This document discusses strategies for startups. It begins by outlining the evolution of different types of startups. It then emphasizes the importance of understanding customers, having a clear strategy, and focusing on financial reactions to actions. The document provides models for competition, including strategies for weaker and stronger competitors. It stresses the importance of purpose, process, and people in an organization. Throughout, it stresses the importance of creating value for customers in order to succeed as a business.

1. 1
Starting UP..
Does your business mean
business?
M Hariharan
Director
Savoir faire
Management Services Pvt Ltd

2. 22
Agenda
 The evolution of a start-up
 Find your strategy
 Financials - What really matters
 Find your team – Hiring strategies

3. 33
Evolution of a Startup
 Technocrat / Professional
 Employee turned Supplier /Consultant
 Father’s Son
 Trader
 Idea entrepreneur – with Long Term Intention
 Idea entrepreneur - Serial Entrepreneur
 Entrepreneur by default

4. 44
Agenda
 The evolution of a start-up
 Find your strategy
 Financials - What really matters
 Find your team – Hiring strategies

5. 55
One day Alice came to a fork in the
road and saw a Cheshire cat in a tree.
Where do you want to go? was his response.
I don't know, Alice answered.
Then, said the cat, it doesn't matter.”
Which road do I take? she asked

6. 66
Answer three questions before
taking the plunge
 Who is your Customer?
 Purpose of our existence
 What is the Value he expects?
 Identifying the unfulfilled need of the customer
group
 What is your business?
 Your competence to meet the unfulfilled need

7. 77
Survival of the fittest
“In the struggle for
survival, the fittest win
out at the expense of
their rivals because they
succeed in adapting
themselves best to their
environment.”
Charles Darwin (1809 - 1882),
The Origin of Species 1859

8. 88
Do you think you will exist
because…
 You will be relatively unimportant in the
giant’s scheme of things
 The giant has not gotten around to your area
of business
 The giant could not because of possible
government action

9. 99
Or…
You fill an important
niche in the economy

10. 10
The Lanchester Model

11. 1111
Lanchester Model
This model is based on two scenarios:
i) Hand to Hand combat
ii) Theatre campaigns

12. 1212
Hand to hand combat
Involves linear relationship between the
effectiveness of weapons and size of troops.
Strategy for the Weaker player
-The weapons are the 4 Ps - product, price, place
(distribution), and promotion
-Size of the troops is the market share

13. 1313
Strategies for Weak Competitors
 Companies with lower market share should
segment the market.
 Thereby compete one to one with the well
entrenched foe.
 Effectiveness of weapons is elevated to the
same weight as that of troops.
 Thus can isolate the factors of marketing
strategy .

14. 1414
Theatre campaign
Relationship between loss rate of troops with
(1) the size or number of opposing troops and
(2) the effectiveness of the killing power of
each troop.
Strategy for the Stronger player
-3 to 1 rule
-Capture and kill proportionately

15. 1515
Strategies for Strong Competitors
 Companies with larger market share should resist
segmentation of the market.
 Capture and defend market share, not next quarter
profits.
 Increase market share by attacking competitors
within shooting range.
 Defend against competitors launching their own
attacks.
 Higher the market share higher the “competitor
casualty”.

16. 1616
Cogito
Ergo
Sum

17. 1717
Agenda
 The evolution of a start-up
 Find your strategy
 Financials - What really matters
 Find your team – Hiring strategies

18. 1818
Customers
Stake-holders
of the
Firm
Investors
Lenders
Suppliers Employees
Government
Society
Management

19. 1919
The goal….
 Necessary Condition is different from the Goal of the
organisation
 Fulfilling every stakeholder other than investor is
Necessary Condition but not sufficient condition by
itself
 Making money is the goal of the organisation
 Firm cannot make money ignoring the necessary
condition
 Firm cannot ignore making money while pursuing
the necessary condition
H
H

20. 20
For Every Action There is a
Financial Reaction

21. 2121
Fixed Assets
Working
Capital
Share Capital
+ Reserves
Loaned
Funds
Net Worth
Source of
Funds
Application of
Funds

22. 2222
For every action there is a financial
reaction
Profit ROI
Cash
flow
Absolute Relative Survival
Revenue CostInvestment
Men Machine Methods Material

23. 23
Search for the Source once
you are clear about the
Application

24. 2424
Nowhere man
He is a real Nowhere Man,
sitting in his Nowhere Land,
making all his Nowhere plans for nobody,
Doesn’t have a point of view,
knows not where he’s going to,
isn’t he a bit like you and me?
John Lennon
The Sergeants’ Mystery Tour (1965-8)

25. 2525
Agenda
 The evolution of a start-up
 Find your strategy
 Financials - What really matters
 Find your team – Hiring strategies

26. 2626
Usian Bolt, Jamaica
Asafa Powell, Nesta Carter, Usain Bolt and Michael Frater,, Jamaica
9.58 x 4 = 38.32 sec
Record is lesser than 9.58x4!
It is…37.10 sec
100 m Sprint
Olympic
Record
4 x 100 m
Medley
Olympic
Record
> Or = Or <
9.69 sec

27. 2727
After having considered, "this man can accomplish this, by these
means", let (the king) leave with him the discharge of that duty.

28. 2828
3 Ps to Prosper
Purpose
(Customer Value
Creation)
Process
(Aligned to meet
the Purpose)
People
(Aligned and
Enable Alignment of
Process to Purpose)

29. 2929
If we have to survive…
We sustain
profitable growth
Our customers buy
from us again and
again
We offer Good
Quality
products/Services
at low prices
Eliminate Waste
Create
Value for
the
Customer
Inputs Process

30. 30
Have a satisfied customer to have
satisfied investor
Thank you
hari@sfalignment.com
www.sfalignment.com