light house tips for executing a successful start up

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Page 1: Light house tips for executing a successful start up

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Page 2: Light house tips for executing a successful start up

Golden rules of the execution in any start up

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Page 3: Light house tips for executing a successful start up

Life cycle of a start up

Seed capital to Series A

capital

Series A to growth capital

Growth capital to fully ripe start up

IPO or sale to strategic

partner

Idea to seed capital

Relatively easy period

Meets with the competition and starts facing resistance to product and revenue model

Most challenging period, time to build up team, put systems in place

Speed of growth will slow, business requires multi fold challenges and expertise, unexpected hurdles, may require a pivot, external market pressures

Company is ready for strategic sale or IPO. Corporate governance is in place, business in to black and adequately capitalized.

Page 4: Light house tips for executing a successful start up

Idea to seed capital.

• This is the period wherein the idea gets converted to the POC.

• This period is crucial since it translates the idea in to reality.

• This is the period when the initial team is being put in place and all the efforts are being diverted to convert the POC in to commercially deployable product.

• Most ideal situation would be when the product is out in the market and the initial traction and testing has happened within seed capital.

• This time frame is available for doing all sort of refinements to product based on the feedback and traction and acceptability from the market.

Page 5: Light house tips for executing a successful start up

Seed capital to series A capital.

This is most challenging period for any start up since company starts facing the real issues like

• acceptability of products, • awareness of company and product, • creating the reach within a short period of time,• Fixing up issues in pricing• Logistics• Building up the required team• Creating marketing buzz

This is the period when 360 degree action is required with great speed. This will certainly help to remain ahead of the competition.

This phase requires A class core team to be in place connected with common goal. They are not just executioners but also leaders who will build their B team.

Page 6: Light house tips for executing a successful start up

Series A capital to growth capital.

This is the phase where the business is poised towards growth and the product is well established. This phase typically will denote the consolidation phase when most of the aspects have fallen in place and team is ready to accelerate the growth.

The cautious approach would be draw up the growth plan after carefully considering the potential and capacity of the market. Any wrong information would often lead to wrong paths and would destroy the momentum.

The growth plan on the drawing board should be thought over and challenged multiple times before it is being put out in the market for raising the growth capital.

Robust MIS dash board and careful market analysis is a prerequisite for the growth plan. Series B and C investors would be looking at the plans carefully.

Page 7: Light house tips for executing a successful start up

Growth capital to fully ripe start up.

This phase suddenly slows down the pace of the growth and most unknown hurdles crop up during the phase. By this time the competition would have been in action and posing a serious threat to your business.

Unknown factors would have started effecting the model and it becomes imperative that all the decisions are weighed carefully.

This is the phase where CEO starts spending more time wondering about the top line growth and bottom line.

Entrepreneur should evaluate every decision since all of them would have far reaching consequences. He should be bold enough to make a pivot to the business model in order to achieve sustainability.

This is the longest phase of the entire life cycle of the start up and CFO plays extremely important role here.

Page 8: Light house tips for executing a successful start up

Every start up needs a dynamic CFO, in fact this is a must for a success of the start up. He should be on board immediately post the seed capital.

CFO should not be mistaken as accountant since he would point out what not to do rather than what has been done wrong.

He plays a crucial role of keeping the company and entrepreneur grounded. He is the one who asks most uncomfortable questions and who plays a devil’s advocate.

He helps to shape up the vision and strategy of the company. CFO plays a crucial role in building up the sound systems, solid foundation, keep the company compliant all the time, helps to evaluate the future opportunities.

In fact CFO is a back bone of a successful start up and companies should never shy away from roping a seasoned CFO.

Page 9: Light house tips for executing a successful start up

We at startupdirexions help the start ups to build , grow and create value for the stakeholders.

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