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Google had 3 concepts

:
- Timely due to the internet
- Adversity Coecient – tried to sell it to you yahoo & couldn‟t afford computer technology
- Proof of concept – got millions to try it then monetized it
- Creative destruction – Google was so much better that other search engines like AltaVista
- Attractiveness – lots of traffic and money from ads
- Facebook – scalability – make it once and it keeps growing
- Ben and Jerrys – Values – Getting Vermont cows
- Home Depot – Social Entreprenurship
- Richard Branson – Adversity –
- Trump – Team – His show builds team
- Mary K (Cosmetics) –
store
• Did the adversity affect the implementation?
– $1m debt in 1980 – The Manor attracted Phil Collins


Do you need to clean up your car? Do you buy 10s
You can buy 1 for the price off 10
• Sir Richard Branson - His first business venture was a magazine called Student at the age of 16.
[3]
In
1970, he set up an audio-record mail-order business. In 1972, he opened a chain of record stores, Virgin
Records, later known as Virgin Megastores. Branson's Virgin brand grew rapidly during the 1980s, as he
set up Virgin Atlantic Airways and expanded the Virgin Records music label.
 Richard Branson then embarked on a quest to turn the controversial into cash. Virgin Records
signed on controversial bands other record companies were afraid to touch such as the Sex
Pistols, Faust and Can as well as the Culture Club to name a few.
 My interest in life comes from setting myself huge, apparently unachievable challenges and trying
to rise above them...from the perspective of wanting to live life to the full, I felt that I had to
attempt it.”
 Richard Branson's approach to business is to succeed within the first year or exit the market. This
includes a one-year limit on everything associated with starting up.
[7]
Virgin Atlantic became
profitable during the first 12 months, aided by sister company Virgin Records' ability to finance
the lease of a second-hand Boeing 747.
• Virgin
 • Did the adversity lead to opportunity?
 – He had Dyslexia – and did not enjoy education system. He had poor grades left school
to pursue something that worked for him – to change the world he started up a magazine
company to give students a voice
 – Girfriend‟s abortion – walk-in clinic he created Student Advisory Centre in his magazine-
Branson used the lack of experience as an advantage by garnering attention through his teams
enthusiasm. Branson started his record business from the crypt of a church where he ran The
Student. Branson advertised popular records in The Student Magazine and it was an over night
success.
 – Mail strike – record store - When we sensed that Student magazine's circulation was
reaching its peak, we looked for more ways to make money, and decided to start selling records
by mail order. A postal strike stopped the business in its tracks, but we had caught the music bug.
Instead we set up our first record store.
o Constrained by a lack of capital after the strike, we found a former shoe shop on Oxford
Street in London, and we talked the owner into letting us use the empty space. We were
not trained retailers, but we liked music and wanted to create a cool hangout for young
people. Instead of building displays designed to move merchandise quickly, with huge
racks of records and no place to sit down, we brought in big, comfy cushions and built
listening booths -- it was a place where you could chat about music with your friends and
share your favorites with them.
 From music retailing we moved into the recording industry, but it was our move into the airline
business that underlined for me the advantage of inexperience. When we leased our first 747
jumbo jet in 1984, I knew very little about the airline business, beyond the fact that I had flown a
lot as a record executive and disliked it. The food was poor, the entertainment was bad, the seats
were uncomfortable and the service was lackluster. Surely all this could be changed -- it was just
common sense.
o Virgin Atlantic's early years were all about breaking conventions. I hated being stuck in
one place for eight hours at a time, so we created a bar where Upper Class passengers
could meet and talk during the flight. We brought massage therapists on board to relieve
the tedium and ensured that all passengers had better seat-back entertainment.
Continuing this tradition, Virgin America, our newest airline, has similarly revolutionized
the industry in the United States.

