ASIA
09 September 2022
STARTUPS
Glen Robinson shares his views on startups in Australia.
Australia is going through a phase where there are very few startups, but do not fear, there is a relatively low level of business or commercial startups under normal circumstances, so what we are currently experiencing is just more of the same.
What is the “start up process”??? and why is it important??
The Startup Process is a continuum of 3 steps, each of which is completely free-standing and apparently unrelated to the steps either side.
The first step PRODUCT DESIGN is usually completed with incredible enthusiuam, by a technically competent person. Their enthusiasm is often very infectious, and is bounded by “this must be a winner” without any consideration of commercial value, use, or production method. This is the phase during which most Australian developments fail, as the designer cannot see the next step, as he/she firmly believes that this product cannot fail, and unfortunately it almost invariably does fail.
The second step is COMMERCIAL DESIGN, and this occurs when the product is prepared for manufacture and sale, an incredibly important step to ensure that the product and its representation is “sale ready”. What sizes do we make, what colour, who are the customers, how to package it, are all good questions, and can be incredibly important. I recall being asked to assist an Australian Startup to prepare their product for sale in Indonesia, but when I saw the product name I recognised it as being “pig” in Bahasa Indonesian. The probability of it being commercially successful in Indonesia was NIL
The last step is the DISTRIBUTION CHANNEL, often overlooked as being relatively unimportant, but unfortunartely it is very important, because if inappropriately handled, the product will not be successful. All the issues which potentially link the product to the potential purchaser need to be identified, canvassed and dealt with. The size and type of packaging, the likely price, acceptabilty, sale location, hence the point of sale requirements, may be all important.
It can be quite entertaining, but frustrating, to watch a person stuck in one of those 3 phases with no understanding of where they are, or what is the next step, and unfortunately the process actually goes no further. It probably is a major reason that Australia has a relatively low rate of startups.
How to overcome the situation? Its not easy as each person who participates in the process usually are not aware of the 3 steps and certainly are not aware that they could be entangled in one of those steps. The best approach may be to fully advise them of the process, and suggest that they obtain assistance in the steps which they do not have the experience or perhaps knowledge. It is not easy for a person to operate in those steps in which they have no, or little,
experience or understanding.
It is conceivable that the malaise which prevents most analysts from understanding the necessity of working through the 3 steps also contributes to the financial failure of listed companies, even when they get to this stage. It is estimated that 99% of listed companies disappear worthless, but we leave that for another day. [https://www.firstlinks.com.au/listed-companies-disappear-worthless]
M: +61 (0) 412 229 664
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Counsellor, Australian Institute of International Affairs, NSW
Board Member, Australia Thailand Business Council
Sept 2022
What is the “start up process”??? and why is it important??
The Startup Process is a continuum of 3 steps, each of which is completely free-standing and apparently unrelated to the steps either side.
The first step PRODUCT DESIGN is usually completed with incredible enthusiuam, by a technically competent person. Their enthusiasm is often very infectious, and is bounded by “this must be a winner” without any consideration of commercial value, use, or production method. This is the phase during which most Australian developments fail, as the designer cannot see the next step, as he/she firmly believes that this product cannot fail, and unfortunately it almost invariably does fail.
The second step is COMMERCIAL DESIGN, and this occurs when the product is prepared for manufacture and sale, an incredibly important step to ensure that the product and its representation is “sale ready”. What sizes do we make, what colour, who are the customers, how to package it, are all good questions, and can be incredibly important. I recall being asked to assist an Australian Startup to prepare their product for sale in Indonesia, but when I saw the product name I recognised it as being “pig” in Bahasa Indonesian. The probability of it being commercially successful in Indonesia was NIL
The last step is the DISTRIBUTION CHANNEL, often overlooked as being relatively unimportant, but unfortunartely it is very important, because if inappropriately handled, the product will not be successful. All the issues which potentially link the product to the potential purchaser need to be identified, canvassed and dealt with. The size and type of packaging, the likely price, acceptabilty, sale location, hence the point of sale requirements, may be all important.
It can be quite entertaining, but frustrating, to watch a person stuck in one of those 3 phases with no understanding of where they are, or what is the next step, and unfortunately the process actually goes no further. It probably is a major reason that Australia has a relatively low rate of startups.
How to overcome the situation? Its not easy as each person who participates in the process usually are not aware of the 3 steps and certainly are not aware that they could be entangled in one of those steps. The best approach may be to fully advise them of the process, and suggest that they obtain assistance in the steps which they do not have the experience or perhaps knowledge. It is not easy for a person to operate in those steps in which they have no, or little,
experience or understanding.
It is conceivable that the malaise which prevents most analysts from understanding the necessity of working through the 3 steps also contributes to the financial failure of listed companies, even when they get to this stage. It is estimated that 99% of listed companies disappear worthless, but we leave that for another day. [https://www.firstlinks.com.au/listed-companies-disappear-worthless]
Acknowledgements
Glen RobinsonM: +61 (0) 412 229 664
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Counsellor, Australian Institute of International Affairs, NSW
Board Member, Australia Thailand Business Council
Sept 2022