means & measures to increase start-up roi

Start-up Failure Rate: 95%!

Means & Measures To Increase Your Return on Invest

# 2 | © Centre for Leadership 2013-2014 – all rights reserved | [email protected]

Table of Contents

Start-up failure rate Dreams in vain What’s the problem? Break it down! Let’s dig deeper Means and measures to overcome Leverage points Means and measures in detail


START-UP FAILURE RATE


Official Investment Figures

• U.S. VC Investments in 2013: 29,545 Mio. $*

• German VC Investments in 2013: 4,680 Mio €**

* NVCA Yearbook 2014 ** BVK-Statistik 2013


Failure rate – official

• U.S.: 35% approx. (NVCA/WSJ) • Germany: 32.4 % (BVK Stats 2013)


Failure – a question of definition!

Shikhar Ghosh, HBS Study 2012: • 35% of all U.S. start-ups gone bankrupt /

out of business officially • 75% ROI on exit < capital invested • > 95% of all start-ups did not meet the

projected ROI


DREAMS IN VAIN


What investors dream about


What investors hope for


What investors typically get


WHAT‘S THE PROBLEM?


LET’S BREAK IT DOWN!


Young organizations either die or grow up!

Start-up Enterprise


The crucial period

Transition


Transition


Crisis

Decision


Support it!

Start-up Transition Enterprise


LET’S DIG A BIT DEEPER


Luzern Start-up Model


The CFL Development Model


To meet founder’s challenges


Fields of development

• Personal development: The founder becomes an entrepreneur

• Leadership • Personnel: recruit, develop, and change • Shaping an organization • Processes • Strategy


MEANS AND MEASURES TO OVERCOME THE TRANSITION CRISIS


Means and measures

• Business Leader Coaching provided by experienced business pros

• Start-up Development Workshops • Peer Coaching • General Management Consulting • Interim Management


Prerequisites

• There is neither time nor money to waste! • Supporting means and measures have to be

aligned to and integrated into the start-up development process.

• Support does not mean to substitute sequences of either individual or team learning curves but to accelerate necessary learning and development processes.


LEVERAGE POINTS


Leverage Points

(Keller, Price 2010)


Internal Alignment



Quality of Execution



Capacity for Renewal



Fundamentals

• Internal Alignment is crucial! • Quality of Execution has to be set up at

highest possible pace. • Capacity for renewal is what has to remain

from the start-up period.


Main challenge to face

Culture Change


And the devil is in the detail, e.g.:

• Setting up processes • Shaping structures • Diversification of responsibilities • Hierarchies • Bypassing of management levels • Founder’s micromanagement • …


MEANS AND MEASURES WE PROVIDE IN DETAIL


Business Leader Coaching

Every business issue is a personal issue, too. Every business challenge provides opportunities for personal development. Business coaching provides both: Business consulting in the different fields of building an enterprise from a start-up and coaching that fosters personal leadership development.


Start-up Development Workshops

• Work out immediate and viable solutions for current problems together

• Moderated and infused by business pros • Variable set-up:

– Whole start-up team – Dedicated start-up team members – Leaders of different start-ups


Development WS Process Model


Peer Coaching

• Peer coaching groups typically emerge from start-up development workshops

• Variable set-up: – Leaders of different start-ups funded by a given

incubator / accelerator / VC – Functional leaders of different start-ups

• Moderated and infused by business pros during the first five sessions


General Management Consulting

• Brain & body leasing to bolster up and enhance start-up business knowledge and performance for a given period of time (typically 6 months)

• GMC advises CEO and/or functional leaders during transition phase(s)


Interim Management

• Change Manager during transition phase(s) • Business Realignment

– Culture – Strategy – Portfolio – Organizational design – Board


CFL expertise

CFL business coaches, consultants, and interim managers provide you with a sound expertise deriving from their experience as business leaders in various industries. With our seniority we give direction and encouragement to start-up leaders in turbulent times. Not least it is our presence that makes the difference.


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Questions? Observations? Remarks? Any crisis to tackle?