Successful Venture Scaling – the Learning Series
While the success of corporate venture building is undeniable, a significant gap remains in guiding founders through the critical scaling stage. Recognising this, we have crafted a unique framework for venture scaling, distilled into an accessible and comprehensive book. This resource encapsulates decades of expertise in both corporate and independent venture building, offering a straightforward approach to scaling ventures alongside insights into all relevant business dimensions for scaling success. In a bid to share this knowledge widely, we're launching a series of more than 50 mini-blogs, each spotlighting a specific sub-dimension of these business dimensions. Whether you're seeking the full breadth of our scaling framework or wish to engage our experts directly, this series—and the book it draws from—provides the guidance you need for successful venture scaling.
Introduction to the Business Plan
A comprehensive business plan is essential for any venture, especially during the scaling phase. It outlines the strategy for long-term growth, including detailed financial forecasts, marketing strategies, operational procedures, and competitive analysis. The business plan serves as a roadmap that guides the venture through scaling, helping to align all aspects of the organization with its strategic goals. This section will delve into the elements of a strong business plan, emphasizing its importance in securing funding, guiding leadership decisions, and measuring progress against set objectives.
The topics in this dimension are:
- Vision and Mission
- Strategy
- Value Proposition
- Market and Competition
- Business Model
- Business Plan
- Investor Relations
Business Plan
Your business plan is a detailed plan of all activities you are planning to make your business work. It describes your customers, market, competition, business model, and strategic milestones. In sofar, it combines all the topics we have already covered. But it takes things further. It combines these topics with high-level financial planning (at least your top-line planning or revenue planning) and details on hiring and critical projects you must achieve. It also describes your marketing and sales approach (e.g., direct vs. indirect selling) and, as a venture, how you want to collaborate with your investing corporation.
Your business plan will need a significant update as you enter the new scaling phase. This document is a great way to ensure you have covered every aspect of what’s ahead of you, at least on a high level. You can find many great templates online for free, so I will spare you any details here.
Simplifying the Business Model for Scaling
In the scaling phase, the complexity of traditional business model canvases can become a barrier. A simpler, more graphical representation, such as a value stream map, can clarify the flow of value between your venture, its customers, and other stakeholders. This approach not only facilitates better understanding among internal and external parties but also serves as a foundation for automating processes crucial for scaling.
Visualizing Your Business Model
Transitioning to a graphical business model visualization helps stakeholders easily grasp how your venture operates. It depicts your company at the center, with customers at one end and resources (vendors, suppliers, etc.) at the other. Arrows between boxes represent the value exchange, making it straightforward to see the flow of products and finances.
Questions to Assess Your Business Model's Status Quo
- Have we clearly defined our business model?
- Is our business model aligned with our value proposition, vision, and mission?
- Do we need to update our business model after pivoting from the building phase?
- Have we created a graphical version of our business model that is easily understood by customers, vendors, investors, and new employees?
- Have we defined our business model’s inputs and outputs and drawn a value stream map?
- Do we have a process chart or value stream map for our internal value generation processes?
Next Steps
Your business model is the core of your venture, especially as you scale. It's crucial to ensure it remains aligned with your strategic objectives, market demands, and the evolving landscape of your industry. For ventures looking to refine their business model or seeking personalized guidance, our team of experts is here to assist. Reach out to explore how we can support your venture's strategic development and scaling efforts.
Stay tuned for our next piece in this series, where we will explore another critical dimension of venture scaling, equipping you with the knowledge and tools needed to navigate the complex landscape of corporate venture building successfully.
