slides p6

Bootstrapping

• Bootstrapping creates strong, independent businesses
• Most incubators don't teach bootstrapping
• The presentation will explain why bootstrapping is a suitable approach for social entrepreneurs.

Capital as a Distraction

• Money teaches bad business habits to entrepreneurs
• Capital hinders product/market fit
• A "lean" startup approach creates a strong foundation
• Raising capital involves significant effort

Extraction Hurts Businesses

• Taking money out of a company is a competitive disadvantage
• Extracted funds can't reinvest in R&D, higher pay, or quality improvement.
• IKEA is a non-extractive, non-social company’s example.

Network Effects and Economies of Scale

• Network effects and economies of scale are often misunderstood
• Startups often rush to achieve market saturation without considering the advantages of a dominant player.
• Companies often assume the "winner-takes-all" approach
• The "one-big-push" approach often proves challenging to execute.

Playing Darts

• There are two approaches to game of darts

1. Throwing the dart from afar
2. Moving close and aiming the dart to the center.

• This illustrates the contrast between capital-fueled hypergrowth and bootstrapping.

Software Engineering

• Software engineering has the concept of a Waterfall Model and Agile
• Lean startup is the agile equivalent for businesses
• DevOps is equivalent to bootstrapping in entrepreneurship

Bootstrapping Principles

• Key concept principles to understand bootstrapping.

Stone Soup Parable

• A poor man gathers ingredients from various farms to create soup for the community.
• Entrepreneurship parallels this approach.
• The poor man's vision was to create a community soup to gather all stakeholders.

My Version of the Parable

• A concept or project represented by a figure jumping up high, with large letters "Radically Open Security".

Talk to Everyone Who Will Listen

• Interact with anyone who is willing to listen.
• Increased clarity comes from repeated storytelling with listeners.
• Gain feedback and learn from others' pain points.
• Include collected feedback in MVPs.
• "Mom Test" is a recommended resource for more insights.

Preach to Your Choir

• Focus on convincing people who are already supportive of your idea,
• Begin with enthusiasm from those who understand your mission
• Success will attract broader adoption from the mainstream

Start Small

• Begin with small steps to achieve ambitious goals.
• Use the "Lean Startup" strategy.
• Don't devote too much energy to early-stage ideas.
• Focus on technology less, and the business model more.
• A Business Model Canvas is preferable to detailed business plans.

Refactoring

• Maintain lower initial costs.
• Identify essential services for early customers.
• Activities requiring repetition should be transformed into processes.
• Build automated components using reinvestable margins.
• Organic platform development should be continuous.
• Establish a robust revenue foundation and critical mass of intellectual property, processes, and staff.

PGE Playbook: Act I - How to Get Started

• Avoid starting with financial limitations; establish a stable financial base.
• Start with a miniature scale of operation; avoid unnecessary expenses.
• Ensure your company setup is non-extractive. Consult a legal expert familiar with non-extractive business structures.

PGE Playbook: Act I - How to Get Started (2)

• Identify and focus on fulfilling the needs of early customers.
• Leverage freelancers and available resources to deliver services based on customer needs.
• Grant preferential treatment to early customers.
• Build collaborative relationships and generate value for all parties. A win-win-win scenario is ideal for all stakeholders.

PGE Playbook: Act I - How to Get Started (3)

• Conduct numerous experiments; accept failures as learning opportunities.
• Utilize word-of-mouth marketing, events, and media exposure.
• Refactor frequently occurring tasks and integrate them into automated procedures.
• Implement automated processes that use reinvested revenue.

PGE Playbook: Act I - How to Get Started (4)

• Automate processes to create a comprehensive IT platform with intellectual property and staff. This platform should continue to evolve organically to be more profitable.
• Focus on creating a stable ecosystem rather than aggressive growth.
• Prioritize delegating responsibilities and foster proactive problem-solving.

PGE Playbook: Act I - How to Get Started (5)

• Adapt and refine your strategy based on market feedback and feedback from the market.
• Avoid premature scaling; focus on stability and growth within the appropriate framework.
• Recognize your work creates a legacy, a successful legacy for this world.
• Recognize your work creates a legacy, a successful legacy for this world.

Act II: Serial Entrepreneurship

• Reflect on your next passion project; identify the problem you want to solve, the service to provide, and the customers to serve.
• Leverage your initial success to support your next projects.
• Repeat this process to continue expanding your business.

Possible Non-Extractive Companies

• Offers a list of possible non-extractive companies, such as software development, music streaming, carbon offsetting, and waste management services.

Business Model Recipes

• Any company could be re-imagined as a non-extractive social enterprise using a framework or recipe.
• This method allows companies to create business model recipes and make their companies non-extractive.

What Does This Look Like In Practice?

• Provides context for the previous points.

PGE Startup Bootcamp

• A 5-day bootcamp held in Terschelling (Feb 2020).
• Integrates aspects of a traditional bootcamp with personal development.
• A diverse team of organizers ensured a well rounded experience.

Journey

• Discusses the journey elements of the PGE program,

Location

• Information about the location for the PGE program.

Ideation

• Discussions about product ideation during the PGE program.

Check-In

• Activities and schedule relating to checks during the program

Community

• Interactions and activities within the PGE program.

Nature

• Exploring environmental aspects of the PGE program.

Peer Learning

• Description of peer learning elements of the PGE program.

Presentations

• Details about presentation format during the PGE program

Art & Culture

Information about activities focusing on culture and art

The New Normal

• Description of the experiences and environment relating to a new normal.

Online PGE 10 Week Incubation Program

• Highlights an online program running for 10 weeks.

2022 Cohort

• Information about the 2022 cohort in the program.

Monicah Muhoya (PGE 2021)

• Information about a specific participant from the 2021 PGE cohort