A short version of a strategy framework for the scaling of bootstrapped B2B startups.

1. Scaling Smart
A Strategy Framework for Modeling, Managing
and Monetizing the Scaling of
Bootstrapped High-Performance Ventures
Davender Gupta
The Scaleup Project
davender@davender.com
514-448-1894
©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com
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2. Scaling is
important…
A high-performance startup
has no value unless it gets
out of development mode
and engages with the market
But is hockeystick
growth the only
strategy?
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©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

3. Failure To Launch?
Ideal VC-backed Scaleup
(Hockeystick)
Failed Scaleup
(Valley of Death)
Time
Success Metric
(Valuation,
Revenues or
Traffic)
3©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

4. The problem
with the
hockeystick
scaling
strategy
« Unicorn Dreams »
• Distracted by Traction
Premature Scaling
• Insufficient evidence of PSF and PMF
Unworkable Business Model
• No path to profitability
Ability to execute lags demand
• Quality and customer service fails
4©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

5. Tech scales quickly.
People don’t.
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©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

6. STARTUP
SCALEUP
BUSINESS
6©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com
Exploring a viable business model
Developing credibility in the market
and the ability to execute
Executing and evolving the
business model

7. Successful scaling
requires
maximizing execution
while
managing uncertainty
7©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

8. Strategy Is A Pattern of Choices
• How your choices align with vision, mission, values
Suitable
• How your choices fit success and risk criteria
Acceptable
• How your choices can be executed with available resources
Feasible
• How you co-create choices through interaction with stakeholders
Effectual
8©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

9. Causal vs Effectual Choices
• Causal = Assumes the
future is knowable and
known
• Effectual = Assumes the
future is unknowable and
unknown
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goal
means
Search for the means
to achieve a stated goal
Start with the means
at hand to design the
outcome
©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

10. Principles of Effectual Strategy
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What can you do with what you have, what you know and
who you are
Focus on how to minimize possible losses
Collaborate with partners who provide pre-commitment
Surprises are opportunities to explore new possibilities
The future cannot be predicted but you can control some
determining factors
©2017 Davender Gupta. All rights reserved. 171114 V7-LSC davender@davender.com
Source: www.effectuation.org

11. Impact of Effectual Approach to Scaling
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Delay seeking investors to fund initial go-to-market
• because the need to generate ROI locks into a causal mindset
First find customers who are willing to collaborate
• pre-production prototype development through co-investment
Establish rapid build-measure-learn loops to find PJF
• find most valuable “PJF” Product-”Jobs-To-Be-Done” Fit
©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

12. Momentum Scaling
Ideal VC-backed Startup
(Hockeystick)
Momentum Scaling (Waves)
Failed VC-backed Startup
(Valley of Death)
Time
Success Metric
(Valuation,
Revenues or
Traffic)
H1
H2
H3
12©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

13. 13
Momentum Scaling
•Establish market influence
•Establish market credibility
•Establish ability to executeH1
H2
H3
©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

14. The Startup Lifecycle Wave
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15. Execution is
the ability to
generate
manage and
direct growth
15©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

16. Strategy Framework
16©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

17. • To build a sustainable, long term business with the
ability to become a gazelle
• Founder Team stays in control
• Keep options open
• Choose the best customers
• Better adapted to Canadian (outside SV) context
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Benefits of Momentum Scaling
©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

18. 18
Move Smart and Build Things
Tech scales quickly. People don’t.
Revenues before valuation.
Managing uncertainty is more important
than taking on risk.
©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

19. Be patient for
growth and
impatient for
profits.
- Clayton Christensen
author of “The Innovator’s Dilemma”
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©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com

20. Contact me!
Davender Gupta
Venture Strategist and Co-Founder
The Scaleup Project
davender.com
facebook.com/coachdavender
linkedin.com/in/coachdavender
davender@davender.com
©2017 Davender Gupta. All rights reserved. 171116-v8 davender@davender.com
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