This document summarizes key points from a session on growth strategies for new ventures. It discusses typical growth strategies like the "Crossing the Chasm" framework, getting customers and generating traction, and developing existing customers through upselling, cross-selling, and referrals. Lifecycle models for startups are presented showing the evolution from seed to maturity. Different theoretical perspectives on firm growth are reviewed, including resources-based views and configurational approaches emphasizing the fit between strategy, resources and environment. A dynamic framework is proposed to understand organizational evolution.

1. www.solvayentrepreneurs.be
HOW TO GROW A VENTURE?
SESSION 9 (out of 10)
GROWTH STRATEGY
This session is part of a 10-weeks course
given to master students of the SOLVAY
BRUSSELS SCHOOL OF ECONOMICS
AND MANAGEMENT by professor Olivier
WITMEUR.

2. Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
• What are the typical growth
strategy?
• What are the main issues
associated with the growth of
a new venture?
QUESTIONS AGENDA RESOURCES
• Growing the venture
• Lifecycle models
• Can theory help?
Desired Outcomes of the Session
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GROWING THE VENTURE
#1
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The ‘Crossing the Chasm’ framework
G. Moore (1993)
Source: Wiefels (2002), The Chasm Companion
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Market Development
Source: Wiefels (2002), The Chasm Companion
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Get
> Distribution channels: own vs partners, direct vs indirect, website, location, VAR, OEM, Franchise …
Keep
> Customer relations: personal assistance, account management, self-service, communities, co-creation …
Growth = create a tornado effect = get “traction”
> Customers bring customers, viral marketing …
à Sales forecasts
Sales & Marketing Plan
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7. Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
When the company has a significant customer base, it can work
on generating more profit per transaction from the existing customers
Source: Blank and Dorf, 2012
A company can develop its customers by inciting them to spend more on its products or
by generating new leads through referrals from its existing customers
CROSS-SELLING
Develop and sell products complementary to those already used by existing customers
UP-SELLING
Convince existing customer to subscribe for a more expensive offer
NEXT-SELLING
Long-term agreements with the customers to ensure that they will remain loyal to the tool
UNBUNDLING
Split current tool into distinct products and price them separately
REFERRALS
Capitalize on existing customer base to generate new leads through referrals and virality
CUSTOMER DEVELOPMENT
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8. Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Get, Keep, Grow Framework
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Source: Blank and Dorf, 2012

9. Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Classical Growth Vectors
New Markets
New Products
Upstream /
Downstream
Integration
*Adapted from Anshof (1965) & Roberts (2003)
Focus on your
current business
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LIFECYCLE APPROACHES
#2
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WHAT DO WE REALLY KNOW ABOUT GROWTH?
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The development stages of a start-up (1)
SEED START-UP EXPANSION
EARLY
DEVELOPMENT
MATURITY RENEWAL
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The development stages of a start-up (2)
Seed Start-up Early growth
Team
The founders. Most of the
time the team is not
balanced.
Sales and techniques are in
place. Finance may be
outsourced.
Every aspect is managed
by a full time manager.
Product
Prototype geared to the
main market needs.
First version validated by
customers.
Ready for large scale
distribution.
Market research
First comprehensive
ongoing market research.
Good knowledge of a first
market niche.
In depth knowledge of the
customers and next market
segments identified.
Organization Purely informal Better role definition
Dedicated management
team and experienced
boards.
Customers relations Informal with innovators.
Organized relationship with
the first customers.
Sales & Marketing
processes ready to manage
large numbers of
customers.
Financial needs
Prototyping
Market research
Business planning
Scaling up
Sales & marketing
Working capital
Management
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CAN THEORY HELP?
#3
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DIFFERENT PERSPECTIVES ON GROWTH
Resources
based view
Strategic
perspective
Ecology of
Population
Traits
approach
Lifecycles
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Theoretical Fondation #1:
The Configurational Approach à FIT
Context /
Environment
Organization
Entrepreneurs
Opportunity /
Activities
Strategy
Resources
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Theoretical Fondation #2:
The Process Approach
Dialectical
Evolution
Teleological
Lifecycle
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Proposed Framework
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Entrepreneurial
Team
Organizational
structure
Resources
Activities
Context
Market Acceptance Investor acceptance
Organizational evolution
Willingness
to grow
DEFINITION /
CORRECTION
EXECUTION
EVALUATION
Focus
International.
More products
01-­‐04-­‐2014

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DYNAMIC APPROACH
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OPPORTUNITY TEAM
RESOURCES

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NEVER STOP
WONDERING
&
ASKING!

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A real passion for entrepreneurship education and entrepreneurs.
• Student entrepreneurs: 2x
• Full time entrepreneur: once, in a team of 5
• Coach: 500+ projects over the last 20 years
• (Advisory) Board member in multiple new ventures
• Policy making: 2x
• Director of Solvay Entrepreneurs
• PhD in entrepreneurship in 2008
• … never as an investor
My wife (as Colombo), no kids, one dog (Vicky).
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Olivier Witmeur (Belgian, 46)

22. Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
Solvay entrepreneurs is the entrepreneurship center of the Université Libre de
Bruxelles. We support entrepreneurs through the development of their venture, from
an idea to a successful and sustainable business.
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Solvay Entrepreneurs

23. Entrepreneurship Course – Session 9 - 2014 © Olivier WITMEUR
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