9 out of 10
start-ups & new market entrants fail
Top 3 widely studied and cited reasons:
Founder blind spots
Unrealistic market expectations
Sub-optimal use of capital
VIBRANTIUM IS OUR VENTURE BUILDING METHODOLOGY
Our methodology for coaching entrepreneurs in the early stages focuses on the big "why?" It starts with cultivating ideas from abstractions into the right framework for later stages.
A big question, then, is knowing what hurdles you need to overcome before you/the business move on to the next phase. And then, being willing to evolve. The same marketing strategy that Greenhouse-stage businesses use may not be what works down the line. What you use to sell to friends early on doesn’t work for strangers later, etc. And besides defining those challenges and solutions, mentorship for whatever you are particularly dealing with is also highly encouraged.
We can help:
1. Avoid blind spots
2. Identify and/or clarify your values
3. Build a playbook to so you're prepared for growth when it comes
4. Analyze the gold standards that are relevant to your endeavor and can help you improve on all of them
Whereas the Greenhouse stage business is built on the Founder’s values, now that she has a team, it goes from “me” to “we” and some values may need to change. Ideally, however, the team will adopt the Founder’s values and they will transfer over. But they can’t be dictated.
A business that we call "germinating" is competing with bigger “factory” businesses. They must identify the clients who want high quality, tailor the offering to match those people, and price the service at a level that will support needs. They will also have to deliver consistently. But if they do so, they will attract the attention of the “factory” business.
Thus, the challenge is to be resilient and grow, and create reliable income for you and your staff. Don’t be a beaver and work like crazy, burning out the energy for creativity or innovation, because the factory business will always out-work you.
We can help:
1. Find the right gross profit margin
2. Strengthen operational structures that support a cash flow asset that can run itself
3. Identify and control fixed costs and staff costs balanced against your gross profit margins
The Grow stage is the hardest of all, and isn’t about working in your business, nor on your business, but it’s about working on yourself. This is a "make it or break it stage" to take the business to the next level, and you might not be the right person to do so.
The Grow stage has 4 priorities:
1. Asset priority (making sure your business runs itself and pays you)
2. Leverage (deciding how to use your time best)
3. Low-hanging fruit (asking yourself what the easiest new thing to do is)
4. Asking, “What do my best clients want” (solving their problems should matter)
The key for this stage is getting to "flow." This often means the Founder and original team may need to move out of daily operations to pursue more significant opportunities. This will also prove that your business is truly sustainable as an entity that stands by itself.
But don’t forget, not only must the business’s cash flow be self-sustaining before this happens, but its core values and culture must be preserved before you step away, as well.