Tips to Achieve an Innovative and

Differentiated Startup Project

Contributed by Dr. Stephen Sweid on August 13, 2015 in Management & Leadership , Strategy, Marketing, & Sales

Editor’s Note: This is the era of rapid changes and disruptive innovations, and no startup,

irrespective of size or industry, should be launched without a high degree of innovation

and differentiation. This article is about the why, what, and the how— the systematic way

to achieve this, based on the long international experience of the author, Dr. Stephen M.

Sweid. This article was originally published on InnovationManagement.se here .

* * * *

There may be a million reasons why a large

number of SME startups fail within the first

few years after their launch. Nevertheless, it is

certain that a lack of novelty and creative

thinking should be considered as one of the

root causes of the problems faced by

entrepreneurs. Very few SME startups realize

their full potential through innovation.

A startup without a tangible touch of novelty

and innovation is similar to riding a bicycle—

everyone can ride a bike. What about driving

a fancy car or even flying a spaceship? I am confident you would like to fly a spaceship

rather than pedaling around the block.

This is the era of rapid changes and disruptive innovations, and no startup, irrespective of

size or industry, should be launched without a high degree of innovation and differentiation,

but also breakthrough and quantum leap in its essence.

Advantages of Innovation and Differentiation in a Startup

An innovative idea is a great start of things, similar to finding a treasure trove; what would

you do if you found a treasure trove in your garden?

It should be noted that achieving a strong

business, individual success and indeed

sustainability require a combination of many

factors—a complex formula, an equation with

many parameters, a recipe with many

ingredients—and having innovation is not a

guarantee for success, but it does definitely

raise the stakes for success. Your undertaking

can take off that much quicker with a more

original, innovative product and business

concept because you are offering unique

features no one else is providing and you have a great competitive advantage as a first

comer.

Why start a conventional project where you must compete head-on and right from the start

with similar businesses who are already known and established, and where you will be

struggling all the way?

Innovation in a Startup

Innovation is not about offering a novelty, but is about responding to a tangible demand

in the market…

It’s not difficult to come up with something new and you can innovate in all aspects of your

business, e.g. products, services, strategy, marketing, business model, partnerships, etc. For

instance, it’s pretty straightforward to coin a unique fancy name for a website although

there are more than a billion websites.

However, innovation is about every day. Innovation is not about offering a novelty, but is

about responding to a tangible demand in the market and offering benefits (added value)

that make a difference. Innovation addresses the same needs with better solutions and can

even create new needs. It does not usually cost more to be innovative: It is mainly about a

different combination of resources available. Innovation is not always about new technology

or new materials, rather about new ideas and imagination.

You should surprise your customers constantly and thus make them happier. This is the

ultimate purpose of innovation. You should bring in novelties from other places, but also

innovations of your own. You have to focus on a specific segment initially, since this will

make it easier to innovate (e.g. specialization, your niche, product range, market, etc.).

There must be a high degree of differentiation in at least 40% of your product ideas and

services. Ask yourself and your team where you can differentiate, keeping in mind that your

innovative differentiations should be tangible and not just some impressions, and where you

can specify exactly what they are.

On the other hand, you should focus on selling benefits and meeting familiar needs rather

than promoting your novelties per say; people might be weary of your novelties if you are

not a known name. Do not emulate only, but add value. You can also find innovative ways to

collaborate.

A Systematic Journey

Do your homework to spot that promising novel business idea among many, and once you

do, supercharge it with innovation and differentiation to reach wow levels in all its facets; in

particular its business concept, i.e. success formula (value proposition). Do not be tempted

to get started with your project and to think about the details later. You have to let go if it is

not exceptional. Even when you have great connections and numerous potential customers

available, you still should strive to give them more than they expect, to be worthy of their

trust and to keep them loyal to you in the long run.

You should go on a real quest to discover the

hidden paradises and treasures which are

definitely out there, but which just need

finding or even creating (similar to the

spectacular “The Palm” project in Dubai, seen

to the right).

Innovation needs time; you might spend up to

a few months exploring, thinking and

experimenting before you decide to start your

project. In essence, you have to go through a

phase of divergent thinking, generating many new ideas and options before you start your

project. Next you go through a phase of convergent thinking, selecting the best ideas and

developing the project. You have to ask yourself what is new in your project: If you have to

think about it twice then you should not start! Do not start a business if it’s not mostly

original.

Basically, you have to complicate it first before you can make it into an ingenious simplicity.

As an indicator, if you have not obtained multiple “Wow, yes!” responses from potential

customers regarding your value proposition do not go ahead with your project idea.

The Crucial Mindsets

A startup is not about pure logic but a lot of heart and attitude.

A startup is not only about pure logic and methodology but about a lot of heart and attitude.

