Entrepreneurial Business Growth Detail

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Oct 25 Business Growth Presentation (more detailed presentation)

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Entrepreneurial Business Growth Detail

  1. 1. Growing your Business Turning technology into cash Mike Holt Tel: +65 8126 7748 US/Singapore: +1-949-480-9271 S kype ID: mikeholt93 www.get2volume.com | [email_address]
  2. 2. Growth Enablers “ Capability” Corporate Core Competency “ Connections” Reaching customers and partners “ Capital” Fundability vs. Funding Funding Lifecycle Growth Capability
  3. 3. <ul><li>About Get2Volume Now more than ever, success in Asia determines global success. Technology companies – even the smallest – are global companies that must address complex problems with markets, suppliers, customers, partners and employees in the US as well as in Asia. With over 20 years experience in Asia and the US, we understand the people, the business and political environments, and markets that shape technology companies. This experience allows us to solve business problems in a way that goes well beyond generating ideas – it focuses on improving results by providing an executive team on the ground where you need results. We combine executive management experience in technology, software, semiconductor, secure payment, and information security companies with success; assisting established companies and leading startups from concept through rapid growth and profitability. </li></ul>About Us Asia-US Bridge <ul><li>Singapore/SEA </li></ul><ul><li>California </li></ul>Company Stage <ul><li>Start Up </li></ul><ul><li>Growth </li></ul><ul><li>Regional MNC Focus </li></ul>Sectors <ul><li>Semiconductor </li></ul><ul><li>Internet </li></ul><ul><li>Consumer Electronics </li></ul><ul><li>Security </li></ul><ul><li>Biometrics </li></ul>
  4. 4. <ul><li>Planning for Growth </li></ul><ul><li>Attracting Talent </li></ul><ul><li>Involving Experts </li></ul><ul><li>Creating Fundability </li></ul><ul><li>Growth Challenges: Managing Difficulty </li></ul>Topics Main Idea: Enrollment How do you share the dream, share the responsibility and get others involved?
  5. 5. Growth Stages Two Stages: <ul><li>Turn Cash Into Technology </li></ul><ul><li>Turn Technology Into Cash </li></ul>
  6. 6. What Enables Growth
  7. 7. <ul><li>Enrollment: </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Partners </li></ul></ul><ul><ul><li>Board Members/Advisors </li></ul></ul>
  8. 8. Capability: Building the Team Outsourcing & Consultants Limited Staff Full Staff Founders Tip: Leverage the networks of everyone involved <ul><li>Technical </li></ul><ul><ul><li>CTO </li></ul></ul><ul><ul><li>Architect </li></ul></ul><ul><ul><li>Development </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>CEO </li></ul></ul><ul><ul><li>Administrative Asst. </li></ul></ul><ul><li>Technical </li></ul><ul><ul><li>Development </li></ul></ul><ul><ul><li>QA </li></ul></ul><ul><ul><li>Customer support mgt. </li></ul></ul><ul><ul><li>Production </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>CFO </li></ul></ul><ul><ul><li>Product management </li></ul></ul><ul><ul><li>Sales/marketing/BizDev </li></ul></ul><ul><li>Technical </li></ul><ul><ul><li>Industrial design </li></ul></ul><ul><ul><li>Development </li></ul></ul><ul><ul><li>Product management </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>Legal </li></ul></ul><ul><ul><li>Bookkeeping </li></ul></ul><ul><ul><li>Human resources </li></ul></ul><ul><ul><li>Advertising & PR </li></ul></ul><ul><li>Technical </li></ul><ul><ul><li>More developers </li></ul></ul><ul><ul><li>Customer support staff </li></ul></ul><ul><ul><li>Application engineering </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>HR staff </li></ul></ul><ul><ul><li>Accounting/AP/AR </li></ul></ul><ul><ul><li>Operations </li></ul></ul>
  9. 9. <ul><li>Align compensation with contribution </li></ul><ul><li>Develop budget/plan </li></ul>People: Setting Goals, Measureables and Compensation
