Introduction to Entrepreneurial Management - Entrepreneurship 101

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ENTREPRENEURIAL MANAGEMENT N A T H A N M O N K , @ C O W B O Y T W E E T S I C T V E N T U R E S E R V I C E S

1 4 O C T 2 0 1 5

“ Running a startup is like being punched In the face repeatedly,

but working for a large company is like being waterboarded.

Paul Graham, Y Combinator

15 October 2014 Entrepreneurial Management

“ 30-‐40% of all U.S. startups fail (liquida[ng all assets) and 95% fail to deliver projected return on investment or breakeven by a defined [me period.

Shikhar Ghosh, Sr. Lecturer, Harvard Business School

Entrepreneurial Management

“ The cost of being wrong.

is less

than the

cost of

doing nothing.

Seth Godin, Author-‐Entrepreneur-‐Marketer


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Our Future Mabers ENTREPRENEURIAL MANAGEMENT

E N T R E P R E N E U R I A L M A N A G E M E N T

DEFINING

ENTREPRENEURIAL

MANAGEMENT

ENTREPRENEURIAL MANAGEMENT

16 October 2015

What does it mean to be an entrepreneur?


16 October 2015

You do not need to just solve a ‘pain’ or ‘problem’ to be an entrepreneur.

-‐


16 October 2015


16 October 2015

1.  Your knowledge (educa[on, career, hobbies). 2.  Your capabili[es (proficiency and strengths). 3.  Your connec[ons (who do you know/what industries?). 4.  Your capital (access, savings etc. “Ramon Noodle diet”)

5.  Your brand (what are you or your partners well-‐known for?). 6.  Your pain points (what inefficiencies have you no[ced?). 7.  Your passion (any markets, products/services you love?).

8.  Your commitment (do you really have the [me and effort?).

Where do you start ‘digging’?


16 October 2015

The one key ques[on.

What can I do well that I would love to do for an extended period of [me (and possibly fail AT)?

-‐


16 October 2015

A set of principles and frameworks that are aligned with your passion and help you iden[fy a sustainable and repeatable business model, while managing the chaos of scaling through 5 phases of

business growth.

What is the discipline of entrepreneurship? (Entrepreneurial Management)


Are you ready to jump?

Really?

Are you sure?

Seriously?


16 October 2015

“ "Ever tried. Ever failed. No maNer. Try Again. Fail again. Fail beNer.”

Samuel BeckeC, Novelist and Playwright



In order to succeed, we need to know why startups fail.

16 October 2015

1.  Startups with helpful mentors, track performance metrics raise 7x more capital / 3.5x higher user base.

2.  Pivo[ng startups raise 2.5x more money, 3.6x user growth, 52% less likely to scale prematurely.

3.  Everest helps prevent premature scaling: team, customer acquisi[on strategies and build.

4.  Solo founders take 3.6x longer to reach scale stage.

5.  Business-‐heavy founding teams are 3.3x more likely to successfully scale with sales-‐driven startups

6.  Tech-‐heavy founding teams are 3.3x more likely to scale with a product-‐centric startup

7.  Balanced teams raise 30% more money, have 2.9x more user growth and are 19% less likely to scale prematurely than technical or business-‐heavy founding teams

8.  Founders that don’t work full-‐[me have 4x less user growth and end up raising 24x less money from investors

9.  Most successful founders are driven by impact rather than experience or money.

10.  Startups need 2-‐3 [mes longer to validate their market than most founders expect. The underes[ma[on creates the pressure to scale prematurely. B2B and B2C isn’t a meaningful segmenta[on because of the way the internet has changed customer dynamics.

What we now know.


The art of ‘high growth’ entrepreneurship is to master the chaos of getting each of these 5 dimensions to move in time and concert with one another. (SGR)

6-‐ Stage Life Cycle of a Startup


ESTG PMF LSTG BMC

Search 4 repetable & scalable business model Extreme uncertainty

• Learning • Valley of death

DISCOVERY • PMF • PSF

VALIDATION EFFICIENCY SCALE SUSTAIN CONSERVATION

i: $100k / month threshold / scaling, BMC ops. 60%

Search for problem space & fit (PSF-PMF)

Valley of Death

PSF

“Scaling successfully is what separates eventual industry leaders from long-‐forgoNen startups in the deadpool.” – Michael A. Jackson

“ Success is going from failure to failure without loss of enthusiasm.

