David G.
Thomson
        CHAIRMAN

BLUEPRINT GROWTH INSTITUTE

BLUEPRINT GROWTH INVESTORS

   Best Selling Author


  david@blueprinttoabillion.com
                                  ©David G. Thomson
...only 4% could
                    Number of   Number of   Market
                                                     Revenue
                    Companies   Employees   Value
                     11,000      18.8M      $4.1 T   $4.4 T

Growth Companies
below $1B revenue                37%        36%       31%

                      96%
                                 63%        64%       69%
 Blueprint
Companies              4%

                                                       ©David G. Thomson
Exponential
                                               Growth


                                       $1B




Copyright Blueprint Growth Institute
Blueprint of Exponential Growth
                    Revenue
                    $ Millions                      4 years   6 years   12 years




                                       Inflection
                                         point

                                                                        Normalized Time(years)




Copyright Blueprint Growth Institute
Growth in every economic sector
                                                        Change since
                           Percent of Companies         2004

Consumer Discretionary                             22   (4%)
       Information Tech                       18
              Financial                  14
             Industrials                 14             5%
           Health Care                   13
                Energy              10                  5%
              Materials         4
     Consumer Staples       2
               Utilities    2
      Telecom Services      2
                                                             ©David G. Thomson
Up-and-Coming
Exponential Growth Companies
  $Million




                        ©David G. Thomson
The Cycle of America’s Growth
1000
       Companies
                                    800
                                    Companies




Number of
Companies




250
         1993   1999    2003    2009 …2016

                                 ©David G. Thomson
These Industries Lead the Next Growth
Cycle
   1. Energy
   2. Capital Goods
   3. Software and Services
   4. Health Care Equipment and Services
   5. Technology Hardware
   6. Consumer Services
   7. Diversified Financials
   8. Materials
   9. Real Estate
   10.Commercial Services

                                           ©David G. Thomson
• Create and Sustain a
                                       Breakthrough Value Proposition
                                       • Exploit a
                                       High Growth Market Segment
                                       • Marquee Customers™
                                       Shape the Revenue Powerhouse
                                       • Leverage Big Brother Alliances
                                       • Become the Masters of
                                       Exponential Returns
                                       • Management:
                                       Inside – Outside Leadership
                                       • Board: Comprised of
                                       Essentials Experts
Copyright Blueprint Growth Institute
                                                                        ©David G. Thomson
Name of Conference and date
                                                              Name of Conference and date




                                       Create and Sustain a
                                       Breakthrough Value
                                       Proposition

                                          benefits =
                                          product +
                                           location +
                                          experience
Copyright Blueprint Growth Institute
                                                           ©David G. Thomson
Lessons from top CEOs

                      •Most Blueprint Companies grow in mature,
                      not emerging markets
                      •Utilize best management practices and
                      technologies to stay close to the customer
                      •Exponential growth requires
                      a portfolio of products/services
                      •Partner with suppliers
                      •Import ideas from other industries


Copyright Blueprint Growth Institute
TM

                                          Marquee Customers
                                          Shape the Revenue
                                          Powerhouse

           product consumer x
           value proposition shaper x
           lighthouse reference =
                                       Marquee Customers

Copyright Blueprint Growth Institute
                                                                   ©David G. Thomson
Leverage
                                               Big Brother Alliances

                                       little brother   BIG BROTHER


           Microsoft                                       IBM
                                       eBay                AOL
Copyright Blueprint Growth Institute
                                                                      ©David G. Thomson
Create win-win
                                       relationship
           Big Brothers                           Little Brothers

           • Innovation for emerging markets      • Access and scale into new markets
           • Fill critical gaps in portfolio      • Credibility with customers
           • Outsource specialized functions      • Access to partner’s innovation and
           • License brands                       product line
                                                  • Market intelligence
           “ …we all realize for innovation and   –Customer demand
           certain pieces of the portfolio we     –Bottlenecks in current offerings
           have to turn to someone else”          –Evolution and emergence of new
                                                  webs or business ecosystems




Copyright Blueprint Growth Institute
Become the Masters
                                              of Exponential Returns
           $1B                                                  $4B



                    Revenue                                           Market Value


                                          Earnings (EBIT)




                                       Fastenal        A Different Hardware Business
Copyright Blueprint Growth Institute
                                                                                     ©David G. Thomson
Management:
                                               Inside – Outside
                                               Leadership




                           Jon Shirley and Bill Gates   Jim Wright and Joe Scarlett
                                       MICROSOFT        TRACTOR SUPPLY
 Source:        Microsoft Archives                                              ©David G. Thomson
Copyright Blueprint Growth Institute
Management:
                                       Inside – Outside
                                       Leadership

