dino signore - pressure points at 2nd stage
TRANSCRIPT
Annual Conference, April 23-24, 2014
Pressure Points at Second StageDino SignoreEdward Lowe Foundation
Pressure Points at Second Stage
Dino SignoreEdward Lowe Foundation
Edward LoweThe inventor of Kitty Litter®.
A successful businessman.
As an entrepreneur, he wanted to give back.
He created the foundation to support entrepreneurs.
Edward Lowe Foundation copyright 2013
Why Second-Stage Companies?Because we believe they have the greatest positive impact on the economy
Create jobs
Increase volume of income into the region
Attract outside capital
Attract companies and talent
Drive culture
Affect philanthropy
Edward Lowe Foundation copyright 2013
Recent Research shows:
About 1% of U.S. companies are responsible for 72% of job growth
Incremental growth is key, not large singular gains.Kunkle,G (2010)
Edward Lowe Foundation copyright 2013
Second Stage Companies
Growth Issues vs Survival
Intent to Grow
Capacity to Grow
Enterprise Composition:
Privately Held Businesses
10-99 Employees
Revenue $1 M to $50 M
Not all Businesses are Created Equal
So… What’s the problem?
Small firms fail far too often
How to spot a Second-Stager
Moves fast and faces complex problems, often many at the same time
Not attracted to traditional ways of learning
Content must be relevant instead of unique
Need to build systems so they can step away from the business
Too much business can trip them up faster than too little – capacity issues
How to spot a Second-Stager
Process everything through the lens of their business
Hard to gain their trust / High Trust level of Peers
Easily frustrated by bureaucracy
May love creating but not managing
Very positive
Strong internal locus of control
Change and Transition for the Leader and the Organization
The challenges of second stage
The Four M’s of No Man’s Land
Market Misalignment
The Four M’s of No Man’s Land
Outgrow Management Team
The Four M’s of No Man’s Land
Managing Money
The Four M’s of No Man’s Land
Model Does Not Scale
Second Stage Pressure Points
A lack of Management Experience of the Founder
Entrepreneurship Hubris
Inability to Give up Control
Centralized Decision Making
Second Stage Pressure Points
A lack of Industry Force Awareness: Threat of New Entrants
Focusing on Inputs and not Internal Capacity Building
Too far into the Weeds/ No Lower Level Boundary setting
Second Stage Pressure Points
Trust
Change Directions / Chasing Squirrels
Best Practices for SSEs
Professionally Facilitated Roundtables
Objective Input
Relevant Input
Accelerated Learning/JIT
Camaraderie
Perspective
Risk Reduction
Economic Gardening
Philosophy: Grow your Own
Tools: Strategic Team
Market Research Specialist
SEO Specialist
GIS Specialist
Leader Retreats at ELF
Leadership of Me
Leadership of My Organization
Leadership of My People
Power and Influence
Drop Dead Honest Organization
Performance Maturity
Our Message for Economic Development Efforts
Finding Balance
Edward Lowe Foundation copyright 2013
Edward Lowe Foundation copyright 2013