I’m launching a new startup. For those who don’t know about it here are some of the key points:
- The brand extension comes from an already successful enterprise
- The partnership & legal agreements were entered into over a year ago
- The idea is not an original one, rather a new execution of a proven formula
- We didn’t pitch the idea or ask for permission, we just did it
- It’s a brand extension
- It’s a self funded project with no external capital. But we wont have ownership
- We will give away the corporation, once it is cash flow positive
- It’s a very long lead project
- It wont be cash flow positive for more than 20 years
- Estimated cost of the project is around $500K
- We do expect to however, to yield emotional & community benefits very early after launch
- It’s an industry we’ve never worked in before, but have a natural flair for it
- Some of the product development will be outsourced to 3rd parties
- Outsourcing will occur in 3 large segments of up to 6 years each
- The most important product development will be done in house
- There wont be any major advertising, brand awareness will be driven through family & friends
- We already know it’s unique, but wont require any intellectual property protection
- However, major security measures will be taken to protect the asset, especially in the incubation phase
My new startup is my baby due January 25th, and it’s the most exciting one I’ve ever been involved in. We’re involved in more startups than we think…
Startup Blog says: Let’s not define ourselves by what we own, but the cool stuff we do.
For many years Quiksilver had a tagline which served them well – ‘The boardriding company’. Although their roots are in surfing it allowed them to expand into related areas for their target market including skate and snowboarding. Makes sense, many surfers also skate and snow board. The brand could possibly be enhanced with such diversifications as the fit is a nice one psychographically.
As a surfer I never wear Ripcurl or Quiksilver clothing as I think they have been hijacked by bogans and hodads. But when I saw Quiksilver’s latest brand extension – they have clearly jumped the shark, the rot has set in. Justification by Steve Tully Quiksilver Americas president was something about allowing it (photo below) to further their vision of creating a complete lifestyle company….. I am calling it the Diworsification of the year – heaven help them.
Advice for startups – Brand extension should not be about what we can make, rather what we stand for.