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The great Technology entrepreneur Andy Grove was once asked what dictum he used as a basis for running his Company, Intel. His response was simple: “only the paranoid survive”. Mr. Grove grew Intel from a garage business in Silicon Valley into the world’s largest computer chip manufacturer and a lynchpin in the fabulous spread of technology into virtually every home and business in the world. The tech world of the 1970’s and 1980’s was the center of the greatest entrepreneurial explosion in history. Whole industries were born and the nature of human existence was radically changed, and improved, as new applications were discovered and commercialized by these ambitious pioneers. The competitive nature of commerce has always provided the greatest rewards to the first to market mover. Being paranoid is a worthy and necessary trait that all successful innovators possess and control in their push to get their idea to the market before competitors. I have known paranoid individuals for most of my life. Usually their paranoia is self-destructive, not a pleasant thing to experience. Some people are paranoid that others are trying to take their wealth, or their wife, or their glory, or that they will be contaminated and made ill. The gamut of fears that paranoid individuals believe they confront is endless. These insecurities can become severe handicaps that can handicap one as life unfolds. On the other hand, paranoia for an entrepreneur or an inventor is usually a healthy mindset, as far as their work product is concerned. We counsel clients to assume that somewhere, someone is working on an idea that can beat or surpass their idea in the marketplace. Another piece of oft provided advice is this: “time is not an entrepreneur’s friend”. Paranoia and urgency are first cousins when seeking to launch a new product, service or idea. The fear of getting beat to store shelves by a competitor insures that driven entrepreneurs move expeditiously to perfect and launch their enterprise as quickly as reasonably possible. This is positive paranoia. Once the product hits store shelves, in order to secure longer term success, a new form of paranoia needs to come in to play. At this time, the inventor must confront the possibility, actually the probability if the product achieves initial success, that competitors will immediately begin the process of knocking off, or duplicating the product. Duplication can be the best form of flattery. However, if a well-healed competitor decides that the opportunity is ripe they can flood the market with cheaper versions of the product. You must anticipate and be prepared for this probability. The key to insure continued success is the speed which the innovator uses to penetrate the market. The first to market mover has the advantage of being recognized by the trade as the “real innovator”. They have introduced the product which defines the category. While knock off products can be cheaper, or come in a variety of styles, they will be seen as followers, not leaders, if the entrepreneur moves aggressively to distribute the item to the widest sales universe. A second key to cementing a first to market mover advantage is: quickly follow-up the launch item/s with line extensions. Here is another absolute marketing reality: Your product is never the greatest, only the latest”. Buyers will watch sales trends. As soon as your launch item starts to gain traction, they will want to know what new items you have coming to stoke the pipeline. Retailers always assume the stance of what have you done for me lately! I cannot overstate the importance of paranoia and urgency as being essential arrows in the successful entrepreneurs quiver. We have seen the unsettling despair that engulfs inventors that see their work, dream and investment scuttled by overconfidence and delay. It is not pretty to experience, but happens far more often than you can imagine. The real waste is that it can almost always be averted if prudent steps are taken to move and be aggressive. Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money. After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance. Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. (http://www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.
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