Transcription
THE PATH TO SCALE&the; 12 DISCIPLINES of 10X ENTREPRENEURS
A common pattern in growing ventures PromisedLandNo Man’s LandProgressStart-upSet-backsStage 1 GrowthStuckStage 2 Growth
What NoMan’s Landlooks (andfeels) likeCan’t raisecapital ongood termsBad margins,poor cashflowBig mistakes –crisis aftercrisisTightCash flowCan’t affordexperiencedtalentStretched toothin
What %?No Man’s Land 70-80%Start-upStage 1 GrowthStage 2 Growth
EVERYTHING changes when you scalePromisedLandNo Man’s LandProgressStart-upSet-backsStuckStage 1 GrowthStage 2 Growth‘THE GOAL’ & ‘THE WORK’SIZE & TYPE OF ORG.CULTUREMGMT SKILLS REQ’DCOST STRUCTUREPRICE POINTMARKET SEGMENTS, STRATEGY
The issue: Each new stage requires a different blend ofpriorities, and approach to leadershipPromisedLandNo Man’s LandProgressStart-upSet-backsStuckStage 1 GrowthStage 2 Growth won’t getyou there!What got youhere Organisation management(Scalable Mgmt. team &systems; Scalable culture)Enterprise building(Basic mgmt. HR policies & procedures, financial mgmt, ScalableOps Systems)Entrepreneurial leadership(See & seize mkt opportunity, get 1st customers)
Founders must re-invent themselves to become goodleaders of a scaled business. But most don’t know itPromisedLandNo Man’s LandProgressSet-backsStart-upStage 1 GrowthStuckStage 2 GrowthOrganisation mgmt(Scalable Mgmt. team &systems; Scalable culture)Enterprise building(Basic mgmt. policies & procedures, Ops Systems)Entrepreneurial leadership(See & seize mkt opportunity, get 1st rManager(invents)(hustles)(builds, systematises,scales)(‘architects’, leads,manages, expands)
So what distinguishes the 10X ENTREPRENEURS?Promised land 20-30%No Man’s Land 70-80%Start-upStage 1 GrowthStage 2 Growth
Focus on building amagnet for sales10Nail remarkableoffering &repeatablebusiness; modelThen, scale that
Manage “the path to scale’:Adjust objectives, team & structures to growth stageStart-upCoreleadershipobjectivesStage 1 GrowthStage 2 GrowthFINDING: Somethingworth scalingSCALING: from pilot scale tocommercial scaleMATURING: a big business intoa valuable enterprise1. Nail scalable offering1. Build core (top level)management team1. Grow sales – achieve nichedominance2. Build scalable Sales function2. Build second layer ofmanagement2. Nail go-to-marketstrategy3. Nail scalable businessmodel3. Drive Revenue - get to cashpositive4. Nail scalable financingmodel4. Optimise business model (workout gremlins, ready forreplication)5. Build basic, reliableoperations6. Sales traction - get tobreakeven3. Pursue Efficiencies to optimizecash flow & profitability4. Build scalable Managementsystems5. Build scalable Operations Mgmt 5. Develop Growth Strategy – forSystemsgrowth beyond the core6. Build Production capacity tocritical mass17. Design Org. Structure requiredfor scale
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Execute.Culture and mgmt.systems to execute13
EXECUTION APPROACH CHANGES SIGNIFICANTLY WITH EACHSTAGESTART-UPSTAGE 1 GROWTHSTAGE 2 GROWTH2nd great crisis& transition1st great crisis& transition80-1259-25125-15025-805-914
Build an A-team15Amazing leadersGreat cultureTop talentBrilliant 2nd level mgmtCompelling rewards
TYPE OF TALENT NEEDED CHANGES AS THE BUSINESSSCALESBreakpoint 1START-UP16Breakpoint 2STAGE 1 GROWTHSTAGE 2 GROWTH
TYPE OF MANAGEMENT NEEDED ALSO CHANGES ASTHE STAGE & BUSINESS CHALLENGES CHANGE1st great crisis& transitionSTART-UP2nd great crisis& transitionSTAGE 1 GROWTHSTAGE 2 GROWTHLevel ofManagement skill Level 1: Team, task,project management Level 3: FunctionalManagement Level 5: Executivefunctional &Enterprise; mgmtLevel ofspecialisation Generalist Specialist (2-5 yrs) Deep specialist( 5-10 yrs)Type of New Hiressought ‘A-Players who punchabove their weight’ ‘Serious ManagementTalent’ (functional mgmt.experience & skill;‘Punch above theirweight’ ‘The Big Guns’ 17
Build18nd2Level of Management
Build an awesomeSupport System.19Power BoardAdvisory Board‘Smart-money’
Systematiserevenue growth.20Scalable systemfor generatingrepeat sales fromsweet spotcustomers
#1 risk in scale up stage: REVENUE VOLATILITY21
Build & Scale Sales Function22
Systematisecustomer delight23Processes thatconsistentlydeliver awesomecustomerexperiences
Manage moneymilitantlyLeak proof, futureproof money mgmt.BusinessIntelligenceCash flowoptimisation24
Be investable25Highly investableStrategic financerelationshipsCapital literate
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Be hyper-focused onbuilding the CompanyEffective PersonalOperating System50% of time on top 3business buildingissues27
Bring your A-Game28Play to your strengthsStay sharpMaintain your mojo
ALIGN YOUR ROLETO YOUR‘PEAKPERFORMANCEZONE’Skill(10,000 hrs)Passion(Why?)29Energy(personalityfit)
Scale Thyself30Constantly growmanagement andleadership abilitiesUse acceleratedlearning techniques
BUILD THE SPECIFICSKILLS REQUIREDFOR THE BUSINESSOF THE FUTURESkill(10,000 hrs)Passion(Why?)31Energy(personalityfit)
Be true to yourself:32Prioritise whatmatters(e.g. rich or king?)Do what’s right forthe businessAccept trade-offs
BEPURPOSEDRIVENPurpose willpreserve passionand energythrough the darktimes (which willcome).33
KNOW THYSELFMake trade-offs true to yourself, and grounded in realityAvg. PersonalWealth created 10mOlderCo’s 5mYoungerCo’s 2mKept CEO roleKept Board control34XXPXXPPP
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