Evolving can be key to success

Entrepreneurs often think they must revolutionize the marketplace in order to succeed. Research indicates the opposite is true.

By Gary Williams
Brigham Young University

Over a 10-year period, Amar Bhide at the Harvard Business School has conducted research to answer the question, "What differentiates a
successful start-up from the masses of new businesses that are created every year?"

In an interview in Inc. Magazine, he observes that most entrepreneurs start in uncertain markets and without a proprietary idea. They also
lack special training or qualifications and usually begin operations without significant amounts of capital.

He found that individuals who see an opportunity to do something better, faster or cheaper start many successful businesses. They
typically already know the business and use this business intelligence to make a small modification in what somebody else is already doing.

In other words, they evolve the existing business model in some profitable way.
Several business plan competitions have been held recently and have shown the wisdom of evolving a product or service into a new
enterprise rather than inventing something new. The same people who supply guidance and money for many of the region’s startup companies
— venture capitalists, angel investors, accountants, attorneys and other successful business leaders — conducted the judging for the
competitions. Using the same criteria that are used to pick potential winners from among their own clients, these professionals selected
competition finalists.

At the Brigham Young University competition, the finalists included ideas that
were better, faster or cheaper versions of existing companies. First place went to
uSight, an Internet software provider that found a "pain" in the marketplace and built a
solution to solve it. USight recognized that one of the most difficult steps in setting up
an online business is establishing a merchant account with a bank for the acceptance
of credit card purchases. The evolutionary solution here was to build a software
application and process that would allow the customer to establish the account
overnight with an online signature capability. USight already has more than 10,000
clients and is growing at a 100 percent compounded rate.

The second place winner was Open Air Cinema. The student founder created a
company to show movies in parks and amphitheaters using a portable, drive-in size
screen. Customers buy a ticket for an evening of live band and movie entertainment
while enjoying the outdoors. He has booked 36 events for the summer and has been
featured on Fox 13 and ABC affiliate Channel 4.

Leading Edge Solutions was awarded third place. This team recognized a need in
the aviation industry. Many private planes were designed with Kevlar leading edges on
their wings. Due to weather deterioration, the parts need to be replaced at a
considerable cost. The "better" idea was to design an aluminum replacement for the
leading edge of the wing. The team is in the early launch stage and has received
significant attention from industry players.

Other finalists included a student team from China that is launching a company to place vending machines in Chinese high schools, and a
graduate student who has designed a paint ball gun that replicates a real gun in looks and action with a focus on the law enforcement and
military training markets.

Better products or service, cheaper methods of production or delivery, and faster ways of reaching and serving the customer are
alternatives in today’s markets. In each case, entrepreneurs and students have recognized options to evolve something in an existing market
and thereby to improve their chances for success.

Gary Williams, a former CEO of a high-tech firm, is affiliated with the BYU Center for Entrepreneurship. He can be contacted via e-mail at
[email protected].

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