In the startup world, most great ideas never get off the ground. Driven entrepreneurs develop countless products to solve business and consumer issues, but for key reasons, they do not receive funding to blossom into viable business ventures.
A vast majority of startups are unable to craft a sound business model because they fail to properly:
Assess market need
Develop a competitive pricing model
Pivot away from a bad decision before it becomes harmful
Finance strategic growth accordingly
Institutional investors are reluctant to fund a startup with any one of these oversights. Indeed, a poorly aligned business model will induce an investor to skip over even the most exciting and innovative ideas.
What Can Startups do to Remain Viable?
Ambitious founders spend millions on their companies to remain viable, but rarely do they achieve desired results. Most new companies make erroneous investment decisions – either over-investing in strengths or under-investing in weaknesses – that lead them down the path of misalignment and eventual collapse. In order to correct this journey, a proven methodology is needed to bring all functional areas into alignment at the company’s proper stage.
At Morgan Hill Partners, we take an innovative approach to management consulting, offering strategic planning, executive leadership, product excellence, and revenue creation services to
clients. Our approach to consulting is based on a Path to Value playbook that we developed to streamline our services and accelerate growth for clients.
Path to Value Playbook
The Path to Value playbook is a set of agile methodologies intended to bring technology and tech-enabled startups into alignment and optimize the company for accelerated growth. Our playbook is the only Management Consultancy as a Service (MCaaS) product available, offering clients a deterministic, outcome-driven solution customized to their goals and needs.
Methodologies within the playbook are deployed based on a Roadmap that reflects the changing needs of a company as it grows. The Roadmap is broken down into four stages of company maturity, and five categories of company disciplines.
Four Stages of Company Maturity
1. Discovery: Startups in this stage are focused on the understanding of whether or not their idea or concept has value. In other words, would anybody pay to get what the idea or concept would provide.
Activities that startups might be engaged in during this phase might be interview of those that make up the potential market, produce some prototypes of the product or service, joining and incubator or accelerator group, seeking financing from friends and family, seeking and establishing relationships with the fires mentors and advisors.
2. Validation: First attempts to sell the product or service and gauge the potential market and its value as well as experience in how best to achieve sales. Evaluate the efficiency with which customers can be captured and kept.
Activities at this stage are: refining the product, establishing the metrics, obtaining of seed funding, and making the first key hires.
3. Efficiency: Customers must be acquired efficiently, product must be deliverable at a profit and business model must be fine-tuned.
Activities that are likely to occur at this stage are clarifying the value proposition, refining the customer experience, enhancing the growth process, and creating scalability or sales.
4. Scale: Attempts to drive firm growth aggressively
Activities at this stage typically are: A Round financing, executive hires, process refinement, and scalability improvements.
Our team of experts indicate key factors that must be present at each chronological stage of development for progression to be consistent throughout the firm. This must hold true in each company discipline.
Five Major Disciplines
1. Company includes Market Opportunity, Strategy, and Investment Strategy.
2. Talent includes Culture, Team, and Execution.
3. Product includes Offering, Technology, and Services.
4. Revenue includes Marketing, Sales, Digital, and Channel
5. Operations includes Finance, Admin, IT and Automation.
Successful companies are able to bring all five disciplines into alignment with each other, able to move from discovery, to validation, efficiency, and scale with ease.
Unique Challenges Facing Startups Looking to Grow
The problem startups often face is that each discipline is mapped to a completely different state of progress. Oftentimes this is because strengths are levered at the expense of weaknesses. For example, the product discipline may be mapped to the Efficiency stage, while the revenue potential is mapped to the Discovery stage.
This kind of dislocation is common for tech and tech-enabled companies and is the primary cause of their instability.
Proven Solutions to Help Startups Grow
As each company faces unique challenges in the execution of a strategic growth plan, a flexible approach is needed to synchronize each discipline within the same stage. Our playbook is designed to harmonize company and investor interests by constructing a deterministic path to value that ensures the best ideas are offered, at the appropriate time, engineered for optimal outcomes.
The Morgan Hill Playbook contains actionable insights and approaches to bring all five disciplines into alignment. We select the most appropriate executives to quickly guide each client from dislocation to alignment by focusing on weakness, rather than strengths. Our approach begins with a baseline and alignment stage, to accelerate the company.
Our Roadmap covers every discipline at every stage.
Bringing it All Together
There is no one reason why 99% of startups fail. New companies often lack the process, playbook, executive expertise, and capital needed to succeed. The Path to Value playbook is an agile methodology designed to rectify dysfunctional scenarios by isolating problem areas and establishing determined steps to a solution. As the fundamental tool at the heart of the Morgan Hill Partners toolkit, the Strategic Path to Value Playbook is a pivotal reason our team of experts can routinely generate successful outcomes for clients.