                Blueprint Leadership =
                Focus on relationships and products X
                Drive to innovate and explore X
                Ability to manage the 7 Essentials


Copyright Blueprint Growth Institute
                                                          ©David G. Thomson
Board: Comprised of
                                               Essentials Experts
                                                   (Blueprint) CEO

                                                             (Marquee) Customer
               Management

                                                                     (Big Brother) Alliance



                                                                     Community Member



                                       Other               Investors


Copyright Blueprint Growth Institute
                                                                                  ©David G. Thomson
over 90% of Blueprint
                                       Companies leveraged
                                         5 or more of the
                                           7 Essentials
Copyright Blueprint Growth Institute
                                                               ©David G. Thomson
Your Essentials for Turbulent Times

         1.Deliver “Way Better Value”
                                       •   Redefine Customer Benefits
                                       •   Focus on the Value Zone
                                       •   Innovate and Test
                                       •   Fail Fast, Often and Cheap!
                                       •   “Quick and Dirty” to accelerate Customer
                                           Feedback




Copyright Blueprint Growth Institute
Your Essentials for Turbulent Times
         2.Exploit New Market Segments
         3.Leverage Marquee Customers
         4.Utilize Big Brother Alliances
                             •         Move to Adjacent Market Segments or Geographies
                             •         Form a Customer Advisory Board
                             •         Encourage Customers to Sell for you!
                             •         Fill a critical portfolio gap for a Big Brother Alliance Partner
                             •         Leverage Partnerships to expand globally




Copyright Blueprint Growth Institute
Your Essentials for Turbulent Times
         5.Masters of Exponential Returns
         6.Inside - Outside Leadership
         7.Board of Essentials Experts
                              •        Streamline core business -expenses and processes
                              •        Strive for positive cash flow
                              •        Formalize and focus Inside-Outside Leadership
                              •        Build a board of long term investors
                              •        Leverage board to develop Marquee Customer and Big Brother
                                       Alliance relationships



Copyright Blueprint Growth Institute
Our Essentials Scorecard
#1 Create and Sustain a Breakthrough Value Proposition       3.6



#2 Exploit a High-Growth Market                              3.7



#3 Marquee Customers Shape the Revenue Powerhouse            3.4



#4 Leverage Big Brother Alliances                            2.7



#5 Become the Masters of Exponential Returns                 3.3



#6 The Management Team: Inside-Outside Leadership            3.8



#7 The Board of Directors: Comprised of Essentials Experts   1.4



Invest in Infrastructure                                     3.4




Average                                                      3.2




                                                             ©David G. Thomson
Next Steps to Grow Your Business



                       Visit
              www.blueprintgrowth.com


• Take the 7 Essentials Scorecard
• Link to BusinessWeek.com 7 Essentials Series
• Link to David Thomson

