Six Minute Strategist Strategy Analyser

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In this Six Step Strategy Analyser, I will help you to create a framework for your business strategy and objectives for the next three to five years. To me the essence of strategy is setting the direction for your business and this tool is designed to help you to start that process.

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Six Minute Strategist Strategy Analyser

  1. 1. The Six Minute Strategist Business Strategy, Frameworks for Growth Six Minute Strategist Six Minute Strategy Analyser http://jbdcolley.com© John colley 2013
  2. 2. Where are Where do You You Now? Want to Be? Strategic Strategy Current Metrics? Options? Analyser Growth Rates Future Implied and Deltas Metrics? http://jbdcolley.com© John colley 2012
  3. 3. Where are You Now? Where do You Want to Be? 3 or 5 Years How are You Going to Get There? http://jbdcolley.com© John colley 2013
  4. 4. Definition of Business Insanity “Doing the same this year as you did last year and expecting a different result” http://jbdcolley.com© John colley 2013
  5. 5. Step 1 Three Questions Last Year’s Revenues? Last Years Profit Before Tax? No of Employees? http://jbdcolley.com© John colley 2013
  6. 6. Strategy Analyser Step 1 Revenues Step 2 PBT Step 3 No. of Employees Step 4 Step 5 Step 6 http://jbdcolley.com© John colley 2013
  7. 7. Step 2 Choose 3 or 5 years? Forecast Revenues? Forecast Profit Before Tax? Forecast No of Employees? http://jbdcolley.com© John colley 2013
  8. 8. Strategy Analyser Step 1 Revenues Revenues Step 2 PBT PBT Step 3 No. of No. of Employees Employees Step 4 Step 5 Step 6 http://jbdcolley.com© John colley 2013
  9. 9. Step 3 Historic Key Metrics Profit Margin (PBT/Rev) Productivity (Rev/No of Emp) Valuation (PBTxMultiple) http://jbdcolley.com© John colley 2013
  10. 10. Valuation Multiples Rev <£5m = 4x Rev >£5m<£15m = 5x Rev > £15m = 6x (These are estimates) http://jbdcolley.com© John colley 2013
  11. 11. Strategy Analyser Step 1 Revenues Revenues Step 2 PBT PBT Step 3 No. of No. of Employees Employees Step 4 Profit Margin Productivity Step 5 Valuation Step 6 http://jbdcolley.com© John colley 2013
  12. 12. Step 4 Forecast Key Metrics Profit Margin (PBT/Rev) Productivity (Rev/No of Emp) Valuation (PBTxMultiple) http://jbdcolley.com© John colley 2013
  13. 13. Strategy Analyser Step 1 Revenues Revenues Step 2 PBT PBT Step 3 No. of No. of Employees Employees Step 4 Profit Profit Margin Margin Productivity Productivity Step 5 Valuation Valuation Step 6 http://jbdcolley.com© John colley 2013
  14. 14. Step 5 Growth Rates 3 or 5 year Historic Growth Required Growth What is the Difference? http://jbdcolley.com© John colley 2013
  15. 15. Step 5 Change in Profit Margin? Change in Productivity? Change in Valuation? What is the Difference? http://jbdcolley.com© John colley 2013
  16. 16. Strategy Analyser Step 1 Required - Historic Required Growth Rate Revenues Revenues Historic Growth Rate Step 2 PBT PBT Time in Years Step 3 No. of No. of Employees Employees Step 4 Profit Profit Change in Profit Margin Margin Margin Productivity Change in Productivity Productivity Step 5 Valuation Valuation Change in Valuation Step 6 http://jbdcolley.com© John colley 2013
  17. 17. Step 6 What are you going to do? Only Three Choices 1. Organic Growth 2. Acquisition 3. Raise Capital http://jbdcolley.com© John colley 2013
  18. 18. Strategy Analyser Step 1 Required - Historic Required Growth Rate Revenues Revenues Historic Growth Rate Step 2 PBT PBT Time in Years Step 3 No. of No. of Employees Employees Step 4 Profit Profit Change in Profit Margin Margin Margin Productivity Change in Productivity Productivity Step 5 Valuation Valuation Change in Valuation Step 6 What do You Need to Do? Organic Capital M&A http://jbdcolley.com© John colley 2013
  19. 19. Challenge Your Own Assumptions... 3 or 5 years Realistic? Achievable? Test Scenarios http://jbdcolley.com© John colley 2013
  20. 20. Strategy Analyser Step 1 Required - Historic Required Growth Rate Revenues Revenues Historic Growth Rate Step 2 PBT PBT Time in Years Step 3 No. of No. of Employees Employees Step 4 Profit Profit Change in Profit Margin Margin Margin Productivity Change in Productivity Productivity Step 5 Valuation Valuation Change in Valuation Step 6 What do You Need to Do? Organic Capital M&A http://jbdcolley.com© John colley 2013
  21. 21. Work Sheet http://jbdcolley.com© John colley 2013
  22. 22. Strategy Analyser Step 1 Required - Historic Required Growth Rate Revenues Step 2 Revenues Historic Growth Rate PBT PBT Time in Years Step 3 No. of No. of Employees Employees Step 4 Profit Profit Change in Profit Margin Margin Margin Productivity Change in Productivity Productivity Step 5 Valuation Valuation Change in Valuation Step 6 What do You Need to Do? http://jbdcolley.com© John colley 2013 Organic Capital M&A
  23. 23. Can I Help You Today? http://jbdcolley.com© John colley 2013
  24. 24. Can I Help You? More Comprehensive Strategy Analysis? Contact Me john@jbdcolley.com 07813 672 612 http://jbdcolley.com© John colley 2013

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