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~ Look Before You Leap ~
Learning Phase More resource expended than
gathered Typically running cash flow
negative Entrepreneur as a “technician” Entrepreneur wears many hats Survival is a day-to-day concern
Start-up Trap Expenditure = risk “Dream stealers” prevail Self-confidence is questioned Comfort zone is calling loud Entrepreneur tempted to bail just
prior to growth phase
X Start-up Trap
Entrepreneur as a Technician
1.ENTREPRENEUR TRAPS TO AVOID
Many success stories never see the light of day
Traps &
Evolving Management S
tyles
Learning Phase More resource expended than
gathered Typically running cash flow
negative Entrepreneur as a “technician” Entrepreneur wears many hats Survival is a day-to-day concern
Start-up Trap Expenditure = risk “Dream stealers” prevail Self-confidence is questioned Comfort zone is calling loud Entrepreneur tempted to bail just
prior to growth phase
X Start-up Trap
Entrepreneur as a Technician
Many success stories never see the light of day
1.ENTREPRENEUR TRAPS TO AVOID
* Brian Tracy
Founders Trap Needs exceed founder ability to
control If delegate accountability &
responsibility = continued growth If not = growth ceiling Inability to make decisions is main
cause
Success Trap Meeting or exceeding expectations Typically 5+ year mark ** Must reinvent or slowly die Why?
Ride a good thing too long When KPI down-trend, may be too late
Must commence new lifecycle while cash flow supports it
X Start-up Trap
Entrepreneur as a Manager
Entrepreneur as an Entrepreneur
1.ENTREPRENEUR TRAPS TO AVOID
2.VISION - YOU ARE BLIND WITHOUT IT It all starts with future state in mind
BHAG – Big Hairy Audacious Goal A true BHAG is clear and compelling Serves as unifying focal point of effort, and acts as
a clear catalyst for team spirit It has a clear finish line, so the organisation can
know when it has achieved the goal
High Achievers Understand perception is reality. A true vision forefront of mind will eventually become a reality
with applied effort
3. GENUINE PAIN RELIEF
Value Proposition Value is in the eye of the buyer (…not
yours!!) Quantitative statements
about the uniqueness of the business & precisely why a customer should engage.
Describe it as – “a market need in search if a solution”
Your offering must be market driven not technology driven
4. HEARD THESE?....
Build it & they will come…. We have no competitors…. Our mousetrap is better than X’s…. We have first mover advantage…. We are funded – now we can relax…
4. WHAT THEY MEAN!....
Build it & they will come…. No Plan. We don’t need to market - beat a path to our
door
We have no competitors…. We have not looked or there is no market or S&A
Our mousetrap is better than X’s…. We hope the market will agree
We have first mover advantage…. No patent or competitive differentiator
We are funded – now we can relax… Naïve to investor demands and process
5. ROUTE TO MARKET
Technology risk vs. Commercial risk
Too many business focus on the technical aspects of product/service Feature/Function set overload
Investors generally assume the technology works
How do you use this thing as a business? Vs. property, shares, etc
How do you mitigate commercial risk
6. VALUE REALISATION & EXITS Ongoing vs. Out & gone
they don’t need to be the same You all need to get something for your
hard work VR/Exit misalignment
Often cause of most board level/ issues When others can see how/when they
realise value, they will be more willing to help.
7. INVESTORS – KNOW THY DEMON
Know the Difference: FFF, HNW, Angels, VC, Project Finance Vulture Vs Venture Capital? – time driven model
The “Golden Rule” Those who have the gold makes the rules
Genuinely know what & who you are getting into bed with.
Walk a mile in their shoes Present info in the form they want/need to
make a decision
8. MANAGING GROWTH
Seems simple…..growth = success? Generally
Single largest & fastest growth cost is people Next is buildings/equipment
You have less control over revenue generation but ultimate control over expenditure
Scalability can the current business model scale for growth? if not change or don’t & it will self-implode.
9. LEADERSHIP LONELINESS It is exhilarating but it can also be very lonely…..
CEO, Entrepreneur, leader, chairman are all human….. Express doubt at times about strategy, products, ideas & self Innovation calls for outside of box thinking = “crazy” ideas, “the
path less travelled”, pathfinder not follower…….
Difficult to express ideas/issues/concerns to: Board – they generally employ you, judge risk & your rationality Spouse/Friends – don’t have the full context or day-to-day
pressure Many may get the wrong message & panic:
Staff:(resign), Customers:(drop sales), Market:(share price), Advisors: (Banker)
Some studies indicate it may be the biggest contributor to leadership failure & workplace depression
CEO forums, peer networks, functions like these, mentors
CONCLUSION - ENTREPRENEURSHIP No guarantee for success….But
….you can maximise chances! Often outside your comfort zone….But
….fortune favours the brave! There is no journey without a
destination….But ….often its more about the journey & the 1st step!
The unknown breeds fear & uncertainty….So ….study widely & deeply – overcome the
“unknown!”
~ Look Before You Leap - But Do Leap!! ~
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