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Business Growth 051209

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    Business Growth 051209 Business Growth 051209 Presentation Transcript

    • Growing your Business Turning technology into cash Mike Holt Tel: +65 8126 7748 US/Singapore: +1-949-480-9271 Skype ID: mikeholt93 www.get2volume.com | mholt@get2volume.com © 2009 Get2Volume Turning technology into cash
    • Topics • Planning for Growth Main Idea: Enrollment • Attracting Talent • Involving experts How do you share the dream, • Building boards of share the responsibility and directors and get others involved? advisors • Growth Challenges: Managing difficulty 2 © 2009 Get2Volume Turning technology into cash
    • Growth Stages 3 © 2009 Get2Volume Turning technology into cash
    • “Secrets” of Entrepreneurial Success • There are no secrets • As soon as there is a secret, everyone knows it • Happiness is positive cash flow • Don’t run out of cash • Entrepreneurship is a human process. You have a big impact. • Happiness is positive cash flow 4 © 2009 Get2Volume Turning technology into cash
    • Entrepreneurial Journey • Goals matter – a lot – Passion – Desire to win • Values and principles matter – a lot – Treat others as you want to be treated – Share the wealth – Give back – Be a guardian of the world around you 5 © 2009 Get2Volume Turning technology into cash
    • What Enables Growth 6 © 2009 Get2Volume Turning technology into cash
    • Enrollment: – Employees – Partners – Board Members – Advisors 7 © 2009 Get2Volume Turning technology into cash
    • People: Setting Goals, Measureables and Compensation Team Responsibility Title Contribution Commitment Unique • Align Member and Risk Skills compensation with contribution • Develop budget/plan Team Salary Stock Member (Shares and %) 8 © 2009 Get2Volume Turning technology into cash
    • Startup Compensation • See http://www.altgate.com/blog/2009/04/2009-startup-executive-compensation- survey-opens.html Option Awards (Mean vs Average) 9 © 2009 Get2Volume Turning technology into cash
    • Create Option Budget Per Stock Stock Stock Annual Hire Total Value Value Value Salary 2006 Budget Stock ($K) ($K) ($K) $K (base) Bonus Jan Feb Mar Apr May Jun Jul Aug Sep Min Max CTO 160 32.0 1 1 1 1 1 1 1 1 1 $150.0 $200.0 Systems Engineer 110 0.0 0 0 0 1 1 1 1 1 1 $20.0 $30.0 Jr Research Engineer 55 0.0 0 0 0 0 0 0 0 0 0 Sr Research Engineer 87.5 0.0 0 0 0 0 0 0 0 0 0 $20.0 $30.0 VP Eng 155 38.8 1 1 1 1 1 1 1 1 1 58000 58000 $149.1 $150.0 $200.0 Sr Mixed Signal DE/Group lead 140 0.0 0 2 2 2 2 2 2 2 2 12000 24000 $30.8 $35.0 $40.0 Mixed Signal DE 110 0.0 0 0 0 2 2 3 3 4 4 8000 32000 $20.6 $20.0 $30.0 Digital DE 95 0.0 0 0 1 1 1 1 1 1 1 6000 6000 $15.4 $20.0 $30.0 Layout 85 0.0 0 0 0 1 1 1 1 1 1 5500 5500 $14.1 $20.0 $30.0 Verification Eng. 90 0.0 0 0 0 1 1 2 2 2 2 7000 14000 $18.0 $20.0 $30.0 Ops Dir (Contractor) 1 1 1 0 0 0 0 0 0 21000 0 $54.0 System Arc 160 0.0 0.5 0.5 0.5 0.5 1 1 1 1 1 25000 25000 $64.3 $35.0 $40.0 Apps/SE 90 0.0 0 1 1 1 1 1 2 2 2 8000 16000 $20.6 $20.0 $30.0 Program Manager 80 0.0 0 0 0 1 1 1 1 1 1 4000 4000 $10.3 $10.0 $15.0 VP Marketing 180 60.0 1 1 1 1 1 1 1 1 1 45000 45000 $115.7 $150.0 $200.0 Marketing Manager 135 10.0 0 0 1 1 2 2 2 2 2 15000 30000 $38.6 • Option plan and amount created with the Board of Directors • An option budget of 15%-20% is typical 10 © 2009 Get2Volume Turning technology into cash
    • Board of Directors: Types of Boards • Working Boards: These boards role up their sleeves and help the founders and management team . They meet frequently, have animated, engaged discussions, and offer significant ongoing support to the key owners and managers of the company. Working Boards • Reporting Boards: Boards that meet four to six are the only times a year for a status report on the company. appropriate If everything is going well, they tend not to have much to say. If there are problems or issues, they entrepreneurial are often critical of the CEO and the boards management team. • Lame Duck Boards: Boards that have no influence on the company -simply rubber stamp exercises for the CEO or founders. 11 © 2009 Get2Volume Turning technology into cash
