It is a SIMPLE Down-to-Earth Working manual for an entrepreneur-to-be – from foundation to expansion (maturity= business as usual)
For different stages: Things and issues to be tackled, agreements, problem identification, critical capabilities needed in different stages, how to secure those capabilities are available, milestones and way of acting with them…
KEEP the main focus on organisational development and management practices (our course topic)
My own version of BRL (Business Readiness Level –”thermometer”)
Like a good manual – it has a structure and content pages that lead quickly to the right topic area when your customer ”holder of the manual” has a problem in their hands
This is a presentation from 2011 I bumped into on customer-centric innovation. While my thinking has somewhat evolved, it's actually still quite relevant :-)
A New Value Framework for Creative Businesses - BBH Labs at SPOT Conference 2014Agathe Guerrier
A talk given by Agathe Guerrier, Head of BBH Labs in London, at SPOT conference in Aarhus in May 2014, outlining a point of view on new types of ideas that can drive growth for creative businesses.
Does silicon valley style work in your place?TAKA KONDO
In many places, people have been trying to build their own “Silicon Valley”. But none of them were successful as long as I know. Look at the world from a different perspective, there should be better examples. It might be old but new style. This slide shows my thoughts on starting a business outside USA.
Steve Denning: Radical Management Vortrag am Internet-Briefing Sep13-2011Walter Schärer
‘Radical Management’ is a set of 5 principles. There are only two types of organizations: The ones that love and delight their customers and the others. Amazon, Apple, Salesforce are organizations that have succeded despite fierce competition due to delighted customers.
What’s their management principles?
Speech by Stephen Denning at Reto Hartinger’s Internet Briefing in Zurich.
This is a presentation from 2011 I bumped into on customer-centric innovation. While my thinking has somewhat evolved, it's actually still quite relevant :-)
A New Value Framework for Creative Businesses - BBH Labs at SPOT Conference 2014Agathe Guerrier
A talk given by Agathe Guerrier, Head of BBH Labs in London, at SPOT conference in Aarhus in May 2014, outlining a point of view on new types of ideas that can drive growth for creative businesses.
Does silicon valley style work in your place?TAKA KONDO
In many places, people have been trying to build their own “Silicon Valley”. But none of them were successful as long as I know. Look at the world from a different perspective, there should be better examples. It might be old but new style. This slide shows my thoughts on starting a business outside USA.
Steve Denning: Radical Management Vortrag am Internet-Briefing Sep13-2011Walter Schärer
‘Radical Management’ is a set of 5 principles. There are only two types of organizations: The ones that love and delight their customers and the others. Amazon, Apple, Salesforce are organizations that have succeded despite fierce competition due to delighted customers.
What’s their management principles?
Speech by Stephen Denning at Reto Hartinger’s Internet Briefing in Zurich.
By the end of this module you will have a clear understanding on whether or not a creative career is the correct pathway for you. This module aims to put a spotlight on creative, self- employed mind sets, whilst also discussing the emerging trends in creative entrepreneurship and distinguishing between a creative brain versus a business brain.
There is considerable talk about innovation in businesses of all sizes, from startups to multinational public companies. “Innovation” and “innovate” are the most overused words in business. Is innovation a specialty or can it be cultivated by an entire organization? How do you innovate? And is there a blueprint for innovation? We explore these questions, and how the key to innovation is ideation, in our first Slideshare presentation!
Disruptive innovation adds enormous value and margins to companies. If a company can create a new industry, this growth is exponential.
Yet, few companies do it well.
Yet, within it, innovation holds its own paradoxes: regular innovation creates expectations from investors and customers. Once the rate starts falling, the company is almost penalised for it, disproportionately.
Most companies pay lip service to innovation.
By remaining young at heart, a company can make the fundamental changes required to become innovative, outside of anecdotal changes that will be short-lived and that will not lead to a high innovation index.
Dual Transformation - How to Reposition Today’s Business while Creating the F...Ragavendra Prasath
Dual Transformation framework will help incumbent organizations stay ahead and not get into obsolescence. One of the interesting thing, I learnt or observed from Proctor and Gamble (P&G) is Problems of predictability and How US$ 10 Billion (as of 2017) sales making Pampers was born.
Dual Transformation approach is proved by solid examples from various companies such as Aetna, Adobe, Singapore Post, Amazon, GBS Bank and many more.