  10. 10. Create Option Budget <ul><li>Option plan and amount created with the Board of Directors </li></ul><ul><li>An option budget of 15%-20% is typical </li></ul>
  11. 11. Capital: Funding the Venture Friends & Family Seed Capital Series A Out of Pocket Tip: Develop a clean, concise pitch <ul><li>Sources </li></ul><ul><ul><li>Credit cards </li></ul></ul><ul><ul><li>SBA loans </li></ul></ul><ul><ul><li>2 nd mortgage </li></ul></ul><ul><li>Uses </li></ul><ul><ul><li>Computing infrastructure </li></ul></ul><ul><ul><li>Other tools </li></ul></ul><ul><ul><li>Legal </li></ul></ul><ul><ul><li>Travel </li></ul></ul><ul><li>Sources </li></ul><ul><ul><li>Angel investors </li></ul></ul><ul><ul><li>Grants </li></ul></ul><ul><ul><li>Customers </li></ul></ul><ul><li>Uses </li></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Production </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><li>Sources </li></ul><ul><ul><li>Friends </li></ul></ul><ul><ul><li>Family </li></ul></ul><ul><li>Uses </li></ul><ul><ul><li>Payroll </li></ul></ul><ul><ul><li>Operating Expenses </li></ul></ul><ul><ul><li>Travel & Entertainment </li></ul></ul><ul><li>Sources </li></ul><ul><ul><li>Venture capital </li></ul></ul><ul><ul><li>Strategic investment </li></ul></ul><ul><ul><li>Debt </li></ul></ul><ul><li>Uses </li></ul><ul><ul><li>Corporate Expansion </li></ul></ul>
  12. 12. Connections: “Teacher Customers” and Partners <ul><li>Technology companies are global from the start </li></ul><ul><li>Build access to the decision makers at the right customers </li></ul><ul><li>“ Measureable” engagements </li></ul><ul><li>Roadmap alignment </li></ul>
  13. 13. Managing the Company Advisory Board Management Team Board of Directors Founders Tip: Seek varied backgrounds Technical, Finance, Sales Marketing, Corporate Startup <ul><li>Role </li></ul><ul><ul><li>Create product </li></ul></ul><ul><ul><li>Establish company </li></ul></ul><ul><ul><li>Initial Capital </li></ul></ul><ul><ul><li>Establish IP strategy </li></ul></ul><ul><li>Sources </li></ul><ul><ul><li>Friends </li></ul></ul><ul><ul><li>Family </li></ul></ul><ul><ul><li>Colleagues </li></ul></ul><ul><li>Role </li></ul><ul><ul><li>Technical guidance </li></ul></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Fund raising </li></ul></ul><ul><ul><li>Business coaching </li></ul></ul><ul><li>Sources </li></ul><ul><ul><li>Networking </li></ul></ul><ul><ul><li>Potential investors </li></ul></ul><ul><ul><li>Partners </li></ul></ul><ul><li>Role </li></ul><ul><ul><li>Revenue generation </li></ul></ul><ul><ul><li>Staffing </li></ul></ul><ul><ul><li>Fund raising </li></ul></ul><ul><li>Sources </li></ul><ul><ul><li>Networking </li></ul></ul><ul><ul><li>Recruiters </li></ul></ul><ul><ul><li>Investors </li></ul></ul><ul><ul><li>Employee referrals </li></ul></ul><ul><li>Role </li></ul><ul><ul><li>Strategy & Coaching </li></ul></ul><ul><ul><li>Compliance & Oversight </li></ul></ul><ul><ul><li>Fund Raising </li></ul></ul><ul><ul><li>Business Development </li></ul></ul><ul><li>Sources </li></ul><ul><ul><li>Networking </li></ul></ul><ul><ul><li>Investors </li></ul></ul><ul><ul><li>Partners </li></ul></ul>
  14. 14. <ul><li>Sources: </li></ul><ul><li>Inattention to Strategic Issues </li></ul><ul><li>General Management Issues </li></ul><ul><li>Poor Measurement (Financial/Accounting/Metrics) </li></ul>Troubled Companies People Issues: Misalignment of objectives
  15. 15. <ul><li>Sources: </li></ul><ul><li>Inattention to Strategic Issues </li></ul><ul><li>General Management Issues </li></ul><ul><li>Poor Measurement (Financial/Accounting/Metrics) </li></ul>Troubled Companies: Signs <ul><li>Signs: </li></ul><ul><li>Ignored outside advice </li></ul><ul><li>Worse is yet to come </li></ul><ul><li>People have stopped making decisions </li></ul><ul><li>Nobody is talking to employees </li></ul><ul><li>Rumors are flying </li></ul><ul><li>Inventory is increasing </li></ul><ul><li>Accounts receivable aging increasing </li></ul><ul><li>Customers are afraid to make commitments </li></ul><ul><li>General malaise combined with high stress environment </li></ul>
