~ Look Before You Leap ~. Learning Phase More resource expended than gathered Typically running cash flow negative Entrepreneur as a technician Entrepreneur.

~ 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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