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The Path To Scale and The 12 Disciplines of 10X Entrepreneurs

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70-80% of high growth potential ventures get stuck in No Man's Land. Why? And what can you do to break through to the Promised Land?

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The Path To Scale and The 12 Disciplines of 10X Entrepreneurs

  1. 1. THE PATH TO SCALE and The 12 DISCIPLINES of 10X ENTREPRENEURS www.10X-e.com
  2. 2. 2 ARE YOU FEELING GROWING PAINS? GROWING PAIN SYMPTOMS YOUR SCORE (1-10) 1. ‘I live in negative time. No matter how hard I run, I start tomorrow further behind than today’ 2. ‘It’s chaos here. We’re always either putting out fires or needing heroic feats to avoid them!’ 3. ‘This is not the company I joined. Things have changed. For the worse’ 4. ‘Our culture is sliding. We used to know each other. We did things well. Its different now…’ 5. ‘Who the heck’s that guy?’ <> ‘You hired him last week!’ 6. ‘Don’t know what half the people here do!’ 7. ‘I’m not sure where we’re going. Feels directionless’ 8. ‘I’m not such a big fan of our leaders. Half our managers aren’t really good managers’ 9. ‘If I want it done properly, I have to do it myself!’ 10. ‘We spend way too much time in meetings & most of them are a waste of time’ 11. ‘There’s no follow-through. When we make plans or agree on actions, nothing happens’ 12. ‘If things keep going at this rate, we’re going to implode at some point’ 13. ‘We may be growing, but there’s never any money!’ 14. ‘I can’t sleep. There are just too many parts in motion’ 15. ‘Decisions feel random. I’m not sure how they get made’ 15-50 = ‘Under control’ | 51-70 = early warning signs | 71-100 = Orange flag, chaos on the way | >100 = Red flag. Act now
  3. 3. Promised Land A common pattern in growing ventures… Start-up Stage 1 Growth Stage 2 Growth No Man’s Land Set-backs StuckProgress Top 1% of ventures get funding Founders’ plan Investment case Reality
  4. 4. What No Man’s Land looks (and feels) like Tight Cash flow Can’t afford experienced talent Stretched too thin Big mistakes – crisis after crisis Bad margins, poor cash flow Can’t raise capital on good terms
  5. 5. ~70-80% of the top 1% What %? Start-up Stage 1 Growth Stage 2 Growth No Man’s Land Promised Land
  6. 6. Promised Land WHY? Because EVERYTHING changes when you scale Start-up Stage 1 Growth Stage 2 Growth No Man’s Land Set-backs StuckProgress ‘THE GOAL’ & ‘THE WORK’ SIZE & TYPE OF ORG. CULTURE MGMT SKILLS REQ’D COST STRUCTURE PRICE POINT MARKET SEGMENTS, STRATEGY
  7. 7. The issue: Each new stage requires a different blend of priorities, and approach to leadership Promised Land Start-up Stage 1 Growth Stage 2 Growth No Man’s Land Set-backs StuckProgress Entrepreneurial leadership (See & seize mkt opportunity, get 1st customers) Enterprise building (Basic mgmt. HR policies & procedures, financial mgmt, Scalable Ops Systems) What got you here… Organisation management (Scalable Mgmt. team & systems; Scalable culture) …won’t get you there!
  8. 8. Founders must re-invent themselves to become good leaders of a scaled business. But most don’t know it Promised Land Start-up Stage 1 Growth Stage 2 Growth No Man’s Land Set-backs StuckProgress Entrepreneurial leadership (See & seize mkt opportunity, get 1st customers) Enterprise building (Basic mgmt. policies & procedures, Ops Systems) Organisation mgmt (Scalable Mgmt. team & systems; Scalable culture) Inventiveness Innovator (invents) Entrepreneur (hustles) Builder (builds, systematises, scales) Manager (‘architects’, leads, manages, expands)
  9. 9. Promised land ~20-30% ~70-80% So what distinguishes the 10X ENTREPRENEURS? Start-up Stage 1 Growth Stage 2 Growth No Man’s Land
  10. 10. 11 Strategic focus on building a magnet for sales Be remarkable Nail offering & repeatable business model Then, scale that
