Sometimes Chasing The Shiny Object IS A Good Idea
In general, early stage companies trying to grow revenues always struggle with the “shiny object syndrome”. What is this syndrome?
In our desperation for revenue, we “chase shiny objects.” Which could mean we let a potential big sale distort the product roadmap – trading a short-term bump in revenue (if the deal actually closes) for product improvements that would produce more sales over time. Or we get a random sale or two from an adjacent niche and think – hey, there’s a bunch of revenue over there – let’s do a marketing campaign. (Which almost never works, as a single campaign from someone the new prospects never heard of is generally just a waste of money.) You get the idea.
But, sometimes, the environment suddenly changes and presents us with a unique opportunity – and adjusting the plan to seize it is absolutely the right thing to do.
My friends at Tastry represent a perfect example.
Tastry defines themselves as:
The Sensory Sciences Company That Matches Products to People.
With patent-pending artificial intelligence we identify shopper preferences. Our consumer-friendly technologies, analytical chemistry and machine learning provide the most accurate product recommendations available anywhere.
Retailers use this information to optimize product mix, which increases sales, margins and store loyalty. Tastry technology also provides science-based insights for product development and a variety of business improvement strategies.
They are working hard to build this business and certainly do not have any cash to spare chasing wild geese.
But something changed in the last few weeks.
Fire. Massive wildfires adjacent to wine growing regions in Washington, Oregon, and California.
Too much smoke near a vineyard can “taint” the flavor of the grapes. The few labs capable of this sort of testing quickly were overwhelmed and stopped accepting new samples within weeks.
The Tastry team saw this as an opportunity. They retooled their lab and quickly announced their ability to also conduct smoke taint testing. Within two weeks, they already had numerous winery customers. A great source of new revenue – but more importantly – a new relationship with potential customers for their core product offering.
In this case, “chasing the shiny object” was absolutely the right thing to do – because it builds on the company’s core strategy.
So - when is an initiative like this strategic – and when is it a wild goose chase?
Hard to say when facing the choice but super easy for us armchair quarterbacks after the fact!
Ask yourself:
How does this new idea supports the long-term strategy?
What are you giving up to pursue this new initiative?
If it is successful, what does that mean for the organization?
And if it is truly a new strategic direction (as opposed to an attempt to complement the current plan), will it stand the test of time?
Don’t take forever to decide – or the opportunity will pass. But, think hard before shifting resources to something that might just be a “shiny object.”
With a glint in my eye,
Joel