Keynote Speech KBC Startit Brussels

Pr Bruno Wattenbergh « Keynote BWA » 15 septembre 2015

Grand Opening START-‐IT @ KBC

«Some inspira:on for Brussels Startup @ Star:t »


100%

20%

30%

30%

20%

Manage

Create

Share

Learn

Watch


EUB -‐ BBA

ICHEC -‐ DSMA

ULB -‐ MLS

Tias -‐ MBI

MIT -‐ CS&I

HBS -‐ AMP

Pr Bruno M. WATTENBERGH [email protected] Skype : wattbru Assistant : Dominique Esther [email protected] Tel assistant : 02/800.00.55

Startup.be


1. WHAT DO YOU NEED / EXPECT TONIGHT ? STARTit@KBC – 15th September 2015


Who are you ?

This session will be a success …

if … ?


Rules of th

e

game today ?


ü  Slides tonight on slideshare (@waYenbergh) ü  Each of you has a business project (in mind) ü  As many interac:ons with me as possible ü  Debates with others à disagree J ü  Ques:on can be asked any:me J ü  Cold call or open call L ü  No wrong answers ! J ü  Eng – NL -‐ FR ü  Have fun J


Follow-‐up ? •  Impulse team & experts available any:me @ 1819 •  Clusters in :

–  Sofware – Mul:media –  Lifetech (health) –  Eco-‐construc:on –  Tourism


2. ENTREPRENEURSHIP & BRUSSELS ? STARTit@KBC – 15th September 2015


Entrepreneurship & Brussels •  The most entrepreneurial region in Belgium •  Taking advantage of the academic presence •  Taking advantage of large enterprises •  Dual side of Brussels entrepreneurship •  Entrepreneurship by sectors •  Yes but … bankruptcy ?


LES STARTERS EN REGION DE BRUXELLES-‐CAPITALE EN 2011

Le profil de l’entrepreneur en Région Bruxelloise


Mo:va:ons of Entrepreneurs •  The typical answers cover :

–  Feeling of freedom –  Ability to innovate –  Personal fulfillment linked to the management of a business –  Rejec:on of the employee status –  Rejec:on of big ins:tu:ons –  Money … in case of success –  Social recogni:on



LES STARTERS EN REGION DE BRUXELLES-‐

CAPITALE EN 2011


Entrepreneurship at a Glance 2015 / OECD

La première raison citée est l’envie d’indépendance … et pourtant …


About Entrepreneurs (a personal view of Pr Olivier Witmeur)

Network & Social Capital

Knowledge & Exper:se

Tolerance for Ambiguity

Commitment & Courage

Passion & Values


Traits approach : Classical variables Need for achievement (N-‐Ach) refers to an individual's desire for significant accomplishment, mastering of skills, control, or high standards.

Locus of control refers to how much individuals believe they can control events that affect them.

Need for achievement

Locus of control

Ambiguity tolerance is the ability to perceive ambiguity in informa:on and behavior in a neutral and open way

Tolerance for ambiguity

Self-‐efficacy is the extent or strength of one's belief in one's own ability to complete tasks and reach goals Self efficacy


2. STARTUPS : DE AVANT-‐GARDE ENTREPRENEURS ? STARTit@KBC – 15th September 2015


Why do we need entrepreneurship ? •  Increase the ac:vity rate •  Generate the enterprise & the jobs of tomorrow •  Export (GDP) •  Innovate •  Solve societal problems and challenges :

–  Health, ageing popula:on, chronicle diseases, … – Mobility, logis:c, supply-‐chain, 3D prin:ng, … –  Environment


Why do we need entrepreneurship ?

Ken Morse (MIT Entrepreneurship Center) :

Radical innova+on are never invented by the leader of the

market à But by startups …


Why do we need entrepreneurship ?

Radical innova+on are never invented by the market leader … ?

–  Fear of cannibalizing sales à Kodak

–  Structural obstacles to innova+on à Open Innova+on

–  Demand for consistant results (no risk) à 3M

–  Lack of entrepreneurship training & adapted hierarchy à Innova+ve entrepreneur vs manager of the current model

–  Fear of failure à career !


Why do we need entrepreneurship ? •  The Power of Entrepreneurship @ MIT

–  26,000 currently exis:ng companies have been founded by MIT alumni.

