The StartupWheel A tool for advising start-ups with a 360 degree perspective

Transkript

1 The StartupWheel A tool for advising start-ups with a 360 degree perspective All start-ups have the same challenges How can they be overcome?

2 The StartupWheel generates a 360 degree perspective - for both the advisor and the entrepreneur The StartupWheel is a systematic and creative tool for business design and development. It assists start-ups in making decisions and taking action and it provides us - in the role of advisors - with a simple method to get overview of all the tasks necessary to start a company and grow it. In the StartupWheel these business tasks have been divided into four fundamental challenges: creating an attractive business concept, establishing a sustainable organization, building long term customer relations and developing effective business operations. The StartupWheel provides an overview and prompts action by identifying the most important areas to work within. There are a total of twenty development areas that together provide a 360 degree perspective on what it takes to create a successful company with potential for growth. most pressing actions that need to be carried out. The intention with the StartupWheel is not to produce a complete and written business plan for all the areas. However refraining from writing a business plan does not mean that no sort of planning should take place. The StartupWheel makes us better advisors. With the StartupWheel method we become better advisors because the frameworks and the process gives us a tool to have a much broader perspective on the business we are working with. In the process we will look at everything. As a business advisors we most likely to have several years of experience within certain industries or disciplines. But to be an effective advisor we must be able to work with all kinds of challenges. The StartupWheel provides tools that allow us to give advice in areas in which we do not have special expertise - in other words, we become generalists instead of specialists and thereby our credibility as advisors is strengthened. Alternative or supplement to the business plan? The StartupWheel is a tool for creating actions. It is designed to help identify the first decisions that need to be made and the On the contrary the StartupWheel provides tools that like the conventional business plan engage entrepreneurs in idea creation, research, review, dialogue, decision making and action planning. But is does so by focusing on short-term activities that can be carried out instantly. The StartupWheel can be used with a business plan. For entrepreneurs who have already written a business plan, the StartupWheel can be a tool for prioritizing and taking action and for those who wish to write a business plan, the StartupWheel can be used as a starting point for the process. Facilities 2010 Startup Company NYC Inc. Side 2 9

3 THE STARTUPWHEEL - WHITEPAPER The Startup Toolbox has everything the advisor needs As business advisors, a license to the StartupWheel will give us access to a comprehensive toolbox - the Startup Toolbox - that offers several different tools for the consulting and advisory process. There are three categories of tools: frameworks, inspirational articles and worksheets. Each of them offer a special contribution to the advisory process. Frameworks that provide a common language The first tool consists of 30 frameworks. These frameworks are simple and visual models that provide an overview of each theme in the development areas of the StartupWheel. Sitting at the table with an entrepreneur, the frameworks help simplify abstract ideas and challenges. They help create a common language and shape the conversation between two parties. Inspirational articles that provide understanding read articles prior to a consulting session as preparation and to ensure the entrepreneur has a certain awareness level before the session begins. Additionally, it gives the entrepreneur the opportunity to feel prepared for the meeting. All articles have been published in the Danish magazine "The Entrepreneur." A license to the StartupWheel includes the right to freely distribute the articles electronically and in print. Worksheets that lead to action The third tool in the Startup Toolbox is approximately 80 different worksheets. The Worksheets are simply designed 11 by 17 inch sheets that help the company make decisions and produce action plans within each development area of the StartupWheel. They have the characteristics of a creative drawing board as the entrepreneur in specific terms can notes on which actions need to be carried out right now. The second tool is a library of 25+ inspirational articles that cover, in detail, all the