Transformation A = Change the ‘How’ you deliver i.e. finding more effective and efficient ways to address the customer needs to maximize re-silence of your existing / historical core business
Transformation B = Creating the new ‘What’ you deliver i.e. The process of making the complicated → simple, expensive → affordable always grows markets.
This is based on the seminal work done by Harvard Business School Late Prof. Clayton Christensen during early 1990’s on “Theory of Disruptive Innovation”.
Inspiration & Courtesy to books and research reports
1. The Innovator’s Dilemma - Late Prof. Clayton Christensen
2. Theory of Disruptive Innovation - Late Prod. Clayton Christensen
3. The Structure of Scientific Revolutions - Late Thomas Khun
4. Dual Transformation - Mark W Johnson, Scott D Anthony, Clarke G Gilbert
5. The First Mile: A Launch Manual for Getting Great Ideas Into the Market - Scott D Anthony
How To Fail: 25 Secrets Learned through FailureTaylor Davidson
25 Secrets Learned through Failure, by Taylor Davidson at Unstructured Ventures.
Visit the post on unstructuredventures.com/uv (short link to post: http://tinyurl.com/howtofail ) to add to the discussion, share your lessons learned from failure, and view more.
This presentation is based on two books - "The Leader's guide to Radical Management" by Stephen Denning and "Joy Inc" by Richard Sheridan. The problems of Traditional management, and the shift towards Radical management along with Innovative practices followed at Menlo Innovations are covered in this presentation.
UE Startups -- 9 Factors in Raising Funding in Silicon ValleyPeter Szymanski
9 Factors Silicon Valley investors consider for European startups, how to choose an angel or venture capital investor, and market trends that support growing a startup outside the USA.
In the quest for innovation, companies all over the world are embracing the need for customer insight to drive product development, with many corporates investing in innovation labs with user testing facilities, and embarking on large scale customer research.
These kinds of undertakings do not come cheap - so when you do choose to invest in customer research, how do you make sure you get the most out of your spend?
Here's Wilson Fletcher's view on getting the most out of user research and the best way of implementing it to consistently drive successful innovation.
As presented by Lauren Argenta at Wilson Fletcher's Sydney event on 7th April 2016.
By methodically approaching innovation, organizations and individuals can generate ideas, stimulate creativity, and ultimately unlock cool. The UNLOCKING COOL presentation is typically delivered as a keynote speach with the slides used as a reference for the discussion.
The way businesses need to organize and behave has fundamentally shifted. Across industries, companies, and organizational functions, we have heard many of the world’s most innovative companies echo the same challenge: businesses must urgently embrace a more nimble and entrepreneurial approach in order to stay competitive. We call this challenge of how big companies can leverage scale while staying innovative “big entrepreneurship.” This report aims to deconstruct some of the complex challenges around big entrepreneurship and provide actionable insights for business leaders.
This report was created by Fahrenheit 212, a global innovation strategy and design firm. We define innovation strategies and develop new products, services, and experiences that create sustainable, profitable growth for our clients. We challenge the belief that innovation is inherently unreliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients' businesses.
By the end of this module you will have a clear understanding on whether or not a creative career is the correct pathway for you. This module aims to put a spotlight on creative, self- employed mind sets, whilst also discussing the emerging trends in creative entrepreneurship and distinguishing between a creative brain versus a business brain.
There is considerable talk about innovation in businesses of all sizes, from startups to multinational public companies. “Innovation” and “innovate” are the most overused words in business. Is innovation a specialty or can it be cultivated by an entire organization? How do you innovate? And is there a blueprint for innovation? We explore these questions, and how the key to innovation is ideation, in our first Slideshare presentation!
Disruptive innovation adds enormous value and margins to companies. If a company can create a new industry, this growth is exponential.
Yet, few companies do it well.
Yet, within it, innovation holds its own paradoxes: regular innovation creates expectations from investors and customers. Once the rate starts falling, the company is almost penalised for it, disproportionately.
Most companies pay lip service to innovation.
By remaining young at heart, a company can make the fundamental changes required to become innovative, outside of anecdotal changes that will be short-lived and that will not lead to a high innovation index.
