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A Scaleup is not a Startup
The document discusses the critical distinctions between startups and scaleups, emphasizing the unique challenges and risks faced during the scaling process. It highlights the importance of marketing specialization, efficient processes, and aligning sales and marketing efforts to drive growth. Additionally, it offers insights on managing people, resources, and financial metrics essential for successful scaling.
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A Scaleup is not a Startup
- 1. A Scaleup isNot A Startup Product, Process, People Joe Haslam Executive Director, Owners Management Program AD-ENG-OMP ABR-2017 Monday, 24 April 2017 Serrano, 99 (S-001)
- 2. "It has neverbeen easier to start …. but never been harder to scale!"
- 4. A Scaleup isNot A Startup 1. Scale 2. Product 3. Process 4. People 5. Resources
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- 15. 1. Product/Market FitRisk 2. Product Quality Risk 3. Team Risk 4. Recruiting Risk 5. Sales Risk 6. Market Risk 7. Funding Risk 8. Short-Term Competition Risk 9. Long-Term Competition Risk
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- 21. 1. Beware ofsmall, rare problems 2. Beware of offering a cheap, complex product 3. Beware of solving problems people don’t know/don’t care about 4. Beware of solving problems you can’t experience yourself
- 23. Law #1: Deliversa service that can be metered. Law #2: Grows with the business. Law #3: Replaces something that companies already pay for. Law #4: Offers an amazing user experience for the developer Law #5: Receives tons of explicit developer love. Law #6: Exhibits strong network effects. Law #7: Eliminates the need for non-core skillsets no one enjoys. Law #8: Democratizes development.
- 25. 1. Charge earlierthan you’re comfortable with 2. Charge more than you’re comfortable with 3. Justify (or kill) your lowest plan 4. Plan on changing prices
- 28. c 1) Marketing Specialization Duringthe transition from startup to scale-up, the change in marketing goals calls for specialist skill-sets. The marketing focus shifts to quickly and efficiently scaling up the repeatable sales or customer acquisition model. 2) Marketing Experimentation A business that’s scaling up depends on experience to determine what growth engine to focus on. After all, the trial and errors of the startup phase have helped the startup figure out what works and what doesn’t. This knowledge may also reduce the room for marketing experimentation. With a bigger customer base, there is less room for error. 3) Marketing Processes and Hierarchies Operational efficiency becomes increasingly important as you hit the scale-up phase. The ability to efficiently prioritize, delegate, record, track, and analyze marketing activities becomes process dependent. 4) Marketing Leadership A startup does not always need to align sales and marketing activity. However, most scale- up marketing needs are always coupled with revenue generation responsibilities. In a scale- up, it is important to align sales and marketing activities for optimized growth focus. Marketing in a scale-up needs to behave more like revenue centers than cost centers.
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- 37. “Scaleup is theReal Startup” 1. A startup should not be fat but it should not be lean. Forget about small efficiencies, about 97% of the time. 2. Silicon Valley Blitzscaling (AirBnB, Uber, Dropbox) is only for <1% of the world. 3. Zero to One, not One to N (Peter Theil is right) 4. You can be Good, Quick & Cheap (you don´t have pick just two) 5. A scaleup screwup is worse than a startup screwup. Scaleup is EVEN MORE about survival. Corsten & Haslam (2017)
- 40. (1) SCALE -Your Gross Revenue, money in (2) MARGIN - Both Gross & Contribution Margin (3) MOMENTUM - Direction of market Share? (4) ACTIVITY - How quickly items are bought/sold? (5) ENGAGEMENT - No sale yet but interaction (6) RETENTION - Can you keep a customer? (7) CONCENTRATION - Spread out or highly concentrated? (8) ACQUISITION - How much it costs to get a customer? (9) ROI - Unit Economics, does average transaction bring value? (10) CASH - Burn Rate
- 44. Advisory Board Problems: 1.Not enough time. 2. Not enough wisdom. 3. Too much effort. 4. Expensive. My view on how to best implement advisory boards: 1. Ask for small investments 2. Run semi-annual advisory dinners 3. Don’t overplay in your VC pitches
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- 51. 1. Employee NetPromoter Scores as Manager Thermometer 2. Enterprise Value > Team Value > Self Value 3. Chief Pothole Prevention Officer 4. Everything Needs to Work Right Almost All the Time 5. Sailing Ships 6. No Uninspired Compromises 7. Right vs. Fast 8. Short-term vs. Long-term 9. Documenting Strategy 10. CEO = Chief Explanation Officer 11. The Bus Analogy 12. Great Products Are to Customers as Great Cultures Are to Employees
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- 62. - Problem solvingis much easier than coaching. - Coaching takes a lot of energy. It’s exhausting, because you need to understand what the person’s about, their strengths and weaknesses, their hopes, dreams, and fears. - You have to deliver messages in such a way that’s tailor-made for them so they can internalize it, and most importantly — this is where true scale begins to happen — they can start coaching people on their team to do it”
- 63. “Just when Ithought I’d figured out how to be the CEO of a 100-person company, suddenly it’s 200 people.” - Ben Silbermann, Co-Founder, Pinterest
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- 69. Nail It thenScale It by Nathan R. Furr (2011)
- 70. Scaling Up Excellence byRobert I. Sutton & Huggy Rao (2014)
- 71. Scaling Up by VerneHarnish (2014)
- 72. From Impossible toInevitable by Aaron Ross & Jason Lemkin (2016)
- 73. Scaling Lean by AshMaurya (2016)
- 74. Scale and Scope byAlfred Chandler (1990)
- 75. Joe Haslam Lives in:Madrid, Spain joehas at gmail dot com http://www.linkedin.com/in/joehas/ http://twitter.com/joehas/ http://joehas.tumblr.com/ https://angel.co/joe-haslam