start ups

Going Self-employed vs Starting a Growth Business

Self Employed need :

• To turn a pre-acquired skill/know-how into a service

• Portfolio (Evidence)

• USP

• Easy access to customers (i.e. contacts./ networks)

• Self-Confidence

• Basic business know-how

• Relatively high profit margin’s

• Cashflow

Entrepreneurs need:

• A team

• A large market opportunity.

• A WOW

• Key Partners/ Early Evangelists.

• A solution/ offer customers will buy/use.

• A “Market Validated Business Model” that is both repeatable, predictable and scalable.

• Profits

• Resources and Investment ££££

www.thebusinessbootcamp.org

Traditional Start-Up Model


Have an Idea

Get Idea Validation

Develop a business plan

Source Funding/ Resources

Launch Business

Valley of Death- See if anyone will buy

my product.

Get Set-Up Guidelines

Post- StartPre-Start

See Steve Blank, Four Steps to the Epiphany

Attempts to Premature Scale is the No 1 reason that ambitious business start-ups fail.- Source Start-up

Genome.

New Start-up Model


Whose the Customer?

www.thebusinessbootcamp.org 5

Do you know your customer?

The Problem Solution?

• Do you know what their problem is?

• How important is it to the customer ?-£££

• Why is it not being solved?

• Why are present solutions inadequate?

• Why now? – when does the problem become in need of a solution?


Minimum Viable Product-MVP

1. Hypothesis- “Product- Customer Fit”- Customers will buy my product idea because…..?

2. Evidence- What can I do to disprove/ prove my hypothesis?

3. MVP- A product that will test the hypothesis with customers


Whose your “first” customer

Customer- A person with a problem you can solve?

Segment – A group of customers that you can…

• Reach

• Convince to “test & trail” your MVP

• Be you co-developers

• Be your Evangelizers - Lead on to more custom/ new customers.


Customer Relations- Where there is Love there is growth?

Love = Growth

• Viral- Customers love you so they get at least one

other person to use/ buy i.e. Facebook, Spotify

• Customer Acquisition- You pay £££ to

market your product and the profit from the customers you gain is greater than the marketing costs??? (N.B. Margins often need to be high)

• Stickiness- Customers “love” you so they

keeping coming back for more e.g. Apple-MacDonalds.


Startups

• startup company ("startup"): A company, partnership, or temporary organization designed to address an unmet or less addressed customer need• often a company poised for rapid growth

• must be able to reach many people, and make money from them

• a new/small company != a startup, ... but most are

• often based on technology• low cost to enter market

• easy to reach many people

• high risk, high reward

A startup timeline

Funding timeline

12 Characteristics Of Wildly Successful Startups

1. Follow your dream. All successful entrepreneurs have an idea they want to pursue. They see an opportunity to solve a consumer or business need.

2. Take the risk. Winners understand and take the measured risks associated with launching a business that may include loss of money, possible failure and health risks. Even with a great product idea that has gained traction with customers, founders face stunning and daunting challenges.

3. Make the sacrifice. Those who start and grow a business will give up many personal benefits to be successful. Sacrifice will include time, relationships and other opportunities.


4. Be persistent. Great entrepreneurs never give up. They never stop trying. They somehow overcome every barrier and climb over and around all obstacles.

5. Know your customer. Successful entrepreneurs know the needs of their customers. They know everything about them. They know what they want, when, where and at what price.

6. Sell to survive and prosper. Winners know how to sell their products or services. They understand the customers’ satisfaction level with the current competitive offering, the price paid for the product, where it was purchased and details regarding product features, warranties and support.


7. Take care of your customers. Great entrepreneurs value their customers and go out of their way to take good care of them. These alert entrepreneurs work long hours to win their customers’ hearts and minds and labor every hour to retain and increase their buying activities. Without question, this attitude typifies the very best entrepreneurs.

8. Hire the right employees. Winners know how to find, select, hire, train, motivate, reward and retain great employees.

9. Value your employees. They also know how to keep employees happy and productive. Renowned business builders carefully watch over their employees like a shepherd over a beloved flock. They are kind, respectful, encouraging and highly supportive. This unique attribute is one of the powerful characteristics of award-winning entrepreneurs.


10. Establish a winning culture. They know that shared values, philosophies and behaviors align and combine to determine the future success of an enterprise. They establish a positive culture that inspires and motivates workers.

11. Call upon mentors. They call upon individuals with experience, skills and a network to guide them.

12. Communicate constantly. They regularly communicate with employees, vendors, investors, suppliers and customers about what’s happening in the business.

5 Traits All Successful Startup Entrepreneurs Have

1. Passionate

2. Motivated

3. Calculated

4. Educated

5. Tenacious

$ 15 B Valuation $ 2 B Valuation $ 4 B Valuation$ 500 M

Valuation

$ 1.2 B Valuation $ 500 M Valuation $ 1.5 B Valuation

start ups

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