Download to read offline
Uploaded byCo-founder Ignitor
06.3. tips on improving resources
1. The document discusses various resources that are important for starting a business, including physical, intellectual, human, financial, and social resources. 2. It provides examples of how entrepreneurs have utilized different types of resources in starting successful companies, such as leasing equipment, partnering with experts, hiring affordable employees, and leveraging social networks. 3. The document encourages entrepreneurs to inventory their current resources, identify potential second-rate alternatives, and make plans to acquire needed resources from their network.
More Related Content
Similar to 06.3. tips on improving resources
More from Co-founder Ignitor
06.3. tips on improving resources
- 1. The Science ofStart Session 3: Key Resources paulshawsmith scientific business strategy
- 2. 1 Physical paulshawsmith scientific business strategy
- 3.
- 4. “When we startedthe airline 25 years age this year. I went to Boeing. I AMAR BHIDE remember the telephone call. “Hello this is Richard Branson, wonder whether you could sell me a second hand 747?” “What is the name of your business?” “Virgin.” “What do you do?” “We have a record company and have great bands like the sex pistols the rolling Stones.“ And then there was a long pause, and instead of putting the phone down. He said, “We will send a salesman over and as long as your airline goes further than your name suggests we will let you have a plane.” The key point there is we said to Boeing we don’t know if this is going to work. We realise that this is risky, and we want to be able to hand the plane back after 12 months if it doesn’t work out. And that is the element of protecting the downside and that is the critical thing. paulshawsmith scientific business strategy Source: Wall Street Journal Video, 2009-10-15
- 5.
- 6. James Dyson &the vacuum companies
- 7. Use second rateresources (Dial up internet)
- 8. Use second rateresources (Off the shelf servers)
- 9. 2 Intellectual paulshawsmith scientific business strategy
- 10. Daniel Saksenberg Actuary and specialist in predictive analytics Daniel Saksenberg specializes in machine learning and artificial intelligence. He has developed models for life insurance, forensics, anti-money laundering, offshore financial centers and transfer pricing. His models are use by corporations around the world. Partner with experts
- 11. Hire ex-employees (Fairchild& Intel)
- 12. Reverse engineering (B-29& T-u4)
- 13. 3 Human paulshawsmith scientific business strategy
- 14. Source: Hambrick andCrozier (1985) Give employees a financial stake
- 15. Use affordable losswith employees
- 16.
- 17. “To get hiredin this organization was a joke. If you came in and we needed a warm body, you were hired. Literally for any position. Our turnover was high because we had to fire many employees… In a small company, unfortunately, such problems are unavoidable. We could not afford committed professionals” Source: Bhide (2000) Use second rate employees
- 18. 4 Financial paulshawsmith scientific business strategy
- 19. Marketing understanding How investors make decisions paulshawsmith scientific business strategy
- 20. “Start ups need2 – 3 times longer to validate their market than most founders expect. This underestimation creates the pressure to scale prematurely.” Source: Start up Genome (2011) Market Understanding
- 21. Marketing understanding Realistic forecasts How investors make decisions paulshawsmith scientific business strategy
- 22. “Start ups thathaven’t raised money over- estimate their market size by 100x and often misinterpret their market as new.” Source: Start up Genome (2011) Realistic Forecasts
- 23. Marketing understanding Realistic forecasts Experience of team How investors make decisions paulshawsmith scientific business strategy
- 24. 5-year failure rate? NoIndustry Experience 54.5 % Industry Experience 25.5 % paulshawsmith scientific business strategy Source: Bruderl, et al. (1992)
- 25. Financial Operations Sales Manager paulshawsmith scientific business strategy
- 26. Marketing understanding Realistic forecasts Experience of team How Size of founding team investors make decisions paulshawsmith scientific business strategy
- 27. Twenty employees? 0.4% 3.3% paulshawsmith scientific business strategy Source: Stam and Schutjens (2004)
- 28. 5-year failure rate? > 54.2.% + 13.1% paulshawsmith scientific business strategy Source: Bruderl, et al. (1992)
- 29. 3% 4% 7% 1 founder 48% 2 founders 3 founders 4 founders 5 + founders 38% paulshawsmith scientific business strategy Source: Aldrich, Nancy, Carter & Ruef (2004)
- 30. Marketing understanding Realistic forecasts Experience of team How Size of founding team investors make Market growth rate decisions paulshawsmith scientific business strategy
- 31. 1996 2006 Growth in online advertising
- 32. Marketing understanding Realistic forecasts Experience of team How Size of founding team investors make Market growth rate decisions No. Of competitors paulshawsmith scientific business strategy
- 33. Competition faced byInc. 500 start ups Small companies (73%) No direct competition (18%) Mid-sized companies (5%) Fortune 500 (4%) paulshawsmith scientific business strategy Source: Bhide (2000)