Dual Transformation - How to Reposition Today’s Business while Creating the F...Ragavendra Prasath
Dual Transformation framework will help incumbent organizations stay ahead and not get into obsolescence. One of the interesting thing, I learnt or observed from Proctor and Gamble (P&G) is Problems of predictability and How US$ 10 Billion (as of 2017) sales making Pampers was born.
Dual Transformation approach is proved by solid examples from various companies such as Aetna, Adobe, Singapore Post, Amazon, GBS Bank and many more.
Transformation A = Change the ‘How’ you deliver i.e. finding more effective and efficient ways to address the customer needs to maximize re-silence of your existing / historical core business
Transformation B = Creating the new ‘What’ you deliver i.e. The process of making the complicated → simple, expensive → affordable always grows markets.
This is based on the seminal work done by Harvard Business School Late Prof. Clayton Christensen during early 1990’s on “Theory of Disruptive Innovation”.
Inspiration & Courtesy to books and research reports
1. The Innovator’s Dilemma - Late Prof. Clayton Christensen
2. Theory of Disruptive Innovation - Late Prod. Clayton Christensen
3. The Structure of Scientific Revolutions - Late Thomas Khun
4. Dual Transformation - Mark W Johnson, Scott D Anthony, Clarke G Gilbert
5. The First Mile: A Launch Manual for Getting Great Ideas Into the Market - Scott D Anthony
How To Fail: 25 Secrets Learned through FailureTaylor Davidson
25 Secrets Learned through Failure, by Taylor Davidson at Unstructured Ventures.
Visit the post on unstructuredventures.com/uv (short link to post: http://tinyurl.com/howtofail ) to add to the discussion, share your lessons learned from failure, and view more.
This presentation is based on two books - "The Leader's guide to Radical Management" by Stephen Denning and "Joy Inc" by Richard Sheridan. The problems of Traditional management, and the shift towards Radical management along with Innovative practices followed at Menlo Innovations are covered in this presentation.
UE Startups -- 9 Factors in Raising Funding in Silicon ValleyPeter Szymanski
9 Factors Silicon Valley investors consider for European startups, how to choose an angel or venture capital investor, and market trends that support growing a startup outside the USA.
In the quest for innovation, companies all over the world are embracing the need for customer insight to drive product development, with many corporates investing in innovation labs with user testing facilities, and embarking on large scale customer research.
These kinds of undertakings do not come cheap - so when you do choose to invest in customer research, how do you make sure you get the most out of your spend?
Here's Wilson Fletcher's view on getting the most out of user research and the best way of implementing it to consistently drive successful innovation.
As presented by Lauren Argenta at Wilson Fletcher's Sydney event on 7th April 2016.
By methodically approaching innovation, organizations and individuals can generate ideas, stimulate creativity, and ultimately unlock cool. The UNLOCKING COOL presentation is typically delivered as a keynote speach with the slides used as a reference for the discussion.
The way businesses need to organize and behave has fundamentally shifted. Across industries, companies, and organizational functions, we have heard many of the world’s most innovative companies echo the same challenge: businesses must urgently embrace a more nimble and entrepreneurial approach in order to stay competitive. We call this challenge of how big companies can leverage scale while staying innovative “big entrepreneurship.” This report aims to deconstruct some of the complex challenges around big entrepreneurship and provide actionable insights for business leaders.
This report was created by Fahrenheit 212, a global innovation strategy and design firm. We define innovation strategies and develop new products, services, and experiences that create sustainable, profitable growth for our clients. We challenge the belief that innovation is inherently unreliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients' businesses.
