www.solvayentrepreneurs.be HOW TO GROW A VENTURE? SESSION 9 (out of 10) GROWTH STRATEGY This session is part of a 10-weeks course given to master students of the SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT by professor Olivier WITMEUR.
Sep 14, 2014
www.solvayentrepreneurs.be
HOW TO GROW A VENTURE? SESSION 9 (out of 10)
GROWTH STRATEGY
This session is part of a 10-weeks course given to master students of the SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT by professor Olivier WITMEUR.
Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
• What are the typical growth strategy?
• What are the main issues associated with the growth of a new venture?
QUESTIONS AGENDA RESOURCES • Growing the venture
• Lifecycle models
• Can theory help?
Desired Outcomes of the Session
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
GROWING THE VENTURE
#1
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
The ‘Crossing the Chasm’ framework G. Moore (1993)
Source: Wiefels (2002), The Chasm Companion
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Market Development
Source: Wiefels (2002), The Chasm Companion
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Get > Distribution channels: own vs partners, direct vs indirect, website, location, VAR, OEM, Franchise …
Keep > Customer relations: personal assistance, account management, self-service, communities, co-creation …
Growth = create a tornado effect = get “traction”
> Customers bring customers, viral marketing …
à Sales forecasts
Sales & Marketing Plan
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
When the company has a significant customer base, it can work on generating more profit per transaction from the existing customers
Source: Blank and Dorf, 2012
A company can develop its customers by inciting them to spend more on its products or by generating new leads through referrals from its existing customers
CROSS-SELLING
Develop and sell products complementary to those already used by existing customers
UP-SELLING
Convince existing customer to subscribe for a more expensive offer
NEXT-SELLING
Long-term agreements with the customers to ensure that they will remain loyal to the tool UNBUNDLING
Split current tool into distinct products and price them separately
REFERRALS
Capitalize on existing customer base to generate new leads through referrals and virality
CUSTOMER DEVELOPMENT
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Get, Keep, Grow Framework
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Source: Blank and Dorf, 2012
Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Classical Growth Vectors
New Markets
New Products
Upstream / Downstream Integration
*Adapted from Anshof (1965) & Roberts (2003)
Focus on your current business
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
LIFECYCLE APPROACHES
#2
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
WHAT DO WE REALLY KNOW ABOUT GROWTH?
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
The development stages of a start-up (1)
SEED START-UP EXPANSION EARLY DEVELOPMENT MATURITY RENEWAL
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
The development stages of a start-up (2) Seed Start-up Early growth
Team The founders. Most of the
time the team is not balanced.
Sales and techniques are in place. Finance may be
outsourced.
Every aspect is managed by a full time manager.
Product Prototype geared to the main market needs.
First version validated by customers.
Ready for large scale distribution.
Market research First comprehensive ongoing market research.
Good knowledge of a first market niche.
In depth knowledge of the customers and next market
segments identified.
Organization Purely informal Better role definition Dedicated management team and experienced
boards.
Customers relations Informal with innovators. Organized relationship with the first customers.
Sales & Marketing processes ready to manage
large numbers of customers.
Financial needs Prototyping
Market research Business planning
Scaling up Sales & marketing
Working capital Management
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
CAN THEORY HELP?
#3
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
DIFFERENT PERSPECTIVES ON GROWTH
Resources based view
Strategic perspective
Ecology of Population
Traits approach
Lifecycles
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Theoretical Fondation #1: The Configurational Approach à FIT
Context / Environment
Organization
Entrepreneurs
Opportunity / Activities
Strategy
Resources
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Theoretical Fondation #2: The Process Approach
Dialectical
Evolution
Teleological
Lifecycle
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Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Proposed Framework
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Entrepreneurial Team
Organizational structure
Resources
Activities
Context
Market Acceptance Investor acceptance
Organizational evolution Willingness to grow
DEFINITION / CORRECTION
EXECUTION
EVALUATION
Focus
International.
More products
01-‐04-‐2014
Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
DYNAMIC APPROACH
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OPPORTUNITY TEAM
RESOURCES
Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR 20
NEVER STOP WONDERING
& ASKING!
Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
A real passion for entrepreneurship education and entrepreneurs.
• Student entrepreneurs: 2x
• Full time entrepreneur: once, in a team of 5
• Coach: 500+ projects over the last 20 years
• (Advisory) Board member in multiple new ventures
• Policy making: 2x
• Director of Solvay Entrepreneurs
• PhD in entrepreneurship in 2008
• … never as an investor
My wife (as Colombo), no kids, one dog (Vicky).
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Olivier Witmeur (Belgian, 46)
Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Solvay entrepreneurs is the entrepreneurship center of the Université Libre de Bruxelles. We support entrepreneurs through the development of their venture, from an idea to a successful and sustainable business.
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Solvay Entrepreneurs
Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
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