 –

• Bliss Girl
• Home Depot
• Ebay
• Facebook
• Email
• The Grameen Bank (Muhammad Yunus)
• Wikipedia
• Transgaming Technologies (Vikas Gupta, CEO)
• Carly Fiorina
• Terry McBride
• Magnotta
• Jack Welch
• Thomas Edison
• Spencer Trask
• SpinMaster
• Ballard Power
• Mold Masters (Jonathon Fischer)
• Google
• Dragons‟ Den
ENT526 – Midterm Review (Week 1-5)
Venture Capitalist (VC) is financial capital provided to early-stage, high-potential, high
risk, growth startup companies. The venture capital fund makes money by owning equity in the
companies it invests in, which usually have a novel technology or business model
 The typical venture capital investment occurs after the seed funding round as growth
funding round (also referred to as Series A round) in the interest of generating a return
through an eventual realization event, such as an IPO or trade sale of the company
 A Series A round is the name typically given to a company's first
significant round of venture funding in the Silicon Valley model of startup
company formation.
o Usually the first series of stock after the common stock and common stock
options issued to company founders, employees, friends and family, angel
investors, etc.
o Common stock is a form of corporate equity ownership, a type of security.
 It is called "common" to distinguish it from preferred stock. If both types
of stock exist, common stock holders cannot be paid dividends until all
preferred stock dividends (including payments in arrears) are paid in full.
 Venture capital is a subset of private equity. Therefore, all venture capital is private
equity, but not all private equity is venture capital.
 Private equity is an asset class consisting of equity securities in operating companies
that are not publicly traded on a stock exchange. Usually made by private equity firm,
a venture capital firm or an angel investors
 Seed money, sometimes known as seed funding, is a form of securities offering in which
an investor purchases part of a business. The term seed suggests that this is an early
investment, meant to support the business until it can generate cash of its own, or until it
is ready for further investments. Seed money options include friends and family
funding, angel funding and -- recently -- crowd funding
Crowd funding or crowdfunding (alternately crowd financing, equity crowdfunding, social
funding or hyper funding) describes the collective effort of individuals who network and pool
their resources, usually via the Internet, to support efforts initiated by other people or
organizations.
 Ben and Jerry offered stock to raise money to buy a manufacturing faculty through their
Vermont community. He believed a ‘Business has a responsibility to give back to
the community from which it draws its support’. Cohen’s idea was for the
company to be owned by the same people who had lined up for scoops of ice
cream at the gas station [i.e. the first scoop shop]".
Entrepreneur is an enterprising individual who builds capital through risk and/or initiative
o Entrepreneurship implies a special natural ability to sense and act on opportunity,
combining out of the box thinking with determination to bring something new into the
world
o A person who senses an opportunity and displays out of the box thinking and
determination
o Jean-Baptist: An entrepreneur is one who shifts economics resources out of an area of
lower and into an area of higher productivity
o Niccolo Machiavelli: Entrepreneurs are simply those who understand that there is little
difference between obstacle and opportunity and are able to turn both to their advantage.
Social Entrepreneurship – recognition of a social problem and the uses of entrepreneurial
principles to organise, create and manage a social venture to achieve a desired social change.
 A venture that gives a portion of each dollar it makes in profit to the company
 When you buy a product it donates it or something else
 Ben and Jerry bought local milk to support
Agent of Change – Alters human capability or organizational systems to achieve a higher degree
of output or self-actualization.
 Exploits opportunity
 Richard Branson is an Agent of change by bringing in cell phone company and brought
change number easier

