top of page

How even an ๐˜‚๐—ป๐˜ƒ๐—ฒ๐—ฟ๐—ถ๐—ณ๐—ถ๐—ฒ๐—ฑ ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€ ๐—ฐ๐—ฎ๐˜€๐—ฒ will help you

โšกย How even an ๐˜‚๐—ป๐˜ƒ๐—ฒ๐—ฟ๐—ถ๐—ณ๐—ถ๐—ฒ๐—ฑ ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€ ๐—ฐ๐—ฎ๐˜€๐—ฒ will help you build your corporate venture



In 2020 I started work on a new project for fahrrad.de / Internetstores.



The task was to bring a ๐˜€๐˜‚๐—ฏ๐˜€๐—ฐ๐—ฟ๐—ถ๐—ฝ๐˜๐—ถ๐—ผ๐—ป ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€ ๐—บ๐—ผ๐—ฑ๐—ฒ๐—น ๐—ณ๐—ผ๐—ฟ ๐—ฒ-๐—ฏ๐—ถ๐—ธ๐—ฒ๐˜€ to market. We had two main aspects to cover:



๐—ต๐—ผ๐˜„ ๐˜๐—ผ ๐—ฏ๐˜‚๐—ถ๐—น๐—ฑ ๐˜๐—ต๐—ฒ ๐—ฎ๐—ฐ๐˜๐˜‚๐—ฎ๐—น ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€ (building and managing the inventory, creating the processes, setting up the digital storefront and marketing, hiring the team, contracting all the suppliers, checking for desirability and feasibility essentiallyโ€ฆ) and



๐—ต๐—ผ๐˜„ ๐˜๐—ผ ๐—ฒ๐˜ƒ๐—ฎ๐—น๐˜‚๐—ฎ๐˜๐—ฒ ๐˜๐—ต๐—ฒ ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€ ๐˜ƒ๐—ถ๐—ฎ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐˜†, meaning: does it even make sense to grow this business even though it theoretically cannibalizes the core business?



At that point Christian Ensslen, my business partner, brought Franz Bajorat into our expert network. ๐—ข๐˜‚๐—ฟ ๐—ฒ๐˜…๐—ฝ๐—ฒ๐—ฟ๐˜ ๐—ป๐—ฒ๐˜๐˜„๐—ผ๐—ฟ๐—ธ ๐—ถ๐˜€ ๐—บ๐—ฎ๐—ฑ๐—ฒ ๐˜‚๐—ฝ ๐—ผ๐—ณ ๐—ฎ๐—ฏ๐˜€๐—ผ๐—น๐˜‚๐˜๐—ฒ ๐—”-๐—ฝ๐—น๐—ฎ๐˜†๐—ฒ๐—ฟ๐˜€ ๐—ถ๐—ป ๐˜๐—ต๐—ฒ๐—ถ๐—ฟ ๐—ป๐—ถ๐—ฐ๐—ต๐—ฒ: Franz being the A-player in business case modelling.



So we started building the business case together.



For me as the Co-Preneur / external Venture Lead of the program ๐˜๐—ต๐—ฎ๐˜ ๐˜„๐—ฎ๐˜€ ๐˜๐—ต๐—ฒ ๐—ฎ๐—ฏ๐˜€๐—ผ๐—น๐˜‚๐˜๐—ฒ ๐—ด๐—ฎ๐—บ๐—ฒ ๐—ฐ๐—ต๐—ฎ๐—ป๐—ด๐—ฒ๐—ฟ.



After only a few weeks of iteration in the business case we had ๐—ฎ ๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐—ฑ๐—ฒ๐—ฒ๐—ฝ ๐˜‚๐—ป๐—ฑ๐—ฒ๐—ฟ๐˜€๐˜๐—ฎ๐—ป๐—ฑ๐—ถ๐—ป๐—ด ๐—ผ๐—ณ ๐˜๐—ต๐—ฒ ๐˜€๐˜‚๐—ฏ๐˜€๐—ฐ๐—ฟ๐—ถ๐—ฝ๐˜๐—ถ๐—ผ๐—ป ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€.



The most important insight: ๐˜๐—ผ ๐—ธ๐—ป๐—ผ๐˜„ ๐˜„๐—ต๐—ฎ๐˜ ๐˜„๐—ฒ ๐—ฑ๐—ผ๐—ปโ€™๐˜ ๐—ธ๐—ป๐—ผ๐˜„. By doing a sensitivity analysis across the case we learned which of the tens of parameters were influecning the strongest whether the case would turn profitable or unprofitable.



Suddenly we could ๐—ผ๐—ฝ๐˜๐—ถ๐—บ๐—ถ๐˜‡๐—ฒ ๐—ณ๐—ผ๐—ฟ ๐—ฒ๐˜…๐—ฎ๐—ฐ๐˜๐—น๐˜† ๐˜๐—ต๐—ฒ๐˜€๐—ฒ ๐—ฐ๐—ผ๐˜€๐˜ ๐—ผ๐—ฟ ๐—ฝ๐—ฟ๐—ผ๐—ณ๐—ถ๐˜ ๐—ฑ๐—ฟ๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐˜€, do a proper Customer Lifetime Value & Profitability forecast and best of all:



๐—ฝ๐—ฟ๐—ฒ๐˜€๐—ฒ๐—ป๐˜ ๐˜๐—ต๐—ฒ ๐—ฑ๐—ฒ๐—ฐ๐—ถ๐˜€๐—ถ๐—ผ๐—ป ๐—บ๐—ฎ๐—ธ๐—ฒ๐—ฟ๐˜€ ๐˜„๐—ถ๐˜๐—ต ๐—ฎ ๐˜€๐˜๐—ผ๐—ฟ๐˜†๐—น๐—ถ๐—ป๐—ฒ ๐˜๐—ต๐—ฎ๐˜ ๐—บ๐—ฎ๐—ฑ๐—ฒ ๐—ถ๐˜€ ๐˜€๐—ฒ๐—ฒ๐—บ ๐—น๐—ถ๐—ธ๐—ฒ ๐˜„๐—ฒ ๐—ต๐—ฎ๐—ฑ ๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐˜†๐˜๐—ต๐—ถ๐—ป๐—ด ๐—ฝ๐—ฒ๐—ฟ๐—ณ๐—ฒ๐—ฐ๐˜๐—น๐˜† ๐˜‚๐—ป๐—ฑ๐—ฒ๐—ฟ ๐—ฐ๐—ผ๐—ป๐˜๐—ฟ๐—ผ๐—น (which we kinda had, but you know how startups go - things change on a daily basis).



Hope that makes the point for building an early, unverified business case and helps you in building your corporate venture!





P.S. thanks to Nele Weltner Maren Frey Dr. Hans J. Dohrmann for your trust!



4 Ansichten

Comments


bottom of page