EDE 2.27% 4.5¢ eden innovations ltd

The 6 stages of development that every start-up has to go through

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    At thispoint in time, particularly with the EDE quarterly soon to be released, I thoughtit might be beneficial to have a look at the 6 different stages of development that every start-uphas to go through. Please note: thetime spent at each of these 6 stages varies from company to company andindustry sector.

    For each ofthese 6 stages I have indicated the approximate length of time, and also inwhich year this has, or should take place with regard to Eden. It shouldalso be noted that due to the extensive amount of testing and triallingrequired in the concrete and construction industry, the initial 4 stages havebeen far longer for Eden. This is no doubt the reason why investors have lostso much patience since early 2017.

    Stage 1:Concept and R&D (1 to 2 years - 2014/2015)

    This is wherethe basic idea or product prototype is born. Turning an idea or product intoreality is pretty rare. Rarer still is the great idea or product that not only gets offthe ground, but becomes a major success. It is where research is undertakenabout the target market/customer (Eden undertook a lot of this with IntelligentConcrete and the GDOT). The most important part of this research is todetermine if there is an actual need for the product, the immediate benefit for customer,what problem does the product solve and if there is a similar product or solutionalready out there? This research will also form the basis for the business plan,including the future sales goals, over at least a 5 year time frame.

    Stage 2:Commitment (1 year - 2016)

    This wherethe research is put into practice i.e. perfecting the prototype, developing andfine tuning the manufacturing process, testing and trailing, obtaining permits andbuilding a team. It also includes securing funding. It is also the time to definethe business model as well as planning the product launch.

    Stage 3:Traction (1 to 3 years - 2016-2018)

    This is thestage where the product is tested and trialled by potential customers, and the firstactual sales are made. This is a crucial point as it will quickly become clearwhether the product is truly viable or not. In this stage, the focus needs to beon whether further fine tuning of the product is required in order to grow the customerbase and attain the goals that were set out in the business plan.

    Stage 4:Refinement (1 to 2 years – 2018- 2019)

    In therefinement stage, it is important to review the feedback from early adopters andto use this information in order to continue to refine the product and improvethe benefits to the customer (this is the stage where EdenCrete HC and PZ wereborn). Refinement can also mean refining the manufacturing process and makingit more efficient. Refinement also means ensuring that the product performance ismatching the projections. If not, this is where major decisions about the producthave to be made i.e. is a product variation required with a repositioning and possiblerelaunch with regard to the target market? Ibelieve this is where we are at the moment i.e. offering EdenCrete PZ with anup-front financial benefit to the target customer, as well as an environmental advantage.

    Stage 5:Scaling Up (1 to 2 years – 2019- 2020

    This stageis all about growing the customer base and finding ways to leverage marketpenetration i.e. developing and optimizing the existing marketing strategy inorder to pull in more customers. It also includes the hiring more staff. It isalso a time to look for strategic alliances in order to create selling synergieson a win/win basis (e.g. PARCHEM). In Eden’s case, it is also the point atwhich additional manufacturing premises may be required. Fortunately, the scalabilityand manufacture of EdenCrete is almost infinite.

    Stage 6:Becoming Established (1 to 2 years – 2021- 2022

    At thisstage there has already been considerable growth, and now the focus needs to beon further scaling up, increasing customer retention, refining marketingstrategies, and further developing and communicating the strengths of both the company and theproduct.

    It is an absolutenecessity that each of the above 6 stages fully plays out i.e. in order to be trulyand permanently successful, Eden cannot cut corners by succumbing to the needs ofimpatient investors and their screams for short term sales successes, a higher SP,share dividends etc.

    For investors,it is often extremely hard to comprehend that each of these 6 stages can take wellover a year.

 
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