areas of the StartupWheel - each article provides inspiration and simple checklists with specific suggestions for action. The advisor can have the entrepreneur Markedsføringsviften 6 områder at se på i markedsføringen Inspirationsartikel for vækstvirksomheder Artikel #18 Version 1.3. Udviklingsområde: Forretningsmodel (Gult udviklingsområde) Tema: Indkomstkilder TRYKSAGER Visitkort Brochurer Foldere Produktark Prislister Plakater Præsentationer modeshow, hvor prisen T-shirt of The Year blev uddelt. Her kunne man måske tjene ekstra penge ved at sælge medlemskontingenter til deltagere, som havde interesse i at være med i brancheforeningen. Nu er der næppe basis for en specifik T-shirt brancheforening, men forretningsmodellen bruges selvfølgelig både i mode- og tekstilbranchen og i mange andre brancher. Markedspladsen ANNONCER Dagblade Fagmedier Magasiner Håndbøger Postkort Outdoor media TV/radio Kortlægning af spillerne i markedet DIRECT MARKETING Direct post Direct mail Telemarketing Kundebesøg FELT 22 kilder til indkomst ONLINE MARKEDSFØRING Webside Blog Webportal Netværkstjenester Sociale medier RIVALER Selv som finansiel virksomhed vil man i princippet kunne tjene penge i T-shirt branchen, selvom det nok hører til sjældenhederne. Man kunne forestille sig en udlejningsforretning af dyre designer T-shirts (det findes for solbriller, tasker og brudekjoler), og man kunne måske sælge dyre T-shirts med en afdragsordning, hvor man tjener penge på renteindtægterne fra kreditforretningen, ligesom forhandlere af fladskærms-tv gør det. Det ville BESKRIVELSE Vareproduktion Du udvikler, producerer og leverer et produkt samt fakturerer kunderne produktionsprisen med tillæg af medgåede omkostninger og en margin til fortjenesten. Ordreproduktion Du producerer varer på bestilling og fakturerer kunden en individuelt beregnet pris på hver leverance. -på de gode idéer PROMOTION Merchandize Messer Events Sponsorship Vareprøver Product Placement NYE INDTRÆNGERE FORRETNINGSMODEL Finansiel indkomst PRODUKTIONSFORRETNING Outsourcing Du designer et produkt, men outsourcer hele produktionen til en anden fabrik og fakturerer kunderne produktionsprisen med tillæg af medgåede omkostninger og en margin. Som iværksættere er det ikke tilstrækkeligt, at vi får masser af idéer. ViLicens skal produktion også kunnedu producerer og leverer et produkt, som andre har designet, og fakturerer kunderne en pris, der også kan dække det beløb, du betaler til licensgiveren. tjene penge på dem og finde frem til den helt rette forretningsmodel. Men hvilke Du designer et produkt, men lader andre om at stå for produktion, leverance og salg, Royalty forskellige muligheder har vi for at tjene penge på den gode idé? og fakturerer producenten en royalty på antal producerede eller solgte stk. GODE KONKURRENTER KOLLEGER I ANDRE MARKEDER Af David Madié, stifter af og direktør for Growth Company. Grossist salg Agentur (evt. import) PUBLIKATIONER Bøger Artikler Elektronisk nyhedsbrev Eget magasin Rapporter Andre spillere Institutioner FORRETNING Medier Organisationer Du indkøber varer fra forskellige producenter og videresælger dem i mindre mængder til forhandlere, som du fakturerer en pris, der dækker omkostninger til bl.a. lager og logistik. Du indgår en agenturaftale om et produkt og sælger en vare som leveres og faktureres Der er stor forskel på at have en god idé og have en god Mindst 22 forskellige forretningsmodeller af producenten, og fakturerer producenten en aftalt salgsprovision. forretningsidé. Forskellen består i, om man har fundet Når man skal vælge sin forretningsmodel, handler detduikke starter en butik og indkøber varer, som du sælger med en fortjeneste, der bl.a. Detail handel frem til en god forretningsmodel for, hvor pengene skal dækker butiksleje, personale og annonceringsomkostninger. blot om at finde frem til én enkelt model - snarere handler komme fra, og hvordan der skal tjenes penge på idéen. det om at findehandelsfrem til flere. De bedste Du lægger dine varer i kommision hos en forhandler og fakturerer først forhandleren, Kommision FORRETNING Begrebet forretningsmodel er ikke et hverdagsord, og forretningsmodeller er oftest en kombination af flere når varen er blevet solgt. det bruges også tit på flere forskellige måder. Den mest forskellige måder at fakturere kunderne. Abonnementer og Du indgår aftaler om løbende eller gentagne leverancer af en vare, og fakturerer enkle måde at forstå en forretningsmodel på kan være at se licenssalg kunderne et fast aftalt beløb pr. måned, kvartal eller år. på, hvordan en virksomhed skriver Du koordinerer en leverance til en kunde og viderefakturerer leverancer fra fakturaer. Det er nemlig på Viderefakturering af De bedste forretningsmodeller er en kombination underleverandører med