrepreneur stays in tune to client’s REAL needs and knows from the start whether their idea truly is innovative - or not - in the eyes of the client.

Sourcing funding and sales at the earliest opportunity also safeguards against unnecessary financial risks, and proves that the market is willing to pay.  By approaching a client you know well, involving them in the decision making process and providing guarantees (for example the advance could be paid per mile stone rather than in full) the entrepreneur is able to establish and maintain trust.

So for you clever entrepreneurs out there, there is a plan B. I guarantee it's no picnic, however Bob's way does mitigate risk and cuts intangible costs, including time spent sourcing multiple funding channels. Besides we're entrepreneurs… where's the fun if it all easy?

Go ahead, pick up the phone next to you that’s gathering dust, and give your ideal client a ring.