Brand Box 4 - What's The Big Idea? The Marketer's Ultimate ToolkitAshton Bishop
http://www.stepchangemarketing.com/
In this Slideshare presentation:
1. Brand Box 4 - What's the big idea? 2. Actions from insights 3. Why Innovation? 4. Innovation context 5. Bill Gates 6. Corporate and Social Responsibility 7. Successful Innovation 8. Purpose of creativity 9. Importance of Innovation 10. Importance of Innovation cont. 11. Innovation driving growth 12. Applied Innovation 13. Limitations of accepting status quo 14. Knowledge vs. Creativity 15. Innovation as a habit 16. 5 roles in ideas development 17. The triangle for successful innovation 18. Sources of inspiration 19. Crowd sourcing 20. Where's your suggestion box? 21. What is crowd sourcing? 22. Consumer generated content 23, Share with the masses 24, Generation C(ash) 25 User generated content radar 26. Case study: Smith's "Do us a flavour" 27. Case study: Goldcorp 28. Case study: Mitsubishi 29. Case study: InnoCentive 30. Case study: Wikipedia 31. Case study: the London bombing 32. Innovation tools 33. Scamper 34. Scamper: An example 35. Scamper: Adapt something to it 36. Scamper: Magnify it 37. Scamper: Modify it 38. Scamper: Put it to some other use 39. Scamper: Eliminate something 40. Scamper: Reverse it 41. Scamper Rearrange it 42. Parameter analysis 43. Sensory overload 44. Future casting ideas generation 45. Process review 46. Using experience to drive innovation 47. Innovation platforms 48. The Phoenix checklist 49. The Phoenix checklist cont. 50. Six thinking hats by Edward de Bono 51. Six thinking hats cont. 52. Evaluation methods 53. Potential impact plotting 54. "Yes" reasons
The "Genesis: Idea Stage" ebook explains the phase where the journey starts for every startup: the idea stage. This eBook is the first part of the "Startup Master Class" series covering the idea, problem/solution fit, product/market fit and scaling stages.
10 Most Common Myths about EntrepreneushipMara Mentor
Every entrepreneur needs to be true and honest about their startup route, their skills and ability, as well as their strengths and weaknesses.
Entrepreneurs are known to be risk takers, but for the average entrepreneur themselves, they believe non-entrepreneurs are the most risk-aversive people. According to them the safest path is to take control of their own lives, to construct their own world, and not be dependent on anyone. There is something about their stories which makes people uncomfortable.
An economy that supports entrepreneurship, weakens the profession by wrapping it in destructive myths. A great number of social and cultural myths have been formed around the idea of what it really takes to be an entrepreneur.
Within itself, innovation holds many paradoxes. It can become a rod for the back of a company. It can drive growth. It can motivate people. It can be very difficult to do. It may at some point become impossible to innovate a given product further. This article explores the paradoxes of innovation as a major driver of company success today.
Boost startup – 5 wonderful tips to succeeddamienwoods
Every month, more than 476,000 new businesses come into existence, which look for a business model that will help them succeed in this competitive market.
Over the years we’ve noticed that even amazingly creative and unique companies can struggle with getting ideas off the ground.
Whether it’s a simple fix to an organisational chart, or a bit of nudging in the right direction to help a company to launch a product idea with an impactful return on investment (ROI). Making improvements can turn a new product dream into a reality, and we know the value in having an extra set of eyes (and hands) to help with a company’s innovation efforts.
That’s why we put together this informational guide - to share some of our experiences and help even more teams and companies to leverage their inner talents and unlock their
innovation potential.
In this guide, we’ll share some of our best tips and tricks, including how to:
> Recognise trends and how customer preferences change;
> Focus on your company strengths in order to get the most out of innovation;
> Identify and remove common obstacles to innovation;
> Build levels of innovation that come naturally and are sustained - through the innovation value pyramid; and,
> Use practical exercises to future-proof your innovation efforts.
Who this book is for
Every business needs innovation. It’s commonly associated with it’s long-term success.1 It helps a business to solve problems, save precious time and money, and set it apart from the competition so it can grow faster.
Every employee within a company can contribute to innovation, too. Whether you’re the boss of an energetic startup company, an aspiring leader or an employee at an organisation, you’ll be able to use this guide to help build innovation in your professional scenario.
We’ll use examples of all sorts of different types of businesses: from software companies, construction firms, tech businesses to self-employed consultants. Even if your unique business model is not specifically discussed, you’ll be able to apply the methods without issue.
Innovolo is an active supporter of the idea that innovation is important (dare we say - essential) for any business to thrive.
If you’re interested in knowing why (and how to do it yourself), then read on!
Bradley Pallister
This module explores the ups and downs of within the mobile catering industry, the obstacles that may occur and how to maximise your start ups effectiveness and efficient.
Innovation isn’t the job of R&D or Marketing anymore. Innovation is everyone’s job – but most aren’t trained/experienced in innovation.
Whether you start at "small i" innovation or "BIG I" Innovation - can you really afford NOT to improve your innovation capabilities?
Similar to Management manual for a start up entrepreneur - managing teams and leading new ventures. pozzo di borgo charles (20)
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
2. 1
“A legendary hero is usually the founder of something—the founder of a new age, the founder of a
new religion, the founder of a new city, the founder of a new way of life. In order to found something
new, one has to leave the old and go on a quest of the seed idea, a germinal idea that will have the
potential of bringing forth that new thing.”
