Starting a new business is not the same as running an operating business. Over the last decade, several management practices have emerged that recognize the particular challenges new ventures face. Steve Blank’s Customer Development Model and the related “Lean” movement are increasingly popular. This session introduces and defines the key concepts of these entrepreneurial management practices and explores how startups can use them at any step of their development.

1. DEVELOPING TALENT • GROWING VENTURES • OPENING MARKETS
Visit
us
at
marsdd.com
ENTREPRENEURIAL
MANAGEMENT
N A T H A N M O N K ,
@ C O W B O Y T W E E T S
I C T V E N T U R E S E R V I C E S
1 4 O C T 2 0 1 5

2. “ Running a startup is
like being punched
In the face repeatedly,
but working for a large
company is like
being waterboarded.
Paul Graham, Y Combinator
15
October
2014
Entrepreneurial
Management

3. “ 30-­‐40% of all U.S. startups fail
(liquida[ng all assets) and 95%
fail to deliver projected return on
investment or breakeven by a
defined [me period.
Shikhar Ghosh, Sr. Lecturer, Harvard Business School
Entrepreneurial
Management

4. “ The cost of
being wrong.
is less
than the
cost of
doing nothing.
Seth Godin, Author-­‐Entrepreneur-­‐Marketer
Entrepreneurial
Management

5. DEVELOPING TALENT • GROWING VENTURES • OPENING MARKETS
Our Future Mabers
ENTREPRENEURIAL MANAGEMENT
E N T R E P R E N E U R I A L M A N A G E M E N T
DEFINING
ENTREPRENEURIAL
MANAGEMENT

6. ENTREPRENEURIAL
MANAGEMENT
16
October
2015
What
does
it
mean
to
be
an
entrepreneur?

7. ENTREPRENEURIAL
MANAGEMENT
16
October
2015
You do not need to just solve a ‘pain’ or
‘problem’ to be an entrepreneur.
-­‐

8. ENTREPRENEURIAL
MANAGEMENT
16
October
2015

9. ENTREPRENEURIAL
MANAGEMENT
16
October
2015
1. Your knowledge (educa[on, career, hobbies).
2. Your capabili[es (proficiency and strengths).
3. Your connec[ons (who do you know/what industries?).
4. Your capital (access, savings etc. “Ramon Noodle diet”)
5. Your brand (what are you or your partners well-­‐known for?).
6. Your pain points (what inefficiencies have you no[ced?).
7. Your passion (any markets, products/services you love?).
8. Your commitment (do you really have the [me and effort?).
Where do you start ‘digging’?

10. ENTREPRENEURIAL
MANAGEMENT
16
October
2015
The one key ques[on.
What can I do well that I would love to do for an
extended period of [me (and possibly fail AT)?
-­‐

11. ENTREPRENEURIAL
MANAGEMENT
16
October
2015
A set of principles and frameworks that are
aligned with your passion and help you iden[fy a
sustainable and repeatable business model, while
managing the chaos of scaling through 5 phases of
business growth.
What
is
the
discipline
of
entrepreneurship?
(Entrepreneurial
Management)

12. ENTREPRENEURIAL
MANAGEMENT
Are you ready to jump?
Really?
Are you sure?
Seriously?

13. ENTREPRENEURIAL
MANAGEMENT
16
October
2015

14. “ "Ever
tried.
Ever
failed.
No
maNer.
Try
Again.
Fail
again.
Fail
beNer.”
Samuel BeckeC, Novelist and Playwright
15
October
2014
Entrepreneurial
Management