–  These companies have created approximately 3.3 million jobs and generated approximately $2 trillion dollars in annual revenue.

– As a standalone economy these companies would comprise the world’s 11th largest economy, posi:oned behind Brazil and ahead of Russia.


3. BXL : UNIEK MICRO-‐KLIMAAT VOOR STARTUPS ? STARTit@KBC – 15th September 2015


Brussels Ecosystem What are the key elements of an entrepreneurial ecosystem ?

–  Educa:on, Role Models, available informa:on, … –  Visible source of informa:on (1819, LELs, …) –  Finance, coaching, mentoring, technology, … –  Clustering (entrepreneurs + € + academic + users) –  Customers (public, private, Small Business, MNEs, … –  Private business & technology consultants


4. DE KRACHT VAN COMMUNITY STARTUPS ? STARTit@KBC – 15th September 2015


Brussels Startup Community ? •  Réseau Entreprendre ! •  Beta Group ! •  Microsof Innova:on Center !

•  Public Incubators •  Private Incubators •  BAB


4. DOS & DON’TS? STARTit@KBC – 15th September 2015


What no to do ? L


What to do ? “Effectual Entrepreneurship”

J


A classical defini:on of entrepreneurship ?

A way of thinking and ac:ng that is opportunity obsessed, holis[c in approach & leadership balanced for the purpose of value crea:on.

J. Timmons, USA

Thinking and acting = There is a “method”

Central role of the opportunity (but found or made?)

Take all aspects into consideration

Need to be managed There are best practices

Value for the stakeholders, i.e. founders, team, investors, customers, society…


Towards degree of entrepreneurship ?

New to founders

Franchisee Shops

Take-over Buy Out

Innovation

Lawyers, Doctors,

….

Cha

nge

New to market

High tech & Social start-ups

Ch. Bruyat

* Adapted from C. Bruyat (1993) & A. Fayolle

A. Fayolle

Corporate Spin-offs


How do entrepreneurs think and act ?

Introduc:on to “effectua+on”


Introducing “Effectua+on” : The logic of expert entrepreneurs

The word effectual (entrepreneurial approach) is the inverse of causal (managerial approach).

In general, in MBA programs across the world, students are taught causal or predic+ve reasoning in every func+onal area of business.

Saras Sarasvathy India


Causa:on vs. Effectua:on Causa:on Effectua:on (Cre-‐Ac:on)

•  Planned approach

•  Top-‐Down

•  Managerial logic

•  Predic[on based: To the extent we can predict the future, we can control it.

à For predictable situa[ons

•  Emergent approach

•  BoYom-‐up

•  Entrepreneurial logic

•  Control based: To the extent we can control the future, we don’t need to predict it.

à For uncertain situa[ons

Effects are predicted

Need to manage

the causes

Causes are given

Need to manage

the effects


Effectua:on principle #1 : Bird in Hand !

Start with who you are, what you know and whom you know … Not with pre-‐set/given goals (based on predic:on) •  Typical entrepreneurial resources:

–  Exper:ze, skills… –  Social capital –  Psychological capital: hope, op:mism, self efficacy and resilience


Effectua:on principle #2 : Affordable loss Invest what you can afford to lose (extreme case = 0€) … Not expected (risk adjusted) return


Effectua:on principle #3 : Crazy Quilt Build a network of self-‐selected stakeholders

… Not compe::ve analysis and transac:onal rela:onships with first-‐best partners.

Co-‐Crea:on

Customers Suppliers Channels

Financial partners Employees Sponsors

…

CommiYed stakeholders network

Crazy quilt, not puzzle.


Effectua:on principle #4 : Lemonade principle Embrace and leverage surprises (they can present new opportuni[es)

… Not avoid them


About Nils Berqvist •  Swedish environmental engineer

•  Worked 8 years in the mining industry in Kiruna (in Northern Sweden)

•  Passion for wildlife and sports


Ice Hotel J


Effectua:on principle #5 : Pilot-‐in-‐the-‐plane

Give up the predic[on logic ! The future comes from what people do : let’s invent the world ! … No inevitable trends à Control vs Plan


The Dynamics of the Entrepreneurial Network

Who I am ? What I can do ? Whom I know ?

