The Pileated Approach

The other day I watched a magnificent pileated woodpecker make his way from tree to tree in search of the perfect morsel of ants, larvae, or random wood bugs. It reminded me of how some companies search for the ideal targets for their new products, services, or partnerships. This approach of lightly probing a segment to determine if it holds sufficient monetary nutrition is a good way to grow your business without going too far astray.

Additionally when the pileated finds a tree with good potential, he really goes for it. You know when one of these woodpeckers has decided on a tree – it leaves a hole that you can put your fist in. Not some dainty little drilling for this guy, but a ferocious chiseling that can be heard from half a mile away.

Though some companies do struggle with finding the right place to sink its resources and energies, there are some that utilize the woodpeckers approach and successfully navigate the forest of opportunities. Whether it is finding new customers for an old product, building a strategic partnership, or looking for a willing acquirer, some light probing of the marketplace will often lead you to a fruitful outcome. Here are a few areas to apply the pileated’s approach.

• New product development – Though ideally you have a good idea and plan for the profits ahead, it is often useful to get the minimum viable product to the potential customers and garner valuable feedback. With this information in hand you can then confidently finalize the development and launch away.

• Creating partnerships – Whether building out new channels, looking to expand your offerings, or in search of deep pockets to fund your excursions, it is often best to start with a small project that you can do together. After a successful few months of cooperating, you will have a good idea if your culture, objectives, and methods will mesh. You can then expand the relationship towards your larger goals.

• Finding an acquirer – When you are thinking about selling your company sometime in the future, it is a good idea to do some low-level investigations to see if there is a market for what you are offering. This usually must be done discretely, but there are ways to have discussions with potential suitors to assess whether they have an appetite for the type of company you operate. This may help winnow the target field from 50 to 15, and make your process much more efficient. Alternatively you may also find that you are better off just keeping your business.

So if you have a number of opportunities in front of you and are seeking some insight on the best paths, take a lesson from the the pileated woodpecker with its royal crest and jackhammer bill. Nimbly explore your forest to find the sources of nutrition that will fuel your growth. And when you do, hammer away.