means & measures to increase start-up roi
Post on 17-Oct-2014
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DESCRIPTION
95% of start-ups don't meet the projected ROI on investor's exit. 75% of start-ups: ROI on exit is less than capital invested. Well, there are means & measures to do better.TRANSCRIPT
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Table of Contents
Start-up failure rate Dreams in vain What’s the problem? Break it down! Let’s dig deeper Means and measures to overcome Leverage points Means and measures in detail
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START-UP FAILURE RATE
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Official Investment Figures
• U.S. VC Investments in 2013: 29,545 Mio. $*
• German VC Investments in 2013: 4,680 Mio €**
* NVCA Yearbook 2014 ** BVK-Statistik 2013
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Failure rate – official
• U.S.: 35% approx. (NVCA/WSJ) • Germany: 32.4 % (BVK Stats 2013)
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Failure – a question of definition!
Shikhar Ghosh, HBS Study 2012: • 35% of all U.S. start-ups gone bankrupt /
out of business officially • 75% ROI on exit < capital invested • > 95% of all start-ups did not meet the
projected ROI
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What investors dream about
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What investors hope for
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What investors typically get
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WHAT‘S THE PROBLEM?
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LET’S BREAK IT DOWN!
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Young organizations either die or grow up!
Start-up Enterprise
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The crucial period
Transition
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Support it!
Start-up Transition Enterprise
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LET’S DIG A BIT DEEPER
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Luzern Start-up Model
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The CFL Development Model
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To meet founder’s challenges
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Fields of development
• Personal development: The founder becomes an entrepreneur
• Leadership • Personnel: recruit, develop, and change • Shaping an organization • Processes • Strategy
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MEANS AND MEASURES TO OVERCOME THE TRANSITION CRISIS
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Means and measures
• Business Leader Coaching provided by experienced business pros
• Start-up Development Workshops • Peer Coaching • General Management Consulting • Interim Management
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Prerequisites
• There is neither time nor money to waste! • Supporting means and measures have to be
aligned to and integrated into the start-up development process.
• Support does not mean to substitute sequences of either individual or team learning curves but to accelerate necessary learning and development processes.
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Leverage Points
(Keller, Price 2010)
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Internal Alignment
(Keller, Price 2010)
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Quality of Execution
(Keller, Price 2010)
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Capacity for Renewal
(Keller, Price 2010)
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Fundamentals
• Internal Alignment is crucial! • Quality of Execution has to be set up at
highest possible pace. • Capacity for renewal is what has to remain
from the start-up period.
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Main challenge to face
Culture Change
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And the devil is in the detail, e.g.:
• Setting up processes • Shaping structures • Diversification of responsibilities • Hierarchies • Bypassing of management levels • Founder’s micromanagement • …
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MEANS AND MEASURES WE PROVIDE IN DETAIL
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Business Leader Coaching
Every business issue is a personal issue, too. Every business challenge provides opportunities for personal development. Business coaching provides both: Business consulting in the different fields of building an enterprise from a start-up and coaching that fosters personal leadership development.
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Start-up Development Workshops
• Work out immediate and viable solutions for current problems together
• Moderated and infused by business pros • Variable set-up:
– Whole start-up team – Dedicated start-up team members – Leaders of different start-ups
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Development WS Process Model
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Peer Coaching
• Peer coaching groups typically emerge from start-up development workshops
• Variable set-up: – Leaders of different start-ups funded by a given
incubator / accelerator / VC – Functional leaders of different start-ups
• Moderated and infused by business pros during the first five sessions
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General Management Consulting
• Brain & body leasing to bolster up and enhance start-up business knowledge and performance for a given period of time (typically 6 months)
• GMC advises CEO and/or functional leaders during transition phase(s)
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Interim Management
• Change Manager during transition phase(s) • Business Realignment
– Culture – Strategy – Portfolio – Organizational design – Board
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CFL expertise
CFL business coaches, consultants, and interim managers provide you with a sound expertise deriving from their experience as business leaders in various industries. With our seniority we give direction and encouragement to start-up leaders in turbulent times. Not least it is our presence that makes the difference.
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Questions? Observations? Remarks? Any crisis to tackle?