75% of venture-backed start-ups barely make a return on investment or fail. Fortunately, this is a solved problem.
Introducing the Moneyball Playbook to increase the likelihood of success in venture-backed technology companies.
Why do most venture-backed companies fail? First, founders are often not classically trained CEOs; they are specialists, many with expertise in a specific domain, such as Technologists, Academics, Marketers, Salespeople, or Scientists.
So why do investors and management fail to take action to ensure the best outcome for their company, and their life's work and ensure the achievement of its full potential?
#1: It starts with bad data.
Improper and often useless data from critical departments combined with infrequent attention to useful information is the culprit combined with infrequent opportunities to analyze the data:
Fact 1: Investors have too many investments and sit-on too many boards; they are just stretched too thin. They need more time to focus on every company in their portfolio, so they have to trust the data of the executive team presented at quarterly board meetings. The challenge is that once a quarter often means there needs to be more time to address any issues.
Fact 2: The management team is being fed information from mid-management, who need help seeing the complete picture. Department-based analytics and a lack of a central point of truth create a situation where the CEO and Investors cannot address quantitatively apparent issues.
So, the situation quickly turns for the worse, often leading to a poor outcome or even a wind-down. Every investor and CEO knows it can happen in the blink of an eye.
In my experience, this is a solved problem.
The solution?
Moneyball Playbook combined with the effective presentation of the data
So, what’s in the Moneyball Playbook? How does it work?
Let's start, with two use cases:
High-growth company:
Strong growth requires identifying the right fit customers and improving acquisition efficiency, implementation, and customer success efficiency. Why? The challenge for these businesses is the growth itself, i.e., too much and too little to ensure that with scale, the company retains traction on onboarding and on-time and on-budget implementations. If you don't get the post-sale part of the business right, then you have a high degree of likely hood that the business will experience an early death.
Results of the Moneyball Playbook for high-growth companies? See profile articles.
Poor growth requires an emphasis on the right-fit customer business analysis and execution because the business can only afford to efficiently spend every dollar of invested capital. Once you have the right fit, customer focus, Product, Sales, Marketing, and Customer Success will achieve operational and financial achievement as defined as healthy unit economics.
Results of the Moneyball Playbook for slow growth companies? Send me an email.