joining up the dots - enterprise development, innovation, and finance
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From making room for creativity and innovation, to building your enterprise through customer development and attention to your revenue model, this presentation joins the dots up between these elements and what investors are looking for. A talk I delivered at the Enterprising Women event hosted by The CUBE London and 8 Fold on 17 November 2010 as part of Global Entrepreneurship Week.TRANSCRIPT
Bonnie Wong
Enterprising WomenThe CUBE London17 November 2010
Enterprise Development
A Culture for Innovation
Where do we begin to develop a new enterprise and a culture for innovation?
Innovation
Enterprise Development
A Culture for Innovation
Well, we begin with an innovative new idea.
Innovation
Enterprise Development
A Culture for Innovation
RandomnessChaos
Emptiness
Actually, no, we begin before that, with randomness, chaos, emptiness. Take the limits off.
RandomnessChaos
Emptiness
CreativityNew Ideas
Innovation &Vision Development
A Direction...Rather Than a Destination
Randomness and emptiness makes room for creativity and new ideas. From there we can innovate and develop our vision. Think of the vision for your
enterprise as a direction – gives you room to manoeuvre
What does this really mean?
Viable business model, investors want to know how you're going to make money
“Robust business plans and revenue models”
~ Good Deals Conference 2010
Now that you have your vision, what next? Investors want robust business plans and revenue models.
Business Model Canvas, Alex Osterwalder, http://www.businessmodelalchemist.com/toolshttp://www.businesmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
Visual tool for identifying components of your business model and how they relate to each other. Investors are interested in the revenue model.
Business Model Canvas, Alex Osterwalder, http://www.businessmodelalchemist.com/toolshttp://www.businesmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
Start with your customers, to figure out what your revenue model is.
Customer Development Model, Steve Blankhttp://steveblank.com/2009/09/17/the-path-of-warriors-and-winners/
Customer Development Model, Steve Blankhttp://steveblank.com/2009/09/17/the-path-of-warriors-and-winners/
Component descriptions from Mark Zimmerman @ MaRS http://www.marsdd.com/blog/2010/09/20/please-dont-hire-a-sales-professional/
1.Customer Discovery, where a start-up tests its hypothesis about a customer’s problem and their proposed solution.
2.Customer Validation, where a start-up develops, tests and iterates until it finds a repeatable and scalable sales process.
3.Customer Creation, where a company’s focus turns from finding demand to creating it in order to scale revenue.
4.Company Building, where a company transitions from an organization designed for learning and flexibility into a one engineered for execution.
Customer Development Model, Steve Blankhttp://steveblank.com/2009/09/17/the-path-of-warriors-and-winners/
It would be better if it was purple and made from Fairtrade cotton
Customer Development Model, Steve Blankhttp://steveblank.com/2009/09/17/the-path-of-warriors-and-winners/
Customer Development Model, Steve Blankhttp://steveblank.com/2009/09/17/the-path-of-warriors-and-winners/
Great! I'd buy that for £15.
designscore
member
member
prints t-shirts with high scores, sells on website
member
member
buy
I've built a community of 100
customers, of them ### will buy
## t-shirts for £ each. It will cost £
to supply, print, and distribute them. We will
print in batches of ### t-shirts.
Back to that Revenue Model...
Financial models tell the story of your enterprise in the language of numbers. It's not a list, it's not a bank statement.
How to Finance Your Venture
Finance new ventures by bootstrapping – fund it yourself, from savings, with the help of family and friends.
How to Finance Your Venture
“I eat risk for breakfast!”
Or find an angel investor – they have a higher appetite for risk for new, unproven ventures.
Typical investors like buy and build strategy...
scale and replicate
If you are established and looking to grow, you may consider external finance. Investors like one to three years existing trading.
ReliablePredictable
Secure
UncertainNew
Untested
A Culture for Innovationrequires balance
A culture for innovation balances a solid foundation with room to innovate. Build this into your business model from the start.
ReliablePredictable
Secure
UncertainNew
Untested
Google time
3M have been doing this for ages
It is effectively what Google does – main search business is its foundation, makes room for Google time. 3M also allows its employees to experiment.
ReliablePredictable
Secure
UncertainNew
Untested
Your own venture
Sponsors
Angel investors
You can do this too – first venture, create a stable foundation with a proven business model, or partner with those who provide stability and can take a
risk with your venture.
ReliablePredictable
Secure
UncertainNew
Untested
Your own venture
Sponsors
Angel investors
Your next venture
Someone you can support
Your next venture can be riskier, with an unproven model or support someone else's innovation.
RandomnessChaos
Emptiness
CreativityNew Ideas
Innovation &Vision Development
Enterprise Development
A Culture for Innovation
Thank You!
Bonnie WongDirector
Composition Advisory Limited
@BonnieOWong
[email protected]://compositionadvisory.com