15. ENTREPRENEURIAL
MANAGEMENT
In order to succeed, we need to know why
startups fail.

16. 16
October
2015
1. Startups with helpful mentors, track performance metrics raise 7x more capital / 3.5x higher user
base.
2. Pivo[ng startups raise 2.5x more money, 3.6x user growth, 52% less likely to scale prematurely.
3. Everest helps prevent premature scaling: team, customer acquisi[on strategies and build.
4. Solo founders take 3.6x longer to reach scale stage.
5. Business-­‐heavy founding teams are 3.3x more likely to successfully scale with sales-­‐driven
startups
6. Tech-­‐heavy founding teams are 3.3x more likely to scale with a product-­‐centric startup
7. Balanced teams raise 30% more money, have 2.9x more user growth and are 19% less likely to
scale prematurely than technical or business-­‐heavy founding teams
8. Founders that don’t work full-­‐[me have 4x less user growth and end up raising 24x less money
from investors
9. Most successful founders are driven by impact rather than experience or money.
10. Startups need 2-­‐3 [mes longer to validate their market than most founders expect. The
underes[ma[on creates the pressure to scale prematurely. B2B and B2C isn’t a meaningful
segmenta[on because of the way the internet has changed customer dynamics.
What
we
now
know.

17. Entrepreneurial
Management
The art of ‘high growth’ entrepreneurship is to master the chaos of getting each of
these 5 dimensions to move in time and concert with one another. (SGR)

18. 6-­‐ Stage Life Cycle of a Startup
15
October
2014
Entrepreneurial
Management
ESTG
PMF
LSTG
BMC
Search 4 repetable & scalable business modelExtreme uncertainty
• Learning
• Valley
of
death
DISCOVERY
• PMF
• PSF
VALIDATION
EFFICIENCY
SCALE
SUSTAIN
CONSERVATI
ON
i: $100k / month threshold /
scaling, BMC ops. 60%
Search for problem space & fit
(PSF-PMF)
Valley of Death
PSF
“Scaling
successfully
is
what
separates
eventual
industry
leaders
from
long-­‐forgoNen
startups
in
the
deadpool.”
–
Michael
A.
Jackson

19. “ Success is going from
failure to failure without
loss of enthusiasm.
Winston Churchill
Entrepreneurial
Management

20. DEVELOPING TALENT • GROWING VENTURES • OPENING MARKETS
Our Future Mabers
ENTREPRENEURIAL MANAGEMENT
E N T R E P R E N E U R I A L M A N A G E M E N T
FRAMEWORKS AND
METHODOLOGIES

21. The
Entrepreneurial
API
Entrepreneurial
Management
Business
Model
Stages
Lean
Iteraon

22. Who do we
follow?
The Founders of lean,
disrup[on, crossing the
chasm, business model
innova[on, startup
marke[ng and the
discipline of
entrepreneurship:
Blank, Aulet, Christensen,
Ellis, Mauyra, Ries, Moore
Osterwalder, Chen and
Wasswerman

23. 1.
Business
Model
Generaon
ALEXANDER
OSTERWALDER

24. Business
Model

25. 4.
Customer
Segmentaon
16
October
2015
Presentaon
Title
Goes
Here

26. Big idea…
We no longer compete on a product or
service, but rather, a compe[[ve,
repeatable and scalable business model.

27. 7 key ques[ons

28. Source:
Osterwalder
Masterclass,
2012

29. Source:
Osterwalder
Masterclass,
2012

30. Source:
Osterwalder
Masterclass,
2012

31. Source:
Osterwalder
Masterclass,
2012

32. Source:
Osterwalder
Masterclass,
2012

33. Source:
Osterwalder
Masterclass,
2012

34. Source:
Osterwalder
Masterclass,
2012

35. 2.
Customer
Development
(new
IP)
STEVE
BLANK

37. • Translate business
model hypotheses to
test with customers
• Develop an MVP of
the solution to test
with customers
• Continuous testing
of hypothesis.
• Careful analysis of
customer
interactions
• Pivot or proceed
• Product is refined
enough to sell.
• Build demand
through marketing
& sales.
• Business
transitions for
startup mode to
departments
operating in
functions
Customer Development Cycle

38. 3.
Lean
ERIC
RIES

39. ‘Lean’ methodology favours
experimenta[on over elaborate planning,
customer feedback over intui[on, and
itera[ve design over tradi[onal up-­‐front
development.

