Enterpreneur (paying attention to the details)
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Transcript of Enterpreneur (paying attention to the details)
Paying attention to Details, its all in the Details
By : Mr.Mufaddal Zakirhusain
Pop Quiz
When starting a business, which is the most important? 1) Be laser focused 2) Develop a detailed plan – and stick to it 3) Raise large amount of capital 4) Hire only A players 5) None of the above 6) All of the Above
Decision Making • Are decisions opinion driven or data driven ?
• Are decisions informed by vision ?
• Is optionality increased or decreased by decisions ?
• Is the right question being asked ?
• How much data is required for knowledge or insight?
• What are the potential outcomes ?
• What is the right acceptable level of risk?
• Does the range of options affect outcomes?
• Are we measuring the right factors?
• How long is our decision loop ?
Key Rules of Measurement • Measurement drives behavior
• Data should drive decision making
• Measure your competitors not just yourself
• Understand your Battlespace
• Data drives knowledge , knowledge drives advantage
• Superior Situational Awareness starts with superior data collection
OODA Loops
• Operate inside your competitors loop by gaining angles
Spirally Developed Strategy Code & Fix
1. Develop a Vision of the Future 2. Check Strategy 3. Select Battleground Market 4. Understand your competitors 5. Generate Tactics 6. Find & Win Lighthouse Customers 7. Adjust with Feedback 8. Dominate the Battlespace 9. Find the next Battleground 10.Repeat steps 2-9 until the war is won 11.Prepare for the next war
Measurement and Feedback Loops
• Benchmark yourself – Time & Resources, Goals and Objectives
• Observe your customers - what are their priorities, requirements and decision process
• Track your competitors – understand their value proposition
• Understand your range of moves – find the one right question to answer
• Plan your move – judo your competitors strength
• Force Action – make competitors play your game
• Review results – learn from failures, pursue success
• Adjust strategy – Be flexible , stay fluid
In the Beginning
Which details Don’t Matter
• Business Plan
• Business Models & Financials
• Work Environment
• Venture Brand
• Capital
Business Plan / Presentation
• The best business plans are “Directional correct”
• Strategy counts more than minutia
• Spirally develop business models
• Slick – Sucks
Business Models & Financials
1. Many of the best startups had fuzzy business models
2. Focus on demand , not monetization
3. Burn vs …Profits, Scale vs ..Margins
4. Worry about the board that stares at spreadsheets
Work Environment
• The performance of a startup is inversely related to the quality of its office
Venture Brand
• Buy Partners not Associates
• Most Venture Funds profits are driven by one or two partners
Capital
• Raise only what you need
• Too much cash makes you fat , dumb and stupid
• No Pain , No Gain
• Desperation drives Innovation
• Capital finds great entrepreneurs and ideas
In the beginning,
Which Details really matter?
1. Vision
2. Product Design
3. Strategic Positioning
4. People
5. Distribution & Adoption
6. Customers
7. Defensible Position
8. Exit Strategies
Vision
• Clarity of Vision – Clarity of purpose
Strategic Positioning
• Define New Markets or Destroy Old Markets
• Don’t evolve or improve
Customers
• Know which customers to avoid, ignore or fire
Defensible Position
• Science • Loyalty • Brand • Layers of Defense
Exit Strategy
• Turn yourself into a sharp knife , find a street fight and throw yourself into the middle
Venture Capital Conventional Wisdom
• Focus , Focus , Focus
• The VC’s job is to reduce Risk
• Bet on the jockey not the horse
• You can never raise enough money
• Concentrate on the financial numbers
• Be realistic
• Hire only A players
The VC’s job is to Reduce Risk
• VC’s job is to increase opportunities and maximize value
Bet on the jockey not the horse
• You need both
Concentrate on the (financial) numbers
• Concentrate on the product and adoption
Be Realistic
Distort Reality
Hire only A players
Final Thoughts
• Spend as much time picking your partners as you would your spouse
• Product rules
• Attack your competitors at their strength
• Never undersetimate your competition
• Push to your failure point
• Never be satisfied