Things to think about?
Try using the J Curve Theory for all your Special Projects Under Development (S.P.U.D.). This will quickly prioritise projects that have the most value and their time frame.
We all get millions of ideas which we want to implement in a day but you don’t end up implementing one of them! Projects are long term and short term and it is important to prioritise them. Do not overload your practice or over capitalise.
Every project/practice is based on the ’J curve‘ theory, i.e. there are higher cash burn rates at the initial stages of any idea that is being executed. It is important to budget for it and monitor the spending. Avoid having too many J curve projects, with a maximum of three major projects every year. The practice should do the following:
- Set projects
- Prioritise and plan. Most small projects take two months, and major projects 6 – 18 months
It is important to note, there is a tipping point when insufficient cash or loans are available to make a project viable. It is important to know when to quit.
How to keep track of all your great ideas Read on…