startingup makingsense
TRANSCRIPT
1
Starting UP..Does your business mean
business?
M Hariharan
Director
Savoir faire Management Services Pvt Ltd
22
Agenda
The evolution of a start-up
Find your strategy
Financials - What really matters
Find your team – Hiring strategies
33
Evolution of a Startup
Technocrat / Professional
Employee turned Supplier /Consultant
Father’s Son
Trader
Idea entrepreneur – with Long Term Intention
Idea entrepreneur - Serial Entrepreneur
Entrepreneur by default
44
Agenda
The evolution of a start-up
Find your strategy
Financials - What really matters
Find your team – Hiring strategies
55
One day Alice came to a fork in the road and saw a Cheshire cat in a tree.
Where do you want to go? was his response.
I don't know, Alice answered.
Then, said the cat, it doesn't matter.”
Which road do I take? she asked
66Answer three questions before taking the plunge
Who is your Customer?
Purpose of our existence
What is the Value he expects?
Identifying the unfulfilled need of the customer group
What is your business?
Your competence to meet the unfulfilled need
77
Survival of the fittest
“In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.”
Charles Darwin (1809 - 1882), The Origin of Species 1859
88Do you think you will exist because…
You will be relatively unimportant in the giant’s scheme of things
The giant has not gotten around to your area of business
The giant could not because of possible government action
1111
Lanchester Model
This model is based on two scenarios:
i) Hand to Hand combat
ii) Theatre campaigns
1212
Hand to hand combat
Involves linear relationship between the effectiveness of weapons and size of troops.
Strategy for the Weaker player-The weapons are the 4 Ps - product, price, place
(distribution), and promotion-Size of the troops is the market share
1313Strategies for Weak Competitors
Companies with lower market share should segment the market.
Thereby compete one to one with the well entrenched foe.
Effectiveness of weapons is elevated to the same weight as that of troops.
Thus can isolate the factors of marketing strategy .
1414
Theatre campaign
Relationship between loss rate of troops with(1) the size or number of opposing troops and(2) the effectiveness of the killing power ofeach troop.
Strategy for the Stronger player-3 to 1 rule
-Capture and kill proportionately
1515
Strategies for Strong Competitors
Companies with larger market share should resist segmentation of the market.
Capture and defend market share, not next quarter profits.
Increase market share by attacking competitors within shooting range.
Defend against competitors launching their own attacks.
Higher the market share higher the “competitor casualty”.
1616
CogitoErgoSum
1717
Agenda
The evolution of a start-up
Find your strategy
Financials - What really matters
Find your team – Hiring strategies
1818
Customers
Stake-holdersof theFirm
Investors
Lenders
Suppliers Employees
GovernmentSociety
Management
1919
The goal….
Necessary Condition is different from the Goal of the organisation
Fulfilling every stakeholder other than investor is Necessary Condition but not sufficient condition by itself
Making money is the goal of the organisation
Firm cannot make money ignoring the necessary condition
Firm cannot ignore making money while pursuing the necessary condition
HH
2121
Fixed Assets
Working Capital
Share Capital
+ Reserves
Loaned Funds
Net Worth
Source of Funds
Application of Funds
2222For every action there is a financial reaction
Profit ROICash flow
Absolute Relative Survival
Revenue CostInvestment
Men Machine Methods Material
2424
Nowhere man
He is a real Nowhere Man,
sitting in his Nowhere Land,
making all his Nowhere plans for nobody,
Doesn’t have a point of view,
knows not where he’s going to,
isn’t he a bit like you and me?
John Lennon
The Sergeants’ Mystery Tour (1965-8)
2525
Agenda
The evolution of a start-up
Find your strategy
Financials - What really matters
Find your team – Hiring strategies
2626
Usian Bolt, Jamaica
Asafa Powell, Nesta Carter, Usain Bolt and Michael Frater,, Jamaica
9.58 x 4 = 38.32 sec
Record is lesser than 9.58x4!
It is…37.10 sec
100 m Sprint Olympic Record
4 x 100 m Medley Olympic Record
> Or = Or <
9.69 sec
2727
After having considered, "this man can accomplish this, by these means", let (the king) leave with him the discharge of that duty.
2828
3 Ps to Prosper
Purpose
(Customer Value Creation)
Process
(Aligned to meet the Purpose)
People
(Aligned and Enable Alignment of Process to Purpose)
2929If we have to survive…
We sustain
profitable growth
Our customers buy
from us again and
again
We offer Good
Quality
products/Services
at low prices
Eliminate Waste
Create
Value for
the
Customer
Inputs Process