Today’s business environment is accelerating due to the combined impact of Globalization and Technology (Mobility, Cloud Computing, Big Data, Social Networks, Internet of Things, digitization of content and more).
Ecosystem after ecosystem is being disrupted, and markets have become a shifting business landscape where profit pools are migrating, new competitors appear unexpectedly, and the future is no longer predictable by extrapolating from past history.
As traditional paradigms and value chains get transformed, incumbents and large corporations are being slow to react and are not adapting fast enough, which is why a vast amount of the value created in the last decade has come from new companies.
This environment represents a particular opportunity for emerging growth companies: Startups (new ventures) and Growups (companies between $1-$5M US in annual revenue and teams of around 8-30 people).
For Startups, the challenge is not easy: over 90% of Startups fail. Sometimes the reason is that the market is not there – but more often than not, they fail because they make preventable mistakes. Startups need to do a few things right:
- Find a problem worth solving
- Identify who has this problem – mapping clearly target customers and users
- Develop a unique solution to their problem with a compelling value proposition around it
- Create a Product with defined features, that can repeatedly solve this problem for them
Growups, on the other hand, have significantly more resources and momentum and can scale significantly, but they frequently are unable to do so unless they are able to do these things right:
- Align their strategy to the right target market
- Develop a repeatable, scalable, profitable sales and marketing go-to-market model
- Build a solid team that can support growth
- Create operational structures, tools, metrics and processes needed for fast execution
As our founder coached and helped a large number of Startups and Growups through the past eight years, he looked at many concepts from well-known methodologies such as Lean Startup, Customer Development, Six Sigma, Leadership Development and more – but found that they came up short as they didn’t have the holistic focus these hi-tech companies need, or are no longer suitable to today’s fast-moving, digital world.
Over time, he saw the same topics and themes occurring again and again in many companies so he documented his experiences and gradually built a strategic framework and operational methodology that successfully addresses these opportunities. The framework is Fractal Modeling and it’s application process is what we call Business Design.
Fractal River was created to help Startups and especially Growups achieve accelerated growth, combining a robust, proven methodology with a very specific blend of senior advisors with extensive experience, strong strategic and operational skills, are in constant touch with the evolving technological landscape and have a dynamic, inquisitive, driven nature.