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Fast Growth Forum

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Fast Growth Forum

  1. 1. @fastgrowthforum #fastgrowthforum www.fastgrowthforum.com Fast Growth Forum Tricky First Million 26 March 2014
  2. 2. @fastgrowthforum #fastgrowthforum www.fastgrowthforum.com Sponsors Supporters
  3. 3. Start ups need a child’s imagination
  4. 4. And a relentless desire to win
  5. 5. And some highly calculated risks
  6. 6. Prizes can be enormous
  7. 7. So how can you help yourself?
  8. 8. Understand Markets Watch for Demand Signals Study People
  9. 9. Mobile changes everything
  10. 10. Changes which markets we connect to
  11. 11. Even more in future
  12. 12. We live in a great place
  13. 13. London is on a roll
  14. 14. Learn to work on the network
  15. 15. New ways to tell stories
  16. 16. New ways to sell
  17. 17. New ways to work
  18. 18. New ways to raise money
  19. 19. 10k business ideas 1k firms started 100 VC funded 20 IPO 2 market leaders Nobel Prize in Economics 2006 Professor Edmund Phelps Less than 10% of business ideas even get started
  20. 20. 62% of venture investments are <1x 0 10 20 30 40 50 60 x<0.5 0.5<=x<1 x=1 1<x<2 2<=x<5 x>=5 % Cost % Value
  21. 21. Yes, start ups are really tough
  22. 22. You have no customers
  23. 23. No money
  24. 24. You and your team are fighting an imaginary war
  25. 25. Armed just with some big ideas
  26. 26. The extreme risk of 62% is definitely not for everyone, including many entrepreneurs and investors….. .
  27. 27. In fact a 2% loss ratio for banks lending to SMEs is already pushing the boundaries.
  28. 28. So if you feel comfortable managing risk, you might as well shoot for the moon
  29. 29. The capital which survives, creates businesses now accounting for 21% of US GDP….. 1978 1981 1987 1995 1995 1997 1999 1999 2005 and $1.4tn in new market value creating 440k new jobs with $545bn in new annual revenue serving >1bn customers Source: HIS Global Insight
  30. 30. And in Europe we are starting to build waves of similar dimensions
  31. 31. So what should you be thinking about when you are starting a business… Opportunity Others Ownership
  32. 32. How big is the opportunity….
  33. 33. Who are the others….
  34. 34. What level of ownership is available….
  35. 35. Pick a field big enough to change the world
  36. 36. Moving to Maslow’s Web Communications Clothing Discretionary Non-Discretionary Media Entertainment Shopping Travel Energy & Housing Education Food Finance Health Safety 1993-2003 2004-2012 2012+
  37. 37. And in Europe we have no shortage of willing talent….
  38. 38. Child’s imagination
  39. 39. Relentless desire to win
  40. 40. Highly calculated risks
  41. 41. No short cut to being a grandmaster “achievement is talent plus preparation.” - Malcolm Gladwell
  42. 42. You have to learn take risks Time Emotions Money
  43. 43. What should you focus on in the business…? Opportunity Others Ownership Customers Conversations Convenience Costs Competition
  44. 44. Maniacal focus on the customer….
  45. 45. Encourage conversations….
  46. 46. Offer new levels of convenience….
  47. 47. Leverage and manage cost structure…
  48. 48. Let the competition worry about itself…
  49. 49. So aim too high. The prize is huge and we all have an amazing start just by being here
  50. 50. Embrace your 62% @cape ♯risk62
  51. 51. www.mendeley.com The Importance of Vision ...at Mendeley Jan Reichelt Co-Founder
  52. 52. A brief introduction to Mendeley
  53. 53. Mendeley extracts data and fulltext from PDFs, .. ..share and discuss their research in groups, .. ..lets researchers organize and annotate papers, ..
  54. 54. ..and aggregates everything in the cloud ..share and discuss their research in groups, ..