David Thomson - Blueprint to a Billion

  • 1.
    David G. Thomson CHAIRMAN BLUEPRINT GROWTH INSTITUTE BLUEPRINT GROWTH INVESTORS Best Selling Author david@blueprinttoabillion.com ©David G. Thomson
  • 2.
    ...only 4% could Number of Number of Market Revenue Companies Employees Value 11,000 18.8M $4.1 T $4.4 T Growth Companies below $1B revenue 37% 36% 31% 96% 63% 64% 69% Blueprint Companies 4% ©David G. Thomson
  • 3.
    Exponential Growth $1B Copyright Blueprint Growth Institute
  • 4.
    Blueprint of ExponentialGrowth Revenue $ Millions 4 years 6 years 12 years Inflection point Normalized Time(years) Copyright Blueprint Growth Institute
  • 5.
    Growth in everyeconomic sector Change since Percent of Companies 2004 Consumer Discretionary 22 (4%) Information Tech 18 Financial 14 Industrials 14 5% Health Care 13 Energy 10 5% Materials 4 Consumer Staples 2 Utilities 2 Telecom Services 2 ©David G. Thomson
  • 6.
  • 7.
    The Cycle ofAmerica’s Growth 1000 Companies 800 Companies Number of Companies 250 1993 1999 2003 2009 …2016 ©David G. Thomson
  • 8.
    These Industries Leadthe Next Growth Cycle 1. Energy 2. Capital Goods 3. Software and Services 4. Health Care Equipment and Services 5. Technology Hardware 6. Consumer Services 7. Diversified Financials 8. Materials 9. Real Estate 10.Commercial Services ©David G. Thomson
  • 9.
    • Create andSustain a Breakthrough Value Proposition • Exploit a High Growth Market Segment • Marquee Customers™ Shape the Revenue Powerhouse • Leverage Big Brother Alliances • Become the Masters of Exponential Returns • Management: Inside – Outside Leadership • Board: Comprised of Essentials Experts Copyright Blueprint Growth Institute ©David G. Thomson
  • 10.
    Name of Conferenceand date Name of Conference and date Create and Sustain a Breakthrough Value Proposition benefits = product + location + experience Copyright Blueprint Growth Institute ©David G. Thomson
  • 11.
    Lessons from topCEOs •Most Blueprint Companies grow in mature, not emerging markets •Utilize best management practices and technologies to stay close to the customer •Exponential growth requires a portfolio of products/services •Partner with suppliers •Import ideas from other industries Copyright Blueprint Growth Institute
  • 12.
    TM Marquee Customers Shape the Revenue Powerhouse product consumer x value proposition shaper x lighthouse reference = Marquee Customers Copyright Blueprint Growth Institute ©David G. Thomson
  • 13.
    Leverage Big Brother Alliances little brother BIG BROTHER Microsoft IBM eBay AOL Copyright Blueprint Growth Institute ©David G. Thomson
  • 14.
    Create win-win relationship Big Brothers Little Brothers • Innovation for emerging markets • Access and scale into new markets • Fill critical gaps in portfolio • Credibility with customers • Outsource specialized functions • Access to partner’s innovation and • License brands product line • Market intelligence “ …we all realize for innovation and –Customer demand certain pieces of the portfolio we –Bottlenecks in current offerings have to turn to someone else” –Evolution and emergence of new webs or business ecosystems Copyright Blueprint Growth Institute
  • 15.
    Become the Masters of Exponential Returns $1B $4B Revenue Market Value Earnings (EBIT) Fastenal A Different Hardware Business Copyright Blueprint Growth Institute ©David G. Thomson
  • 16.
    Management: Inside – Outside Leadership Jon Shirley and Bill Gates Jim Wright and Joe Scarlett MICROSOFT TRACTOR SUPPLY Source: Microsoft Archives ©David G. Thomson Copyright Blueprint Growth Institute
  • 17.
    Management: Inside – Outside Leadership Blueprint Leadership = Focus on relationships and products X Drive to innovate and explore X Ability to manage the 7 Essentials Copyright Blueprint Growth Institute ©David G. Thomson
  • 18.
    Board: Comprised of Essentials Experts (Blueprint) CEO (Marquee) Customer Management (Big Brother) Alliance Community Member Other Investors Copyright Blueprint Growth Institute ©David G. Thomson
  • 19.
    over 90% ofBlueprint Companies leveraged 5 or more of the 7 Essentials Copyright Blueprint Growth Institute ©David G. Thomson
  • 20.
    Your Essentials forTurbulent Times 1.Deliver “Way Better Value” • Redefine Customer Benefits • Focus on the Value Zone • Innovate and Test • Fail Fast, Often and Cheap! • “Quick and Dirty” to accelerate Customer Feedback Copyright Blueprint Growth Institute
  • 21.
    Your Essentials forTurbulent Times 2.Exploit New Market Segments 3.Leverage Marquee Customers 4.Utilize Big Brother Alliances • Move to Adjacent Market Segments or Geographies • Form a Customer Advisory Board • Encourage Customers to Sell for you! • Fill a critical portfolio gap for a Big Brother Alliance Partner • Leverage Partnerships to expand globally Copyright Blueprint Growth Institute
  • 22.
    Your Essentials forTurbulent Times 5.Masters of Exponential Returns 6.Inside - Outside Leadership 7.Board of Essentials Experts • Streamline core business -expenses and processes • Strive for positive cash flow • Formalize and focus Inside-Outside Leadership • Build a board of long term investors • Leverage board to develop Marquee Customer and Big Brother Alliance relationships Copyright Blueprint Growth Institute
  • 23.
    Our Essentials Scorecard #1Create and Sustain a Breakthrough Value Proposition 3.6 #2 Exploit a High-Growth Market 3.7 #3 Marquee Customers Shape the Revenue Powerhouse 3.4 #4 Leverage Big Brother Alliances 2.7 #5 Become the Masters of Exponential Returns 3.3 #6 The Management Team: Inside-Outside Leadership 3.8 #7 The Board of Directors: Comprised of Essentials Experts 1.4 Invest in Infrastructure 3.4 Average 3.2 ©David G. Thomson
  • 24.
    Next Steps toGrow Your Business Visit www.blueprintgrowth.com • Take the 7 Essentials Scorecard • Link to BusinessWeek.com 7 Essentials Series • Link to David Thomson