© Inge Hill Start Up, Palgrave 2015

Operational design and set up CHAPTER 6 Operational design and set up © Inge Hill Start Up, Palgrave 2015

Applying the cube faces Strategy and Business processes © Inge Hill Start Up, Palgrave 2015

© Inge Hill Start Up, Palgrave 2015 Learning outcomes Explore the individual and team start-up Evaluate operational modes and business set-ups Examine operational challenges for start-up types Compare operational structures for start-ups Discuss networks and networking for start-up development. © Inge Hill Start Up, Palgrave 2015

Added value and limitations of starting by yourself Quick decisions are possible You can develop the business your way and do not need to make compromises You can flexibly arrange the business activities around other commitments Limitations and associated risks Less personal money to invest / fewer assets to bring into the start-up Less credibility with some funders (both above are financial risks) Nobody close by to bounce ideas with at the start (operational risks) All tasks have to be done or outsourced (cost!) Financial and operational risks Delays due to research and decisions have to be made alone / with advisers outside of the organisation Operational risks © Inge Hill Start Up, Palgrave 2015

© Inge Hill Start Up, Palgrave 2015 Team start-ups Limitations Relationships can become stressful Decision making time can increase Compromises have to be made Added value Synergy effects Sharing workloads More assets and money to bring into the start-up More skills, networks Increased speed in getting work done Immediate access to sounding boards © Inge Hill Start Up, Palgrave 2015

MVP example: Ben Smith, Frumtious The final product Market testing Pictures copyright Ben Smith, 2014 © Inge Hill, Start Up, Palgrave 2015

Gantt chart – making a cup of soup © Inge Hill Start Up, Palgrave 2015

Two processes that are essential to map Added value of visualising and listing activity steps: Identifying all resources needed Capturing the time needed to carry activities out Both are needed to be able to cost them! This is essential input for costing your services / products. © Inge Hill Start Up, Palgrave 2015

Customer journey and business processes – the business viewpoint Most viable business processes for the customer journey – MVBP-C For delivering the minimal or most marketable product That uses the least resources to get the result needed Two other process cycles that need consideration: Business view of the customer journey – MVBP-CB Wider business processes that keep the business going - MVBP-B © Inge Hill Start Up, Palgrave 2015

© Inge Hill Start Up, Palgrave 2015 Figure 6.5 Creating a pizza Hawaii at a Pizza Take-Away – the business view – MVBP-CB   Flow chart buying a Pizza Hawaii from a Take-away business view MVBP-CB © Inge Hill Start Up, Palgrave 2015

Operational challenges business premises? Over 60 % of all start-ups begin their journey at home (EU Commission, 2014) Working from home Working in shared office spaces Regus.com, Impact Hub impacthub.net Pop-up shop versus rented retail premises Pop-up restaurant versus rented restaurant premises © Inge Hill Start Up, Palgrave 2015

Considerations if business premises are needed Need for footfall customers – passing by on other journeys? City centre or suburb? In business park or residential area? Accessibility? Parking, public transport – train stations, bus stations Close to transport links? Airport, motorway, train station, bus station © Inge Hill Start Up, Palgrave 2015

© Inge Hill Start Up, Palgrave 2015 Home based start-ups In 2013, over 50 % of all business units were operating from home in the UK Limitations Limited space – often For meetings other facilities are needed Storage space needed Conflicts with family commitments possbile Value added: Less overheads Less travel cost and time to work Flexible working © Inge Hill Start Up, Palgrave 2015

Online businesses - operational challenges Need for office space and storage space Managing customer relationships Marketing – online and offline Community building – online mainly Meeting large clients and suppliers © Inge Hill Start Up, Palgrave 2015

Organisational structures (for team start-ups) Hierarchical structure, pyramid format, one or two at the top, with a growing breadth of staff underneath Flat structures One senior manager, few middle managers, then just frontline staff with team leaders Matrix structure Organisational division by functions or product types Founder centred structures All staff / contractors are reporting to the founder(s), called spider web © Inge Hill Start Up, Palgrave 2015

Networking applying co-creation = making connections to the “right” people, and that means: Building relationships Exchanging information and contacts Sharing your expertise, becoming an expert and trusted adviser Building ambassadors in your network that advertise your products / services © Inge Hill Start Up, Palgrave 2015

© Inge Hill Start Up, Palgrave 2015 Business Networks Professional networks offering a structured approach to networking: US – Business network initiative - www.bni.com www.bni.co.uk UK Business over Breakfast www.bobclubs.com Business referral networks www.businessreferralnetework.co.uk © Inge Hill Start Up, Palgrave 2015

© Inge Hill Start Up, Palgrave 2015 Summary Starting by yourself has some advantages over starting as a team and some limitations. The latter can be overcome when starting as a team of two or three or even four. In this decade mobile working and flexible use of space constitute the future and a low-cost approach to a start-up. E-business, bricks-and-mortar start-ups and home-based start-ups face different challenges. Business networking is essential when considering business operations – it needs to be integrated into the operational set-up. © Inge Hill Start Up, Palgrave 2015

© Inge Hill Start Up, Palgrave 2015 Questions? © Inge Hill Start Up, Palgrave 2015