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Uploaded byHariharan Muthusubramanian
Startingup makingsense
This document discusses strategies for startups. It begins by outlining the evolution of different types of startups. It then emphasizes the importance of understanding customers, having a clear strategy, and focusing on financial reactions to actions. The document provides models for competition, including strategies for weaker and stronger competitors. It stresses the importance of purpose, process, and people in an organization. Throughout, it stresses the importance of creating value for customers in order to succeed as a business.
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Startingup makingsense
- 1. 1 Starting UP.. Does yourbusiness mean business? M Hariharan Director Savoir faire Management Services Pvt Ltd
- 2. 22 Agenda The evolutionof a start-up Find your strategy Financials - What really matters Find your team – Hiring strategies
- 3. 33 Evolution of aStartup Technocrat / Professional Employee turned Supplier /Consultant Father’s Son Trader Idea entrepreneur – with Long Term Intention Idea entrepreneur - Serial Entrepreneur Entrepreneur by default
- 4. 44 Agenda The evolutionof a start-up Find your strategy Financials - What really matters Find your team – Hiring strategies
- 5. 55 One day Alicecame to a fork in the road and saw a Cheshire cat in a tree. Where do you want to go? was his response. I don't know, Alice answered. Then, said the cat, it doesn't matter.” Which road do I take? she asked
- 6. 66 Answer three questionsbefore taking the plunge Who is your Customer? Purpose of our existence What is the Value he expects? Identifying the unfulfilled need of the customer group What is your business? Your competence to meet the unfulfilled need
- 7. 77 Survival of thefittest “In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.” Charles Darwin (1809 - 1882), The Origin of Species 1859
- 8. 88 Do you thinkyou will exist because… You will be relatively unimportant in the giant’s scheme of things The giant has not gotten around to your area of business The giant could not because of possible government action
- 9. 99 Or… You fill animportant niche in the economy
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- 11. 1111 Lanchester Model This modelis based on two scenarios: i) Hand to Hand combat ii) Theatre campaigns
- 12. 1212 Hand to handcombat Involves linear relationship between the effectiveness of weapons and size of troops. Strategy for the Weaker player -The weapons are the 4 Ps - product, price, place (distribution), and promotion -Size of the troops is the market share
- 13. 1313 Strategies for WeakCompetitors Companies with lower market share should segment the market. Thereby compete one to one with the well entrenched foe. Effectiveness of weapons is elevated to the same weight as that of troops. Thus can isolate the factors of marketing strategy .
- 14. 1414 Theatre campaign Relationship betweenloss rate of troops with (1) the size or number of opposing troops and (2) the effectiveness of the killing power of each troop. Strategy for the Stronger player -3 to 1 rule -Capture and kill proportionately
- 15. 1515 Strategies for StrongCompetitors Companies with larger market share should resist segmentation of the market. Capture and defend market share, not next quarter profits. Increase market share by attacking competitors within shooting range. Defend against competitors launching their own attacks. Higher the market share higher the “competitor casualty”.
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- 17. 1717 Agenda The evolutionof a start-up Find your strategy Financials - What really matters Find your team – Hiring strategies
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- 19. 1919 The goal…. NecessaryCondition is different from the Goal of the organisation Fulfilling every stakeholder other than investor is Necessary Condition but not sufficient condition by itself Making money is the goal of the organisation Firm cannot make money ignoring the necessary condition Firm cannot ignore making money while pursuing the necessary condition H H
- 20. 20 For Every ActionThere is a Financial Reaction
- 21. 2121 Fixed Assets Working Capital Share Capital +Reserves Loaned Funds Net Worth Source of Funds Application of Funds
- 22. 2222 For every actionthere is a financial reaction Profit ROI Cash flow Absolute Relative Survival Revenue CostInvestment Men Machine Methods Material
- 23. 23 Search for theSource once you are clear about the Application
- 24. 2424 Nowhere man He isa real Nowhere Man, sitting in his Nowhere Land, making all his Nowhere plans for nobody, Doesn’t have a point of view, knows not where he’s going to, isn’t he a bit like you and me? John Lennon The Sergeants’ Mystery Tour (1965-8)
- 25. 2525 Agenda The evolutionof a start-up Find your strategy Financials - What really matters Find your team – Hiring strategies
- 26. 2626 Usian Bolt, Jamaica AsafaPowell, Nesta Carter, Usain Bolt and Michael Frater,, Jamaica 9.58 x 4 = 38.32 sec Record is lesser than 9.58x4! It is…37.10 sec 100 m Sprint Olympic Record 4 x 100 m Medley Olympic Record > Or = Or < 9.69 sec
- 27. 2727 After having considered,"this man can accomplish this, by these means", let (the king) leave with him the discharge of that duty.
- 28. 2828 3 Ps toProsper Purpose (Customer Value Creation) Process (Aligned to meet the Purpose) People (Aligned and Enable Alignment of Process to Purpose)
- 29. 2929 If we haveto survive… We sustain profitable growth Our customers buy from us again and again We offer Good Quality products/Services at low prices Eliminate Waste Create Value for the Customer Inputs Process
- 30. 30 Have a satisfiedcustomer to have satisfied investor Thank you hari@sfalignment.com www.sfalignment.com