— Joseph Campbell, Hero with a Thousand Faces
Every entrepreneur is sure that his trip is unique. He is going to his start-up vision without a roadmap,
and think that none model can help him. When a start-up is succeeding whereas others are failing, we
could think that lucky is big part on this process. But it isn’t. As Campbell say above, the story’s frame
is always the same. The road to a succeed start-up is well established and understood. Reproducible
path to success does exist.1
1
From Steve Blank
3. 2
Table of Contents
I. The Idea..................................................................................................................... 3
A. Innovation & New Economy .............................................................................................. 3
B. Pivot................................................................................................................................. 4
II. The Team................................................................................................................... 6
III. Learning & Failures................................................................................................. 7
IV. Development by Customers.................................................................................... 7
V. Choose the Business Model........................................................................................ 8
A. Long Tail ........................................................................................................................... 9
B. Economic model of free..................................................................................................... 9
C. Economic model of “Freemium” ........................................................................................ 9
D. Economic model of “the Balt and the Hook” .................................................................... 10
E. The multi-sided platforms................................................................................................ 10
F. Open business models..................................................................................................... 10
VI. Protection ............................................................................................................ 11
A. IPR.................................................................................................................................. 11
B. Accounting...................................................................................................................... 12
VII. Funding ................................................................................................................ 12
A. Life Cycle & Venture Capital............................................................................................. 13
VIII. Business Readiness Level ...................................................................................... 14
4. 3
I. The Idea
“And what if we can create this?” The Idea is the easiest part. You must ask yourself two questions to
quickly validate your idea:
Does it make a difference to your life?
Do you will pay for it?
If you have not answered "yes" to both questions, put it in a trash can. This is not scientific, but it seems
pretty generally accepted: The best ideas fill a startup of our needs. Not the neighbor. Ours. If your
solution solves your problem and you'll be your own happy and satisfied customer, there is a good
chance that others are in the same situation.2
A. Innovation & New Economy
It is important to define the HT Business accorded to the start-up. We call that New Ventures. The
“New Economy” represents nowadays the “substitution of knowledge and information for physical
assets”. There are huge investments in the IT sector. Technology is changing all time, that’s why also
there are falling prices. (Lower inflation and faster growth both).
Innovation is the word you must learn. You must innovate to stay in the course, stay in the market.
With the technology, the market is uncertain, and there is competitive volatility.
As a future entrepreneur, you need to understand these terms. A market uncertainty means that
consumer fear, uncertainty and doubt (FUD). Customer needs change quickly, and they can buy
whenever they want. There is now an anxiety to stay with the technology from the customer.
3
2
From Stéphane Guerin
3
By newentreneurship.nl
5. 4
Technology is also very uncertain like I said before. We are not 100% sure that the new innovation will
function as promised, whereas the timetable of the new product development. Ries told us also that
there is an ambiguity with the supplier. He may not be able to fix customer problems with the
technology. Obsolescence is also a “master word” in this sector.
You need to know also that everyone can be your competitor in the next morning. There are not rules
in these type of sector. It’s opened to everyone. Competition between products classes and between
different brands focusing on the same product. (E.g Apple & Samsung).
Like Eric Ries say:” A start-up is a human institution designed to create a new product and/or service
(business) under conditions of extreme uncertainty.”
Market
Uncertainty
Technological
Uncertainty
Competitive
Volatility
Marketing of
High-Technology
Products &
Innovations
Figure 1 - High-Tech Environment, based on original ideas by J.Mohr & Eric Ries
B. Pivot
In the learning process iterations, a startup can be discovered by field returns with real customers that
the product is not suitable, it does not meet a need. However, during this learning process, it is possible
that the startup has identified another need (often related to the first product). When the startup
exchange product to meet the new needs identified, is said to have made a "Pivot".
6. 5
4
The "market pivots" are therefore to change the customer segment targeted after finding that initially
targeted segments do not bite the bait. There is also the "pivotal distribution models," where designers
will spend a direct distribution model to an indirect model, or vice versa. There is also the
"monetization model pivots" between indirect models (often advertising) and direct models freemium,
subscriptions).