  55. 55. A global research network with 2.6 million users; the 15 largest userbases: University of Cambridge University of Oxford Stanford University MIT Harvard University University of Michigan Imperial College London University College London University of Washington Cornell University Columbia University University of Edinburgh UC Berkeley Sao Paulo University University of Toronto 2,000 Mendeley Advisors around the globe
  56. 56. 300 active third-party apps built on the Mendeley API
  57. 57. Content Publishers Metadata Publishers, service providers, ... Social Layer Mendeley, ...? Today Amount/Importance
  58. 58. Social Layer Metadata Content Facebook, Twitter, Youtube, Pinterest... Creating and sharing “stuff” as a result. Tomorrow? Amount/Importance
  59. 59. What was Mendeley’s vision on day 1?
  60. 60. To revolutionize the way researchers and students work and create the world’s largest research community (2008) To create the world’s largest research community and shareable academic database, open to everyone (2008) Wants to help researchers manage, share, and discover academic knowledge (2008) A “Last.fm” for research (2009) The world’s largest research collaboration platform and database (2011) Mendeley helps people to organize and collaborate on research projects and makes academic research fascinatingly more accessible and transparent. (2013)
  61. 61. Vision: It’s the story you tell. It’s a “fuzzy” understanding of what your company stands for. • Why fuzzy? Because it should be robust for years. • Can a vision ever be achieved? Goals can!
  62. 62. Vision Goals Strategy Tactics Activities High-level, long term understanding of what a company stands for Short-term, day-to-day operational implementation *Adapted from Diana Railton
  63. 63. Do something you really, really like! Develop your vision, and translate it into a great product
  64. 64. Our vision helped Mendeley to create (some sort of) reality and self-fulfilling prophecy “In other words, ‘vision’ is a popular industry narrative applied after-the-fact”? (Josh Miller, Medium)
  65. 65. April 2013
  66. 66. Have a strong (founder) team and stick together Techcrunch/Web Summit Europas Award 2013 for best start-up founders
  67. 67. + founders of + owner of
  68. 68. “How Long Does it Take to Build a Technology Empire?” (www.ipo-dashboards.com)
  69. 69. Because the journey is so long, vision is so important – it keeps the start-up together during high growth times. You can only accomplish more things through and with other people, and vision helps to achieve internal alignment.
  70. 70. But vision does more for the team… Daniel Pink (2009): Drive: The Surprising Truth About What Motivates Us • Autonomy • Mastery • Purpose
  71. 71. Mendeley’s vision was coming from passion and was driving us to take entrepreneurship as a lifestyle. The emotions are the hardest part.
  72. 72. My Background • Graduated from HEC School of Management with a focus on Entrepreneurship • Co-founded PriceMinister and created product & sales platform • Moved to Asia (Singapore / Hong Kong) to develop Club Med’s Asia Pacific digital platform & TBWA digital offering and met my creative business partner • Exited PriceMinister in 2010 when acquired by Rakuten • Moved to London and opened Shopcade end 2011 after being obsessed with social and shopping implications
  73. 73. Getting critical mass takes time and effort
  74. 74. This applies to big and small companies Read Clayton Christensen on “Disruptive innovation”
  75. 75. For today’s youth, keeping up with new fashion styles and knowing where to buy them at the best price takes large amount of time and effort. 16 – 25 year olds are hungry for novelty and not loyal to one brand. They constantly hunt for the next “it” item using multiple sources, then go searching for where to go buy the look at the best price. 50% shop at retailers who introduce new lines more frequently than just once a season, and over 27% bought clothing from 5 or more retailers in the last 12 months.
  76. 76. 87 Browse the hottest looks of the moment Identify what people are wearing Buy these items at the best possible price
  77. 77. How we get feedback and develop features User centric design We regularly meet with our correspondents, content partners, and hold monthly events with fashion industry insiders to showcase the app and get feedback to ensure product updates are based on fashion industry needs. Lean Startup Approach We only develop minimum number of features that have a clear need and iterate on them until there’s a correlation with improvement in performance data. We are not afraid of dropping stuff. We often test on web before porting it to mobile as it’s more flexible. Data driven business decisions We have an always-on dashboard of userbase, engagement, sales, and marketing. We often test new things and see how it impacts data, such as new product features
  78. 78. User centric design example From blogger brunches held in LA and London The bloggers wanted to see on Shopcade: more fellow blogger styles, ability to see styles from other users, more emerging brands So we launched: “Looks” feature on Shopcade, so that both bloggers and our community can upload their looks. Shopcade Store, where emerging brands with no affiliate networks can offer their products directly on Shopcade and be featured.
