Management of Start-ups and Small Firms Lecture 1 PDF

Comenius University Bratislava, Faculty of Management Management of Start-ups and Small Firms Lecture 1 M. Holienka © doc. PhDr. Marian Holienka, PhD., FM UK  A BIG Picture © doc. PhDr. Marian H...

Comenius University Bratislava, Faculty of Management Management of Start-ups and Small Firms Lecture 1 M. Holienka © doc. PhDr. Marian Holienka, PhD., FM UK  A BIG Picture © doc. PhDr. Marian Holienka, PhD., FM UK  Scale-up Startup Sources Idea Opportunity Starting-up a of ideas business Micro business Small business Opportunity Concept Intention search and Resourcing Actualization development discovery / creation Harvest © doc. PhDr. Marian Holienka, PhD., FM UK  Startups / Small Businesses & their management © doc. PhDr. Marian Holienka, PhD., FM UK  Stages of New Venture Development Stages of New Venture Development Stages Research and Opportunity Start-up Early Growth Rapid Growth Exit Development Obtain Seed Financing Obtain R&D Financing Obtain Start-up Financing Obtain Early-Growth Financing Obtain Rapid-Growth Financing Obtain Continuing Financing: Assess Opportunity Build Research Team Acquire Facilities and Equipment Work Toward Breakeven Work Toward Proven Viability IPO Actions Assess Strategic Alternatives Conduct R&D Activities, e.g.: Initiate Production Expand Team as Needed Expand Team as Needed Acquisition Determine Organizational Structure Secure Patent Build Starting Inventory Expand Facilities as Needed Expand Facilities as Needed Buy-Out Determine Organizational Form Develop Prototype Build Sales and Marketing Team Assess/Update Business Plan Build Track Record for Harvest Early Investors Harvest Prepare Business Plan Build Website Initiate Revenue Generation Assess/Update Business Plan Assess/Update Business Plan Test Market/Market Research Assess/Update Business Plan Assess/Update Business Plan Continue to Next Stage Continue to Next Stage Continue to Next Stage Continue to Next Stage Continue to Next Stage Choose Form of Exit Options Real Modify Concept Extend Stage/Financing Modify Production/Financing Extend Stage/Financing Extend Stage/Financing Abandon Modify R&D Strategy Modify Marketing/Financing Abandon Abandon Abandon All activities through preparation of All research and development All activities related to start of All activities during the period All activities during the period All activities related to Description business plan and before incurring activity that must be completed production and marketing and before the venture reaches a level after break-even and before establishing continuing financing significant expense. before revenue generation can initiation of revenue-generating of sales sufficient for cash-flow sustainable viability is and enabling early investors to commence. activities. breakeven. established. harvest. © doc. 5PhDr. Marian Holienka, PhD., FM UK  Startups & their management © doc. PhDr. Marian Holienka, PhD., FM UK  What is a start-up? STARTUP – a temporary organization designed to search for a repeatable and scalable business model (Steve Blank) © doc. PhDr. Marian Holienka, PhD., FM UK  What is a start-up? Innovative entrepreneurship: Key orientation on high growth (which is together with profitability the main goal), Innovative strategic approaches, Based on opportunity, which exploitation requires applying a new idea, Creativity, innovative resource combination, Differs from established and customary business models, Change, destabilization, creative destruction, Potential to create high value added (at the same time it is highly risky). Entrepreneurial enterprise, “gazelle” © doc. PhDr. Marian Holienka, PhD., FM UK  Key Components of Start-up Management Winning Strategy Management of People and Resources Marketing Money © doc. PhDr. Marian Holienka, PhD., FM UK  Start-up Ecosystem © doc. PhDr. Marian Holienka, PhD., FM UK  Service Providers Incubators: focus on early-phase startups that are in the product- development phase and do not have a developed business model. Building the foundational elements of a startup, including market research, product development, and business model validation Accelerator: focus on speeding up the growth of existing companies that already have a minimum viable product (MVP) in the hands of early adopters with an established product-market fit. Addressing specific growth challenges such as market expansion, customer acquisition, and fundraising © doc. PhDr. Marian Holienka, PhD., FM UK  Service Providers © doc. PhDr. Marian Holienka, PhD., FM UK  Small Businesses & their management © doc. PhDr. Marian Holienka, PhD., FM UK  What is a “Small Business”? Small Business definition → quantitative criteria: Staff headcount Annual turnover Balance sheet total Size categories (EU): Small and medium-sized enterprises (SMEs) Micro enterprises Small enterprises Medium enterprises Large enterprises © doc. PhDr. Marian Holienka, PhD., FM UK  What is a “Small Business”? Staff headc. Turnover or Ballance sheet total Medium 50-249