The 10x Rule - in order to gain market traction a product must be exponentially better. ie 10 x
faster, 10x smaller, 10x cheaper, 10x more profitable.
 A little better is not enough
o Wikipeida  The Britannica Encyclopedia
o Ebay  Garage Sale
o Email  Snail Mail
o NetFlix  Blockbuster because it was 10 times cheaper, faster, comfort
Opportunity - favorable set of circumstances that create need for product or service
 an appropriate or favorable time or occasion
 a situation or condition favorable for attainment of a goal.
 a good position, chance, or prospect, as for advancement or success.
 Bliss Girl (Marcia Kilgore): She took a Skin-care course (acne) and learned unique ways,
so that lead her giving facials for friends. She saw the current spas were boring and not an
experience, so she made a place that was fun, inclusive and a girlfriend atmosphere
 Magnotta Winery: They came up with an innovative solution. Another nearby winery
was closing down and selling all its equipment, including several huge stainless steel
tanks. Gabe and Rossana negotiated a wholesale price for the stainless steel tanks with
payment due the following month. They then sold the tanks separately to smaller
businesses that only needed one or two tanks. The revenue from the sale gave the
Magnottas the cash they needed to pay for the tanks as well as to purchase the assets of
Charal Winery.
Opportunity - Opportunity has 4 essential qualities
1) Attractive (10x returns)
 Attractive has to generate money
2) Durable (lasts long enough to profit)
 Durable – Obama 2012 Shirts
3) Timely (the time is now!)
 Timely – iTunes around iPod
4) Focus on Customer value add or pain relief
How to identify an opportunity
 Observing trends – demographics (ageing), economic forces, (time poverty) fashions,
(SMS) new technologies (Internet), political changes (OH&S)
 Solving a problem– often from personal experience (childcare, fitness, package
delivery)
 Finding Gaps in the Marketplace–(Curves, BoostJ uice, specialty interests)
Finding Opportunities
 Observing/Study Trends
 Economic factors
 Social factors
 Technological Advances
 Political Action/Regulatory statutes
 Solving a Problem
 Observe people challenges
 Look for problems
 Listen to people complains
 Think of your own problems
Brainstorming:
 Generate ideas quickly, no analysis or decision making.
 Enthusiasm, originality, lots of ideas
 Freewheeling, lively
 No criticism allowed
 Session moves quickly
Focus groups
 People selected are familiar with issues
 What‟s on customers mind
 Conducted by trained moderator
 Success depends on moderator‟s ability to ask questions and keep on track
Evaluating Opportunities
 Feasibility Analysis - The process to determine if a business idea is viable worth
pursuing
1. Product/service feasibility analysis
2. Industry/market feasibility
3. Organizational feasibility
4. Financial feasibility
 Concept testing - validate customer interest, desirability & purchase intent
1. Validate underlying premise
2. Help develop the idea
3. Try to estimate sales
 Competitive Analysis - Assessment of the strengths and weaknesses of current and
potential competitors.