- 34. Marketing understanding Realistic forecasts Experience of team How Size of founding team investors make Market growth rate decisions No. Of competitors Competitive advantage paulshawsmith scientific business strategy
- 35. paulshawsmith scientific business strategy
- 36. INC 500 vs.TOTAL STARTS BY INDUSTRY Source: Shane (2009) Industry Number of Inc 500 Firm starts Percent of Starts firms Pulp mills 6 33 18.182 Computer and office equipment 99 2359 4.197 Guided missiles, space vehicles, parts 2 60 3.333 Nonferrous rolling and drawing 14 581 2.410 Railroad car rental 3 136 2.206 Measuring and controlling devices 49 2482 1.974 Paper mills 3 125 2.400 Search and navigation devices 6 310 1.935 General industrial machinery 26 2173 1.197 Photographic equipment and supplies 7 646 1.084 Manifold business forms 3 281 1.068 Household appliances 4 390 1.026 Electrical industrial apparatus 11 1080 1.019 Legal services 10 129207 0.008 Eating and drinking places 34 494731 0.007 Carpentry and floor work contractors 4 66383 0.006 Real estate operators 5 90042 0.006 Hotels and motels 2 39177 0.005 Painting and paper contractors 2 43987 0.005 Retail bakeries 1 22165 0.005 Grocery stores 5 112473 0.004 Used merchandise stores 1 24442 0.004 Automotive repair shops 5 124725 0.004 Beauty shops 3 79081 0.004 Residential care 1 27710 0.004 Videotape rental 1 27793 0.004 paulshawsmith scientific business strategy
- 37. COMPUTER AND OFFICE EQUIPMENT Inc 500 Total start ups 99 2,359 paulshawsmith scientific business strategy
- 38. EATING AND DRINKING PLACES Inc 500 Total start ups 34 494,731 paulshawsmith scientific business strategy
- 39. INDUSTRY AND INC500 Source: Shane (2009) Computer and Office Equipment Eating and Drinking Places (1/25) (1/14,550) paulshawsmith scientific business strategy
- 40. INDUSTRY AND SURVIVAL(4 YEARS) Source: Mata and Portugal (1994) Glass Products 85.7 Spinning, weaving and finishing of cottons, artificial and synthetic fibre 81.0 Spinning, weaving and finishing of wool 76.9 Slaughtering 68.0 Knitting Industry 65.7 Cut Stone and Stone Products 65.6 Footwear n.e.c. 65.4 Iron and Steel Industry 64.6 Tanning and Dressing of Leather 63.6 Machinery for the industry n.e.c. 61.5 Radio and TV Communication Equipment 47.4 Fabricated Metal Products n.e.c. 46.7 Manufacturing n.e.c. 44.4 Cement Products 42.7 Clay Products for Construction 42.1 Pottery 41.2 Household Textile Products 40.9 Made-to-Measure Clothing 37.9 Pastry 34.7 Fish Preserving 25.0 paulshawsmith scientific business strategy
- 41. Marketing understanding Realistic forecasts Experience of team How Size of founding team investors make Market growth rate decisions No. Of competitors Competitive advantage Referrals and introductions paulshawsmith scientific business strategy
- 42. Being referred byindirect social ties increased the likelihood of an entrepreneur receiving funding. Source: Shane and Stuart (2002) Weak ties and funding
- 43. 5 Social paulshawsmith scientific business strategy
- 44. 130 Six degrees ofseparation
- 45. 16,900 130 Six degrees of separation
- 46. 2,197,000 16,900 130 Six degrees of separation
- 47. 285,610,000 2,197,000 16,900 130 Six degrees of separation
- 48. 37,129,300,000 285,610,000 2,197,000 16,900 130 Six degrees of separation
- 49. 12 4,8 x 10 37,129,300,000 285,610,000 2,197,000 16,900 130 Six degrees of separation
- 50. 16.7% At least once a week 55.6% More than once a year but less than once a week 27.8% Once a year or less Who did you find out about your job from?
- 51.
- 52. 20 108 Are you a connector?
- 53. Ask for referralsand introductions
- 54.
- 55.
- 56.
- 57. Create a databaseof contacts
- 58. Use social networks(Vinny Lignham)
- 59. Incubator average Industry average (3/20 fail) (10/20 fail) Source: Phillips (2002) and Audretch (1995) Develop a support network
- 60. Advice from accountants3< /yr No advice from accountants (16/20 survived ) (9/20 survived) Source: Watson (2007) Seek advice
- 61. Network range =How often an entrepreneur networks x How widely an entrepreneur networks Source: Watson (2007) Don’t seek to much advice
- 62.
- 63.
- 64. In groups of3 – 4: * For each person: * Make plans on how you can acquire your dream resources * Is there a second rate version of your dream resources you could more easily acquire? * Can you use your current resources to acquire your dream resources? * Time: 20 mins Inventory your resources
- 65. In groups of3 – 4: * Make plans for the area of your business that needs work: Value proposition: Customers, lead users, thought leaders, industry experts Customer acquisition: Sales & marketing experiments Customer segment: Market research, customers Revenue stream: Pricing tests, customers Distribution: Channel partners Key resources: Partners, investors, production, development Key activities: Production & development experiments Key Partners: Partners Cost structure: Suppliers, production & development experiments, CA experiment Plan your up coming week
Editor's Notes
- #36 Take for example a study done when the looked at an Inc. 500 businesses in US. The Inc. 500 is a list of the 500 most entrepreneurial business in the US.
- #61 Take for example a study done at the on over 5,000 firms that looked at whether firms sought advice from an their accountant. Firm which did seek advice had a 70% higher odds of surviving then firms which did not seek advice.