3 Mistakes Companies Make With Launching A New Venture According To Jack Welch

One of the great things about being in business and having an existing company is starting something fresh from inside the already existing enterprise. Launching a different venture whether it is a new line of products, service or a jump into a new market. Either way it is good to organically grow your company. There are three common mistakes that companies make when launching something new. They don’t saturate the start up venture with enough resources. They keep the product under wraps and do not give it any hype. And finally, they don’t give the new project enough freedom from the rest of the company. However, there are some rules to follow when starting your endeavor that can help avoid these mistakes. By starting something innovative, can be tricky but if done correctly the reward can be extraordinary.

1. Spend money upfront and put the most passionate people in leadership roles

Lack of capital is one of the main reasons why most new developments fail; don’t let that be the reason because not allocating enough money to a new venture is suicide. In, addition since this is a new enterprise you need to put the best and most passionate people in leadership roles because they are the ones who will make this get off the ground. It is common that companies put the most available people in these new roles but that does not cut it. You need the best, this passionate person may be busy with another part of the main company but if you want these proposals to take off you need the right people in the right spots.

2. Start an uproar about this new development

It is common for companies to keep new ventures “hush, hush” until they are doing well but this is wrong. New ventures need support by hyping them up, it gives them the exposure and support they need. This new venture management should report, if possible, to the CEO because the success of this venture means growth for the whole company, it needs special attention. However this can be a double-edged sword because if the venture fails you can look bad. This is a risk that has to be taken and when the venture is successful, it will feel great. But if it fails, which is always possible, never point fingers and recognize what went wrong, learn and grow from it.

3. Give the new organization some breathing room

Give the new idea more freedom than you like but not less. It is imperative to find a good balance between monitoring the growth and giving it freedom. When the new project is running smoothly, release the leash and when problems occur tighten the rein. There may be a time when the project gets into some trouble it may need reprimanding. In some cases it be necessary to replace leadership.

By: ken sundheim

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Brandon Frazin works at KAS Placement: Washington DC Recruiters, DC Marketing Headhunters Executive Recruiters Chicago, Ken Sundheim Miami Headhunters, Tampa Bay Recruiters