Limitations - A limiting rule or circumstance; a restriction.
 A condition of limited ability; a defect or failing.
Limitations vs. Opportunities
 Leadership sees possibilities where others don‟t. Then helps others to not only see, but
seize, those opportunities”
 People who focus on opportunities, while others focus on limitations, achieve more
 Being a leader is a matter of choice
Scalability – Your revenue grows while expenses stay the same
 Potential for economic growth within the company.
 Ability of a system, network, or process, to handle a growing amount of work in a
capable manner or its ability to be enlarged to accommodate that growth
 Whats not scalable? electrical work? what is scalable? perfume
Adversity Quotient - Measure of how you respond to adversity (change and challenges). It
provides the tools for improving how you respond and thus overall professional effectiveness.
 Ben and Jerry: In 1984, Häagen-Dazs wanted to limit distribution of Ben & Jerry’s in Boston,
prompting Ben & Jerry’s to file suit against the parent company, Pillsbury, in its now famous
“What’s the Doughboy Afraid Of?” campaign. In 1987, Häagen-Dazs again tried to enforce
exclusive distribution, and Ben & Jerry’s filed its second lawsuit against the Pillsbury Company.
 Richard Branson for Virgin: British Airways dirty tricks campaign – sell record - A series
of disputes in the early 1990s caused tension between Virgin Atlantic and British Airways, which
viewed Virgin as an emerging competitor. Virgin subsequently accused British Airways of
poaching its passengers, hacking into its computers and leaking stories to the press that
portrayed Virgin in a negative light. After the so-called campaign of "dirty tricks", British Airways
settled the case, giving £500,000 to Branson and a further £110,000 to his airline and had to pay
legal fees of up to £3 million. Branson divided his compensation (the so-called "BA bonus")
among his staff
 Magnotta Winery: Two weeks before Gabe and Rossana Magnotta were to release the
first bottles of wine from their new winery, they learned that Ontario‟s liquor agency had
decided not to carry Magnotta‟s wines in its retail stores, citing lack of shelf space. It was
a devastating blow in an industry that is controlled and regulated by the Liquor Control
Board of Ontario (LCBO), which also has a monopoly on retail sales of alcoholic
beverages through its province-wide chain of liquor stores. But instead of being
discouraged, the husband and wife team used the setback to look for other opportunities
to get their wine into the hands of consumers. That was in December 1990. Today,
Magnotta is the third largest winery in Ontario,
Life = Risk - Risk is, by nature, scary. It's uncertain and unpredictable. You're heading off into
uncharted territory. You may lose your life savings or lose face. You risk criticism and
humiliation, or having to pick up the pieces and start all over again. You're giving up what you
know for what might be. The rewards can be great, but so can the cost.
 If you haven‟t failed, you are not trying hard enough
 If you haven‟t failed, you haven‟t lived
Survivorship Bias - the logical error of concentrating on the people or things that "survived"
some process and inadvertently overlooking those that didn't because of their lack of visibility.
This can lead to false conclusions in several different ways.
 Survivorship bias can lead to overly optimistic beliefs because failures are ignored, such
as when companies that no longer exist are excluded from analyses of financial
performance.
 Entrepreneurships succeed Survivorship Bias
Risk - Potential that a chosen action or activity (including the choice of inaction) will lead to a
loss (an undesirable outcome).
 A situation involving exposure to danger:
Direct Action - occurs when a group of people take an action which is intended to reveal an
existing problem, highlight an alternative, or demonstrate a possible solution to a social issue.
 The aim is to either obstruct another political agent or political organization from
performing some practice to which the activists object; or to solve perceived problems
which traditional societal institutions (governments, powerful churches or
establishment trade unions) are not addressing to the satisfaction of the direct action
participants.
 Examples of direct action can include strikes, workplace occupations, sit-ins, tax
resistance, graffiti,sabotage, hacktivism, property destruction, blockades, and other forms
of community resistance.
 By contrast, electoral politics, diplomacy, negotiation, and arbitration are not usually
described as direct action, as they are politically mediated.
 Non-violent actions are sometimes a form of civil disobedience, and may involve a
degree of intentional law-breaking where persons place themselves in arrestable
situations in order to make a political statement but other actions (such as strikes) may
not violate criminal law.
The Need for Pain
 Pain = Revenue – Expenses or Pain= Number of sufferers * Severity
 Listening to the customer and then delivering value on what they want
o Entrepreneur Pain: The sometimes chronic feeling of angst, dissatisfaction or
discontent experienced by those who dream of solving a real problem through
business or teamwork that they see clearly, but most likely don’t see or can’t
see.
Balanced Feedback Loop - A balancing loop attempts to move some current state (the way
things are) to a desired state (goal or objective) though some action (whatever is done to reach
the goal).

Positive Feedback Loop - occurs in a feedback loop when the mathematical sign of the net gain
around the feedback loop (sometimes called the loop gain) is positive.

 Positive feedback is a process in which the effects of a small disturbance on a system can
include an increase in the magnitude of the perturbation.
[1]

