The Secrets of Start Up Success

Key factors for Start-Ups

1. First customer

2. Know your market

3. Product Innovation

4. Marketing

5. Sales

6. Business Model

7. Financial Control

8. Management

9. Business Plan

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Finance

Sales

Operations HR

Management

Product /Service

Customers

External Environment

Economy

Suppliers

Competitors

Lenders

Shareholders

Govt Policy

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One view of a business

The Irish Start-up

Each year there are many new businesses launched in Ireland - In 2009 over 13,300 (over 300 in Clare)- Bank of Ireland Start Up Barometer

1,183 Start-Ups were incorporated in Jan '11- CRO

82% of enterprises in Ireland are <10 people – CSO

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Some Entrepreneur traits?

• Self-confident all-rounder – The person who can make the product, market it and count the money

• The ability to bounce back – The person who can cope with making mistakes and still has the confidence to try again

• Innovative skills – Not an “inventor” in the traditional sense but one who is able to carve out a new niche in the market-place, often invisible to others

• Results-orientated – To make the business successful requires a drive that only comes from setting goals and targets and getting pleasure from achieving them

• Professional risk-taker – To succeed means taking measured risks. Often the successful entrepreneur exhibits a step by-step approach to risk-taking, at each stage exposing him/herself to only a limited, measured amount of personal risk and moving from one stage to another only as each decision is proved

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Research suggests four motives:

• Dramatic change in personal situation(unemployment, recession)

• Availability of resources (idea, money)

• Certain entrepreneurial skills

• Example of another successful entrepreneur.

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Why do people become entrepreneurs?

Success Stories

Local examples

Loyalty Build BMS IrelandPedigree Cattle ManageCO2ResourceKraftOff We GoDocumaticsModaNodeWiseloadsClarefocus.ie Episensor

Global – all started as an idea Salesforce.comAppleMcDonaldsTescoVirginAmazon.com GoogleMircosoftNokia DELL Intel Pfizer

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1. First customer

The power of testimonials

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2. Market Knowledge

1. Customer orientation

– Listen and talk to customers

– Attend trade shows, industry association events, read the trade magazines

2. Know all about your competition

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3. Product Innovation

1. Intellectual Property

2. Staff expertise

3. Customer service

– Systems and processes and training

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** The Big Idea

1. Background- Profession/Current Job or Hobby … see a problem and can devise a solution

2. Improve an existing product or service- Research

3. Franchise Opportunity

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4. Marketing

1. Awareness of your product in the market

2. Message to generate interest ... pulls in the customers and makes the phone ring.

3. Delivery – Customer Satisfaction

4. Repeat Customers

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5. Sales

1. In current environment Sales have to be won

2. Key is

1. managing the Sales Pipeline and

2. understanding the Sales Cycle.

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6. Business Model

1. Business Model is how a business makes money.

2. Factors include Price, Range of Product and Services

3. Cost to deliver the Products and the margin that can be achieved

4. Key for start ups is niche focus

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7. Financial Control

1. Keeping up to date accounts

2. Using accounts to support Decision Making

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8. Management + Team

• Leadership

– #2. Market knowledge & Customer focus = Business vision

• Business Skills

– Plus commitment

– Need for family support

– Play to your strengths

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9. Business Plan

Setting up a business is not easy. There will be many strands that must be managed in unison.

The process of putting a business plan together helps to address all the issues.

The document is important.

The planning is vital.

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Key question

What is your competitive edge

..... Why would a potential customer buy from you rather than someone else?

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Secrets of Start Up Success – Recap

Three key questions for every start up to answer

• So what? ... Can you explain in a few lines what exactly you are offering

• Who Cares? .... Who is the target customer and what is the problem that they need solved that will make them buy from you

• Why You? .... And why are you the person that they will buy from

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So what, who cares, why you is the title of a Workbook by

Wendy Kennedy www.wendykennedy.com

This presentation was delivered by Donncha Hughes, Head of Development Services, Bridgewater Management at a Clare

County Enterprise Event in February 2011 – Starting a Business: The Essentials . I am going to write a blog post on

this topic soon.See www.bridgewatermcg.com/blog

DUBLINALEXANDRA HOUSE, THE SWEEPSTAKESBALLSBRIDGE, DUBLIN 4, IRELANDT + 353 1 660 4300

LIMERICKENTERPRISE CENTRE, MOYLISH PARKLIMERICK, IRELANDT +353 61 325 600

www.bridgewatermcg.com

Bridgewater Management

•Finance

•VAT, Payroll, Year End A/cs and Financial Control

•Planning

•Marketing, Business Plans, Feasibility

•Training

•Start Your Own Business Programmes

•Mentoring

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Track Record