Innovate or die, right?

You run your business line better than anyone else ever has. But you see it all the time. These little startups come from nowhere and eat your lunch.

Innovation is great in concept but you know that you cannot risk a big change and negatively impact your current business line.

What should you do? How do you manage the risk but still innovate?

Consider making many small bets.

This article gives five things to consider for each bet:

  1. Keep the teams small – 2 pizza party
  2. Time box each initial investment to determine if you will invest more or stop
  3. Pick a minimum amount to invest like 2k for the first round and 20k for the second
  4. Create milestones and metrics to achieve
  5. Set target success and failure rates

https://www.forbes.com/sites/lisabodell/2019/02/21/futurethink-technique-to-define-a-smart-risk