Download - Breakthrough To Fast Growth
Get Boested to breakthrough!
Every year only a few companies make it to the top. Why?
That’s where we have been working on, that’s our passion, that’s
our expertise……..
ONLY 1 IN 5 BREAKS THROUGH TO FAST GROWTH
12,40% 18,80%
37,60%Rateoffastgrowers
• Growing with minimum of 60% revenue growth in 3 years
• 18,8% of Dutch companies belong to the top growing class
• But…. 18,8% is not the max.
Fast growers share: • Explicit ambition • Active market development • Active innovation • Social intelligence and
cooperation • Higher education level • Strong international orientation
(“Think big”)
CHARACTERISTICS OF THESE FAST GROWERS ARE KNOWN
*Source: Research ACE / EIM (2009) “Why some companies grow faster than others”
0% 20% 40% 60% 80% 100%
International outlook
Networks
Partnerships
Market development
Service innovation
Product innovation
Ambitious growth targets
Characteristics of Fast Growers*
Average
Fast growers
IT’S ALL ABOUT CROSSING THE CHASM TO NEXT STAGE
Every company has it’s natural revenue barriers (e.g. 1 million) that they can’t grow beyond: • Serving a new group of users is
required; • Breakthrough has to come from inside
Well-known thresholds to enter new market successfully: • Product vs. market focus; • Technical functionalities vs. customer
benefits; • Got to get out of comfort zone again; • Drive and ambition to do things
differently and improve;
PRIMARY CONDITION FOR BREAKTHROUGH: AIM FOR EXCELLENCE
Attitude of entrepeneur & team • Think big, Belief in your goal, Be passionate • Be open, Dare to act, Show stamina. Insights in market(s) • Go out, gain insights, Know your (potential)
customers’ issues; • Pinpoint the market, Sell the problem. Management of growth process • Execute first, Incorporate feedback loop,
Stay open for change; • Empower your team (“you need them”); • Focus on clear step by step goals.
SECONDARY MECHANISM: GROWTH HAS TO BE MANAGED IN 4 STEPS
1) Short term market development, focus
and action
2) & 3) Realisation of the first growth and creating basics for high revenue growth, but also with ups and downs, setbacks and failure
4) Continuing fast growth and creating mid term
company value
THERE IS NO INSTANT SUCCESS
SWEETSPOT FOR FAST GROWTH IS IN EXECUTION
DO AND DEVELOP: Attitude • Go out and get feedback • Understand & learn • Mistakes are OK • Killer mentality, ready to improve Insights • Test and adjust propositions and
market approach • Prove with facts & figures • Accelerate when(ever) possible Management • Focus and steer on delivery • Scale activities and results step-
by-step • Get people out-of-comfort zone
RESULTS DELIVERED PRODUCES OUTPERFORMERS
*Inspired by Gold Book of Venture Capital Firms, Bob Zider, “How Venture Capital Works,” Harvard Business Review
DeBoest Growth Management Partners
Average Annual growth 39%
BUT BEWARE, FOCUS FOR GROWTH DIFFERS PER STAGE
Inspired by Gold Book of Venture Capital Firms, Bob Zider, “How Venture Capital Works,” Harvard Business Review
Validate market potential
Feedback from market
Potential customers in pipeline
Find launching customers
POC to build BC Choose main
market Get expertise on
board
Commercial planning
Structured market approach
Professionalize marketing & sales
Build propositions
Market expansion Upsell to existing
clients More customers New regions Intensify
commercial activities
Enter new markets / categories
Product innovations
Boosting revenues
Focus for Growth
Validate the business concept (e.g. build prototype, develop business plan, conduct market research)
Entrepeneur Angel
investors Fools, friends,
family Incubators
Build management team and complete product development
Entrepeneur Angel investors Traditional VC Incubators
Expand production, marketing, or sales capabilities
Entrepeneur Traditional VC Corporations
Provide working capital once shipping products or providing services
Entrepreneur Banks Traditional VC Corporations
Fuel substantial growth (typically provided to business that are at least break even)
Entrepeneur Banks Traditional VC Corporations Buyout firms Investment
banks
Prepare for initial public offering, usually in the next 6 months to a year
Entrepeneur Banks Traditional VC Corporations Buyout firms Investment
banks
Focus of the company
Type of stake-
holders
Growth Stages
Early Stage Expansion or Development Stage Later Stage
Seed stage Start-up First stage Second stage Mezzanine Later stage
Every year only a few companies make it to the top.
Is that that your ambition?
Then stop asking why!
JUST START TODAY
Remarks or questions? Want to discuss with us about these findings? Or looking for practical examples? Please do not hesitate to contact Bram
Hulshof of DeBoest at [email protected] or +31 6 5339 0015