Growing a company from start up to business v3

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Presented at Launch48 Showcase 2nd of September 2010 by Robin and Simon from Rapid Innovation Group.

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Growing a company from start up to business v3

  1. 1. Growing a company from start-up to business 2 nd September 2010
  2. 2. Introduction <ul><li>Rapid Innovation Group </li></ul><ul><li>Case study one – choosing your customers </li></ul><ul><li>Case study two – the discipline of funding </li></ul>
  3. 3. Case study one – choosing your customers <ul><li>Client background and initial market focus </li></ul><ul><li>Strategy development </li></ul><ul><li>Market engagement </li></ul><ul><li>Next steps </li></ul>
  4. 4. Client background – initial market focus
  5. 5. Defining our strategy <ul><li>Choose your customer </li></ul><ul><li>Narrow your focus </li></ul><ul><li>Dominate your market </li></ul>
  6. 6. Choose your customer <ul><li>Greatest value from solution </li></ul><ul><li>Generate return you require </li></ul><ul><li>Generate return within acceptable timeframe </li></ul>Circumstance-based categorisation Attribute-based categorisation
  7. 7. Narrow your focus – market selection
  8. 8. Narrow your focus – market research <ul><li>Current methods and processes </li></ul><ul><ul><li>Advantages and disadvantages </li></ul></ul><ul><ul><li>Costs and risks </li></ul></ul><ul><li>Industry trends and drivers of change </li></ul><ul><li>Competition </li></ul>
  9. 9. Dominate your market – articulate a compelling proposition <ul><li>What part of a key business process is being improved? </li></ul><ul><li>How does your solution directly address their objectives? </li></ul><ul><li>What are the different benefits </li></ul><ul><ul><li>Quantifiable </li></ul></ul><ul><ul><li>Unquantifiable </li></ul></ul><ul><ul><li>Anticipated (but currently unproven) </li></ul></ul>
  10. 10. The market development model for new technologies Innovators Early adopters Early majority Late majority Laggards
  11. 11. Dominate your market – utilise market dynamics Laggards Late majority Early majority Early adopters Innovators <ul><li>Yorkshire Water </li></ul><ul><li>£750m </li></ul><ul><li>2200 </li></ul><ul><li>United Utilities </li></ul><ul><li>£1.3bn </li></ul><ul><li>4830 </li></ul><ul><li>Wessex Water </li></ul><ul><li>£360m </li></ul><ul><li>1200 </li></ul><ul><li>Scottish Water </li></ul><ul><li>£1bn </li></ul><ul><li>3590 </li></ul><ul><li>Anglian Water </li></ul><ul><li>£910m </li></ul><ul><li>3670 </li></ul><ul><li>Severn Trent Water </li></ul><ul><li>£1.2bn </li></ul><ul><li>5150 </li></ul><ul><li>Thames Water </li></ul><ul><li>£1.4bn </li></ul><ul><li>5120 </li></ul><ul><li>Northumbrian Water </li></ul><ul><li>£580m </li></ul><ul><li>2550 </li></ul><ul><li>South West Water </li></ul><ul><li>£370m </li></ul><ul><li>1300 </li></ul><ul><li>Welsh Water </li></ul><ul><li>£580m </li></ul><ul><li>160 </li></ul><ul><li>Southern Water </li></ul><ul><li>£580m </li></ul><ul><li>1700 </li></ul>
  12. 12. Dominate your market – utilise networks Laggards Late majority Early majority Early adopters Innovators <ul><li>Yorkshire Water </li></ul><ul><li>£750m </li></ul><ul><li>2200 </li></ul><ul><li>United Utilities </li></ul><ul><li>£1.3bn </li></ul><ul><li>4830 </li></ul><ul><li>Wessex Water </li></ul><ul><li>£360m </li></ul><ul><li>1200 </li></ul><ul><li>Scottish Water </li></ul><ul><li>£1bn </li></ul><ul><li>3590 </li></ul><ul><li>Anglian Water </li></ul><ul><li>£910m </li></ul><ul><li>3670 </li></ul><ul><li>Severn Trent Water </li></ul><ul><li>£1.2bn </li></ul><ul><li>5150 </li></ul><ul><li>Thames Water </li></ul><ul><li>£1.4bn </li></ul><ul><li>5120 </li></ul><ul><li>Northumbrian Water </li></ul><ul><li>£580m </li></ul><ul><li>2550 </li></ul><ul><li>South West Water </li></ul><ul><li>£370m </li></ul><ul><li>1300 </li></ul><ul><li>Welsh Water </li></ul><ul><li>£580m </li></ul><ul><li>160 </li></ul><ul><li>Southern Water </li></ul><ul><li>£580m </li></ul><ul><li>1700 </li></ul>Mott MacDonald Bentley H 2 O Water Morrisons Mouchel Balfour Beatty Laing O’Rourke WSP Group Barhale Costain STS Integra
  13. 13. Next steps – engaging reference-able markets Water Electricity Gas Telecoms Construction Highways
  14. 14. The Discipline of Funding
  15. 15. The burning questions <ul><li>How can I get money? </li></ul><ul><li>How much do I need? </li></ul><ul><li>How much equity should I give away? </li></ul>
  16. 16. Funding – the view over the whole journey time company size Self funding Friends & family Angel Angel VC VC VC EXIT funding round size
  17. 17. Articulating the vision <ul><li>Need to agree and define what constitutes meaningful progress </li></ul>
  18. 18. Funding and milestones time company size Self funding Friends & family Angel Angel VC VC VC EXIT funding round size prototype, proof of concept market traction market leadership
  19. 19. Using a financial model to articulate your case <ul><li>Makes key drivers and assumptions explicit </li></ul><ul><li>Shows the development of the business over time </li></ul><ul><li>Allows drivers and timings to be easily varied </li></ul><ul><li>Captures the most material financial and operational elements </li></ul>
  20. 21. … and to let you and investors share a view of the road ahead Cumulative cashflow generated time £
  21. 22. … and to let you and investors share a view of the road ahead Cumulative cashflow generated time £
  22. 23. Points to remember <ul><li>Articulate your next milestone clearly </li></ul><ul><li>Show how you will get there </li></ul><ul><ul><li>Strategically </li></ul></ul><ul><ul><li>Financially </li></ul></ul><ul><ul><li>Contingency planning </li></ul></ul><ul><li>The final destination must feel both exciting and achievable </li></ul>

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