My affordable loss ?

Who may be involved?

Addi:onal resources

Itera:ve opportunity co-‐construc[on

New Goals The venture grows

step by step.

Dead end

My Goals ?

Mul:ple techniques help to deal with these cycles : Design Thinking, Lean Start-‐up, Business Model Genera:on, Staged Financing, … To be con[nued.


And what about risk ? •  Part of the entrepreneurship journey •  Entrepreneurs don’t like the risk more •  Entrepreneurs mi:gate the risk •  Effectual entrepreneurship •  Business Plan, Business Model, design thinking, •  Test, Test, Test, Test, … & learn ! •  Limit the consequences


Don’t wait/look for the perfect opportunity

(it doesn’t exist !).

Just start !

Build your opportunity


don’t forget … !

ü  The defini:on of Enterprise … ? ü  The defini:on of startup (Steve Blanck) ?


Set of Advises 1 ü  Don’t overvalue your idea ! ü  Understand the opportunity principle ! ü  Make hypotheses and write them in a

specific colors ! ü  Design tests to validate your hypotheses ! ü  Understand the pivot principle !


Set of Advises 2 ü  Understand the interest & limita:ons of the

Business Plan ! ü  Use modern tools as : Customer Canvas,

Empathy Map, Business Model Canvas, Customer journey & touch point, …

ü  Go out of the building, talk to customers, …


Des ou:ls ? L’empathy map !


Des ou:ls ? Value Proposi:on Canvas !


Set of Advises 3 ü  Learn to describe the customer segment ü  Understand the Customer Pain principle ü  Quan:fy the Customer Pain

ü  Understand the mechanism of the Value Proposi:on (tangible / intangible) …

ü  Quan:fy the Value Proposi:on


Set of Advises 4 ü  Learn as soon as possible to pitch your

project … ü  Pitch once a week … ü  Pitch every morning in your bath room … J ü  Collect feed-‐back … ask the right ques:ons ü  Learn from your pitch


Set of Advises 5 ü  Don’t wait the final Business Model to assess

the finance side of the product … ü  Learn how to make a P&L on the back of an

envelope … ü  Understand the financial dynamic (costs &

revenues) of each Business Model ü  Determine CoCA & Elas:city demand / price


Set of Advises 6 ü  Dare to study compe::on … but also

subs:tutes ! ü  Don’t ever tell that you don’t have any

compe::on or that the compe::on is not relevant …

ü  Understand the compe::on & subs:tutes …


Set of Advises 7 ü  Imagine, design, conduct 2 types of tests to

validate your hypotheses : ü  Proof of Concept : I can deliver ! ü  Proof of Business : it sells !

ü  Be an anthropologist, a psychologist, a sociologist, … to learn from those tests


Set of Advises 8 ü  Don’t say your hypotheses are conserva:ve

… and so your financial forecasts … ü  Explain your forecast … describe the

hypotheses and the tests done … ü  Use some sensi:vity analysis …

ü  Test 1 or 2 alterna:ve configura:ons … (xls)


Set of Advises 9 ü  Plan some clear milestones … with clear

objec:ves to achieve … ü  Determine financing needs for each stage …

ü  Search for the right mix of financing : FFFs, BA, grants, … @ the right :me !

ü  Know exactly what you need & when !


And … don’t forget the first rule !

ü  Fail fast … ü  Fail rough … ü  Fail cheap …

And never do twice the same mistake !


The Ideal trajectory ? •  OWLET •  Harvard Business School Business Model Compe::on …

•  Some students … an idea … searching for a repeatable and scalable Business model


9.HOW TO PITCH A BUSINESS PROJECT ? STARTit@KBC – 15th September 2015


10. CONCLUSIONS ? STARTit@KBC – 15th September 2015


hYp://www.slideshare.net/WaYbru/cours-‐de-‐pitch-‐2015-‐pdf


hYp://media.100firsthits.com/2013/11/Startup-‐Mistakes-‐Infographics.png

Why startups fail, according to their founders by Erin Griffith @eringriffith SEPTEMBER 25,

2014, 3:00 PM EST hYp://for.tn/1vfKwW3

The top reason?

They make products no one wants.