Winston Churchill


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FRAMEWORKS AND METHODOLOGIES

The Entrepreneurial API


Business Model

Stages

Lean Itera\on

Who do we follow? The Founders of lean, disrup[on, crossing the chasm, business model innova[on, startup marke[ng and the discipline of entrepreneurship: Blank, Aulet, Christensen, Ellis, Mauyra, Ries, Moore Osterwalder, Chen and

Wasswerman

1. Business Model Genera\on

ALEXANDER OSTERWALDER

Business Model

4. Customer Segmenta\on

16 October 2015 Presenta\on Title Goes Here

Big idea…

We no longer compete on a product or service, but rather, a compe[[ve,

repeatable and scalable business model.

7 key ques[ons

Source: Osterwalder Masterclass, 2012

2. Customer Development (new IP)

STEVE BLANK

•  Translate business

model hypotheses to test with customers

•  Develop an MVP of the solution to test with customers

•  Continuous testing

of hypothesis. •  Careful analysis of

customer interactions

•  Pivot or proceed

•  Product is refined

enough to sell. •  Build demand

through marketing & sales.

•  Business

transitions for startup mode to departments operating in functions

Customer Development Cycle

3. Lean

ERIC RIES

‘Lean’ methodology favours

experimenta[on over elaborate planning, customer feedback over intui[on, and itera[ve design over tradi[onal up-‐front

development.

3. Lean

Why is all this important?

4. Customer Segmenta6on

ERIC RIES

A target customer is a group of poten[al customers who share many characteris[cs

and who would all have similar reasons to buy a par[cular product.

Milkshake

By choosing a single market to excel in, your startup can more easily establish a strong market posi[on, and hopefully a state of posi[ve cash flow, before it runs our of

resources.

5. LEAN ANALYTICS


AlISTAIR CROLL

THINGS GO WRONG.

COMMON TENDANCY IS TO CAPTURE DATA, BUT WE DROWN IN METRICS.

WE NEED A STANDARD SET OF METRICS NEED TO BE GUIDE STARTUPS

‘PIRATE OR LEAN ANALYTICS’ HELP ALIGN AND HOLD THE STARTUP ACCOUNTABLE

BUILD. TEST. MEASURE. LEARN.

Why do we need lean analy[cs?

EVEREST SESSION #5: INNOVATION ACCOUNTING

Example: Analy[cs Funnel

6. TEAM


NOAM WASSERMAN

E V E R E S T S E S S I O N # 4 : T E A M

16 October 2015

Company Rules

“Decide – take responsibility – be humble – never give up – show ini[a[ve – laugh – don’t complain – find a solu[on – keep on – take

pride in your work – open your mind – embrace change – collaborate – listen – improve daily – lead not follow.”

TEAM

RELATIONSHIPS, ROLES AND REWARDS

16 October 2015

E V E R E S T S E S S I O N # 4 : T E A M

Source: Founder’s Dilemmas, Noam Wasserman

Ques[ons to ask yourself? 1. How well do we co-‐founders and/or team members know each other’s professional abili\es and styles? 2. How can we learn more about each other and maintain open communica\on? 3. What are the things we have a hard \me talking about? 4. Can we construc\vely discuss them now? 5. How will we keep tabs on these issues so that they don’t fester? 6. Are we clear about our roles? 7. Is there any overlap between people? 8. If so, what are we doing to prevent fric\on from arising? 9. What are our plans for separa\ng the areas of overlap as we grow? 10. Is it possible to configure the repor\ng structures so that friends and family are not repor\ng to one another? 11. Do we have a “disaster plan” that acknowledges the worst-‐case scenarios that could result within our team? 12. Have we designated someone to have the final say in an impasse? 13. Have we had frank conversa\ons about what might happen if one of us isn’t scaling well or has to drop out of the venture?

16 October 2015

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CONCLUSION

Summary •  ‘Dig for your idea’ and be ready for Everest. •  Understand why we fail so you can succeed. •  Hypothesize, test & validate your assump[ons. •  Search, don’t execute for your business model.

•  Talk to customers (get out of the building).

•  Minimize waste, deploy resources efficiently. •  Build a diversified dream team.

•  Use lean analy[cs to op[mize funnel. •  Have fun, it’s an amazing journey.

•  Put MaRS to work. We are here to support you.

Thank you. "

""

Nathan Monk"[email protected]"

@Cowboytweets"

Introduction to Entrepreneurial Management - Entrepreneurship 101

Business

Transcript of Introduction to Entrepreneurial Management - Entrepreneurship 101