StarAnchor


		MAXIMUM BUSINESS CAPABILITY Small Size BIG Impact. *StarAnchor's* fundamental principles can be addressed separately, but in fact they are interrelated and form a connected and cohesive strategy. One fundamental is the principle dealing with business capability; we believe in outsourcing, either through licensing or contract production, in a cooperative environment. There are mutiple reasons for this principle.

First, any innovation that qualifies as a breakthrough (or "disruptive," or "industry-dominant") necessarily relates to an existing industry, and state of the art, that is by definition threatened by the breakthrough. One of the most frequent points of disagreement between StarAnchor and its clients relates to how much of the business to attempt internally and how much to outsource. We recommend outsourcing as much as possible. There are good reasons for this, summarized in the chart below.

Commercialization Requirement

StarAnchor Client

Existing Industry

Innovation

Yes

No

Engineering

Maybe

Yes

Production

No

Yes

Marketing

No

Yes

Distribution

No

Yes

Sales

No

Yes

Service

No

Yes

Administration

No

Yes

Second, It turns out that outsourcing minimizes capital requirements and preserves resources, without adversely affecting the earnings of the entity. More detail on this is provided in the Maximum Earnings page.

Third, outsourcing has the effect of converting fixed costs into variable costs, which is a much more responsive way to deal with market volatility, either positive or negative. So we find that outsourcing enables the innovation to be scaled without restriction of capital shortage, or distribution limitations, or geographic boundaries, in a way that internal operations cannot match.

Fourth, we've studied outsourcing in great detail (see the White Paper page) and find that it fails in one of two ways. Either the client is so averse to outsourcing that it's not even attempted; or the attempt produces an outcome that is less than satisfactory. We have also produced solutions to these two failure modes. We have an expedited outsourcing management technique that is very fast and efficient; and we have a performance-based contract template that aligns interests of all parties and enables cooperative growth at much higher rates than either might achieve independently.