Warning: the real pivot is not to simply change of activity. As the name suggests, it is simply "rotate"
around a core competence.
Note that a pivot can equally apply to a business model change. A startup can be rotated several times
during its existence.
Listening weak signals - remarks annodines appearance of customers - is necessary to know when to
engage in such a turning point. Another key to a successful transition: building on a cohesive
management team that does not fear change. Thus, Gilles Babinet, multientrepreneur, the current
"Digital Champion" with the European Commission states: To be successful a pivot, it is imperative to
rely on a strong management team that will lead the change as a pivotal leads to questioning the entire
operation of the business, and even its purpose.
5
Examples of famous pivots abound. Among them we can mention the IBM computer company that
has diversified its activities becoming an SII in the 1990 Marginal once, the service now accounts for
55% of its CA. More recently, the example of the most legendary pivot of social networks comes to
4
From techinasia.com
5
By Eric Ries, The Lean Start-up
Product =>
Optimization
Strategy => Pivot
Vision
7. 6
Twitter. Originally a social network called Odeo where users can find and subscribe to podcasts,
become a micro-blogging platform with the idea of Jack Dorsey and Biz Stone.
II. The Team
Can I create a company? If I can succeed of my fails? Am I a good manager? An artist?
Launching your new team is also very important. Your new venture team is gonna help you to move
your new venture from an idea to a fully functioning firm. Notice that usually, the team doesn’t come
together in the same time. When your new firm can afford to hire additional personnel, your members
will come gradually. Do not forget that team involves more than paid employees.
Creating a new venture is dangerous. If you do not like failure, don’t create your start-up. Indeed, new
ventures especially have a high propensity to fail. This high failure rate is due in part to what
researchers call “the liability of newness”, which means that companies often falter because people
who start the start-up cannot adjust quickly to their new roles, and because the start-up lacks a “track
record” (good experience) with sellers and buyers. One of my good friend is creating a start-up on the
manufacturing dehydrated nuts. He is looking for the person who is going to associate with him : a
chef with stars? A food critic? A dietician? A Nutritionist? You must see what the person you want is,
and how she can grow up your start-up. Many people are focusing on their weaknesses, and hire
someone in this sector. Assembling a talented and experienced new venture team is one good path
that firms can take to overcome his weaknesses and limits.
Founding a start-up is an art. Founder(s) have a significant impact on the manner in which the new
venture team takes shape. Your start-up is the partition you compose. A majority of new venture are
started by more than one individual. So it is believed that new ventures started by a team rather than
a single entrepreneur have an advantage.
Team brings more ideas, resources, talents, psychological support and moreover, contacts. You must
have a lot of contacts before creating your company.6
The team is essential, as employees and Board of Directors (if the new venture organizes as a
corporation). Concerning the first employee, it vary in terms of how quickly startup need to add
personnel. The founder can work alone for a certain period of time, and need an employee after.
Employee are a huge expense, so be very careful and serious and you will hire. A bad expense for an
employee can destroy a start-up.
Finally, the board of member is here to well-managed the startup. (Typically made up of both inside
directors & outside directors). BM has two main functions: provided guidance (obtain input and advice
6
By Waseset Founding Team in Prentice Hall, 2006.
8. 7
for the founder(s) and CEO), and lend legitimacy (famous and well-known person give credibility to the
start-up).
By the way, a start-up can also have a board of advisors. They provide counsels and advice, but they
don’t have legal responsibility. An advisory board can be set up for a specific issues, or just for general
purposes.
III. Learning & Failures
It is essential to know how you failed, because you will, but most important, how these failure are good
for your start-up. Anticipation is the first thing before failing. Market, especially in new technologies,
is changing all the time. If you are not proactive, your startup will die in a few. Moreover, you have to
be reactive also. If you think that you failed and now it is too late, you’re wrong. You must respond
promptly when problems arrive. Jukka Muilu from Energia Kolmio say that if business plan doesn’t
work, you have to have a plan B, plan C…
Do not be optimistic as well, your road to create a startup is treacherous. You must be rational, and
show to your team that you have and you want a good rational behavior. Especially when the market
is plummeting, you have to have a good behavior.
The valor of Energia Kolmio are Passion, respect, equality and 100% Performance. And these valor
allows Energia Kolmio to reach a turnover of 22M$ in 2013 and to exist for 20 years.
