Download to read offline
![“…[think of] entrepreneurship as a vital life
skill that extends far beyond the ability to
launch a venture, a life skill that prepares
individuals to deal with an ambiguous and
uncertain future….methods of thinking,
acting….and approaching problems that
enables people to manage change…creative
thinking …to be empowered to create
opportunities for oneself”](https://image.slidesharecdn.com/howtogainstaturewithoutgainingweight-170327194645/85/How-to-Gain-Stature-Without-Gaining-Weight-6-320.jpg)
Uploaded byMarilyn Landis
How to Gain Stature Without Gaining Weight
The document discusses different business models and their suitability for today's economy. It argues that small, lean, entrepreneurial businesses using a "just in time resources" model are best suited to today's environment. These types of businesses are more nimble and globally competitive than traditional big businesses due to having less overhead, idle payroll, underutilized resources, and non-operating assets. The entrepreneurial approach embraces experimentation and views failure as a learning opportunity. Overall, the document advocates for flexible, adaptable business models that can efficiently obtain resources on an as-needed basis.
More Related Content
Similar to How to Gain Stature Without Gaining Weight
How to Gain Stature Without Gaining Weight
- 1. How to GainStature without Gaining Weight….What is the best business model for growth?
- 2.
- 3. Small – lean– entrepreneurial businesses are the best model in today’s economy….not small versions of big business…not “mom & pop on Main St.” – but smart, complex, lean, entrepreneurial models are the survivors in today’s economy….
- 4. Entrepreneurship vs. Business “Bootstrappingfocuses on shorter cycles of iteration that enables business models to emerge from the process itself. It’s a slower, more organic approach that fully embraces experimentation…….the core of the entrepreneur experience”
- 5. As a methodology,it reframes failure as an essential and productive activity.
- 6. “…[think of] entrepreneurshipas a vital life skill that extends far beyond the ability to launch a venture, a life skill that prepares individuals to deal with an ambiguous and uncertain future….methods of thinking, acting….and approaching problems that enables people to manage change…creative thinking …to be empowered to create opportunities for oneself”
- 7. VISION --> SKILLS--> INCENTIVES --> RESOURCES --> ACTION PLAN --> CHANGE SKILLS --> INCENTIVES --> RESOURCES --> ACTION PLAN --> CONFUSION VISION --> INCENTIVES --> RESOURCES --> ACTION PLAN --> ANXIETY VISION --> SKILLS --> RESOURCES --> ACTION PLAN --> GRADUAL CHANGE VISION --> SKILLS --> INCENTIVES --> ACTION PLAN --> FRUSTRATION VISION --> SKILLS --> INCENTIVES --> RESOURCES --> FALSE STARTS
- 8. We train 100%of our financial professionals to run the big business model • “….The importance of informal learning is due in part to the messy and complex nature of entrepreneurship…..formalized knowledge feels overly generalized….due to the fact that much entrepreneurial knowledge is tacit and experiential in nature….it’s learning that’s inseparable from doing.”
- 9. Big Business vs.Small Business
- 12. “We will eitherfind a way or make one.” Hannibal 247-183 B.C.
- 13.
- 14. “It is difficultto steer a parked car, so get moving” Henrietta Mears
- 15.
- 16. In today’s economy….. •….companies with big hunks of real estate are the least nimble.
- 17.
- 18. In today’s economy …..companieswith the highest head count per dollar of sales are the least globally competitive
- 19. What biz modelsare the most nimble?…the most globally competitive?….that make the best survivors!
- 20. How do weadapt to this economy?
- 21. The glass ceilingthat keeps small businesses small
- 22. Solution – justin time resources
- 24. If the differentiatoris price: ….using the “just in time resources” model
- 25. If the differentiatoris superior talent and innovation: ….using the “just in time resources” model
- 26. If the differentiatoris unique hardware that utilizes innovations ….. ….using the “just in time resources” model
- 27. Each Biz Modelhas its own growth strategy and its own funding challenges ……….. Business models for financially sustainable growth must have: •less overhead •less “idle” payroll •less investment in under utilized resources •no non-operating assets Means “just in time resources”
- 28. Small – lean– entrepreneurial businesses are the best model in today’s economy…. smart, complex, lean, entrepreneurial models are the survivors in today’s economy….
