Competence-based Success
In this type of venture, high Competency, accompanied by Product Market Match, Net Buyer Benefit, Margins, Volume, Purchase Frequency, and the availability of Resources indicate long-term success potential.
Medium Product Longevity implies increased Ambiguity and medium Scarcity, with a DECAYING level of Innovation.
Figure 1: "B/K" Diagram
ADVICE:
Need to build a business that replicates key behaviors and competences. This means that these successful entrepreneurs should spend sufficient time working "on" the business (v. "in" the business) to ensure that the factors that have lead to its success can be replicated as circumstances change.
Because the business is based upon key Competences, there should be ample effort expended (while the Resources are still plentiful), on continuing education and the upgrading of skills--that in turn lead to ongoing Innovation.
Figure 2: Target "Bulls-eye" Diagram
Venture Example:
This case was prepared by Team Lynx as an entrepreneurship project at the University of Victoria. It is designed to illustrate the venture archetypes used in the New Venture Template through story and case description. Though the case is based on a true story and actual businesses, its name and likeness has been altered. The case is quite brief, so you should be able to read it quickly
Larry Bond scribbled down the information that his receptionist was relaying over his cell phone while he was still under the sink. The plumbing job over at the Carter's would have to wait for a couple of days because of the backlog of service calls. This was typical though, because Bond & Bond was a father and son partnership whose services were high in demand. There was more than enough work to keep both men busy all year long.
Between Larry and his father Jerry, they had 60 plus years of plumbing experience. Both partners could diagnose problems quickly and accurately. They worked as efficiently on their own as they did together on some of the more involved jobs. When Larry was six years old, he had flushed his toy alligator down the toilet. His father took that opportunity to teach Larry how to unplug the toilet. Larry and Jerry had the talent to find the source of hidden leaks. Some of Larry's friends' had even dubbed him the 'Water Detective' when he joined his father's company straight out of high school.
Because their reputation preceded them, Bond & Bond were able to charge twice as much as their competitors, who also took twice as long to complete jobs. Bond & Bond's clients appreciated being able to get on with the rest of their day, and knew that it would be unlikely to encounter the same problem once it was fixed by Larry or Jerry.
Of course there were some people who claimed that Larry's price was outrageously high and would try to bargain it down to other plumbers' quotes. When Larry refused to negotiate, these individuals would either 'do it themselves' with commercial, drano-type products or go with the lower quote.
However, there had been enough people who were willing to pay a handsome price for the services, that the partnership had been generating six figure revenues for the last 20 years. With what he had accumulated so far, Larry could easily retire today, at age 38, on his sizeable nest egg. But Larry was not quite ready to give up the working life. He really enjoyed his job, fixing other people's mundane problems.
Larry was careful to insure the business practice from the usual type of liabilities, and bought a reasonable amount of insurance for both partners. Other than that, Larry tried not to trouble himself with thinking too much about 'what if' questions. For instance, the business could be vulnerable over the long term if pipe design and commercial plumbing products improved so much that plumbers would eventually be out of work. But to Larry, plumbing was a simple business. As long as there were pipes in the house, plumbers would be needed, so Larry could not see what there was to anticipate going wrong. He just focused on doing what he did best.
