Dino Signore - Pressure Points at 2nd Stage

Annual Conference, April 23-24, 2014

Pressure Points at Second StageDino SignoreEdward Lowe Foundation

Pressure Points at Second Stage

Dino SignoreEdward Lowe Foundation

Edward LoweThe inventor of Kitty Litter®.

A successful businessman.

As an entrepreneur, he wanted to give back.

He created the foundation to support entrepreneurs.

Edward Lowe Foundation copyright 2013

Why Second-Stage Companies?Because we believe they have the greatest positive impact on the economy

Create jobs

Increase volume of income into the region

Attract outside capital

Attract companies and talent

Drive culture

Affect philanthropy

Edward Lowe Foundation copyright 2013

Recent Research shows:

About 1% of U.S. companies are responsible for 72% of job growth

Incremental growth is key, not large singular gains.Kunkle,G (2010)

Edward Lowe Foundation copyright 2013

Second Stage Companies

Growth Issues vs Survival

Intent to Grow

Capacity to Grow

Enterprise Composition:

Privately Held Businesses

10-99 Employees

Revenue $1 M to $50 M

Not all Businesses are Created Equal

So… What’s the problem?

Small firms fail far too often

How to spot a Second-Stager

Moves fast and faces complex problems, often many at the same time

Not attracted to traditional ways of learning

Content must be relevant instead of unique

Need to build systems so they can step away from the business

Too much business can trip them up faster than too little – capacity issues

How to spot a Second-Stager

Process everything through the lens of their business

Hard to gain their trust / High Trust level of Peers

Easily frustrated by bureaucracy

May love creating but not managing

Very positive

Strong internal locus of control

Change and Transition for the Leader and the Organization

The challenges of second stage

The Four M’s of No Man’s Land

Market Misalignment

The Four M’s of No Man’s Land

Outgrow Management Team

The Four M’s of No Man’s Land

Managing Money

The Four M’s of No Man’s Land

Model Does Not Scale

Second Stage Pressure Points

A lack of Management Experience of the Founder

Entrepreneurship Hubris

Inability to Give up Control

Centralized Decision Making

Second Stage Pressure Points

A lack of Industry Force Awareness: Threat of New Entrants

Focusing on Inputs and not Internal Capacity Building

Too far into the Weeds/ No Lower Level Boundary setting

Second Stage Pressure Points

Trust

Change Directions / Chasing Squirrels

Best Practices for SSEs

Professionally Facilitated Roundtables

Objective Input

Relevant Input

Accelerated Learning/JIT

Camaraderie

Perspective

Risk Reduction

Economic Gardening

Philosophy: Grow your Own

Tools: Strategic Team

Market Research Specialist

SEO Specialist

GIS Specialist

Leader Retreats at ELF

Leadership of Me

Leadership of My Organization

Leadership of My People

Power and Influence

Drop Dead Honest Organization

Performance Maturity

Our Message for Economic Development Efforts

Finding Balance

Edward Lowe Foundation copyright 2013

Edward Lowe Foundation copyright 2013