    • BOD and Advisory Boards: Questions to ask • Whom Do You Want? • The Right Level of Experience • The Right Number • Whom to Avoid? • Advisory Board vs. Directors "On a board of advisers, I can give my best advice and not be constrained by the possibility that it's going to come back and bite me. It does change people's perspectives." “When it's a legal commitment, the directors feel a deeper, broader sense of responsibility to the company, to all the stakeholders, and the well-being of the company and the institution -- to the continuity of the enterprise," 12 © 2009 Get2Volume Turning technology into cash
    • • In the process of growth, your company will see difficult, troubling times. • Anticipating difficulty is critical to success 13 © 2009 Get2Volume Turning technology into cash
    • Troubled Companies Sources: • Inattention to Strategic Issues • General Management Issues People Issues: • Poor Measurement Misalignment of objectives (Financial/Accounting/ Metrics) 14 © 2009 Get2Volume Turning technology into cash
    • Troubled Companies: Signs Signs: Sources: • Ignored outside advice • Inattention to • Worse is yet to come Strategic Issues • People have stopped making decisions • General Management • Nobody is talking to employees Issues • Rumors are flying • Poor Measurement • Inventory is increasing (Financial/Accounting/ • Accounts receivable aging Metrics) increasing • Customers are afraid to make commitments • General malaise combined with high stress environment 15 © 2009 Get2Volume Turning technology into cash
    • Troubled Companies: Strategic Issues • Misunderstood market niche • Mismanaged customer and supplier relationships • Diversification into an unrelated business area • Mousetrap Myopia • “The Big Project” • Lack of contingency planning 16 © 2009 Get2Volume Turning technology into cash
    • Troubled Companies: Management Issues • Lack of management skills • Weak finance function • Turn over of key management • Insufficient focus on cash 17 © 2009 Get2Volume Turning technology into cash
    • Troubled Companies: Poor Measurement • Poor pricing/excessive leverage • Lack of cash budgets/projections • Poor management reporting • Lack of stand costing • Poorly understood cost behavior • Entrepreneurial growth is a journey. Commit to journey even through detours, breakdowns and side trips. 18 © 2009 Get2Volume Turning technology into cash
    • Planning for the Harvest • A journey not just a destination • The journey can be addictive • First build a great company • Create harvest options • Capital cow • MBO • M/A -> strategic alliance • Outright sale • Public offering 19 © 2009 Get2Volume Turning technology into cash
    • Getting to Growth: Summary • Be clear on your strengths/weaknesses and those of your team. Plan to compensate. • Have clear, measureable goals. Communicate these well. • Principles and ethics matter always but especially when things get tough 20 © 2009 Get2Volume Turning technology into cash
    • Thank you To download marketing tools: www.askthesgentreprenuer.com Contact Us at: Mike Holt Tel: +65 8126 7748 US/Singapore: +1-949-480-9271 Skype ID: mikeholt93 www.get2volume.com | mholt@get2volume.com 21 © 2009 Get2Volume Turning technology into cash
    • About Us 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. Asia-US Bridge Company Stage Sectors • Semiconductor • Singapore/SEA • Start Up • Internet • California • Growth • Consumer Electronics • Regional MNC Focus • Security • Biometrics 22 © 2009 Get2Volume Turning technology into cash
    • Appendix 23 © 2009 Get2Volume Turning technology into cash