~~~Over 5,000 students enrolled in our courses.~~~ (Updated as of June 2017)
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~~~We will explain you how to apply Corporate Management disciplines to avoid startup pitfalls.~~~
According Forbes, around 90% of start-ups are unsuccessful. Can you be an exception? Can you be amongst the 10% of successful start-ups? Yes, you can. Entrepreneurship is a kind of management and we will teach you how by applying Corporate Management disciplines to increase the chances of success of your start-up.
The course initially focuses upon guaranteeing that start-ups have the correct products and services to be offered to the market, thereby avoiding the market adaptation problems.
Once products or services have been correctly adjusted to clients’ needs and requirements, efficient sales techniques for the re-defined products or services are taught, so as to guarantee the flow of revenue.
Once the company reaches a correct level of invoicing, the key financial indicators of the business must be controlled. To do so, we explain how to measure and carry out a financial performance follow-up using Performance Management techniques.
Finally, once we have the correct product or service being sold and generating profit, we explain how to efficiently manage the cash flow and costs to avoid running out of money.
During this course, we will explain how to use different Corporate Management disciplines to improve your Management Team and avoid the principal errors made by start-ups that fail. These techniques are based upon our extensive experience as entrepreneurs, start-up mentors and private investors:
What are the benefits of this course?
This course provides you with numerous examples and case studies which allow the knowledge acquired to be consolidated. As a final training project and based on our methodology, you will be able to re-formulate the business strategy for your start-up, develop win strategies to close big deals, monitor the key financial business parameters and efficiently manage the company’s costs to avoid running out of cash.
You might think to yourself… ”I have no experience in Corporate Management. How do I drastically increase my value in a short period of time”? You'll learn from our 20 plus years’ of experience while avoiding our pitfalls.
Learn the Corporate Management methodology we teach to Fortune 500 companies. If you follow these lessons and take action, we are confident you'll be part of the 10% of successful start-ups. Trust it. It has been designed for organizations who want to achieve growth and high performance.
In the table below, we’ve set out the principal reasons behind the failure of start-ups, together with the corporate management disciplines, which if applied correctly, allow failure to be avoided. Have a read through:
Cause of Failure
Corporate Management Discipline
Lack of adapting to the market (market fit, market timing)
Development and adapting of the business strategy. Market analysis and formulation of the organic growth strategies required to guarantee success.
Inability to close big deals, especially within B2B start-ups.
Application of specific techniques for B2B sales, such as the development of Account Plans and a Win Strategy.
Problems with the Business Model - the CAC is bigger than the LTV.
Application of Performance Management. Development and continuous management techniques of the key business KPI’s.
Inadequate management of cash flow and costs.
Application of efficient cash flow and cost management techniques.
We need to ask ourselves if it is possible to apply corporate management approaches to increase the probability of a start-up being successful. In our opinion, the answer is yes. Yes it is possible.
What are the benefits of this course?
Around 90% of start-ups are unsuccessful. Can you be an exception? Can you be amongst the 10% of successful start-ups? Yes, you can. We will teach you how by applying Corporate Management disciplines to increase the chances of success of your start-up.
In 2001, 3,120 million rolls of film were sold worldwide. At that time, Kodak had a market share of 40%, Fuji 26% and Agfa, 13%. However, with the increase in popularity of digital photos, Kodak was not able to re-formulate its business strategy and was therefore substantially overtaken by its competitors, entering into a state of insolvency in 2012.
To the contrary of Kodak, Fujifilm which “only” had a 26% market share, did however know how to reinvent itself and grow. Some twenty years ago, Fujifilm also prospered from the massive market for rolls of film, and nowadays, they gain the majority of their income from the cosmetics industry and LCD televisions, for which they manufacture film components.
It is true to say that it is difficult to be an “agile” entrepreneur, capable of re-formulating a business strategy if things aren’t going well, because we are not only talking about re-designing and improving the product according to feedback from potential clients: the “Build-Measure-Learn feedback loop”. Instead, this sometimes deals with abandoning the product and creating a new one, taking advantage of the assets and structures available.
When you begin a start-up, you give your all. You work 24 hours a day to consolidate the business, monetize it, raise funds and continue growing. But what happens when you don’t meet your objectives? What should you do?
The very first thing is recognize that a flaw exists, although this may not be easy. In fact, it is tremendously complicated. The problem is “passion”. When you are “in love” with your idea, it is almost impossible to recognize that you are failing. To combat this, you must distance yourself and this is a very difficult thing to do.
First of all, it is essential to understand the difference between the business strategy and the business plan. Initially, it would seem that both initiatives (business strategy and business plan) are the same. Both are directed toward the development and growth of the business. In fact, on many occasions, the business strategy is confused with the business plan. This mainly happens with start-ups. They confuse the need to develop a business plan to convince investors, with the need to develop a business strategy to make their existing business grow.
However, there is a key word that differentiates the business strategy from the business plan. This word is “create”, so in other words, the creation or not of a business. If we go beyond the academic definitions, the business strategy is used to develop existing business and the business plan is used to create a business.