 That is, A produces more of B which in turn produces more of A.
[5]
In contrast, a system
that has negative gain around the loop has negative feedback
 Positive feedback tends to cause system instability. When the loop gain is positive and
above 1, there will typically be exponential growth of anyoscillations or divergences
from equilibrium
Suboptimal Solutions – An unmet need
 Entrepreneur see unmet need as opportunity and wants to shift the suboptimal
equilibrium
 Entrepreneur is one who sees the original state, sees the “happiness deficient” and moves
to change it
 We as a people will continue to improve something till its optimal. If it suboptimal, work
will continue on it
 Leads to Creative Destruction
Creative Destruction - Capitalist economic development arises out of the destruction of some
prior economic order
Bootstrapping - A situation in which an entrepreneur starts a company with little capital. An
individual is said to be boot strapping when he or she attempts to found and build a company
from personal finances or from the operating revenues of the new company.
 Compared to using venture capital, boot strapping can be beneficial as the entrepreneur is
able to maintain control over all decisions. On the downside, however, this form of
financing may place unnecessary financial risk on the entrepreneur. Furthermore, boot
strapping may not provide enough investment for the company to become successful at a
reasonable rate.
Entrepreneur Attributes
 A desire to achieve - Needed to achieve any goal and success
o Without strong, burning desire and will power, you will give up quickly, you will
not persist and hence you won„t achieve what you had in mind. Knowing exactly
why you want something, helps keep the burning desire awake inside of you at all
times and it will lead you to take action.
 Hard Work – Difficult labor
o The much tougher challenges will usually see a lot less competition and a lot
more opportunity.
 Acceptance of Responsibility (e.g. internal locus of control) - individuals believe that
they can control events that affect them
o Individuals with a high internal locus of control believe that events in their life
derive primarily from their own actions; for example, if a person with an internal
locus of control does not perform as well as they wanted to on a test, they would
blame it on lack of preparedness on their part. If they performed well on a test,
they would attribute this to ability to study
o In the test-performance example, if a person with a high external locus of control
does poorly on a test, they might attribute this to the difficulty of the test
questions. If they performed well on a test, they might think the teacher was
lenient or that they were lucky
o Those with a high internal locus of control exhibit better control of their behavior
,
tend to be more politically involved and are more likely to attempt to influence
others than are those with an external locus of control. They also assign greater
likelihood to their efforts being successful, and more actively seek information
concerning their situation
 Reward Orientation
 Optimism - a mental attitude or world view that interprets situations and events as being
best (optimized), meaning that in some way for factors that may not be fully
comprehended, the present moment is in an optimum state
o The concept is typically extended to include the attitude of hope for future
conditions unfolding as optimal as well.
 Focus on Excellence – To perform the best
 Highly Organized - Planned and controlled
 Strategic Risk Taker
 In business and investing, risk has traditionally been viewed negatively: investors and
companies can lose money due to risk and therefore we typically penalize companies
for taking risks.

Entrepreneur’s Key Docs – Documents needed to define and present the idea

 Business Plan - Formal statement of a set of business goals, the reasons they are believed
attainable, and the plan for reaching those goals. It may also contain background information
about the organization or team attempting to reach those goals.
◦ You write a business plan for yourself
◦ Should contain all the information an investor needs to make a decision
 To find a scope
 Ask key questions
 What am I missing
 Costs
 Getting partners on same page
◦ Should be:
 20 pages max for seed stage
 30 pages max for early stage
 35 pages max for late stage
◦ Doesn‟t have to be right just reasonable
◦ Business plans focus on the 7 P‟s of investment
 Investors look for 7ps in the following documents: Business Plans, exec
summary

 Province refers to the industry
 CAGR – Cumulative Annual Growth Path

1. People - Investors want:
 People in the Know and who are known
 Who have been there done that
 A team which is equal parts:
o Domain Knowledge – Knowledge of the field you are in
 Area of human endeavour, an autonomous computer activity, or other
specialized discipline.
o Operational Experience – Knows the logistics of the whole process down to the
day to day activities
o Business Acumen - the knowledge and understanding of the financial,
accounting, marketing and operational functions of an organization
 keenness and quickness in understanding and dealing with a business
situation
 the ability to make good judgments and quick decisions
 All business knowledge: What logo, how many drivers we should have,