  11. 11. The Path to Scale Adjust objectives, team & structures to growth stage START-UP STAGE 1 GROWTH STAGE 2 GROWTH STAGE 3 GROWTH INTERNAL MISSION • FINDING: something worth scaling • BUILDING: from a team to a real business • SCALING: from a real business into a big business • MATURING: • from a big business into a valuable enterprise OBJECTIVES 1. Nail scalable offering 2. Nail go-to-market strategy 3. Nail scalable business model 4. Nail scalable financing model 5. Build basic, reliable operations 6. Sales traction - get to breakeven 1. Build core (top level) management team 2. Build scalable Sales function 3. Drive Sales - get to cash positive 4. Optimise business model 5. Galvanise Culture & formalize Culture Leadership 6. Build scalable Ops. Mgmt Systems 7. Build critical mass Production capacity 8. Design Org. Structure required for scale 1. Grow sales – achieve niche dominance 2. Build second layer of management 3. Pursue Efficiencies to optimize cash flow & profitability 4. Build scalable Management systems 5. Implement leadership succession 6. Develop Growth Strategy – for growth beyond the core CORE 1. Optimise operational efficiency & margins 2. Maximise market position 3. Make sensible acquisitions GROUP 1. Implement 3 Horizons strategic leadership 2. Execute adjacencies strategy 1
  12. 12. 13 Execute. Culture Mgmt. system Org. Structure Decision rights Business Operating System
  13. 13. 14 The 8 Core Disciplines of Execution FOCUS ON THE WILDLY IMPORTANT ACT ON LEAD MEASURES KEEP A COMPELLING SCOREBOARD MAKE RESPONSIBILITIES CLEAR MAINTAIN A RHYTHM OF ACCOUNTABILITY COACH FOR MAXIMUM CONTRIBUTION SHARE THE SPOILS CREATE DEDICATED FOCUS FOR NON- OPERATIONAL GOALS
  14. 14. BUSINESS OPERATING SYSTEM: A ‘central nervous system for your business’ Maintains core ‘enterprise management’ activities on a regular rhythm, keeping the enterprise ‘in sync’
  15. 15. 16 Build an A-team Aligned Founders Amazing leaders Great culture Recruiting top talent Brilliant 2nd level mgmt Compelling rewards
  16. 16. 17 START-UP Breakpoint 1 STAGE 2 GROWTHSTAGE 1 GROWTH Breakpoint 2 TYPE OF TALENT NEEDED CHANGES AS THE BUSINESS SCALES
  17. 17. 18 START-UP 1st great crisis & transition STAGE 2 GROWTHSTAGE 1 GROWTH 2nd great crisis & transition TYPE OF MANAGEMENT NEEDED ALSO CHANGES AS THE STAGE & BUSINESS CHALLENGES CHANGE Level of Management skill • Level 1: Team, task, project management • Level 3: Functional Management • Level 5: Executive functional & Enterprise mgmt Level of specialisation • Generalist • Specialist (2-5 yrs) • Deep specialist (>5-10 yrs) Type of New Hires sought • ‘A-Players who punch above their weight’ • ‘Serious Management Talent’ (functional mgmt. experience & skill; • ‘Punch above their weight’ • ‘The Big Guns’
  18. 18. 19 Build 2nd Level of Management
  19. 19. 20 Build an awesome Support System. Power Board Advisory Board ‘Smart-money’
  20. 20. 21 Systematise revenue growth. Scalable system for generating repeat sales from sweet spot customers
  21. 21. 22 #1 risk in scale up stage: REVENUE VOLATILITY
  22. 22. 23 Build & Scale Sales Function
  23. 23. 24 Systematise customer delight Processes that consistently deliver awesome customer experiences
  24. 24. 25 Manage money militantly Leak proof, future proof money mgmt. Business Intelligence Cash flow optimisation
  25. 25. 26 Be investable Highly investable Strategic finance relationships Capital literate
  26. 26. 27 10X INNER GAME
  27. 27. 28 Be hyper-focused on building the Company 50% of time on top 3 business building issues Effective Personal Operating System
  28. 28. 29 Bring your A-Game Play to your strengths Stay sharp Maintain your mojo
  29. 29. 30 ALIGN YOUR ROLE TO YOUR ‘PEAK PERFORMANCE ZONE’ Skill (10,000 hrs) Energy (personality fit) Passion (Why?)
  30. 30. 31 Scale Thyself Constantly grow management and leadership abilities Use accelerated learning techniques
  31. 31. 32 BUILD THE SPECIFIC SKILLS REQUIRED FOR THE BUSINESS OF THE FUTURE Skill (10,000 hrs) Energy (personality fit) Passion (Why?)
  32. 32. 33 Be true to yourself: Prioritise what matters (e.g. rich or king?) Do what’s right for the business Accept trade-offs
  33. 33. 34 KNOW THYSELF Make trade-offs true to yourself, and grounded in reality Kept CEO role Kept Board control Avg. Personal Wealth created $10m $5m $2m Older Co’s Younger Co’s X P X P X X P P
  34. 34. BE PURPOSE DRIVEN Purpose will preserve passion and energy through the dark times (which will come).
  35. 35. 36
  36. 36. 37 www.10X-e.com

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