- 29.
Editor's Notes
- #2 How to Gain Stature without Gaining Weight….What is the best business model for growth We’re going to talk about growing your business at the Tampa conference In particular how to grow past the plateau….ceiling….you’ve never been able to grow above before We’ll talk about specific roadblocks to the next level – in particular financial roadblocks But I wanted to use this advance opportunity to talk about “the best” business model for growth
- #3 30 years as a commercial lender where I saw hundreds….thousands of businesses 16 years as a CFO where I’ve seen hundreds more….from the inside I’ve testified before congress six times on access to capital….I’ve first hand witnessed the success…and failure of business models
- #4 I believe – and increasingly data experts ranging from Babson University to the economists I heard speak in DC this week…. The growing consensus agrees with me! READ SLIDE
- #5 CARTOON – this is the small business world…..look familiar It’s a caldron of challenges…..READ SLIDE Source: BABSON ENTREPRENEUR EXPERIENCE LAB “ELEMENTS OF THE ENTREPRENEUR EXPERIENCE” in partnership with the Business Innovation Factory CHRISTINE COSTELLO • HEIDI NECK • ROBERT WILLIAMS
- #6 Entrepreneurship as a methodology reframes failure as an essential and productive activity READ CARTOON “Entrepreneurship” vs. “ Small Business”….policy makers and economists are making this distinction…..heard it everywhere this week in DC So….is there a difference?……There is a difference and two examples of emerging companies explains it best: Ex. – Entrepreneurial - Extreme Endeavors….conceived idea for cave/bats/impact of adjacent coal mine….commercialization of product through real use iterations….from bat cave to coal mine to boiler rooms….will be a stand alone company with its own platform for future products…experiment until right ….then start on the next one VS “small business”- Cohera….concept for internal body glue…investor money to duplicate large company laboratory…test/commercialize…ultimately sell to someone like Johnson and Johnson who will scale it up with the corporate structure already in place….risk stays outside the corporate world until “safe enough to take in”…future iterations will likely be less experimental due to corporate structure.
- #7 READ SLIDE We have to be entrepreneurs first to start the business…… But SMALL BUSINESS to grow it!
- #8 What causes us to not grow…..complex change How do we manage complex change? First we have to identify the missing component READ THROUGH SLIDE
- #9 If small business is the best model for the future and growth…..why don’t we know that? Because we train 100% of our MBA’s to run BIG business! ….Robert Slee – author of Private Capital said “the further I advanced in finance education, the less what I learn looks like the business my parents run in the Midwest” So – if small business IS the best model for growth– and our process is messy and complex - let’s talk about what the best business model is for small business to grow in this economy
- #10 First…..Small businesses are like bicycles….large companies are like trains The Big businesses model is like a train If stalled has resources in all the railcars Takes miles to stop a train and change direction When stuck – they need subsidized – i.e. outside help! The small business model is like a bicycle If stalled – can only hold so much in the saddle bags But – can stop on a dime and change direction in a snap When stuck – the rider climbs off and walks the bike!
- #11 Big biz models often rely on mathematical models to approximate reality [READ SLIDE ….you son will retire in….] – the entrepreneur experiences reality up close We know this boy won’t retire in 8 years! We don’t live in silos! We experience life up close….real economic reality!
- #12 READ SLIDE Small biz is small – not because they are too stupid to be big….WE ACTUALLY HAVE A BETTER MODEL
- #13 Big business model can scale – but the small business model is the innovator…..more nimble….more flexible Example - Small Biz has 13 times more patents per employee than big business ****Bikes can take the trails trains can’t The old business model said “we have to own the real estate…..we have to own the people….”…..Rockefeller…..Carnegie! The new business model?…..”there has to be a better way!” READ SLIDE
- #14 Let’s talk about the difference between the nimble and the immovable– which business models are financially the most viable in this new economy and which ones aren’t Characteristics of the nimble Smarter Leaner Make changes quickly, Characteristics of the immovable Many are stuck on being a small version of a big company No changes Own non-operating assets….underutilized talent that cost big dollars!.....real estate that is for show only!
