I’ve turned ideas into products, platforms and commercialised them through companies for over 10 years. I’ve also helped a larger company turned an internal technology project into a Platform and eventually a new technology company.
I’ve already started discussing with a number of companies in repeating the same, and would like to highlight a number potential scenarios where I and Venture 9 could help create a new revenue channel for you.
There are a number of ways to create a new product and a revenue channel, these being:
- Turn an idea into a product and company, e.g. edocr.com. It was conceived in March 2007, company formed the month after and product launched 6 months after. Acquired in 2015 by Accusoft.
- Turn an internal project to a platform and a new company, e.g. Livestax was a project inside Causeway Technologies, which I helped to turn it into a product, Livestax Platform and then eventually commercialise via creating Livestax Ltd.
- Turn part of the technology of your core product into a new product and revenue channel – currently in discussion with a technology company.
- Turn technology developed to provide a service into a product – in discussion with a service provider at present.
- Turn projects which use technology into a new product by either creating new technology or combining existing technology – in discussion with a service provider.
Let’s now discuss in more detail of two of the above five.
Creating a new revenue channel from part of your technology product
You might have a technology product which is already making a sizeable chunk or all of your revenues. For simplicity purposes, let’s say this product is made up of 5 parts. Could one part be separated to create a new product, whilst the particular part is continually being used by the existing product, so as not to jeopardise the existing revenues.
In most cases, you will only do this if you are genuinely impressed by what it does and have a gut feel or evidence that suggests this part is better than what is already in the market.
Venture 9 is then able to carry out a feasibility study of its viability and help create Minimum Viable Product (MVP) and then build the strategy and route to market(s) working with the company.
Creating a new technology product and revenue channel from technologies built to provide services
As you very well know, its hard to scale service businesses unlike product based businesses. There are only two ways to scale a service business, these being:
- Hire more staff
- Increase fees charge per staff
Let’s compare a product and a service based businesses to bring some clarity to above:
- Accenture – $32.9 billion with 401,000 staff, i.e. $82,000 per staff
- Facebook – $27.6 billion with 17,048 staff, i.e. $1.62m per staff
Accenture would need to find significant efficiencies or hire more staff to increase its revenue per staff number. Of course, this is not the only barometer at which a company’s success is measured.
But even hidden in those numbers at Accenture are not just “service” based revenues. Service companies have started to build or acquire products. Whilst they constitute smaller revenues than their service counterparts, nevertheless the honeymooning with products continue.
I’ve recently started to discuss with a service based company, which has built technology in-house to achieve a differentiation within their competitive landscape. Whilst no direct revenues are generated from the technology, it nevertheless contribute significantly to the efficiencies they have achieved, as well as the scope of services provided.
So the opportunity here is to spin a version of the in-house technology into a product and generate additional direct revenues from it.
If you are interested in exploring how Venture 9 could help generate new revenue channels, please do reach out to firstname.lastname@example.org +44 7769734491 and ask for Manoj.