IV. Development by Customers
A new venture has to be very carefully in its business model. Shareholders have to see which the best
system is, are they going to take the same business model as traditional companies, or a new model?
It really depends of the sector of the company, his culture and the leadership of the shareholder. Lots
of startup use “lean start-up”. This concept was created in the Silicon Valley during 2008, mostly by
high-tech startup. It is the validated learning, the experiment and the iterative design. Startup have to
do always innovation, in order to create radically successful business. Steve Blank’s theory of
“customer development” is one of the basement of the lean startup. We can degage 5 major points
on this:
1. Get out of your home! You cannot create a company only in your desk, you have to move, see,
and meet a lots of different environments.
2. You need to understand your market. The kind of market defines the kind of strategy you will
do. Challenges depend on market.
3. Entrepreneurships need find a market for the product, not the opposite. Stop seeing always
the stereotypes and meeting real customers.
4. A startup go within 4 steps of increasing: customers discover, customer’s validation, creation
of customers and finally, society creation.
9. 8
5. Startup success with learning and iteration! 7
V. Choose the Business Model
The world is changing, and our lifestyle too. Companies must adapt themselves to “stay in the sector”.
So BM are always changing too. If you don’t like changing, don’t create a company. If you don’t like
risks, don’t create a company. And change is risky of course.
7
From Eric Ries in the Lean Startup, from the ideas of Steve Blank
10. 9
A. Long Tail
The so-called economic models of "long tail" aim to "sell less more" offer a great number of niche
products, each of these products being sold relatively rarely. Aggregate sales of niche products can be
as lucrative as the traditional model where a small number of bestsellers is the essential income.
Economic models of "long tail" must be accompanied by low storage cost and efficient distribution
platforms ensuring good visibility for niche content.
Examples: Netflix, eBay, YouTube, Facebook, lulu.com...
For Anderson, three factors have enabled the emergence of this model:
The democratization of production and the falling cost of technology tools to produce music,
short films or software
The democratization of distribution of digital products via the web (reducing storage costs,
communication, transaction,)
The lower research costs in linking supply and demand (via search engines, reviews, user
ratings,)
B. Economic model of free
In the economic model of free, a segment of important customers at least has the opportunity to
benefit continuously from a free offer
Different configurations make the free offer possible. The segment that does not pay is "subsidized"
by another component of the business model or another customer segment
Examples: Metro (free newspaper), Flickr, Skype, Google,...
Three distinct approaches make it possible to free a viable business model BM:
Advertising in multifaceted platforms
The freemium model (free basic services with premium services optional)
The model of "bait and hook" that a free or inexpensive initial offer attracts consumers in
repeat purchases stitches.
C. Economic model of “Freemium”
11. 10
- The word "freemium" was invented by Jarid Lukin, and popularized by the investor Fred Wilson on
his blog.
- The economic model "freemium" is a hybrid model that combines free basic services and paid
premium services
- The basic premium customers is usually <10% of service users
- In a freemium model, key indicators are: the average cost of the service of free users and premium
conversion rate
D. Economic model of “the Balt and the Hook”
The model of the bait and the hook:
- This is a business model that includes an attractive initial offer inexpensive or free, encouraging future
repeat purchases of products or services
- Model also known under the names "loss leader" or "razor and blades" (cf. Gilette)
- Goal: Customer Captivity
- Examples: mobile phone subscription, razors and blades, printers and cartridges, coffee machines
and capsules...
E. The multi-sided platforms
- This is an economic model that connects at least two groups of distinct but interrelated clients.
- They only have value if the other client groups are also present because the platform enables
interactions between groups
- To grow in value, a multifaceted platform needs to attract more users, which is called the network
effect
- Examples: Visa, Google, eBay, Facebook, Microsoft, Windows...
F. Open business models
- Create and copy of the value by working systematically with external partners
- This collaboration can be exercised in the sense of "outside in" exploitation by the company to outside
ideas) or in the sense of "inside-out" to external partners bring ideas or unused assets by the
organization)
- See the work of Henry Chesbrough on Open Innovation
- Examples: Procter & Gamble, GlaxoSmithKline, InnoCentive ...
Example of my own Business Canvas with Egamebling (the startup about Betting in Esport):
12. 11
8
VI. Protection
A. IPR
So you decided to continue? Wonderful, my book is not finished for you. Now that you are sure to
keep going and go furthermore, you have to protect your capabilities. Your IPR actions & strategies
have to be perfect, you know as much as me that there are every day lawsuits for plagiarism.
