Understanding and Minimizing Risks

This weeks reading focuses on understanding risks as applied to new ventures and minimizing them. One technique suggested by the article is to conduct partial experiments and measure results before scaling operations. I thought this to be a very applicable to my venture and decided to apply these principles. So how might I set up an experiment, measure performance and incorporate feedback in order to be able to create a successful model that I might replicate in other locations?

I decided to myself head out to the villages (as I have done before) along with a colleague or two and establish my business model in a single village. The experiment shall run for 3 months and complete the lifecycle of

1. Selling the solar lamp to vendors at the local market.
2. Training the vendors to install and sell the product.
3. Receive any solar lamps for repairs and bring it back to the local market.

The on-field interactions shall happen once a week, typically Friday or Saturday, when the local market is active. The rest of the week shall be spent in measuring performance. Possibly travelling with the vendors as they push their carts from village lane to lane, shouting out their products. Observe people’s reactions as they are introduced to the product.  How do they react to a new technology? Do they have any fears or concerns? Can they afford it? What are the possible barriers to adoption?

Measure sales and identify areas of improvement, new methodologies of marketing the product in case of a failure. Interact with NGO, participate in their daily operations in the villages and see how they go about in distributing the product.

At the end of 3 months, compile the results and have a group discussion. How many lamps were sold? Are these numbers in line with our projections? Can the current sales met our targets and projected earning? What was the social impact? (Although this is hard to measure in 3 months). Do the rural denizens perceive the social impact or is it something we perceive? What were the challenges faced in the 3 months. Are these challenges replicable in other areas? How were they overcome?

Such questions will be addressed and the learning incorporated into the business system of Light my Home.