As I watch Green & Clean’s implosion coupled simultaneously with watching innovation firms charging literally 100’s of thousands to generate just ideas, I’m literally shocked at just how persistent and consistent innovation mistakes are made. No honesty. No data. No truth. Just mediocrity and failure. Sorry, but once you believe your own BS, you are lost forever. Here’s what a 2014 CBS 60 minutes report found on Clean & Green….a lot of crap, purely political crap. http://www.cbsnews.com/news/cleantech-crash-60-minutes/ On the one hand, I’ve watched and been a part of the Green & Clean movement as it utterly, thoroughly and almost completely ignored the common sense, basic college taught approach to marketing and selling products. You have a real, not a purely political, need exemplified by actual research and customer request that is quantifiable and proven. Not with Green & Clean. Nope. Petroleum products are running out! Purely political. Not true. In fact, it’s an utter lie. To then base entire venture funds, boards of directors attitudes and then companies upon a total fallacy of course dooms them all to inevitable failure. $100’s of billions wasted. The truth that Elemence Advisors espouses? Green and clean should be based upon obvious common sense. We want to spend less on energy, we want to use less energy, we want to have faster processes, lower cost, sustainable materials. Why? Because those desires obviously will then add to the bottom line. $50 gallon without subsidies algae fuel does not do that. Wind power only profitable via massive subsidies does not do that. Solar that finally, some decade soon, will have its costs equal a price without subsidies is by default not profitable. A chemistry, like Sirrus’, that blatantly require no energy or heat and is based upon already existing, inexpensive raw materials with 90% process yields? Now that makes sense. Elemence works with clients to drill down to this level of simple common sense. Can we eliminate energy, heat, time and steps from how things are made and used. Green and Clean’s next big mistake? The big deal. Can anyone tell me why a small startup would want a deal with a huge firm who moves about as fast as a drifting oil tanker or a glacier? Ten years is not within an investors general return timeline. It’s not a drug. It is horrifically distracting and the first page in the we failed let’s do an asset sale recovery path. As Loctite long showed in the last century with 25% after tax profits, at a 15% to 20% quarterly growth rate for over 25 years, small niche applications allows stepwise learning at a high profit and margin with minimal risk that can translate into the ultimate big market potential. Elemence works with clients to find the ignored market, the niche to learn in that also mitigates scaling demands. Now onto consulting in general. While there are many programs that necessarily require major investments, I simply completely disagree that innovation opportunity identification, assessment and screening should cost $100K, let alone $50K. Still, we see executives spending that and more needlessly. Conducting programs that take months. Elemence has never engaged in a program that took longer than 90 days, most took less than 30 days and almost all well below $25,000, some only $5,000. Why? If the idea is great, it does not need fine tuning and gradation. It’s obviously great. It cuts costs – a lot. It increases margin and value – a lot. The customers – they just have to have it – now. It’s OK to be that demanding. Flipping this to Green and Clean – how many advisors, board members and the CEO’s and presidents have literally no salient, recent experience running any business, let alone actually selling any product? 90%. Their failure rate. 95%. That’s not just wrong, it’s pathetic. Consultants and leadership MUST have salient, real experience. Elemence provides that to it’s clients and does it cost effectively, quickly and with credibility. We’re here – we are just a phone call away. So if you want some honest, hard work that produces results, not lost capital, give us a call. It’s your call. It’s free.
The Green and Clean Implosion
by Adam Malofsky | Sep 19, 2017 | Chemicals, Innovation, Invention, Press, Private Equity | 0 comments