Don’t forget that your idea can be protected, once they have been materialized, as the result of a
human intellectual effort. The Intellectual Property Right are your foundation, and your protection.
In technology sector, patents are the strongest IPR. The holder can exploit the invention during 20
years, and prevent others to producing, exploiting this product or process who is now a patent. To
grant a patent, you must have 3 requirements: Novelty, Inventive step and an industrial application.
Notice that to apply for a patent, it takes time and money….so do an analysis first!
Few numbers:
8
From my personal Business Plan of “EgameBling” Startup
13. 12
700 000 patent applications field per year world-wide
4 000 000 patents in force world-wide
55 000 000 patent documents available world-wide
5%-10% of the knowledge which is written in the patent is containing in others sources as well9
Trademark can also protect your services/products. This is a marketing tool, consumers can identify
your start-up with this. (Colors as Orange of Hermès, drawings, designs, writing style…”. Copyright is
also another system which defends your start-up.
B. Accounting
The most important early activity and good command cash. This is also valid for both a startup, but
also for a traditional society. The accountant must provide reliable and timely information to
entrepreneurs. The first requirement is to perform a monthly analysis of their cash burn, neutral and
profitability, but also to help entrepreneurs in their cash flow forecasts to 3, 6 or 12 months.
The priority of the entrepreneur is to focus on its business (market, customers). But it must also be
involved in its management / accounting / paperwork to run his business and avoid big problems with
the sprawling administration. He has an interest in carefully selecting his accountant.
Jannifer Warawa explains us why every start-up must have an accountant. They can provide a new
perspective, a professional image of and for the startup. This guy will also give you a planning. They
understand tax as well and can analyze data for growth and profitability opportunities (if you are taking
an experienced one).
Indeed, 89% of business owners agreed that working with an accountant was a critical element of their
success.10
VII. Funding
Funding is essential to create a startup. Without money, no company of course. That doesn’t change,
however, the way we can have this money is changing. You can borrow from banks, from your love
funds (family, friends…), hedge funds, business angels and even with crowdfunding. Of course, the
market has to be good, with a great horizon. Lots of simulations are done to see that.
People are also always the central key in a company, people as shareholders, distributors, suppliers,
customers. It’s like a 360 vision, we have to be good everywhere and at every time.
Numbers concerning the Crowdfunding:11
7B$ in 2012 on 308 Website
9
By Juha Saukkonen, IPR, slide 11
10
From a study conducted by Sage among U.S
11
By Similarweb.com
14. 13
Growth of 81% compared to the last year (2012>2011)
Forbes attends a market of 1000B$ in 2020
Kickstarter the first with 32,4M visitors in October
A. Life Cycle & Venture Capital
The life cycle of a business is closely linked to its capital. Private equity is grouped into several types of
investments:
• Venture capital involved in the innovation and enterprise creation phase. We do not yet know if the
company will be profitable. This is the starting phase of a company. There may be several "venture
capital".
• The capital development comes just after the venture capital. The business needs to grow and
develop after the boot process. As for venture capital, there may be several "growth capital" for a
company.
• Then the capital transfer takes effect. It was at that time that the company will have a big choice (or
will not have it at all!). Either it is consolidating at further increasing its capital, or it retransmits the
capital. If it retransmits it happens then a reversal capital. Funds specializing in turnaround then
support them to allow companies in difficulty to recover by providing capital and human resources.
These two elements are essential in the recovery of a complex situation.
• Finally, there are several outlets in the company's life cycle.
12
12
By Alberto Balatti, Board Member
15. 14
Venture-capital funding may be toxic for startup. It is dilutive, distracting, burdensome and doesn’t
help a lot. But, if you raise money at a somewhat later stage of your entrepreneurial journey, you will
see that a lots of inconvenient will disappear.
VIII. Business Readiness Level
1
•Find the Business Model
2
•Conduct a Market Study (Primary & Secondary Researchs)
3
•Be Sure that the solution solved the issue
4
•MVP Prototype
5
•Validation <=> Pivot
6
•Revenue Streams, Customer Segments, Channels & Relationships
7
•MVP Fidelity
8
•Qualificate the entire process
9
•Real business in an operationnal environment