en fortjeneste, der skal dække håndteringen. fakturaens enkelte linjer, det flere forskellige måder at fakturere kunderne. fremgår, hvad kunderne i sidste Salg og udleje af Du sælger synlig reklameplads i forbindelse med din forretning og fakturerer kunden en reklameplads kontaktpris (pr. estimeret eksponering) eller en pris efter annoncestørrelse. ende betaler for, og hvad forretningen dermed består i. Det kan f.eks. være, at der For de fleste iværksættere vil det være naturligt atdu erhverver dig en professionel viden eller en faglig kompetence og fakturerer Timesalg sælges enten produkter med en stk. pris og/eller anvende mindst fem forskellige forretningsmodeller kunderne efter det tidsforbrug, du anvender på opgaver for dem. serviceydelser, der faktureres efter timeforbrug. Og måske samtidigt, og for nogle kan det være en fordel at anvende Du leverer en ydelse og fakturerer kunden en fast pris for hele ydelsen, eller en pris der Ydelsessalg vil det fremgå, at kunden betaler på abonnementvilkår, op til 10 eller endda helt op til 20 forretningsmodeller er bestemt af det ressourceforbrug, der medgår til leverancen. eller at der indgår faste priser på bestemte ydelser. Men samtidigt. Figuren Kilder til indkomst på næste side Du etablerer en organisation eller et netværk og fakturerer deltagerne et Event salg med hvilke forretningsmodeller kan man bedst tjene penge illustrerer 22 eksempler på forskellige forretningsmodeller, medlemskontingent for en periode. SERVICE i sin virksomhed? og der findes sikkert endnu flere. ANDRE SPILLERE Kontingenter Du udvikler et projekt, som kan opnå støtte fra fonde eller offentlige institutioner og fakturerer disse en aftalt sum, som skal dække alle projektomkostningerne. Fundraising Du udvikler et butiks- eller servicekoncept og fakturerer kunderne en franchise fee og evt. en royalty som en procentsats af den omsætning, de opnår på forretningen. Franchising Du investerer i noget udstyr, som du udlejer og fakturerer kunden en lejepris per. periode. Udleje og leasing Du lader dine kunder betale for din vare eller ydelse gennem en afdragsordning og fakturerer en rentesats på den kredit, kunden løbende har. Kreditforretning Du sælger i samarbejde med et forsikringsselskab en forsikring, der medfølger den vare eller leverance, du giver, og fakturerer kunden en forsikringspræmie. Forsikringssalg Du investerer i varer eller aktier og sælger dem efter en periode til en højere pris, der bl.a. dækker de omkostninger, du har haft i forbindelse med investeringen. Investering Du investerer i varer eller aktier og sælger dem efter en periode til en højere pris, der bl.a. dækker de omkostninger, du har haft i forbindelse med investeringen. FINANSIEL FORRETNING Copyright 2008 Growth Company ApS. Licenseret til Væksthus SydDanmark. Mere information på og Startup Company NYC Inc. Side 3 9

4 THE STARTUPWHEEL - WHITEPAPER All start-ups have the same challenges - that is why they can be overcome It may sound like a very crude generalization to say that all startups have the same challenges. Would a service business have the same challenges as a production business? Would the furniture industry have the same needs as the IT-industry? And how about the differences in the challenges experienced by the early start-up and the growing company? Of course certain conditions are different. However, all companies have one thing in common, they must all develop great products, hire the right people, get the right clients and be profitable. The StartupWheel provides an overview over these four fundamental challenges. To create an attractive business concept The yellow segment of the StartupWheel holds the areas to work with to create an attractive business concept. In an advisory session the advisor and the entrepreneur would consider issues like: how to design the company's products and services in relation to certain customer segments, creating the right business model and how to relate to the competition. The development areas in the yellow segment are focused on design and development of the business idea, product portfolio, business model, customer portfolio and the company's market position. To establish a sustainable organization It is not sufficient for a start-up to have an attractive business concept. It is also necessary to assemble the right team of owners, employees and partners and this is the focus of the second segment, the red segment, in the StartupWheel. The organization is the foundation for the future development of the start-up. As advisors we help the entrepreneur answer questions like: how to assemble the 2010 Startup Company NYC Inc. right owners, how to find the right employees and how to form the right partnership agreements. The development areas in the