  79. 79. You want feedback from the right type of people for your product o We held a Bus Party during London Fashion Week with 600+ VIP attendees including Amy Willerton (Miss Universe GB), Fran (Made in Chelsea), Jade Ellis (X Factor), Diana Vickers (X Factor), Ella Catliff (LaPetiteAnglais), Lilah Parsons (MTV), Hilary Alexander (Telegraph),V V Brown (Musician), Natalie Suarez (Model), Vogue, Elle, Candid Magazine, Rough Magazine, Yahoo, Rodnik Band, Fake Club, Alice Luker. o Not only was everyone photographed and featured on Shopcade mobile fashion app, they all gave feedback on the app. o https://www.youtube.com/watch?v=11jFMpNbzaY
  80. 80. Useful tools Collaborate: Shopcaders’ usability Lab Monitor: Analytics Optimize: Multiple testing Listen: Active Community
  81. 81. Lean Startup Approach example Conversion rate optimization We discovered that contextualizing sign-up gates on users’ first visit based on their intent and source led to quadrupling conversion rate. (ie. If they visit Shopcade by searching for Motel Rocks skirts, we show messages about Motel Rocks on the registration popup.)
  82. 82. Think It – Build It – Ship It – Tweak It
  83. 83. Data driven business decisions Which push notifications to send on mobile: After testing via email “deal notifications”, where people are notified when products they want on Shopcade goes on deal, we found that those emails had a high click-through rate and led to purchases. Thus on mobile, we ensured this is one of the high priority push notification over all others.
  84. 84. Weekly app downloads Android iOS Clear signs of necessity and addictiveness of Shopcade is backed up by latest data and user response.
  85. 85. Do: Get feedback from the right people Get responses in real-life, not in the office Preview your features to a small group of influencers They already know you well and the market needs and people generally want to be helpful Really listen hard to criticisms Don’t just think they don’t understand Get the whole team to look at their data Keep people accountable, and they will focus on delivering results
  86. 86. Don’t: Survey initial visitors about what they want They may not be your core demographic after all or not know what they want unless you show them Plug your site on blogs/forums Takes too much time and impact is not guaranteed Launch on date Launch on quality Cool homepage ever Show users what they want to see and keep it simple
  87. 87. Final thoughts: The product is not everything MYTH: A good product attracts users TRUTH: A good product retains users MYTH: PR and events will get you users TRUTH: PR and events will get you noticed by investors and partners and get you feedback. => You need virality and build a product people love and want to share. => You need marketing plans to get awareness and distribution.
