HOW TO GROW A VENTURE? - SESSION 9

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HOW TO GROW A VENTURE? SESSION 9 (out of 10)

GROWTH STRATEGY

This session is part of a 10-weeks course given to master students of the SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT by professor Olivier WITMEUR.

Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR

•  What are the typical growth strategy?

•  What are the main issues associated with the growth of a new venture?

QUESTIONS AGENDA RESOURCES •  Growing the venture

•  Lifecycle models

•  Can theory help?

Desired Outcomes of the Session

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GROWING THE VENTURE

#1

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The ‘Crossing the Chasm’ framework G. Moore (1993)

Source: Wiefels (2002), The Chasm Companion

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Market Development

Source: Wiefels (2002), The Chasm Companion

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Get > Distribution channels: own vs partners, direct vs indirect, website, location, VAR, OEM, Franchise …

Keep > Customer relations: personal assistance, account management, self-service, communities, co-creation …

Growth = create a tornado effect = get “traction”

> Customers bring customers, viral marketing …

à Sales forecasts

Sales & Marketing Plan

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When the company has a significant customer base, it can work on generating more profit per transaction from the existing customers

Source: Blank and Dorf, 2012

A company can develop its customers by inciting them to spend more on its products or by generating new leads through referrals from its existing customers

CROSS-SELLING

Develop and sell products complementary to those already used by existing customers

UP-SELLING

Convince existing customer to subscribe for a more expensive offer

NEXT-SELLING

Long-term agreements with the customers to ensure that they will remain loyal to the tool UNBUNDLING

Split current tool into distinct products and price them separately

REFERRALS

Capitalize on existing customer base to generate new leads through referrals and virality

CUSTOMER DEVELOPMENT

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Get, Keep, Grow Framework

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Source: Blank and Dorf, 2012


Classical Growth Vectors

New Markets

New Products

Upstream / Downstream Integration

*Adapted from Anshof (1965) & Roberts (2003)

Focus on your current business

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LIFECYCLE APPROACHES

#2

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WHAT DO WE REALLY KNOW ABOUT GROWTH?

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The development stages of a start-up (1)

SEED START-UP EXPANSION EARLY DEVELOPMENT MATURITY RENEWAL

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The development stages of a start-up (2) Seed Start-up Early growth

Team The founders. Most of the

time the team is not balanced.

Sales and techniques are in place. Finance may be

outsourced.

Every aspect is managed by a full time manager.

Product Prototype geared to the main market needs.

First version validated by customers.

Ready for large scale distribution.

Market research First comprehensive ongoing market research.

Good knowledge of a first market niche.

In depth knowledge of the customers and next market

segments identified.

Organization Purely informal Better role definition Dedicated management team and experienced

boards.

Customers relations Informal with innovators. Organized relationship with the first customers.

Sales & Marketing processes ready to manage

large numbers of customers.

Financial needs Prototyping

Market research Business planning

Scaling up Sales & marketing

Working capital Management

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CAN THEORY HELP?

#3

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DIFFERENT PERSPECTIVES ON GROWTH

Resources based view

Strategic perspective

Ecology of Population

Traits approach

Lifecycles

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Theoretical Fondation #1: The Configurational Approach à FIT

Context / Environment

Organization

Entrepreneurs

Opportunity / Activities

Strategy

Resources

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Theoretical Fondation #2: The Process Approach

Dialectical

Evolution

Teleological

Lifecycle

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Proposed Framework

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Entrepreneurial Team

Organizational structure

Resources

Activities

Context

Market Acceptance Investor acceptance

Organizational evolution Willingness to grow

DEFINITION / CORRECTION

EXECUTION

EVALUATION

Focus

International.

More products

01-‐04-‐2014


DYNAMIC APPROACH

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OPPORTUNITY TEAM

RESOURCES


A real passion for entrepreneurship education and entrepreneurs.

•  Student entrepreneurs: 2x

•  Full time entrepreneur: once, in a team of 5

•  Coach: 500+ projects over the last 20 years

•  (Advisory) Board member in multiple new ventures

•  Policy making: 2x

•  Director of Solvay Entrepreneurs

•  PhD in entrepreneurship in 2008

•  … never as an investor

My wife (as Colombo), no kids, one dog (Vicky).

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Olivier Witmeur (Belgian, 46)


Solvay entrepreneurs is the entrepreneurship center of the Université Libre de Bruxelles. We support entrepreneurs through the development of their venture, from an idea to a successful and sustainable business.

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Solvay Entrepreneurs


Let’s keep in touch!

23 2014%©%Olivier%Witmeur

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HOW TO GROW A VENTURE? - SESSION 9

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Transcript of HOW TO GROW A VENTURE? - SESSION 9