24 January 2019
2 months, online
There’s a myth in startup communities that the best way to get off the ground is to come up with a smashing idea, write a slick business plan, present to venture capital firms (VCs) and then collect the money and get rich. And if that doesn’t go your way, then it’s game over. But nothing could be further from the truth.
The research says that more than three in four firms that attract VC investments don’t repay the capital that goes into them.
SOURCE: LBS RESEARCH
According to a study by U.S. Bank, 82% of business failures are due to poor cash management.
According to the OECD, small to medium-sized enterprises typically contribute 50% or more to GDP and create 70% of new employment opportunities.
Most successful businesses never took investments from VCs or angel investors, and even fewer did so in the early stages. They grew by choosing the right business model and offering a product or service that brought enough cashflow to cover operations and early-stage growth. It’s the customer-funded business model. It’s not new, it’s just under-represented in today’s startup culture. This programme changes all that.
Learn and apply tools for exploring market uncertainties and evaluate whether or not to seek VC in a new venture.
Apply strategies for balancing supply and demand in two-sided (matchmaker) markets and assess the potential challenges and opportunities faced by various matchmaker companies.
Learn and apply tools for developing relationships with early customers and managing cash flow using a pay-in-advance model.
Evaluate the merits and drawbacks of various subscription models across industries and understand strategies for maximizing return on investment in customer acquisition.
Assess customer-funded scarcity models that maximize cash flow and the conditions under which they are likely to work.
Apply the strategies learned in this programme to selecting and applying a customer-funded model to a business idea.
Join London Business School (LBS) as we take entrepreneurs and change-makers on a journey through five proven models for startup success. We’ll interview founders of companies and analyse cases from all different domains: from B2B and B2C… from India to London to Denmark… from e-commerce to retail to second-hand business equipment. When exploring the following situations, we'll ask:
What are the six economic elements that affect subscription models like Netflix and Amazon?
How can we align our ideal price point for wine with a network of buyers and sellers for optimal revenue?
How do we identify and deliver customer value in SaaS models?
How can we get customers to pay in advance, then use that growth capital as a funding source?
How can we manage through a downturn?
With limited resources, how should we balance the needs of getting to know the customer with developing a great product?
An award-winning teacher and scholar and one of the world’s foremost thought leaders in entrepreneurship, John Mullins brings to his teaching and research 20 years of executive experience in high-growth retailing firms, including two ventures he founded and one he took public. Widely published, he is the author of The New Business Road Test: What Entrepreneurs and Executives Should Do Before Writing a Business Plan.
All certificate images are for illustrative purposes only and may be subject to change at the discretion of LBS.