  88. 88. Thank you P.S. Download our new mobile app for iPhone and Android. +44 786 799 3803 nathalie@shopcade.com Twitter: @nathgaveau shopcade.com/nathalie 99
  89. 89. Scaling Startups @rorystirling @mmc_ventures #fastgrowthforum
  90. 90. Keynote @rorystirling @mmc_ventures #fastgrowthforum
  91. 91. “a talk that establishes the main underlying theme” “establishes the framework for the following programme of events” @rorystirling @mmc_ventures #fastgrowthforum
  92. 92. WHAT THIS IS NOT @rorystirling @mmc_ventures #fastgrowthforum
  93. 93. Scaling Startups @rorystirling @mmc_ventures #fastgrowthforum
  94. 94. "Startup" @rorystirling @mmc_ventures #fastgrowthforum
  95. 95. "A startup is a company designed to search for a repeatable and scalable @rorystirling @mmc_ventures #fastgrowthforum business model" (Wikipedia)
  96. 96. "Startup = Growth" (Paul Graham) @rorystirling @mmc_ventures #fastgrowthforum
  97. 97. A startup is a company designed to grow fast @rorystirling @mmc_ventures #fastgrowthforum
  98. 98. The ONLY essential thing is GROWTH @rorystirling @mmc_ventures #fastgrowthforum
  99. 99. Everything else we associate with startups follows from growth @rorystirling @mmc_ventures #fastgrowthforum
  100. 100. …you can use growth like a compass to make almost every decision you face @rorystirling @mmc_ventures #fastgrowthforum
  101. 101. BILLION DOLLAR STARTUP$ @rorystirling @mmc_ventures #fastgrowthforum
  102. 102. Startup = Growth @rorystirling @mmc_ventures #fastgrowthforum
  103. 103. Scaling Growth @rorystirling @mmc_ventures #fastgrowthforum
  104. 104. “Scaling” @rorystirling @mmc_ventures #fastgrowthforum
  105. 105. "A startup is a company designed to search for a repeatable and scalable @rorystirling @mmc_ventures #fastgrowthforum business model" (Wikipedia)
  106. 106. To be a STARTUP you need to GROW (fast) and to GROW you need to SCALE @rorystirling @mmc_ventures #fastgrowthforum
  107. 107. What is scaling? How do I do it? @rorystirling @mmc_ventures #fastgrowthforum
  108. 108. Team & Culture @rorystirling @mmc_ventures #fastgrowthforum
  109. 109. Systems & processes @rorystirling @mmc_ventures #fastgrowthforum
  110. 110. Finally… @rorystirling @mmc_ventures #fastgrowthforum
  111. 111. 3 M’s @rorystirling @mmc_ventures #fastgrowthforum
  112. 112. Management @rorystirling @mmc_ventures #fastgrowthforum
  113. 113. Market @rorystirling @mmc_ventures #fastgrowthforum
  114. 114. Momentum @rorystirling @mmc_ventures #fastgrowthforum
  115. 115. Thank you @rorystirling @mmc_ventures #fastgrowthforum
  116. 116. VALUES Why creating a high-performance culture isn’t just beers and ping pong 27th Mar 2014 - 9:40am Lord’s Cricket Ground, London George Karibian Founder, PaymentSense
  117. 117. battle scars credit card processing for SME’s Finalist 2004 Finalist 2005 Finalist 2006 2013 – Ranked 24th in Europe founded 2009 founded 2012 overdraft financing for SMEs founded 2012 tech payments platform for mobile apps founded 2000 rollover to PE 2010 online office products for SMEs telco for SMEs Finalist 2004 Finalist 2005 Finalist 2006 founded 2003 exit to PE 2008 5 startups | 400k customers | £100m+ turnover
  118. 118. values so obvious – yet so difficult
  119. 119. • peter drucker • clear goals • stamp out failure • fear the pyramids extreme perhaps – but built a masterpiece
  120. 120. • great past • expense reports • how would you handle abuse • what xerox did xerox no different than the way they built the pyramids?
  121. 121. welch matrix ‘b’ players • “we are family” ‘a’ players • no brainer • rock stars • comp them • develop them • edge of comfort zones • retain them ‘d’ players • no brainer • part with them ‘c’ players • difficult to identify • easy to deal with • info bottlenecks • credit for others’ work • focus on reducing targets • black boxes • hold mgmt hostage • political animals • weed them out • easy to identify • difficult to deal with • 2nd chancers • training • new role • ease their move b’s and c’s separate the few great companies from the many mediocre ones a b c d results + + - - values a c d b
  122. 122. accelarated natural selection freq risk / return hi lo hi aim here land here 9/10 their safe landing zone our goal fail fast - learn fast
  123. 123. sunflowers beware of the sunflower a a a a a a a a c a a a c c c a a a a c c c a a a a c c c c a a a a a c c c c a a a a a a b b c b c a a a a a a b b b c b c b a a a a a a a b c a a a a a a a a a a a a a a a c a a a c c c a a a a c c c a a a a c c c c a a a a a c c c c a a a a a a b b c b c a a a a a a b b b c b c b a a a a a a a b c a a a a a a a a a a a a a a a c a a a c c c a a a a c c c a a a a c c c c a a a a a c c c c a a a a a a b b c b c a a a a a a b b b c b c b a a a a a a a b c a a a a a a a a a a a a a a a c a a a c c c a a a a c c c a a a a c c c c a a a a a c c c c a a a a a a b b c b c a a a a a a b b b c b c b a a a a a a a b c a a a a a a a
  124. 124. the rot effect have only ‘a’ players around your table… and real magic begins to happen
  125. 125. @fastgrowthforum #fastgrowthforum www.fastgrowthforum.com Scaling Startups #fastgrowthforum
  126. 126. STARTED USTWO 2004 £5,000
  127. 127. to create a place where you actually want to be more than life itself. a place that truly isn’t a company. a place where everyone is friends.
