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2. Operational design and set up
CHAPTER 6
Operational design and set up
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3. Applying the cube faces Strategy and Business processes
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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.
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5. 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
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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
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7. MVP example: Ben Smith, Frumtious
The final product
Market testing
Pictures copyright
Ben Smith, 2014
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8. Gantt chart – making a cup of soup
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9. 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.
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10. 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
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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
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12. 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
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13. 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
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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
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15. 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
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16. 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
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17. 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
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Business Networks
Professional networks offering a structured approach to networking:
US – Business network initiative - UK
Business over Breakfast
Business referral networks
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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.
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Questions?
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