red segment of the StartupWheel concentrate on designing the internal structure of the start-up and the focus is on areas like owner group, board, employees, business processes, partnerships and legal issues. To build long term customer relations With an attractive business concept and the right organizational foundation, the start-up has a strong basis for development and growth. However, a startup also has to be able to sustain customers and to develop new customer relations. This is the focus of the development areas in the green segment of the StartupWheel. Here our dialogue is concerned with how the start-up should manage the daily business development and how to most efficiently communicate with current and future customers. Focus is on the development areas: network, marketing, sales, public relations and branding. To develop effective business operations When the start-up has built the foundation for creating strong customer relations, the last challenge is to be able to deliver and to continue to improve the operations. This last area - business operations - the blue segment is about this. Here the advisor and the entrepreneur consider how the company can increase its productivity and how it can obtain positive cash-flow and finances. The development areas in this segment have to do with the development of the company's management accounting, financing, deliveries, IT-systems and facilities. Side 4 9

5 Does the StartupWheel include everything? The StartupWheel s approach to start-up-development and growth is one of many. One could easily find another structure possibly with five areas and the headlines for the twenty development areas could also be changed. For example, another word for customer portfolio could be customer segments. However, in an advisory process where the StartupWheel is used as a tool, it is not so important which terminology is used. Every advisor has their own terms and use them in their own way. What is more important is whether the headlines are meaningful to the entrepreneur during the process. Over the last five years, the StartupWheel has proven to be very robust and to-date more than a thousand startups have used the concept without providing any significant suggestions for changes in the overall structure. But where is Strategy..? At first glance it might seem as if the StartupWheel lacks a number of the key terms typically used when working with business development - for example terms like "strategy", "management", "innovation", "quality management" and "internationalization". However, these terms are in fact present in every single development area of the StartupWheel. As far as strategy is concerned, a start-up can have both a product strategy as well as a communication strategy and a sales strategy. And when it comes to management, this is also a discipline that relates to both production management, human resource management and sales management. Also the term innovation is not only a discipline concerned with developing innovative products, as companies should also work on creating innovative business models, innovative delivery systems and innovative partnerships. In this way all these terms reach across the twenty development areas of the StartupWheel and are included in them all. STRATEGY MANAGEMENT QUALTY MANAGEMENT INTERNATIONALIZATION INNOVATION The StartupWheel provides no solutions Even if the StartupWheel is concerned with most of the issues related to starting and developing a business, it does not in it self provide any solutions. First and foremost, the StartupWheel creates a structure and a common language. On top of that the Startup Toolbox can be used to clarify which decisions and actions are essential for the business development and growth. Only due to the work that the advisor and entrepreneur are doing together can real solutions be made Startup Company NYC Inc. Side 5 9

6 The StartupWheel has an opinion about how to best develop startups The StartupWheel is more than just a list of tasks and themes. In itself this would be no more than a list of content in any other business plan. What sets the StartupWheel apart from other business development tools is the idea that four key activities are necessary to grow a start-up: To obtain overview, create progress, maintain passion and to establish a community. Overview provides confidence For an entrepreneur, an overview is necessary, because the lack of it can be a mental barrier - one, that can potentially block the starting of important activities in the start-up. To have overview does not only involve having a 360 degrees perspective on your business but also that you have overview of all the development areas in the StartupWheel and understand what they involve. With its