Usually when a start-up has problems adapting to the market, this is due to a flaw in the development of one of the key components of the business strategy: the identification of organic growth drivers. In other words, problems with identifying which products or solutions in our portfolio should be sold to which clients. Therefore, when market adaptation problems are identified, we must abandon the “entrepreneurial passion” and immediately re-formulate our organic growth strategy.
Re-formulation of the business strategy, focusing upon the organic growth strategies to adapt our product portfolio to the real needs of our client and the market.
For those already familiar with the Canvas Model, you could ask why we consider the use of an alternative method in this section of the course.
This start-up was created in 2014. The product was hospital software that allowed the costs of diagnosis and associated treatments to be calculated. It was supported by a very important accelerator, but after two years, they still hadn’t managed to install a base sufficient to support the original business plan.
This start-up was created in 2015. They intended to create a platform to connect 3-D printing designers with users, with the aim of transforming users’ ideas into real objects printed in 3D.
We have previously seen examples of start-ups that decided to diversify their business to the area of B2B, such as 3D printing consulting services. However, in general, start-ups struggle to create relevant opportunities; opportunities worth millions of dollars. Why? The answer is that B2B selling is not easy and requires specific methods to close big deals both qualitatively and quantitatively. Usually, the Management Team has no experience with B2B selling and tends to focus on the product, forgetting this critical area for the company.
According to several authors, a strategy is a process chosen through which reaching a certain state in the future is foreseen. Bearing in mind this definition, we can understand the win strategy to be a structured definition of a process (action plan) to reach a future state (win an opportunity).
We explain below the different components of a win strategy.
This is a health start-up that was created in 2014. The product was hospital software that allowed the costs of diagnosis and associated treatments to be calculated. It was supported by a very important accelerator, but after two years, they still hadn’t managed to install a base sufficient to support the business plan.
As previously explained, once we begin to generate revenue, it is important to control the key business indicators to avoid having problems with the business model.
To do so, the corporate discipline “Performance Management” will be used. This is a management discipline centred upon following-up the Key Performance Indicators associated to the strategic objectives to check whether they are being complied with.
As previously explained, the key to any start-up or business in general, is for the cost of acquiring a client to be less than the profits generated by such client during his or her relationship with our company. The CAC – cost of acquiring a client, must be less than the LTV – lifetime value per customer, by a significant multiple.
How can the corporative discipline of Performance Management be used to minimize problems with the CAC, the LTV and other key financial indicators of our start-up?
It’s easy. By using Performance Management techniques, such indicators can be monitored and measures taken, in the event that the values are not correct.
We are going to summarize the financial indicators of a B2C start-up which must be followed using Performance Management techniques.
We will now take a look at a simple example of the construction of a balanced scorecard with which to control key parameters such as the CAC and LTV.
Once revenue is being generated in accordance with the business strategy and the financial performance is controlled, it is important to correctly manage the company’s cash flow to avoid financial problems.
The success of a start-up also depends upon efficient cash flow management. We are now going to see three examples of start-ups with similar business models, but who manage their cash flows differently, to see what the implications of these differences are.
NOTE: We are using simplified examples to show the importance of efficient cash flow management and the use of common sense. They do not include amortizations, provisions, taxes, and so on. There are infinite resources on the Internet to help us calculate our cash flow. NO LOCUTAR For example, have a look at this web address: www.exinfm.comfree_spreadsheets.html
Guess who we are we talking about:
Do you know who we are talking about?
Circuit City Stores is a multinational consumer electronics company, that existed as a supermarket from 1984 to 2009 and then, from 2009 to 2012 as an online store in a state of bankruptcy.
Why? Because of tactical and inefficient cost management amongst other things.
Start-ups should adopt a ‘strategic’ cost reduction approach which drives cost reduction while reinforcing their competitive position.
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We are a group of business & tech advisors with plenty of experience in management positions within publicly traded companies, as well as responsible for the creation and management of start-ups.
Our mission is to create courses with an eminently practical approach, based on real experiences and directed towards all those interested in reaching unprecedented levels of success
These courses, can be taken either online or delivered face-to-face and they centre upon specific areas of business related to strategy, sales, performance management and digital transformation, among others.
Enroll in our courses today & let us help you to deliver impressive results!
Somos un grupo de asesores de negocio y tecnológicos con fuerte experiencia en posiciones de gestión dentro de compañías cotizadas, así como en la creación y gestión de start-ups.
Nuestro objetivo es crear cursos con un enfoque eminentemente práctico, basado en experiencias reales y dirigido a todos aquellos que están buscando alcanzar el éxito en el mundo del liderazgo y la gestión empresarial.
Estos cursos se pueden realizar en línea o de forma presencial, y están relacionados con diferentes áreas como: Estrategia, Ventas, Gestión del Rendimiento y Transformación Digital, entre otros.
Empieza hoy con alguno de nuestros cursos y permítemos ayudarte a entregar resultados impresionantes!