- #15 The new economy requires that small biz be nimble and globally competitive What conventional wisdom makes companies less nimble? The still think they need to “own everything” the company needs If your immovable it’s hard to grow! READ SLIDE
- #16 Historic examples of the immovable A biz model/idea use to provide for at least three generations of the founder…..today things change quickly! Hairpin manufacturer missed hairspray as it’s biggest competitor Man who wanted to buy a pager business the day WSJ said cell phones were making pagers obsolete Office Furniture with built in sound baffles made Sextant’s sound engineering unnecessary Off shore suppliers make transportation costs key.. changing the rationale for location
- #17 Example - In today’s economy – companies with big hunks of real estate are the least nimble: Why????? Can’t move closer to their suppliers – off shore sources Can’t move closer to their customers – internet access now more important than sidewalks Can’t downsize – cost to change configuration – call center employees now work from home
- #18 Traditional accumulation of cost READ SLIDE Example of higher fixed cost lower flexibility on price ….more overhead [John’s stair step to planes…] The traditional progression…the old model New model – can’t have cash draining non-operating assets…toys…edifices…planes
- #19 In today’s economy – companies with the highest head count per dollar of sales are the least globally competitive Economic development agencies like lots of jobs – this economy needs jobs – but….. Smart small businesses know they don’t need the cost
- #21 First – Adapting to this new economy requires changes…..Because it is the new reality! Technology is making it possible….let’s talk about some specifics
- #22 What holds us back? Two factors – expertise and multi-tasking!!! Large corporation – starting a new office HR for staff – Finance for funds – IT for network – Facilities for space Entrepreneur – looks around – no one but themselves – but they still need the expertise Cant’ afford a full time HR professional…..current staff doesn’t have the time/talent to go back to school Without expertise…. Mistakes are costly - not enough knowledge in each area – therefore risk adverse or missed opportunity
- #23 Solution – just in time resources – outsourcing: Outsource the CFO, CIO, HR, CRE Expertise on demand Work force on demand – sub-contractors, temp agencies
- #24 So what have others done? ----- Here are some real world examples: Virtual Companies – examples: TI – contract manufacturer for pulverize throat that is closest manufacturer to the installation SG – no inventory for the centerless grinding Carol Express – control of the formula but use contract manufacturer who has the latest equipment – therefore the most cost effective to produce HCS West Virginia…brain box….energy trailer– assembly only – stock component parts assembled per his patented technology…no inventory cost until built
- #25 Let’s conclude with some Specific Potential Business Models using “just in time resources” – assume all non-core functions are already out-sourced (A/R, HR, etc.): If the differentiator is price: The business model should be patterned as a sales organization – the efficiency here is procuring the product/service at the lowest production cost – outsource to contract manufacturer who invests in the latest technology and distributing selling costs across the greatest sales volume achievable – outsource to others who have established sales and distribution networks 3rd party who’s core IS manufacturing 3rd party who’s care IS distribution This model is all about getting the lowest price
- #26 If the differentiator is superior talent and innovation: - core model The business model should be patterned after a business with emphasis on highly trained professionals who are paid only when they work- whenever possible – incented to bring their innovative products to you where they can be sufficiently funded for future financial gain This business model would suggest that the accompanying hardware needed for a system be produced with hardware already in the market – produced by others and either purchased under open contracts or proprietary agreements Workers on demand – sub-contractors, part-time 3rd parties for the hardware This model is all about the idea!
- #27 If the differentiator is unique hardware that utilizes innovations not already in the market Then the business model should look like a manufacturing operation – either with the new, innovative product assembled in-house or outsourced to a secure supplier who can produce it more cost effectively. Price pressure is less if the innovative product is not available elsewhere – this model should, therefore, provide sufficient profit margin to provide not only target profit but funding for continued R&D to assure the next generation of innovative product. All non-core manufacturing functions should be outsourced This model is about the hardware!
- #28 In summary….READ SLIDE Keep these factors in mind when we meet in Tampa to talk about taking your company to a level never before reached You may have to consider the new small business model…..out sourcing for the expertise you need Do you know what your core competencies are?
- #29 Remember…..READ SLIDE