detailed frameworks, the StartupWheel ensures this insight all the way through the StartupWheel - for the entrepreneur and for the advisor. Whereby the confidence to take action is established. Progress provides a successful experience It is necessary for the entrepreneurs to make decisions that manifest themselves into concrete action. The danger is that the entrepreneur spends too much time analyzing - which rarely leads to real change. With it's action-oriented worksheets, the StartupWheel enables the advisor to systematically help the start-up in determining the next step and taking action on it. This provides successful experiences that again further encourage more initiatives. Passion provides productivity Passion might be the most important resource in the start-up, especially when the start-up is young and there is still not enough money, employees and systems to keep it going. This is why it is crucial for the entrepreneur to keep up the passion within the group of owners and other key people. The StartupWheel supports and strengthens the passion, both by being a creative and visual tool but also by the wide degrees of freedom in the way the toolbox is used. When the entrepreneur follows his energy and intuition there's a much greater likelihood that passion can be maintained, which will also increase the productivity so more things are done faster. OVERVIEW PROGRESS PASSION COMMUNITY Community provides competence To build a company requires a lot of different skills and resources that no entrepreneur can come up with on his own. That is why it is important to establish a community of people around the business, including advisors, employees, lead user customers or advisory board members. The StartupWheel encourages the entrepreneur to create a community in all development areas. With the right partners, the start-up will be able to master all twenty development areas of the StartupWheel Startup Company NYC Inc. Side 6 9

7 Use the StartupWheel in your own way One of the reasons that the StartupWheel has gained such popularity among startups and advisors is the wide degree of freedom the toolbox represents. Using the StartupWheel in the advisory process does not mean that the advisor cannot use other tools as well, or that the start-up must follow a fixed and rigid process. Rather, the StartupWheel suggests that we as advisors use our own judgement to evaluate how the StartupWheel is best used with each individual start-up. Business advisors today often chose to use the StartupWheel in one of three different ways. It can be used as a diagnostic tool to identify problems, as an opportunity map to identify new opportunities and it can be used to evaluate the current skills and competences in the start-up. Approach number one: Diagnosing problems The StartupWheel can be used as a diagnostic tool for a startup that is not growing or developing in the way the entrepreneur had intended. By producing a 360 degree screening that shows how well the start-up is doing within each of the development areas, the entrepreneur gets a better understanding of where he needs to focus his energy and which problems need to be solved right now. After this, the advisor will be able to assist in prioritizing tasks. might already be productive and growing and the entrepreneur might want to identify new opportunities to further develop the company. With the StartupWheel, the advisor can help the company obtain overview of how to get started and identify the steps to get there. Approach number three: Evaluating competences The third way in which the StartupWheel can be utilized is to evaluate skills within the group of owners and key employees, whereby the advisor helps the entrepreneur find out which competencies are missing in the start-up right now and where more knowledge is needed. This also enables the advisor to refer the entrepreneur to relevant contacts within his own network of specialists or to alternative sources of further training or knowledge. The StartupWheel makes the advisory process effective and focused. Approach number two: Mapping opportunities The second way in which the StartupWheel can be utilized is as a check list of new opportunities for the start-up. The company 2010 Startup Company NYC Inc. Side 7 9