2. Pain – Need in the economy for change
 The bigger the pain, the faster the adoption
 Is the pain big enough to generate $50M revenue in 5 years?
 Inelastic demand is best (e.g. air is inelastic)
 You want to be quantify the opportunity by :
 Size of Pain x Number of People suffering
 Elastic – Sensitive to price example food, water bottles in Toronto
 Inelastic – Not sensitive to price - gas
3.
4.
 Hockey Stick Growth - companies experiencing massive user growth in a short
period of time
 To show in financial statements that your business will grow
 Compounded Annual Growth rate (CAGR) is a business and investing specific
term for the smoothed annualized gain of an investment over a given time period
5.
6. Pitch - Be able to explain your idea in 2 minute
 It is not for me to understand. It is for you to explain
 Your pitch is the golden thread that runs through all your messaging
Elevator Pitch - The 2 minute conveyance of what you do and why I should care
 Made up of 2 parts:
◦ Pain Statement
◦ Value Proposition
 In real life you do not get five percentage, you tell investors what you are doing, what
you are going to do and what you need the money for
 After investors decide how they want in
 Basic pitch for email, iTunes, Google search
 Pain state – solves the annoyance
 Do a pitch together for Google.
Writing a Good Elevator Pitch
 Must be 4 things:
◦ Irrefutable (i.e. not subjective)
◦ Easily understandable (i.e. anyone could get it)
◦ Greed inducing (i.e. will make big $$$)
◦ Succinct (i.e. under a minute!)
◦ Samples:
◦ Viagra: People want to have sex longer than our bodies will allow. Our blue, FDA
approved pill allows them to do so in a cost effective, embarrassment free,
clinically proven manner.
◦ eBay: One person‟s trash is another‟s treasure. Our online global garage sale
brings together buyers and sellers from around the world through our proprietary
trust-based platform.
◦ Write an elevator pitch for Google: Everyday millions of webpages come
online, but no one has the technology to keep up. Google has the technology to set
through and find pages in an organized manner.
◦ The internet is growing and the information there is impossible to find.
7.

 Pre money valuation = what is the company worth the day before the deal
 Post money valuation = pre money valuation plus the money




 Pitch Deck - first thing you will use when interacting with a potential investor. In many
ways, it is one of your most important tools. The content of the pitch deck, along with
your presentation, can help the investor to determine whether or not to continue
evaluating your business opportunity.
 The investor presentation contains:
o The Back of the Napkin (BoND)
o The Elevator Pitch
o The Executive Summary (?)
 Must understand what you do & who cares RIGHT AWAY
 Need to focus on the audience
Clean message  a focused company  strong management
 10/20/30 Rule of Powerpoint
◦ No more than 10 Slides
◦ No more than 20 minutes
◦ No less than 30 point font

The Back of the Napkin (BoND) - Used to convey your entire venture in one image
 aka Infographic or xplane diagram
 Very Canadian
 Shows all the moving parts, without the underlying tech
 Focus on customers and value add


Proof of concept - Realization of a certain method or idea(s) to demonstrate its feasibility,
[1]
or a
demonstration in principle, whose purpose is to verify that some concept or theory has the
potential of being used. A proof-of-concept is usually small and may or may not be complete.
What do you need to implement change?
◦ Courage, Vision, Will, Perseverance

Why is Change so Hard?
1) Fear - Everyone is afraid, courage is not the absence of fear. Courage is action in the face of
fear.
2) Momentum - Those in Power like the status quo.
◦ People in power invest to keep that power.
◦ Why take risks when you are in control and fail? Why fix something that ain‟t broke?
3Cs of 21
st
Century Leadership
 Capability
◦ Ask Questions  Hear Answers
◦ Lifelong learning
◦ Be Adaptive to Change
 Collaboration
◦ World is Flat
◦ Good decisions come from diversity
 Character
◦ Judgment
◦ Perspective
◦ Ethics
Guerilla Marketing - In advertising strategy in which low-cost unconventional means (graffiti,
sticker bombing, flash mobs) are utilized, often in a localized fashion or large network of
individual cells, to convey or promote a product or an idea
◦ Unconventional, unorthodox approach to marketing
◦ Lilith Fair; shopping mall free concerts (multiple hits)
◦ Ben and Jerry have an ice cream day where they give away free ice cream
◦ Magonta Winery: She won them over with a creative marketing strategy that
included offering free analyses to customers who were having problems with their
wine and by producing a booklet, “Making Wine the Festa Way,” that provided a
step-by-step guide to making wine. She had the booklet translated into Italian and
Spanish, and gave it away with every purchase of Festa Juice.
Selective Information - In a World of Information overload, a leader must be able to separate
“truly important from the merely interesting”
Influence of Values - Organizational culture begins with company founders values
 it's important because employees are more likely to be loyal to companies that values social
responsibility; same with the public
 ben and jerry's was an example
Adaptive behavior is a type of behavior that is used to adjust to another type of behavior or situation.
This is often characterized by a kind of behavior that allows an individual to change an unconstructive or
disruptive behavior to something more constructive. These behaviors are most often social or personal
behaviors. For example a constant repetitive action could be re-focused on something that creates or
builds something. In other words the behavior can be adapted to something else

