This presentation has evolved from a talk I gave at Silicon Beach 2012, via Tallinn University of Technology February 2013 to this version for the Executive Business Centre at Bournemouth University on 230413.
It is an introduction to the background and tools I use to help startups and early stage digital, creative and content companies build a robust business 'vehicle' to drive (sorry!) growth.
4. Start-up Stay-up
•You’re drowning in paperwork -
especially financial
•Quality of work is starting to slip
•Cash flow is bumpy
•Gaps appear in communications
•Team morale is not so great
•You feel overworked & stressed
10/12
6. “The unfortunate truth is only one percent of (tech
start-up) business proposals receive funding from
angel investors or venture capitalists or private
equity” – Startup Addict Blog
7. So think what the percentage is for entrepreneurial
companies that are NOT start-ups: agencies, content
producers, service companies etc.
Businesses that don’t scale.
15. Poor project
management so
jobs overrun
No ongoing job
profitability
analysis
They’re ‘busy’
, have
revenues, so
think it’s OK
No money to
invest in s@#t-
hot PM
End of year
accounts show
5% Net Profits
agency that
builds websites
for retail clients
16. Flat structure: 2
founders + very
young team
Founders get
jobs in & look
after clients
No-one managing
team so poor
quality control
Lowers job
profits, reduces their
biz dev effort, slows
growth
Founders have
to step in to sort
jobs out
social media
marketing/PR
agency
17. All early-stage businesses have –
under the hood - these
‘invisible inefficiencies’.
If you can identify these and reduce
them, you can ‘find’ the profit to fuel
growth organically.
(what ‘funding’ often does is allow these
inefficiencies to remain invisible)
22. They haven’t taken on board his distinction
between Invention and Innovation
INVENTION INNOVATION
23. They haven’t taken on board his distinction
between Invention and Innovation
INVENTION + INNOVATION
= ENTREPRENEUR
24. “This should be as demanding and exciting
as inventing the thing you do”
Every aspect
of it
An entrepreneur also innovates
the entire business that creates &
delivers the new thing they do
36. it’s a way of seeing and
understanding your
business.
37. it’s about how you use your
own creativity to innovate
your whole business
38. Let’s get closer to the real
world of running a business.
Let’s start by talking about
burgers.
39. THE NEW THING THAT YOU DO
BUSINESS ENGINE
BUSINESS STRATEGY
40. BUSINESS ENGINE
BUSINESS STRATEGY
THE NEW THING THAT YOU DO
Deciding where you want to go as a business and
planning how to get there
The mechanics of the business; how it functions
efficiently day-to-day
41. THE NEW THING THAT YOU DO
BUSINESS ENGINE
BUSINESS STRATEGY
42. OPERATIONAL
COMPETENCE
=
the skills to execute on
The New Thing That You Do
(The Invention)
Business Strategy
isn’t developed
Business Engine is
neglected
43. THE NEW
THING THAT
YOU DO
(Product/Service)
Process/
Workflow
Structure
Leadership/
Management
Business
Model
People/
Skills
Marketing
Turnover/
Sales
Net
Profits
57. Let’s look at one in more detail.
I’ve chosen this one because it’s at
the heart of the whole process.
Build an integrated Road Map
58. Q1 Q1Q4 Q4Q2 Q3Q3Q2
Example: an early-stage online
jewellery business that is growing fast
& sees opportunities for it’s own e-
commerce operation, partnering with
the big online retailers and opening
operations in China
Build an integrated Road Map
59. Q1 Q1Q4 Q4Q2 Q3Q3Q2
People/ Skills
Product/
Service
Process/
Workflow
Structure
Business
Model
Leadership/
Management
Marketing
Turnover/
Sales
Net Profits
YEAR1
YEAR2
750K
Team: 6
3rd party
sites
(too?)
flat
E-commerce
range
94K
Basic
Website
2 Founders
(designers)
UK
outworkers
60. Q1 Q1Q4 Q4Q2 Q3Q3Q2
People/ Skills
Product/
Service
Process/
Workflow
Structure
Business
Model
Leadership/
Management
Marketing
Turnover/
Sales
1.5m
Net Profits 150K
Full-time
MD
Free up
MD 50%
Shanghai
Warehouse
Bespoke
Service
Multiple rev
streams
Team = 15
people
Open in
China
YEAR1
YEAR2
Team: 6
3rd party
sites
(too?)
flat
E-commerce
range
94K
2 Founders
(designers)
UK
outworkers
750K
Basic
Website
750K
61. Q1 Q1Q4 Q4Q2 Q3Q3Q2
People/ Skills
Product/
Service
Process/
Workflow
Structure
Business
Model
Leadership/
Management
Open in
China
Turnover/
Sales
1.5m
Mgmt team
Net Profits 150K
Full-time
MD
750K 1m 1.35m1.25m1.1m800K 900K
Shanghai
Warehouse
Bespoke
Service
Multiple rev
streams
Team: 6 Hire studio
assistant
Hire
designer
Hire sales/
account mgr
Hire Shanghai
head
Team = 15
people
Promote
Ben to MD
Mgmt
training Ben
Ben: build
mgmt team
Ben: build
mgmt team
Marketing
3rd party
sites
(too?)
flat
E-commerce
range
94K
Basic
Website
2 Founders
(designers)
UK
outworkers
Limit of flat
structure
62. 1. Benchmark where you are: A
2. Draw your Vision: B
3. Build a Road Map
4. Identify real value & price accordingly
5. Equip leaders with innovation skills
6. Innovate your business model
7. Innovate & build your business engine
8. Get Management Information flowing
9. Operational/Strategic decision-making
10. Develop leaders’ business expertise
11. Develop/empower management team
63. Don’t derail your business by
thinking anyone can run one…
Invent
and Innovate!