TIMELESS INSIGHTS–AND WHY THEY’RE AS RELEVANT AS EVER

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April 2026

Building new businesses: How incumbents use their advantages to accelerate growth

Companies are leaving no stone unturned in their pursuit of AI. The technology is driving an ever-expanding range of productivity gains—not just improving businesses but enabling entirely new ones. It’s also reshaping the venture-building process by accelerating innovation cycles and shortening time to market. Yet whether you’re an incumbent, a start-up, or a solo founder, the fundamentals of effective business building still matter. 

This is especially crucial for established companies. While they often lack the agility of start-ups to scale new businesses repeatedly, they also possess the talent, capital, and intellectual property that can give them a competitive edge. The most successful ones combine an incumbent’s strengths with a start-up’s flexibility by taking these four steps:

First, they secure strong buy-in from the CEO. Business building can feel risky, so CEOs should actively champion the venture and set clear expectations for stakeholders on the path to profitability. Second, they maximize incumbent assets—prioritizing those that create the most value while avoiding legacy processes that slow progress. Third, they adopt a test-and-learn approach to challenge assumptions and validate ideas quickly. Finally, they build teams that combine outside entrepreneurial talent with in-house expertise.

For companies, it’s no longer a question of “if you build it.” They must. What will set them apart is how they build—and how fast. To learn more, read our 2019 classic “Building new businesses: How incumbents use their advantages to accelerate growth.”

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— Edited by Drew Holzfeind, senior editor, Chicago 

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