Understanding Startups

In this session I’ll walk through the different types of
startups and how to best finance and scale them.

We’ll learn
============
— Difference between a startup and a business
— The six types of startups
— Finance options for startups
— How to begin scaling

Transcript

1. Lunch & Learn on Understanding Startups In this session I’ll walk through the di erent types of startups and how to best finance and scale them. We’ll learn — Di erence between a startup and a business — The six types of startups — Finance options for startups — How to begin scaling
2. I’m a father, husband, adventure seeker, designer, entrepreneur, innovation strategist, technologies, researcher, and a more. Hello
3. What is a Startup? A startup is an organization in search of a repeatable business model. A business is one that is executing on that model.
4. Types of Startups Stanford University. outlined and taught by Steve Blank
5. Lifestyle Work to live their passion. Freelancers, Independents, Solopreneur, etc…
6. Small Business Work to feed families. This is the the most common type of business.
7. Scalable Born to be Big. Often swinging for the fences, raising large rounds of VC capital and striving for IPO.
8. Buyable Acquisition Targets. Building something that grows but bypassing VC and able to walk away with millions (but not billions).
9. Enterprise Innovate or Evaporate. Large organizations that are often institutions and pillars of e ciency but may have a hard time innovating.
10. Social Driven to make a di erence. With less focus on profits and more on the good they are able to create in the world. Social Innovation, Non-Profits, etc…
11. Overview Which one are you: Take a minute to think about which one you are in and the di erences between them. Lifestyle Small Business Scalable Buyable Enterprise Social
12. Financing Options Who’s going to pay for it all - and for how long?
13. Bootstrap One of the most common options but one of the hardest. Requires stretching resources - both financial and otherwise - as far as you can.
14. Customer Financing Getting your customers to pre-buy from you in exchange for early access, special deal(s), prestige, etc…
15. Debt Get the money now (if you can) and pay later with interest. Using either personal debt, business debt or both. From bank loans, lines of credit, borrowing against receivables, leasing options, credit cards, etc…
16. Grants Grants are non-repayable funds or products disbursed or given by one party (grant makers), often a government department, corporation, foundation or trust.
17. Investors Getting others to invest in your future growth with the goal of getting a good return later. Examples like Friends, Family & Fools, Angel, Venture Capital, etc…
18. Cash Have plenty of cash to weather the storms because growth sucks cash. Don’t just focus on the P&L, make sure you understand cash flow. ✦ Cash Flow ✦ Accounting ✦ Financial Leavers
19. Income Amounts (each month) Expense Amounts (each month) Total each line item Total each line item TOTAL of all expenses (each month) TOTAL of all income (each month)
20. Your Power of One Change you would like to make Annual Impact on Cash Flow $ Impact on EBIT $ Price Increase % % Volume Increase % % COGS Reduction % % Overheads Reduction % % Reduction in Debtors Days day(s) Reduction in Stock Days day(s) Increase in Creditors Days day(s) Your Power of One Impact You can increase the price of your goods & services You can sell more units at the same price You can reduce the price you pay for your materials / labor. (Operating Expenses) You can reduce your costs. (Accounts Receivable) You can collect $$ faster. (Inventory) You can reduce the amount of stock on hand. (Accounts payable) You can slow down payments. 7 main financial levers
21. Get Organized Tighten up your execution habits and stop relying on the “heroics” of you and your team.
22. Identify Processes Identify 4 to 9 processes that drive your business and focus on making those better, faster or cheaper to deliver. ✦ Tours ✦ On-boarding & O -boarding ✦ Billings (1st of the month, prorations, snacks) ✦ Phone & Email Inquiries ✦ Social Media Engagement ✦ Member Animation ✦ Community Outreach
23. Write it down Take time to write down how you do things and where you put things. This will allow others to keep the same quality while also letting them find ways to refine your practices over time and share with others.
28. Scaling Up Free your time to focus on the important activities necessary to grow your business while getting everyone aligned to execute your plan. ✦ People ✦ Strategy ✦ Execution ✦ Cash
30. Managing Yourself You can’t always put yourself last.
31. Take Care Having a strong and fulfilling personal life provides an important foundation for sustaining your e orts in the business. ✦ Finances ✦ Fitness ✦ Friends ✦ Family ✦ Faith
32. Thank You schaapy@gmail.com