  128. 128. +SanFran +Sydney
  129. 129. Made me think hard
  130. 130. What is ustwo about for me?
  131. 131. EVERYONE DUMPS ON ME.
  132. 132. why?
  133. 133. empowered trusted rewarded piglets working on products they believe in ends in direct wins for all piglets and projects.
  134. 134. everything I am about to ask something that has been suggested to me but I shot down.
  135. 135. TRUST!!!!
  136. 136. why don’t we ask people if they need a standup desk?
  137. 137. we buy unlimited beers!!!
  138. 138. Why do we pack people in.
  139. 139. Why don’t we invest more in training our piglets?
  140. 140. Why don’t we plan projects to effectively allow people to think and not just produce.
  141. 141. happy 5 years. WTF!
  142. 142. nyc pic
  143. 143. jules.hopkinson@mvfglobal.com
  144. 144. 1. What is your Desired Outcome? 2. Why are Revenue and Profit Important? 3. The Evolution of Revenue and Profit 4. Should You Focus on Revenue Growth or Profit Growth? 5. What Does MVF Focus On?
  145. 145. 1. What is your Desired Outcome? 2. Why are Revenue and Profit Important? 3. The Evolution of Revenue and Profit 4. Should You Focus on Revenue Growth or Profit Growth? 5. What Does MVF Focus On?
  146. 146. TO Sell your business for as much as possible
  147. 147. 1. What is your Desired Outcome? 2. Why are Revenue and Profit Important? 3. The Evolution of Revenue and Profit 4. Should You Focus on Revenue Growth or Profit Growth? 5. What Does MVF Focus On?
  148. 148. Potential Size Size (Revenue or Users) Your Confidence in Negotiating Speed of Growth Potential Profit Margin
  149. 149. • • • • • •
  150. 150. • •
  151. 151. 1. What is your Desired Outcome? 2. Why are Revenue and Profit Important? 3. The Evolution of Revenue and Profit 4. Should You Focus on Revenue Growth or Profit Growth? 5. What Does MVF Focus On?
  152. 152.  Marketing Channel Optimisation  Landing Page Optimisation  Strong Sales Process  Strong On-Boarding Process
  153. 153.      
  154. 154. • Customer Montetization • Cost of Customer Acquisition TIME
  155. 155. 1. What is your Desired Outcome? 2. Why are Revenue and Profit Important? 3. The Evolution of Revenue and Profit 4. Should You Focus on Revenue Growth or Profit Growth? 5. What Does MVF Focus On?
  156. 156. • Demonstrate you can pull levers to generate profit, or • Have line of sight on profit in the future
  157. 157. 1. What is your Desired Outcome? 2. Why are Revenue and Profit Important? 3. The Evolution of Revenue and Profit 4. Should You Focus on Revenue Growth or Profit Growth? 5. What does MVF Focus On?
