HOW TO GROW A VENTURE? - SESSION 9
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HOW TO GROW A VENTURE? - SESSION 9

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MAIN TOPICS: ...

MAIN TOPICS:
- What are the typical growth strategy?
- What are the main issues associated with the growth of a new venture?
- Growing the venture
- Lifecycle models
- Can theory help?

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This session is part of a 10-weeks course given to master students of the SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT by professor Olivier WITMEUR.

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HOW TO GROW A VENTURE? - SESSION 9 HOW TO GROW A VENTURE? - SESSION 9 Presentation Transcript

  • www.solvayentrepreneurs.be HOW TO GROW A VENTURE? SESSION 9 (out of 10) GROWTH STRATEGY This session is part of a 10-weeks course given to master students of the SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT by professor Olivier WITMEUR.
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR •  What are the typical growth strategy? •  What are the main issues associated with the growth of a new venture? QUESTIONS AGENDA RESOURCES •  Growing the venture •  Lifecycle models •  Can theory help? Desired Outcomes of the Session 2
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR GROWING THE VENTURE #1 3 View slide
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR The ‘Crossing the Chasm’ framework G. Moore (1993) Source: Wiefels (2002), The Chasm Companion 4 View slide
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Market Development Source: Wiefels (2002), The Chasm Companion 5
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Get > Distribution channels: own vs partners, direct vs indirect, website, location, VAR, OEM, Franchise … Keep > Customer relations: personal assistance, account management, self-service, communities, co-creation … Growth = create a tornado effect = get “traction” > Customers bring customers, viral marketing … à Sales forecasts Sales & Marketing Plan 6
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR When the company has a significant customer base, it can work on generating more profit per transaction from the existing customers Source: Blank and Dorf, 2012 A company can develop its customers by inciting them to spend more on its products or by generating new leads through referrals from its existing customers CROSS-SELLING Develop and sell products complementary to those already used by existing customers UP-SELLING Convince existing customer to subscribe for a more expensive offer NEXT-SELLING Long-term agreements with the customers to ensure that they will remain loyal to the tool UNBUNDLING Split current tool into distinct products and price them separately REFERRALS Capitalize on existing customer base to generate new leads through referrals and virality CUSTOMER DEVELOPMENT 7
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Get, Keep, Grow Framework 8 Source: Blank and Dorf, 2012
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Classical Growth Vectors New Markets New Products Upstream / Downstream Integration *Adapted from Anshof (1965) & Roberts (2003) Focus on your current business 9
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR LIFECYCLE APPROACHES #2 10
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR WHAT DO WE REALLY KNOW ABOUT GROWTH? 11
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR The development stages of a start-up (1) SEED START-UP EXPANSION EARLY DEVELOPMENT MATURITY RENEWAL 12
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR The development stages of a start-up (2) Seed Start-up Early growth Team The founders. Most of the time the team is not balanced. Sales and techniques are in place. Finance may be outsourced. Every aspect is managed by a full time manager. Product Prototype geared to the main market needs. First version validated by customers. Ready for large scale distribution. Market research First comprehensive ongoing market research. Good knowledge of a first market niche. In depth knowledge of the customers and next market segments identified. Organization Purely informal Better role definition Dedicated management team and experienced boards. Customers relations Informal with innovators. Organized relationship with the first customers. Sales & Marketing processes ready to manage large numbers of customers. Financial needs Prototyping Market research Business planning Scaling up Sales & marketing Working capital Management 13
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR CAN THEORY HELP? #3 14
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR DIFFERENT PERSPECTIVES ON GROWTH Resources based view Strategic perspective Ecology of Population Traits approach Lifecycles 15
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Theoretical Fondation #1: The Configurational Approach à FIT Context / Environment Organization Entrepreneurs Opportunity / Activities Strategy Resources 16
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Theoretical Fondation #2: The Process Approach Dialectical Evolution Teleological Lifecycle 17
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Proposed Framework 18 Entrepreneurial Team Organizational structure Resources Activities Context Market Acceptance Investor acceptance Organizational evolution Willingness to grow DEFINITION / CORRECTION EXECUTION EVALUATION Focus International. More products 01-­‐04-­‐2014  
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR DYNAMIC APPROACH 19 OPPORTUNITY TEAM RESOURCES
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR 20 NEVER STOP WONDERING & ASKING!
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR A real passion for entrepreneurship education and entrepreneurs. •  Student entrepreneurs: 2x •  Full time entrepreneur: once, in a team of 5 •  Coach: 500+ projects over the last 20 years •  (Advisory) Board member in multiple new ventures •  Policy making: 2x •  Director of Solvay Entrepreneurs •  PhD in entrepreneurship in 2008 •  … never as an investor My wife (as Colombo), no kids, one dog (Vicky). 21 Olivier Witmeur (Belgian, 46)
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Solvay entrepreneurs is the entrepreneurship center of the Université Libre de Bruxelles. We support entrepreneurs through the development of their venture, from an idea to a successful and sustainable business. 22 Solvay Entrepreneurs
  • Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR Let’s keep in touch! 232014%©%Olivier%Witmeur FOLLOW US ON LinkedIn.com/company/ Solvay-Entrepreneurs in Facebook.com/ SolvayEntrepreneurs f Twitter.com/ SolvayStart t SolvayEntrepreneurs.be www YouTube.com/user/ SolvayEntrepreneurs Foursquare.com/ SolvayStart