40. 3.
Lean

41. Why is all this important?

44. 4.
Customer
Segmenta6on
ERIC
RIES

46. A target customer is a group of poten[al
customers who share many characteris[cs
and who would all have similar reasons to buy
a par[cular product.

47. Milkshake

48. By choosing a single market to excel in, your
startup can more easily establish a strong
market posi[on, and hopefully a state of
posi[ve cash flow, before it runs our of
resources.

49. 5.
LEAN
ANALYTICS
15
October
2014
Entrepreneurial
Management
AlISTAIR
CROLL

50. THINGS GO WRONG.
COMMON TENDANCY IS TO CAPTURE DATA, BUT WE DROWN IN METRICS.
WE NEED A STANDARD SET OF METRICS NEED TO BE GUIDE STARTUPS
‘PIRATE OR LEAN ANALYTICS’ HELP ALIGN AND HOLD THE STARTUP ACCOUNTABLE
BUILD. TEST. MEASURE. LEARN.
Why do we need lean
analy[cs?
EVEREST
SESSION
#5:
INNOVATION
ACCOUNTING

51. Example: Analy[cs Funnel

52. 6.
TEAM
15
October
2014
Entrepreneurial
Management
NOAM
WASSERMAN

53. E V E R E S T
S E S S I O N
# 4 :
T E A M
16
October
2015
Company Rules
“Decide – take responsibility – be humble – never give up – show
ini[a[ve – laugh – don’t complain – find a solu[on – keep on – take
pride in your work – open your mind – embrace change –
collaborate – listen – improve daily – lead not follow.”
TEAM

54. RELATIONSHIPS, ROLES AND
REWARDS
16
October
2015
E V E R E S T S E S S I O N # 4 : T E A M
Source:
Founder’s
Dilemmas,
Noam
Wasserman

55. Ques[ons to ask yourself?
1.
How
well
do
we
co-­‐founders
and/or
team
members
know
each
other’s
professional
abilies
and
styles?
2.
How
can
we
learn
more
about
each
other
and
maintain
open
communicaon?
3.
What
are
the
things
we
have
a
hard
me
talking
about?
4.
Can
we
construcvely
discuss
them
now?
5.
How
will
we
keep
tabs
on
these
issues
so
that
they
don’t
fester?
6.
Are
we
clear
about
our
roles?
7.
Is
there
any
overlap
between
people?
8.
If
so,
what
are
we
doing
to
prevent
fricon
from
arising?
9.
What
are
our
plans
for
separang
the
areas
of
overlap
as
we
grow?
10.
Is
it
possible
to
configure
the
reporng
structures
so
that
friends
and
family
are
not
reporng
to
one
another?
11.
Do
we
have
a
“disaster
plan”
that
acknowledges
the
worst-­‐case
scenarios
that
could
result
within
our
team?
12.
Have
we
designated
someone
to
have
the
final
say
in
an
impasse?
13.
Have
we
had
frank
conversaons
about
what
might
happen
if
one
of
us
isn’t
scaling
well
or
has
to
drop
out
of
the
venture?
16
October
2015

56. DEVELOPING TALENT • GROWING VENTURES • OPENING MARKETS
Our Future Mabers
ENTREPRENEURIAL MANAGEMENT
E N T R E P R E N E U R I A L M A N A G E M E N T
CONCLUSION

57. Summary
• ‘Dig for your idea’ and be ready for Everest.
• Understand why we fail so you can succeed.
• Hypothesize, test & validate your assump[ons.
• Search, don’t execute for your business model.
• Talk to customers (get out of the building).
• Minimize waste, deploy resources efficiently.
• Build a diversified dream team.
• Use lean analy[cs to op[mize funnel.
• Have fun, it’s an amazing journey.
• Put MaRS to work. We are here to support you.

58. Thank you. "
"
"
Nathan Monk"
nmonk@marsdd.com"
@Cowboytweets"