  158. 158. 2009 2010 2011 2012 2013 2014 2015 2016 £500k per Month Revenue £1m per Month Revenue £1m per Month Gross Profit £2m per Month Gross Profit
  159. 159. “Rough Diamond” “Inconsistent Player” “Talent Risk” “Future Star” “Key Player” “Solid Professional” “Consistent Star” “Current Star” “High Professional” Performance Potential
  160. 160. • • •
  161. 161. jules.hopkinson@mvfglobal.com
  162. 162. CREATING PROCESSES AND KPIS TO MANAGE YOUR BUSINESS WITHOUT LOSING AGILITY AND INNOVATION
  163. 163. #BESTBUDS OR #DEVILBABY Budweiser, "Puppy Love" 20th Century Fox, Devil Baby Attack 48,499,082 views, 1,861,707 shares 43,332,549 views, 2,031,736 shares
  164. 164. A SHOREDITCH START-UP
  165. 165. WE HELP BRANDS MEASURE SUCESSS & IDENTIFY TRENDING CONTENT Source: Company Management • Real-time benchmarking • Customizable data clusters • 2,000 preloaded brands • Granular social reactions • Plus the bigger picture!
  166. 166. WE PREDICT & IMPROVE CONTENT SHAREABILITY Basic emotions Primal responses Cognitive responses Intensity Emotional valence Schema disruption Social motivation Memorability Enjoyability Medium Favourability Interpanel agreement and more...
  167. 167. AND ACTIVATE THE OPEN WEB WITH PAID MEDIA Maximize peak sharing Prolong burn-out phase with Unruly without Unruly Brands use Activate to maximize earned media • Make videos ubiquitous & shareable • Maximize social spread and viral views • Target super-sharers to slow burn-out
  168. 168. WHY DO SHARES MATTER? 50x INCREASE 2006 2013 Source: Viral Video Chart
  169. 169. …WITH GLOBAL ASPIRATIONS FROM DAY ONE…
  170. 170. 5. Expansion Plans 5.2 Geographic Expansion Today Regional Hub Local Office Sales Presence London 2007 Paris 2010 Sydney 2010 New York 2011 Stockholm 2011 San Francisco 2011 Amsterdam 2011 Berlin 2012 Singapore 2014 Chicago 2012 Hamburg 2013 Oslo 2013 EMEA Americas APAC LA 2012 GLOBAL GROWTH Seoul 2014
  171. 171. THAT’S QUITE A ROAD TRIP!
  172. 172. BARCLAYS WATERSLIDE 2008
  173. 173. EVIAN ROLLER BABIES 2009
  174. 174. OLD SPICE GUY 2010
  175. 175. T-MOBILE ROYAL WEDDING 2011
  176. 176. ADIDAS ‘DON’T STOP ME NOW’ 2012
  177. 177. DOVE REAL BEAUTY SKETCHES 2013
  178. 178. $25 million FUNDING
  179. 179. TECHNOLOGY & INNOVATION International Winner, Hot New Media and Technological Platforms Winner, Digital Innovation Winner, International Impact Management Team of the Year
  180. 180. INNOVATING WITH AGILE
  181. 181. FAILING FAST
  182. 182. ROLLING OUT XP
  183. 183. BRAINSTORMING
  184. 184. DECIDING
  185. 185. TALKING
  186. 186. SEARCH FOR PANDAS Logo’s safe area RECRUITING PANDAS
  187. 187. GROWTH HACKING
  188. 188. LEARNING
  189. 189. DEVELOPING TALENT
  190. 190. PLAYING
  191. 191. OM NOM NOMMING
  192. 192. THANKING
  193. 193. Deliver WOW Share the Love Embrace Change VALUES
  194. 194. Deliver WOW
  195. 195. Share the Love
  196. 196. Embrace Change
  197. 197. THANK YOU! Winner Best Content Distribution Service Winner Digital Innovator of the Year Winner 2012 Digital Innovation Award
  198. 198. Preparing Your Business for Exit David Sidwell
  199. 199. FY97 FY98 FY99 FY00 FY01 FY02 FY03 £1.6m £2.5m £6.5m £10m £17m £24m £34m
  200. 200. • 2005, £300k • 2001, £2m • 2007, £10m • 2012, £440k • 2007, £13m • 2005, £1.8m
  201. 201. Preparing your Business for Exit 1. Clear Proof Points 2. Scalable Business Model 3. Solid People
  202. 202. The 7 Great Myths of Preparing Your Business for Exit 1. I won’t be happy until I have made lots of money 2. I’ll sell when I’m ready…and I know when I’m ready 3. I know what my business is worth, and I’ll not sell for less 4. Big spreadsheets showing long term sales forecasts are pointless 5. You need a Big Vision 6. All investment is the same: it’s just money 7. Selling my business is what I do all day
