[email_address] www.pembridge.net www.pembrideasia.com Hugh Mason Partner, Pembridge Partners LLP (UK) Director, Pembridge Asia Pte Ltd (Singapore) Building Businesses from Ideas

Pembridge Founded 2001 to help owner-managers of creative businesses to build and release value in their businesses. We help someone become a millionaire every 4-8 weeks. In total: five partners + eight staff + 20 regional associates. People who have ‘been there before’ in Music, marketing services, TV, Film, Design … US$ 50m+ raised/invested , 50 current engagements across Creative Industries Active in Singapore, UK, Netherlands 1,800+ companies engaged

Coming Up Ideas Businesses What is an ‘Ideas’ business? Are ‘ideas businesses’ special? The Early Years How businesses start How businesses grow Coming of Age Attracting an investor Letting go

Ideas Businesses

What is an ‘Ideas’ business?

Are ‘ideas businesses’ special?

The Early Years

How businesses start

How businesses grow

Coming of Age

Attracting an investor

Letting go

Part 1 ‘Ideas’ businesses

Fuelling the ‘Knowledge Economy’ Science $ Products & Services Culture Research Innovation Creative Industry Art Technical IP Aesthetic IP

The right vehicle for the journey

Businesses: vehicles for ambition Urge 1: Do great work Cultural Wealth Work focus Urge 2: Build a better world Social Wealth Workplace focus Urge 3: Make money Economic Wealth Market focus Perhaps 5% of SMEs

Part 2 The Early Years

Most businesses don’t grow The number of businesses in the larger turnover bands falls rapidly Turnover => Number of Firms =>

The challenge of growth Most small businesses scratch a living down here This is where the good stuff is In between there is an uncomfortable journey

Maturity High Medium Low Micro Small Medium Large Size One model of business growth Clubs Level 2 Artisans Level 1 Freelancers / pre-start-up Level 0 Value Growers Level 4 Value Creators Level 3 Acquirers Level 6 Value Realisors Level 5 Public Companies Level 7

Foundations for growth: a team Every business needs: A Finder A Minder A Grinder CEO / Commercial / Sales Director Creative / Technical Director Finance Person Operations Person

Every business needs:

A Finder

A Minder

A Grinder

Foundations for growth: plans Some operational plans Sales funnel Marketing plans Staff development plans Cashflow forecasts Some strategic plans Exit / succession plans Plans to set goals Plans to build value Plans to merge/acquire

Some operational plans

Sales funnel

Marketing plans

Staff development plans

Cashflow forecasts

Some strategic plans

Exit / succession plans

Plans to set goals

Plans to build value

Plans to merge/acquire

Operational process: a sales funnel There needs to be a steady stream of possibilities coming down the funnel to ensure that production resources are kept busy. That often means concentrating most on sales when the delivery team are busy!

Part 3 Coming of Age

Strategic planning: setting goals PERSONAL GOALS Why are you doing what you do? What’s your idea of success? How much risk/certainty? CURRENT POSITION Where is the firm now? What makes it special? How is it selling itself? FUTURE SCENARIOS What credible futures might be possible? What would the pros and cons of each be? What would it take to make each one real? SETTING THE FIRM’S GOAL Which scenario offers the best match to the team’s personal goals? VISUALISE THE PLAN Create snapshots of the firm’s future projects, money and people for each quarter over the next 3-5 years. MAKING IT REAL Identify the partners and resources needed to make the plan real. Commit to execution.

PERSONAL GOALS

Why are you doing what you do?

What’s your idea of success?

How much risk/certainty?

CURRENT POSITION

Where is the firm now?

What makes it special?

How is it selling itself?

FUTURE SCENARIOS

What credible futures might be possible?

What would the pros and cons of each be?

What would it take to make each one real?

SETTING THE FIRM’S GOAL

Which scenario offers the best match to the team’s personal goals?

VISUALISE THE PLAN

Create snapshots of the firm’s future

projects, money and people for each quarter over the next 3-5 years.

MAKING IT REAL

Identify the partners and resources needed to make the plan real.

Commit to execution.

Attracting investment Investment in what? Projects might – or might not - be golden eggs Growth businesses keep laying golden eggs

Investment in what?

Projects might – or might not - be golden eggs

Growth businesses keep laying golden eggs

Inside the investor’s head risk reward

Investors are conservative Traditional business Tangible Assets Can see where the money’s gone Ideas business What have I bought? If it doesn’t work, what have I got left?

Traditional business

Tangible Assets

Can see where the money’s gone

Ideas business

What have I bought?

If it doesn’t work, what have I got left?

Maturity High Medium Low Micro Small Medium Large Size Financing the stages of growth Clubs Level 2 Artisans Level 1 Freelancers / pre-start-up Level 0 Value Growers Level 4 Value Creators Level 3 Acquirers Level 6 Value Realisors Level 5 Public Companies Level 7 Company Valuation Time Risk FFF Self / Debt/ SFLG Angels VCs Stock Mkt

Six Golden Rules for your Exit Set ruthless targets Do a reality check. Be transparent Rein in the Big Ideas Stop pitching, start listening Make sure the faces fit

Set ruthless targets

Do a reality check.

Be transparent

Rein in the Big Ideas

Stop pitching, start listening

Make sure the faces fit

[email_address] www.pembridge.net www.pembrideasia.com Hugh Mason Partner, Pembridge Partners LLP (UK) Director, Pembridge Asia Pte Ltd (Singapore) Building Businesses from Ideas