Start-ups are useful contributors to the economy as a whole. Research has shown that the innovative fast growing start-ups- the gazelles – are almost the sole contributors of new jobs in advanced economies like the US. However, the world of start-ups, is full of challenges, and sustainability and longevity through are often rewards for grit, determination and hard work. What is generally obvious is the challenge of fast growth- but what is not obvious is the benefits of being a growth – oriented start-up. While start-up entrepreneurs have very little control over the context in which they operate and thrive, there definitely exists scope for them to develop a perspective that enables them to expand their vision, seek out opportunities for growth and channelize their energies in realizing growth through efficient management.

1. Making Growth Happen
Prof. K. Kumar
4 Startups
02 February 2013
©K.KUMAR

2. Does Growth Just Happen?
• Growth can happen when you are in the right
industry at the right time…
But
• Growth often happens more due to the
perseverance and foresight of entrepreneurs
• Eight questions to answer if you were to make
growth happen
©K.KUMAR

3. Question 1: Do you aspire to grow?
• Aspirations and preferences
• Financial goals and wealth targets
• Stakeholder expectations
• Team and family influences
©K.KUMAR

4. Question 2: Does your business have
growth in its DNA?
• Growth Oriented Businesses
– Revolutionary Businesses
– Propagatory Businesses
– Speculative Businesses
• Lifestyle Businesses
– Niche Businesses
– Hustle Businesses
• Can lifestyle businesses be turned into high
growth businesses?
• Do you have growth facilitating portfolio?
©K.KUMAR

5. Question 3: Have you figured out your
growth stoppers?
• Market opportunities
• Capital
• Sustainable strategy
• Human Resources
• (Your own) Transition from startup
entrepreneur to business leader
©K.KUMAR

6. Question 4: Have you identified
market opportunities to spur growth?
• Existing products to existing customers
• New customers
• New products and services
• New delivery approaches
• New geographies
• New industry structure (forward or backward
integration)
• New competitive arenas (new businesses)
Source: Baghai et. al. “The Alchemy of Growth” Texere Publishing,2000
©K.KUMAR

7. Question 5: Are you positioned to
access financial capital for growth?
• Debt
– Increases the fixed costs
– Raises the risk profile
• Equity
– Dilution of control
– Visibility and public scrutiny
– Shareholder expectations
©K.KUMAR

8. Question 5: Are you positioned to
access capital for growth?
• Worldview and Mindset
• Business and company structure
• Past business performance and track record
• Credibility and reputation in financial circles
• Current performance and cash flow
• Predictability of future performance
©K.KUMAR

9. Question 6: Have you have figured out
how to sustain growth?
• Exploiting continuous learning
– To control and reduce costs
– Continuously refreshing the offers to customers
• Not pricing for maximum profits
• Scaling up through outsourcing
• Continuously accessing new markets
©K.KUMAR

10. Question 7: Do you have the right
people to grow the business?
• Shared vision
– Leveraging Expertise
– Building commitment
• Culture and style
– Transparency and meritocracy
– Celebrating success and tolerating failures
• Motivations and rewards
– Sharing of wealth and credit
©K.KUMAR

11. Question 8: How (personally) prepared
are you to manage growth?
• Systems to anticipate, act and review
• Raising focus from managing content to
manage behavior, results and context
• Delegation and monitoring
– Underplaying the capacity to work
– Overcoming the desire or need for control
©K.KUMAR

12. Thank You
Any Questions?
©K.KUMAR