Koala Beer’s Business Model for 2010
Innovation and creativity are the backbone of survival and growth in the business world. Koala Beer Pty Ltd is determined to sponsor, nurture and reward original, successful thinking and action. 2010 will see greater emphasis placed on the concept of ‘ intrapreneurial’ thinking.
An entrepreneur is an ambitious self-starter who combines resources such as time, energy, money, and ideas to a new venture or concept, and who accepts full responsibility for the outcome - including risk and reward. An entrepreneur carves out a niche in the market, providing goods or services to meet the needs of a new market or finding innovative methods of creating and fulfilling business demands. A successful entrepreneur creates efficient business solutions for him/herself, despite challenges. (Often the higher the investment and risk, the greater the rewards.) Koala Beer is an entrepreneurial project.
An intrapreneur works within a company to creatively produce business solutions for the company and be rewarded by the company. In the narrowest sense, the word ‘intrapreneur’ has been used in business to encourage productivity and job satisfaction through incentives for employees. A broader and more correct definition allows for a closer parallel to the characteristics of an independent entrepreneur.
More broadly, an intrapreneur creates a business opportunity for themselves inside the structure and safety of an established company. An intrapreneur utilizes vision, enthusiasm, and drive, to lead initiatives or solve a problem for a company. This action increases company profits and in the process creates for the intrapreneur an income stream or multiple income streams within the company, in relationship to his/her results, and with minimal risk. It is this freedom and creativity with greater rewards that we would like to inspire within the Burragumbilli team at Koala Beer Pty Ltd.
What are some of Koala Beer’s business issues that need original solutions?
They are the same as most companies –
1. Engaging more sales outlets to increase sales.
2. Maintaining and increasing resales through established outlets.
3. Reducing overheads.
4. Reducing supply chain costs.
5. Reducing ingredient costs.
6. Reducing distribution costs.
7. Increasing our profile and public exposure.
8. Improving our image and branding.
9. Creating strategic partnerships.
10. Open new domestic regions.
11. Opening export opportunities.
12. Creating new products.
How will the intrapreneur challenge the business issues and reap the rewards?
Consider the following examples of creativity:-
*Re addressing point number 7 above:
Raising Burragumbilli’s market exposure or the public’s awareness of the product or the restaurateur’s awareness of his customers desire for the organic beer fine dining experience.
Bring to the attention of the relevant media, the desire of their readers/listeners/viewers to find out about Burragumbilli and the opportunity it provides the consumer for a clean, tasty, contaminant free drinking experiences, the value of the green economy, upcoming Burragumbilli or healthy food events……….
- Use entrepreneurial skills as an intrapreneur to create publicity, (often free) and take a share of the newly created sales.
Last year a team member approached Koala Beer management with a proposal to sponsor a V8 Super car team. This proposal was eventually rejected because despite some expected benefits, the risk of negative impact on our healthy image was too great. The concept could have backfired with an organic green product linked to car racing and its perceived very un-green activities.
- Employ the social network channels like Facebook, Twitter, Youtube to raise the awareness of Burragumbilli. Make a Youtube video to create interest in organic Burra. Many of the high-ranking Youtube videos are eye-catching and cheap to produce with simple hand-held domestic video equipment, sometimes a mobile phone camera.
*Re addressing point number 1,
Increasing sales turnover, seems a simple enough concept to a salesman… Just knock on more doors. True, but while knocking keep creatively thinking. Look for ways to amplify the results of your efforts. For instance:
a) Consider developing a sales team of 3, 5 or 15 to knock on more doors, while you manage the team, develop their skills, maintain their enthusiasm, monitor their sales and ensure they receive timely payment of their 5% commission from Koala Beer. You may negotiate for example an extra 0.5-1% royalty bonus payment on your team’s sales efforts in addition to your commission on your personal sales. This is magnifying your total sales reward as Koala Beer’s total sales income increases.
or b) You may choose to approach a large retail chain, airline, cruise ship company, online alcohol retail company, wedding centre etc. The large sales generated will provide a steady income. It may only require the occasional visit or phone call to maintain sales and your income stream. While you are nurturing your creative solution Koala Beer will reward your efforts with a portion of sales revenue.
or c) You could negotiate a weekly/monthly sales target for an agreed reward such as a monetary bonus or a holiday.
*Re addressing point number 10 - Open new domestic regions:
You may have contacts in a Burra-free area like Melbourne, Perth, Darwin or Cairns, for example. You could open the area and look after sales in a creative way. A holiday in Cairns could get you started.
*Re addressing point number 11 - Opening export opportunities:
You may wish to work with Austrade to introduce Burra to a new country where you have contacts and experience. Austrade likes to work with key personnel in an exporting company so Koala Beer may re-brand you as the Export Manager for Asia for example and supply business cards to reflect this sudden promotion to improve the chances of your inspired solution outcome. All new sales would earn you a royalty from Koala Beer.
The Intrapreneurial process.
The intrapreneur is working to increase sales or reduce costs and improve Koala Beer’s profit or bottom line. The intrapreneur can negotiate the percentage reward for the increased profit. In other words an increase in Koala Beer’s profit will be shared with the creator of the idea that leads to the increase - intrapreneurship.
Steps in the Intrapreneurial process:
1. Create a workable solution to improve the profitability of Koala Beer.
2. Flesh out your inspired idea and write a proposal.
3. Present the idea to the directors of Koala Beer for approval.
4. Include an acceptable method to measure the results of your idea when put into action. - Simple with issues 1, 5, 6, 10, 11, and 12, but more difficult with 2, 3, 4, 7, 8 and 9.
5. Negotiate the royalty/additional reward income stream.
6. Maintain your royalty by nurturing the project.
Intrapreneurial guidelines
1. Do anything to move your idea forward, within ethical practices.
2. Keep the best interests of Koala Beer and its customers in mind.
3. Ask for advice before you ask for resources.
4. Interact with other members of the Burra team if that is to your advantage. Collaborative initiatives produce mutual benefits.
5. Protect your innovative, creative solution by developing it underground until it is refined enough to be workable, before confidentially presenting it to the directors for approval and support.
6. The term royalty will be applied to the reward for an innovation, which produces positive results, as opposed to sales commission for standard sales activities.
7. A 5% royalty on project turnover would be a good result.
8. Focus on improving your own results and income. Everyone has the same opportunity to add value to the company and to be deservedly rewarded for their efforts. Rather than being jealous of others’ rewards allow others to inspire you to greater creativity.
9. Exclusivity to an activity or area (domestic or international) is unlikely, although it maybe negotiated for a period of time or performance.
We look forward to supporting our sales/distributor team, as we all work together for success during this exciting growth phase. The coming year promises to be a BIG one.
BEST WISHES for a HAPPY and PROSPEROUS 2010,
Bob and Chris Gordon
Directors, Koala Beer Pty Ltd