To Win - Your Startup Needs Only Distribution And Innovation
this concept of focusing on innovation and distribution was highlighted by Peter Drucker decades ago. He famously stated that the only functions of a business are marketing and innovation. And this is exactly what he meant.
As a startup or new business, your have only two main responsibilities:
- First, determine the problem or Jobs To Be Done (JTBD) that your product or service can solve or make easier = Innovation part;
- Second, identify your target audience and devise strategies to reach them = Distribution part.
I talk mostly about the distribution part because that’s the one typically overlooked by otherwise great teams. But this concept of focusing on innovation and distribution was highlighted by Peter Drucker decades ago. He famously stated that the only functions of a business are marketing and innovation. And this is exactly what he meant.
Innovation
When it comes to innovation, it is important to initially define your product or service as narrowly as possible. You can always expand but you must start as narrow as possible. The more specific and focused your offering is, the clearer it becomes to potential users or customers that your product solves their specific problem.
This clarity will help you attract your first users or fans more quickly and enable you to gather valuable insights about them. It will also allow you to assess whether the problem you aim to solve is significant enough for users to be willing to pay for your solution.
"Business has only two functions - marketing and innovation"
Distribution
On the other hand, distribution involves finding effective ways to market, promote, and sell your product or service. It might include physical logistics or digital-only distribution channels. This is also the phase where storytelling, community building, partnership development, and co-creation come into play.
Additionally, this is the part where you will be determining the right price for your offering. Price is also a crucial component in finding and serving the optimal market for your business.
The distribution phase is just as creative and important as the innovation phase, as it involves figuring out various unknowns and you must work on it since day one. Even better if you work on distribution before you start working on innovation.
However, regardless of the product and specific strategy, it is essential that you focus on delivering unforgettable experiences. Experiences are what will allow your distribution to cut throught the noise of today's marketplaces.
Go Succeed
In summary, if you want to succeed, you must simultaneously ride on both - innovation and distribution - sides of the highway. No one can do the work for you, but if you have any questions or need assistance with this process, feel free to get in touch.