Scaling up for growth


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We specialise in Growth Strategy, Scal Up of Businesses, Scale Up Start Up Plans, Corporate Strategy, Market Entry Strategy, Non User Markets

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Scaling up for growth

  1. 1. 1Scaling up for Growth
  2. 2. Change is certainty One thing is clearWe have to GrowGrowGrow&2
  3. 3. What is less clear3How will ourbusiness grow???
  4. 4. Sustained abnormal growth with a clear vision &focus is a necessity4
  5. 5. Before you realize the market re-organizesitself5Need gap /Idea getsidentifiedFew playersbuild sizeand teamsOthersparticipate inconsolidationby selling outor JV‟s /AlliancesLargeorganizedplayersentering tomarketEntry ofglobal majorsIf market is growingand we don‟t then our“Relative Market Share”will come down
  6. 6. Why should we grow our Business?61. Capitalize on Economies of scale, volume discounts2. Beat inflation and industry growth averages3. Utilize available spare capacity4. Attract and retain Top Professional Talent5. Increase Profit Volumes and Cash Chest for future Innovation6. Build Competitive Advantages and Entry Barriers7. Grab and Retain Market Share8. Increase Market Cap and Enterprise Value to reward Investors9. Build Fund raising capability and grow further ● ● ● ● ● ●To be able to:
  7. 7. Where will growth come from???7Growth StrategyMatrixProductsExisting NewMarketExisting•Current products to existingcustomers•Product innovation•Market the new product toexisting customersNew•Find more customers forexisting product•Geographical expansion,exports•Market new product to newcustomers•Diversification into related orunrelated business
  8. 8. „Chicken & Egg‟ Dilemma8 Funding is required forExecuting the BusinessPlan& Hiring better people forbuilding a big organization However investor like tofund to after generatingrevenues Large organization canattract better “Talent”In order to hire better people , motivatethem and give equity in the companyand its success
  9. 9. “Action is the foundational key to all success”9 Planningo Roadmapo Milestoneso Realistic targets Understando Marketo Customer needso Competitorso Issues and Challenges Teamo Hire the best and pay professionalso Import expertise and domain experts Monitor performancesPablo PicassoBuild a culture ofexecution capabilities
  10. 10. Important to get…10Right People on the Right Seats
  11. 11. Transformation: Professionalism to Corporatization11Ownership Independent Legal Entity Perpetual Succession Limited Liability Easy Transferability of Shares Separation of Ownership and ManagementOperational Accountability and Responsibility Attract better people Allow Business to grow beyond Capacities Enabling the organization to smoothen theoperations Separation of Board responsibilities fromindividual responsibilitiesCorporate Governance Helps in building internal transparencyand communication Democratic way of doing business Security of Share-holder‟s moneyValuation Better Valuation Greater Multiplier as company grows Easy access to Capital and Equity Market Easy to raise the fund
  12. 12. Three Rings of Transformation12Vision ArchitectureLeadershipChange• Mission• Fundamental Purpose• Core Values and Belief• Distinctive Capabilities• Expectation about thefuture• Management Processes• Management InformationSystems• Performance Matrices• Performance Tracking Systems• Continuous Improvement• Responsibilities andAccountabilities• Organization Structure• Vision Creation• Coherence/ Consistency• Change in Attitude• Motivation and Inspiration
  13. 13. What is keeping us from growing our business to the next level?13• Vision & Focus• Strong Core Values• Market Knowledge & CustomerInsights• Differentiated Products• Effective Growth Planning• Customer Acquisition• Brand Management• Robust Processes• Ability to Execute- Team• Access to Funds
  14. 14. 14Another Hindrance to GrowthSome Entrepreneurs are satisfied with theirlifestyle and there is little motivation forgrowth.TheLifestyleBusinessesExpensiveregularvacationsFine DiningClubMembershipsMagnanimousWeddingsExpensiveCars2nd HomeGood QualityEducation
  15. 15. Speak to Growth Strategy Consultants• We have extensive experience in building successful businesses in the areas of:15Consumption Story Vendor + 1 Building India• Retail• E –Commerce and Internet• Hospitality• Travel & Tourism• Quick Service Restaurants• Food & Food Processing• Media & Entertainment• Manufacturing• Construction Equipment• Capital Goods• Power• Machine Tool• Automobile, autocomponents• Pharma, Wellness, Lifesciences• Textile• Infrastructure• Construction• Education• Agriculture• Healthcare
  16. 16. D‟Essence Consulting ServicesServices• Market Entry & Growth Strategy• Business Plans & Financial Projections• Start-up Acceleration Services• Feasibility Studies• Enterprise & Business Valuation• B2B Market/Consumer Insights• Transformation-Corporatization• Senior Level Talent (Executive Search)D‟Essence Consulting is a Management Consulting, Business Strategy and M&AAdvisory firmBuild GrowRemainCompetitiveM&AAdvisory303, Aar Pee Center, 11th Road, MIDC, Andheri (E), Mumbai- 22