From start-up to scale-up

1. A Scaleup is Not A Startup
Product, Process, People
Joe Haslam
Executive Director, Owners Management Program
AD-ENG-OMP
ABR-2017
Monday, 24 April 2017
Serrano, 99 (S-001)

2. "It has never been
easier to start ….
but never been
harder to scale!"

4. A Scaleup is Not A Startup
1. Scale
2. Product
3. Process
4. People
5. Resources

6. 1. Scale

15. 1. Product/Market Fit Risk
2. Product Quality Risk
3. Team Risk
4. Recruiting Risk
5. Sales Risk
6. Market Risk
7. Funding Risk
8. Short-Term Competition Risk
9. Long-Term Competition Risk

19. 2. Product

21. 1. Beware of small, rare problems
2. Beware of offering a cheap, complex product
3. Beware of solving problems people don’t know/don’t care about
4. Beware of solving problems you can’t experience yourself

23. Law #1: Delivers a service that can be metered.
Law #2: Grows with the business.
Law #3: Replaces something that companies already pay for.
Law #4: Offers an amazing user experience for the developer
Law #5: Receives tons of explicit developer love.
Law #6: Exhibits strong network effects.
Law #7: Eliminates the need for non-core skillsets no one enjoys.
Law #8: Democratizes development.

25. 1. Charge earlier than you’re comfortable with
2. Charge more than you’re comfortable with
3. Justify (or kill) your lowest plan
4. Plan on changing prices

28. c
1) Marketing Specialization
During the transition from startup to scale-up, the change in marketing goals calls for
specialist skill-sets. The marketing focus shifts to quickly and efficiently scaling up the
repeatable sales or customer acquisition model.
2) Marketing Experimentation
A business that’s scaling up depends on experience to determine what growth engine to
focus on. After all, the trial and errors of the startup phase have helped the startup figure out
what works and what doesn’t. This knowledge may also reduce the room for marketing
experimentation. With a bigger customer base, there is less room for error.
3) Marketing Processes and Hierarchies
Operational efficiency becomes increasingly important as you hit the scale-up phase. The
ability to efficiently prioritize, delegate, record, track, and analyze marketing activities
becomes process dependent.
4) Marketing Leadership
A startup does not always need to align sales and marketing activity. However, most scale-
up marketing needs are always coupled with revenue generation responsibilities. In a scale-
up, it is important to align sales and marketing activities for optimized growth focus.
Marketing in a scale-up needs to behave more like revenue centers than cost centers.

33. 3. Process

37. “Scaleup is the Real Startup”
1. A startup should not be fat but it should not be lean.
Forget about small efficiencies, about 97% of the time.
2. Silicon Valley Blitzscaling (AirBnB, Uber, Dropbox) is
only for <1% of the world.
3. Zero to One, not One to N (Peter Theil is right)
4. You can be Good, Quick & Cheap (you don´t have pick
just two)
5. A scaleup screwup is worse than a startup screwup.
Scaleup is EVEN MORE about survival.
Corsten & Haslam (2017)

40. (1) SCALE - Your Gross Revenue, money in
(2) MARGIN - Both Gross & Contribution Margin
(3) MOMENTUM - Direction of market Share?
(4) ACTIVITY - How quickly items are bought/sold?
(5) ENGAGEMENT - No sale yet but interaction
(6) RETENTION - Can you keep a customer?
(7) CONCENTRATION - Spread out or highly concentrated?
(8) ACQUISITION - How much it costs to get a customer?
(9) ROI - Unit Economics, does average transaction bring value?
(10) CASH - Burn Rate

44. Advisory Board Problems:
1. Not enough time.
2. Not enough wisdom.
3. Too much effort.
4. Expensive.
My view on how to best implement advisory boards:
1. Ask for small investments
2. Run semi-annual advisory dinners
3. Don’t overplay in your VC pitches

45. 4. People

51. 1. Employee Net Promoter Scores as Manager Thermometer
2. Enterprise Value > Team Value > Self Value
3. Chief Pothole Prevention Officer
4. Everything Needs to Work Right Almost All the Time
5. Sailing Ships
6. No Uninspired Compromises
7. Right vs. Fast
8. Short-term vs. Long-term
9. Documenting Strategy
10. CEO = Chief Explanation Officer
11. The Bus Analogy
12. Great Products Are to Customers as Great Cultures Are to Employees

61. https://rework.withgoogle.com/blog/five-keys-to-a-successful-google-team

62. - Problem solving is much easier than coaching.
- Coaching takes a lot of energy. It’s exhausting,
because you need to understand what the person’s
about, their strengths and weaknesses, their hopes,
dreams, and fears.
- You have to deliver messages in such a way that’s
tailor-made for them so they can internalize it, and
most importantly — this is where true scale begins
to happen — they can start coaching people on their
team to do it”

63. “Just when I thought I’d figured out how to be
the CEO of a 100-person company, suddenly
it’s 200 people.”
- Ben Silbermann, Co-Founder, Pinterest

64. 5. Resources

68. https://www.entrepreneurship.org/learning-paths/scaling-your-company

69. Nail It then Scale It
by Nathan R. Furr (2011)

70. Scaling Up Excellence
by Robert I. Sutton & Huggy Rao
(2014)

71. Scaling Up
by Verne Harnish (2014)

72. From Impossible to Inevitable
by Aaron Ross & Jason Lemkin
(2016)

73. Scaling Lean
by Ash Maurya (2016)

74. Scale and Scope
by Alfred Chandler (1990)

75. Joe Haslam
Lives in: Madrid, Spain
joehas at gmail dot com
http://www.linkedin.com/in/joehas/
http://twitter.com/joehas/
http://joehas.tumblr.com/
https://angel.co/joe-haslam