Terry Mcbride values
◦ Mirror Mirror on the Wall …
– Be honest with yourself re your own core values.
◦ Who’s in the Fairest Market of them all?
– Identify the market that aligns with your core values, understand them and don‟t
manipulate them.
◦ Adaptive Behavior:
 Hallmark of the independent (NICHE entrepreneur)
 Use the right information and use the information right.
 Take advantages of opportunities that lie outside the mass view.
– When the mass zigs, they must zag.
 Examples of firsts: crude website, own graphics, enhanced CD, pay-for-
downloading site with iTunes
◦ Be the Last Lemming Standing
 Don‟t be afraid not to follow the crowd!
◦ Heritage Artists
– Based on belief that music was not trend-driven and disposable.
– If an artist displayed values that spoke to emotion, was literate, had meaning,
spoke to causes and influenced causes, he/she would experience longevity and
become
◦ Response-based marketing -
– bottom-up process or pull from consumer

 Why is Talent so key?
 Hiring Mistakes at Startups
 The BodCat Management Style
◦ The Talent Triangle
 Business Acumen – Knowing how to run a business. Previous experience,
Richard branson is renowened for all his various entrepneur projects
(CEO)
 Domain Knowledge
 Operational Experience
 Top Down vs. Bottom Hiring –
◦ Top down is the higher up, hiring from another company
◦ Bottom up hiring, taking lower ranks
 Ballard Power
Jack Welch 6 or 9 - Fire the bottom 10% and reallocate their options, budget and bonus to the
top 20%
 Neutron Jack, CEO of GE for 20 years
 In that time made it the most profitable and largest company in the world
 On his first day he fired more than 10,000 people
 All based on the his 6 or 9 Theory
 “For flowers to bloom, first get rid of the weeds which compete for sunshine, water and
space.”
 The idea is that you cut out the half that is weak and invest the money and time into what
you‟re good at to make it even better
Top Down vs. Bottom UP Hiring
 BOTTOM UP:
◦ Leads to getting people on the team who are generalists vs. someone who's the
right fit for a single job.
◦ Hiring from the bottom up means filling specific roles with specific skill sets
◦ gives people an opportunity to add value and expand their roles,
◦ ultimately helps grow the company
Hiring Mistakes
 Hiring someone just because you know them.  lack sense of objectivity and
accountability in the workplace.
 Hiring someone to "help them out."  Only hire someone who can add value to the
company and its operations.
 Taking someone on as a partner because you can't afford to hire him.  outsource
projects or work on a fee basis.
 Hiring someone to do a bit of everything.  the specific functions of a business need
to be staffed with people who are specialists.
 Not knowing what job you want to hire for.  Clearly define roles for any new hires.
Not only will you avoid hiring a non-productive person in an ill-defined role, you'll start
attracting people who'll add real value to their role and your operation.
 Hiring for the job you hate.  only assign things that others can do better, not just with
less moaning.
BODCAT Management Model
 Show that you have the:
• Business Acumen -
• Operational experience – Logistical, get product from point A to B
• Domain knowledge – Experienced the problem them self
 To make the business a success:
• Match up the operational phase of the business with the talent triangle (start-up,
rapid growth, operational excellence, global reach, public)
 Show that all decisions are made based on:
• Consultation
• Authority
• Trust
 External parties (VCs, clients, staff) must at all times see the Management Team as being
100% in agreement
Startup Hiring Catch 22
 To get Money we need a Team
 To get a Team we need Money
The Double Dip – Make the content once, and used in a variety of ways
 Make business case for class and then sell it to another company