Before getting immersed in your project idea, you should self- transform in the span of a

month or two in order to embrace diverse mindsets that are conducive to a quantum leap

and innovative achievement.

The issue of mindset is essential and can make the difference between having a mediocre

and an extraordinary project. There is no realization and no winning without it, as in sports

or in battle. You need a diversity of mindsets because success is a combination of many

elements; not just one. Each mindset triggers new ideas, and the diversity ignites creativity.

You need to practice each mindset and make it into a habit. If you are a team, then the

entire team should embrace the diversity of mindsets.

As an example, you should explore multiple perspectives: the entrepreneur who’s out doing

things; the explorer pushing boundaries; the hang glider flying high; and the farmer’s

mindset with his feet on solid ground. Be artistic and inventive as a habit. You also need the

mindset of giving and generosity, this will provide a whole new perspective. You should also

embrace the technology freak mindset, and many more.

The Future

Your startup is not only about the present but more about the future scene and you should

be gearing up for the future. Can you imagine the future in 3-5 years or even longer and your

place in it? Fantasize, and try to realize it now!

Global Reach Right Away

You should go into the global business mode immediately and before you start, even if you

are dealing with a very small startup project. Set your sights on 50/50, local/international

right from the start. This will generate a lot of innovative ideas. Seek international

collaboration in supplies and marketing and this will spark many WOW ideas.

Research for Startup

Research is crucial for finding novelties, but also for testing your ideas in the real world.

You have to do your research homework before you start your project. Research is essential

for gathering market intelligence and is therefore indispensable for success. Moreover,

research is crucial for finding novelties and better ways, but also for testing your ideas in the

real world. You can also use research for open innovation.

You should talk to suppliers, customers and users, they are interested in helping you and

they will tell you a lot about the market, novelties, their needs, problems and more; this will

surely ignite your innovation drive. You should talk to at least ten potential customers. Also

check whether there are similar offers in the market. You might think you are the first but

maybe similar products already exist. Research how others are doing similar projects

anywhere in the world.

See what people are planning to do, and not only what they are doing now, especially

customers and competitors. Immerse yourself in Googling. Confidentiality is a major issue

in research, indeed for a startup project. Utmost caution should be exercised to avoid

disclosure of the actual project concept.

The Business Plan

The business plan is not your purpose as such, but a means of inspiration and guidance. You

should live your project in your imagination and on paper week-by-week and in minute

details in the future, and pretend it is in the present. You have to be able to explain in two

minutes why your project is special and why you will succeed!

How to Be More Creative and Innovative?

Creative thinking (generating new ideas) and innovation can be learned and

mastered through practice. You can become more creative every year, and you can be more

creative than ever in your life. It will be very beneficial to get acquainted with the main 20-

30 techniques of creative thinking (which are actually easy to learn) and make them into a

habit in a month or so BEFORE you start your new project.

It is not hard to come up with innovative ideas. The first step being the drive: “I want

innovative ideas”.

“Testing your project idea in the market generates a lot of development ideas.”

Here is a very small excerpt of tips for igniting your lateral thinking:

Drop the first two to three ideas that come to your mind! They are usually not creative

enough.

Think how you can make a real difference and impact in the market and not how you can

make money. This way you get so many great ideas first. The money issue comes later.

Bring in creative people to the team, and people who love discovery, adventure and risk

taking, and people who can challenge your thinking and assumptions.

The Mindmap is a great tool for organizing thoughts but indeed for individual

brainstorming.

Group brainstorming done the right way can bring about an eruption of new ideas.

It is all about inspiring questions. You should ask all the questions mentioned earlier, e.g.

what the future will be like together with the many possibilities and scenarios, or what is

missing in the market, or how to make customers happy, etc.

Talking about your project idea to others and indeed to experts often generates many

Eureka ideas. Still, it is essential to maintain discretion of the project idea.

The test and trial of your project idea in the market (the real world) generate a lot of ideas

for development and refining.

Visit related conferences and exhibitions to boost your inspiration.

Strategic thinking, SWOT analysis, and the business model canvas spark great ideas.

Have long walks and think about all possibilities open to you, i.e. all options, but try to focus

on one topic only in one walk. You should have a pocket notebook all the time to register

ideas and remarks and observations when they arise.

Seek analogies in different industries and learn from them.

Experimenting is not difficult and one should not copy only but should be brave and do

something quite new. You should set up an experimentation workshop even if very small

and try new approaches and combinations.

About Dr. Stephen Sweid

Dr. Stephen M. Sweid is a business and innovation consultant and trainer, with over 20 years consulting

experience on the international scene: Europe, USA, Middle East, and Far East. He has involved as

expert consultant in technical assistance projects of international organizations as well as in consulting

projects commissioned by multinationals. He is also an author on Flevy, specializing in breakout strategy

methodologies: view his documents here .

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