fast growth forum 2014
Post on 14-Sep-2014
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Start ups need a child’s imagination
And a relentless desire to win
And some highly calculated risks
Prizes can be enormous
So how can you help yourself?
Understand Markets
Watch for Demand Signals Study People
Mobile changes everything
Changes which markets we connect
to
Even more in future
We live in a great place
London is on a roll
Learn to work on the network
New ways to tell stories
New ways to sell
New ways to work
New ways to raise money
10k business ideas
1k firms started
100 VC funded
20 IPO
2 market leaders
Nobel Prize in
Economics2006
ProfessorEdmund Phelps
Less than 10% of business ideas even get started
62% of venture investments are <1x
x<0.5 0.5<=x<1 x=1 1<x<2 2<=x<5 x>=50
10
20
30
40
50
60
% Cost % Value
Yes, start ups are really tough
You have no customers
No money
You and your team are fighting an imaginary war
Armed just with some big ideas
The extreme risk of 62% is definitely not for everyone, including many entrepreneurs and investors…..
.
In fact a 2% loss ratio for banks lending to SMEs is already pushing the
boundaries.
So if you feel comfortable managing risk, you might as well shoot for the moon
The capital which survives, creates businesses now accounting for 21% of US
GDP…..
1978 1981 1987 1995 1995 1997 1999 1999 2005
and $1.4tn in new market value
creating 440k new jobs
with $545bn in new annual revenue
serving >1bn customers
Source: HIS Global Insight
And in Europe we are starting to build waves of similar dimensions
So what should you be thinking about when you are starting a
business…
OpportunityOthers
Ownership
How big is the opportunity….
Who are the others….
What level of ownership is available….
Pick a field big enough to change the world
Moving to Maslow’s Web
CommunicationsClothing
Discretionary Non-Discretionary
Media
Entertainment
Shopping
Travel
Energy & Housing
Education
Food
Finance
Health
Safety
1993-2003 2004-2012 2012+
And in Europe we have no shortage of willing talent….
Child’s imagination
Relentless desire to win
Highly calculated risks
No short cut to being a grandmaster
“achievement is talent plus preparation.”- Malcolm Gladwell
You have to learn take risks
Time Emotions Money
What should you focus on in the business…?
OpportunityOthers
Ownership
CustomersConversationsConvenience
CostsCompetition
Maniacal focus on the customer….
Encourage conversations….
Offer new levels of convenience….
Leverage and manage cost structure…
Let the competition worry about itself…
So aim too high. The prize is huge and we all have an
amazing start just by being here
Embrace your 62%
@cape♯risk62