Get Boested to breakthrough!

Every year only a few companies make it to the top. Why?

That’s where we have been working on, that’s our passion, that’s

our expertise……..

ONLY 1 IN 5 BREAKS THROUGH TO FAST GROWTH

12,40% 18,80%

37,60%Rateoffastgrowers

•  Growing with minimum of 60% revenue growth in 3 years

•  18,8% of Dutch companies belong to the top growing class

•  But…. 18,8% is not the max.

Fast growers share: •  Explicit ambition •  Active market development •  Active innovation •  Social intelligence and

cooperation •  Higher education level •  Strong international orientation

(“Think big”)

CHARACTERISTICS OF THESE FAST GROWERS ARE KNOWN

*Source: Research ACE / EIM (2009) “Why some companies grow faster than others”

0% 20% 40% 60% 80% 100%

International outlook

Networks

Partnerships

Market development

Service innovation

Product innovation

Ambitious growth targets

Characteristics of Fast Growers*

Average

Fast growers

IT’S ALL ABOUT CROSSING THE CHASM TO NEXT STAGE

Every company has it’s natural revenue barriers (e.g. 1 million) that they can’t grow beyond: •  Serving a new group of users is

required; •  Breakthrough has to come from inside

Well-known thresholds to enter new market successfully: •  Product vs. market focus; •  Technical functionalities vs. customer

benefits; •  Got to get out of comfort zone again; •  Drive and ambition to do things

differently and improve;

PRIMARY CONDITION FOR BREAKTHROUGH: AIM FOR EXCELLENCE

Attitude of entrepeneur & team •  Think big, Belief in your goal, Be passionate •  Be open, Dare to act, Show stamina. Insights in market(s) •  Go out, gain insights, Know your (potential)

customers’ issues; •  Pinpoint the market, Sell the problem. Management of growth process •  Execute first, Incorporate feedback loop,

Stay open for change; •  Empower your team (“you need them”); •  Focus on clear step by step goals.

SECONDARY MECHANISM: GROWTH HAS TO BE MANAGED IN 4 STEPS

1) Short term market development, focus

and action

2) & 3) Realisation of the first growth and creating basics for high revenue growth, but also with ups and downs, setbacks and failure

4) Continuing fast growth and creating mid term

company value

THERE IS NO INSTANT SUCCESS

SWEETSPOT FOR FAST GROWTH IS IN EXECUTION

DO AND DEVELOP: Attitude •  Go out and get feedback •  Understand & learn •  Mistakes are OK •  Killer mentality, ready to improve Insights •  Test and adjust propositions and

market approach •  Prove with facts & figures •  Accelerate when(ever) possible Management •  Focus and steer on delivery •  Scale activities and results step-

by-step •  Get people out-of-comfort zone

RESULTS DELIVERED PRODUCES OUTPERFORMERS

*Inspired by Gold Book of Venture Capital Firms, Bob Zider, “How Venture Capital Works,” Harvard Business Review

DeBoest Growth Management Partners

Average Annual growth 39%

BUT BEWARE, FOCUS FOR GROWTH DIFFERS PER STAGE

Inspired by Gold Book of Venture Capital Firms, Bob Zider, “How Venture Capital Works,” Harvard Business Review

  Validate market potential

  Feedback from market

  Potential customers in pipeline

  Find launching customers

  POC to build BC   Choose main

market   Get expertise on

board

  Commercial planning

  Structured market approach

  Professionalize marketing & sales

  Build propositions

  Market expansion   Upsell to existing

clients   More customers   New regions   Intensify

commercial activities

  Enter new markets / categories

  Product innovations

  Boosting revenues

Focus for Growth

  Validate the business concept (e.g. build prototype, develop business plan, conduct market research)

  Entrepeneur   Angel

investors   Fools, friends,

family   Incubators

  Build management team and complete product development

  Entrepeneur   Angel investors   Traditional VC   Incubators

  Expand production, marketing, or sales capabilities

  Entrepeneur   Traditional VC   Corporations

  Provide working capital once shipping products or providing services

  Entrepreneur   Banks   Traditional VC   Corporations

  Fuel substantial growth (typically provided to business that are at least break even)

  Entrepeneur   Banks   Traditional VC   Corporations   Buyout firms   Investment

banks

  Prepare for initial public offering, usually in the next 6 months to a year

  Entrepeneur   Banks   Traditional VC   Corporations   Buyout firms   Investment

banks

Focus of the company

Type of stake-

holders

Growth Stages

Early Stage Expansion or Development Stage Later Stage

Seed stage Start-up First stage Second stage Mezzanine Later stage

Every year only a few companies make it to the top.

Is that that your ambition?

Then stop asking why!

JUST START TODAY

Remarks or questions? Want to discuss with us about these findings? Or looking for practical examples? Please do not hesitate to contact Bram

Hulshof of DeBoest at bramhulshof@deboest.nl or +31 6 5339 0015