  203. 203. Myth #1: I won’t be happy until I’ve made lots of ££££££
  204. 204. Your company reflects your personalityMyth #1: I won’t be happy until I’ve made lots of ££££££ No ! M&A enables you to achieve your goals in life
  205. 205. Myth #2: I’ll sell when I’m ready… …and I’ll know when I’m ready Maturity Crisis of Growth through Size Leadership Autonomy Control Bureaucracy Internal Growth Creativity Direction Delegation Co-ordination Collaboration External partnerships The Greiner Curve
  206. 206. Myth #2: I’ll sell when I’m ready… …and I’ll know when I’m ready
  207. 207. Myth #3: I know what my business is worth… …and I’ll not sell for less Truth: You really aren’t the best judge. Honestly Dream Value = 10-20x revenues Tuck In: 2-5x revenues Normal business: 3 x last year’s profits + cash at bank
  208. 208. Myth #4: Big spreadsheets showing long term sales forecasts and market shares are completely pointless Revenue and Valuation Forecast to 2018 - Assumptions and Summary Core Planning Assumption: Increase in Money Under Management Start Point £11.3m as at end March 2012 Organic Growth per month £200,000 = annual growth of £2,400,000 Investment Growth per month £300,000 = annual growth of £3,600,000 Market Growth Factor per annum 5.00% Wastage from retiring clients per annum 5.00% Revenues will be 3.00% of Funds Under Management Split of Recurring Fees Income vs. Commission Percentage of Recurring Fees Income will be 55% of Revenue initally and can be expected to rise Valuation Calculation is Industry Standard: Multiple of Fee Income + Commission Income - Debt Fee Income multiple to be used: 4 Low valuation = 3 Mid Market Valuation = 4, Rising market valuation = 6 Summary: Organic Growth Model: 2012 2013 2014 2015 2016 2017 2018 actual Funds £m 11,300,000 13,700,000 16,100,000 18,500,000 20,900,000 23,300,000 25,700,000 Valuation £ 595,668 £ 615,256 £ 771,456 £ 927,656 £ 1,083,856 £ 1,234,900 £ 1,362,100 Investment Growth Model: 2012 2013 2014 2015 2016 2017 2018 actual Funds £ 11,300,000 14,900,000 18,500,000 22,100,000 25,700,000 29,300,000 32,900,000 Valuation £ 595,668 £ 635,656 £ 809,556 £ 1,025,756 £ 1,281,556 £ 1,532,200 1,743,700 “There is nothing so practical as a good theory”
  209. 209. WHAT HOW WHY You need clarity about your purpose and your Road Map Myth #5: You need a Big Vision
  210. 210. Would you hire them ? What for ? They need goals/targets/appraisals Myth #6: All investment is the same: it’s just money “You can smell emotional commitment a mile away”
  211. 211. Myth #7: Selling my business is what I do all day
  212. 212. Preparing Your Business for Exit 1. Clear Proof Points 2. Scalable Business Model 3. Solid People – starting with … You
  213. 213. Preparing Yourself for Exit 1. I won’t be happy until I have made lots of money What are your goals in life ? How will this business help you achieve them ? 2. I’ll sell when I’m ready…and I know when I’m ready By the time you’re ready, it’s too late 3. I know what my business is worth, and I’ll not sell for less No, you don’t. Honestly. 4. Business Models are pointless The best possible value protection/creation strategy 5. You need a Big Vision You need clarity about your purpose and your Road Map 6. All investment is the same: it’s just money Choose the people, not the money 7. Selling my business is what I do all day Beware…almost impossible not to take your eye off the ball
  214. 214. @fastgrowthforum #fastgrowthforum www.fastgrowthforum.com Thank you Feedback please!

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