  16. 16. <ul><li>Misunderstood market niche </li></ul><ul><li>Mismanaged customer and supplier relationships </li></ul><ul><li>Diversification into an unrelated business area </li></ul><ul><li>Mousetrap Myopia </li></ul><ul><li>“ The Big Project” </li></ul><ul><li>Lack of contingency planning </li></ul>Troubled Companies: Strategic Issues
  17. 17. <ul><li>Lack of management skills </li></ul><ul><li>Weak finance function </li></ul><ul><li>Turn over of key management </li></ul><ul><li>Insufficient focus on cash </li></ul>Troubled Companies: Management Issues
  18. 18. <ul><li>Poor pricing/excessive leverage </li></ul><ul><li>Lack of cash budgets/projections </li></ul><ul><li>Poor management reporting </li></ul><ul><li>Lack of stand costing </li></ul><ul><li>Poorly understood cost behavior </li></ul><ul><li>Entrepreneurial growth is a journey. Commit to journey even through detours, breakdowns and side trips. </li></ul>Troubled Companies: Poor Measurement
  19. 19. <ul><li>A journey not just a destination </li></ul><ul><li>The journey can be addictive </li></ul><ul><li>First build a great company </li></ul><ul><li>Create harvest options </li></ul>Planning for the Harvest <ul><li>Capital cow </li></ul><ul><li>MBO </li></ul><ul><li>M/A -> strategic alliance </li></ul><ul><li>Outright sale </li></ul><ul><li>Public offering </li></ul>
  20. 20. $ Cashing Out $ Limited Revenue Normal Revenue $ Liquidity Event $ None Takes longer than expected or desired  <ul><li>Direct sales </li></ul><ul><li>Channel sales </li></ul><ul><li>OEM sales </li></ul><ul><li>Licensing </li></ul><ul><li>Customer advances </li></ul><ul><li>NRE </li></ul><ul><li>Beta sales </li></ul><ul><li>IPO </li></ul><ul><li>Acquisition </li></ul><ul><li>Dividends </li></ul><ul><li> </li></ul>
  21. 21. <ul><li>Be clear on your strengths/weaknesses and those of your team. Plan to compensate. </li></ul><ul><li>Have clear, measureable goals. Communicate these well. </li></ul><ul><li>Principles and ethics matter always but especially when things get tough </li></ul>Getting to Growth: Summary
  22. 22. <ul><li>To download marketing tools: www.askthesgentreprenuer.com </li></ul>Thank you Contact Us at: Mike Holt Tel: +65 8126 7748 US/Singapore: +1-949-480-9271 S kype ID: mikeholt93 www.get2volume.com | [email_address]
  23. 23. <ul><li>About Get2Volume Now more than ever, success in Asia determines global success. Technology companies – even the smallest – are global companies that must address complex problems with markets, suppliers, customers, partners and employees in the US as well as in Asia. With over 20 years experience in Asia and the US, we understand the people, the business and political environments, and markets that shape technology companies. This experience allows us to solve business problems in a way that goes well beyond generating ideas – it focuses on improving results by providing an executive team on the ground where you need results. We combine executive management experience in technology, software, semiconductor, secure payment, and information security companies with success; assisting established companies and leading startups from concept through rapid growth and profitability. </li></ul>About Us Asia-US Bridge <ul><li>Singapore/SEA </li></ul><ul><li>California </li></ul>Company Stage <ul><li>Start Up </li></ul><ul><li>Growth </li></ul><ul><li>Regional MNC Focus </li></ul>Sectors <ul><li>Semiconductor </li></ul><ul><li>Internet </li></ul><ul><li>Consumer Electronics </li></ul><ul><li>Security </li></ul><ul><li>Biometrics </li></ul>
  24. 24. <ul><li>Appendix </li></ul>
  25. 25. <ul><li>See http://www.altgate.com/blog/2009/04/2009-startup-executive-compensation-survey-opens.html </li></ul>Startup Compensation Option Awards (Mean vs Average)

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