Step #1:  Start with a simple, small in-line idea.  Your focus should be on a small, interesting idea that grows your company. Period.  Your goal should be towards the betterment of the company and not to build an adjacent business.  Pivoting is for those with experience, reserve it for the future, once you build momentum.  Where to look for ideas? Here are some pointers:

• Poll your customer fan base:  This is your #1 source for your idea backlog. Talk to your friendlies and ask them for quick wins and pain points.  Ask them to describe a solution they like in an adjacent space.
• Cannibalize a (small) cash cow:  Look for opportunities to reinvent a cash cow product.  Would it have been good for Netflix if a competitor had created the streaming business and it rode down the DVD rental business to death?
• Talk to your Sales team:  Often times, your sales team has a wealth of ideas and don’t get table stakes in strategy meetings.
• Create a wall of ideas:  Ask your team members to contribute ideas to a wall, regardless of how big or small.

Step #2: Create a coalition of the willing.  This is your second step.  You probably have a sense of who might be interested and which parts of the organization might be willing to pursue this.  Good people in organizations are tired of being ignored or not listened to.  When they hear you are disrupting the status quo, they will be more than willing to contribute their hobby time.  Try to create a rounded team.  A team that can go soup-to nuts reducing the hand-offs between departments.  We have seen an internal entrepreneur use “Bragging Rights” as the best incentive for team recruitment.

Step #3: Find your internal executive champion.  Next, seek your internal support as high up in the organization as possible.  There are inspirational coaches in every organization.  These are people that think differently than the rest of the team. Consequently,  they will be the first to offer protection if you need it.  This person should be a sounding wall, provide market and strategy insight.  This is by far the most important step in becoming a successful internal entrepreneur.

Step #4: Rapidly prototype ensuring air cover.  Rapidly prototype or pressure test your idea with a small, fully rounded team.  The key here is to “fail fast” and pressure test each prioritized idea.  Provide enough air cover for the team to build the idea.  If you can get your friendlies to participate in your sprints, you are certain to get this to the next level.  Keep your immediate management team in the loop, but request radio silence from them till the concept stands the pressure test.  Provide Air Cover to your rounded team.

Step #5: Look for a catalyzing event.  May be your company is pursuing cloud adoption or exploring a new product.  There might be an upcoming management change.  Get ahead of it.  There is always an event catalyst and your job is to approach this event with a “Look at what I have been working on…”.  Internal Entrepreneurs are the lightning rods for catalyzing events.

Step #6: Leverage your friendlies to make a case for you.  Create a quick and dirty proof of concept, get your customers to try a beta or just look at a mock up.  Get feedback and use that as leverage to get in to your next funding cycle.  Once your idea picks up momentum and is transitioned to your heavy lifting engineering process, unload the idea, rinse and repeat with a new one.

When do you start?

Step #7: Start now.  Finally, begin as early as you can.  This process requires extensive experimentation, and tweaking to your specific context.  It might take a few iterations to get it right. Remember, this is an adventure.  Fasten your seatbelts and get ready to disrupt.

How can Terafuze Help?

We have helped customers kick start their internal innovation practice. Our MVP in 120 allows for rapid experimentation and prototyping of new ideas.  If you have an idea or a need, we will collaborate with you to Size it, Nail it then Scale it.  The “Size it” part is no obligation, no cost to you and can usually be done in less than a week.  Are you ready to begin your journey to become an internal entrepreneur?