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Archive for October, 2010

Entrepeneurs & their R & K Strategies

Tuesday, October 5th, 2010

By this stage my hope is that you’ve read the Definition of a Nascent Entrepreneur and the Four Abiding Elements of Entrepreneurs. This should give you a new way of thinking about entrepreneurship in relation to your new ventures. But you also need to understand a bit about R & K Strategies.

Understanding the Entrepreneur’s Two Strategic Choices

Like all jargon R & K Strategies are a business shorthand that allows a lot of complex information to pass between two people who understand a bunch of underlying theory. In this case the important point to note is that you can use one of two major strategies. One strategy is about getting in and out fast while the other is about setting in for the long haul.

The strategic choice is going to affect your new venture… as will the environment… and luck… and your resource profile.

R Strategy is about Flexibility

The R Strategy is where very little is invested in infrastructure and it offers the entrepreneur great flexibility to adapt to the market and to get out quickly if the need arises.

An R Strategist will lease office and warehouse space and outsource all but their essential core business components. The R Strategist is like the tennis player on the balls of their feet serving and being served at by the ambiguous environment. That’s about as simple as it can be explained and enough for you to seek further explanation elsewhere.

K Strategy is about Stability

The K Strategy is where the entrepreneur digs in for the long haul and this can be very expensive if they need to get out fast.

The K Strategist is going to buy their office and warehouse space and hire full time employees. The K Strategist is there for the long haul like a rugby union player with clover-leaf ears and a blood stained forehead fixed on the goal of reaching the touchdown line.

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About the Author

Steven Clark Steven Clark - the stand up guy on this site

My name is Steven Clark and I live in the Derwent Valley in Southern Tasmania. I have an MBA (Specialisation) and a Bachelor of Computing from the University of Tasmania. I'm a mazer & a yeast farmer (making beer, fruit wine and mead as by-products of continuous improvement in my farming practices). I'm a photographer, although my film cameras are currently silent. I do not tolerate idiots. I do not tolerate bigotry. I do not tolerate excuses. Let's be clear, if you sit with my enemies you my are my enemy for life.

Blogger. Thinker. Brewer. Drinker. Life partner to the amazing and incredible Megan.

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