8 The StartupWheel makes the advisory process effective and focused Due to the large degree of freedom in the use of the StartupWheel, each advisor can design their own, individual advisory process. However, one method that many advisors choose is as following: 1st meeting: 360 degree screening In the first meeting the advisor presents the challenges in the twenty development areas in the StartupWheel. With the entrepreneur, the first work sheet is completed with a diagnosis of the issues or a mapping of opportunities. This will give the entrepreneur an overview and the opportunity to decide which themes to focus on in the following advisory process. The 360 degree screening will most likely also result in instant inspiration for a number of small activities that the entrepreneur can carry out right after the meeting. In this way the entrepreneur experiences a result right away. 2nd meeting: decisions and action Based on the outcomes of the first meeting it will be decided which development area or themes will be the focus of the advisory process. The purpose of the second meeting will be to identify which decisions need to be made and which next step actions need to be initiated for the startup. Some advisors choose to send an inspirational article and the appropriate framework to the entrepreneur prior to the meeting to prepare the dialogue with terms, and example challenges. A common language is created and time is spent more effectively. 3rd meeting - follow up on the action plan The third meeting will focus on monitoring and following up on the progress of the action plan that resulted from the second meeting. It is not unlikely that the entrepreneur has not managed to complete all the agreed action items. Usually ambitions surpass resources. However, most likely the time has been spent on more urgent development areas. The task for us as advisors, though, is to clarify which items on the action plan are still relevant. We must also try to find out why the entrepreneur postponed completing the action items - often we see, that he did so because he was unsure of how to go about the task. 4th meeting or later - concluding the advisory process During an advisory process the entrepreneur will work with a number of different tasks. Decisions will be made, some of which some will be carried out, while others will change. As the advisory process reaches its conclusion, a status of the results can be made displaying what has been achieved. The StartupWheel can be used for this. By having the advisor and entrepreneur use the very worksheet that was used at the start of the advisory process, the process will end with a 360 degree status update. The 360 degree status assessment, can be the basis for a dialogue on how the entrepreneur should further proceed to continue the process of developing the company Startup Company NYC Inc. Side 8 9

9 How to obtain a license for the Startup Wheel - and which license is right for you? Over one hundred business advisors today use the StartupWheel. It is being used in advisory processes in several different types of institutions and companies, who help startups develop and grow. The StartupWheel is now used in a number of different countries including Sweden, Netherlands, The United States, Greenland and in Denmark where more than one thousand startups have received advice using the StartupWheel in the process. Get a license for unlimited use of the StartupWheel and the Toolbox As a business advisor, you can obtain a license for the StartupWheel by participating in a two-day seminar where you will be certified in using the StartupWheel, together with other business advisors. At this seminar you will receive the binder with all the work sheets and you will be provided access to the StartupWheel online where all parts of the Toolbox have been made digitally available. During those two days you will be introduced and trained in using the tools of the StartupWheel and its methodology, and you will get the opportunity to network and exchange experiences with other business advisors. Different types of license for different needs The Startup Toolbox contains materials customized to the various target groups you work with as an advisor. Currently, it is possible to obtain license to three different versions of the Startup Toolbox: Contact us for further information about which version of the StartupWheel is right for your needs as an advisor. About Startup Company Startup Company is a consultant company that specializes in advising startups. We have years of international experience in helping companies create the platform for growth - a task that requires developing your mindset as well as your business. Startup Company was founded in 2003 by David Madié and has the subsidiaries Growth Company and Export Company. Further information For further information about the StartupWheel and the license agreements, contact Startup Company. NEW YORK CITY: 153 Roebling St., Suite 4W Brooklyn, New York Telephone 1 (917) Fax: 1 (646) COPENHAGEN: Rued Langgaards Vej 7 DK-2300 Copenhagen S Telephone The Startup Toolbox for growth The Startup Toolbox for small business advisors The Startup Toolbox for exporters 2010 Startup Company NYC Inc. Side 9 9