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.

TRANSCRIPT

The Six Minute StrategistBusiness Strategy, Frameworks for Growth

© John colley 2013

http://jbdcolley.com

Six Minute StrategistSix Minute

Strategy Analyser

StrategyAnalyser

Where do YouWant to Be?

Future ImpliedMetrics?

Strategic Options?

Growth Ratesand Deltas

Current Metrics?

Where are You Now?

© John colley 2012

http://jbdcolley.com

http://jbdcolley.com

Where are You Now?Where do You Want to Be?

3 or 5 YearsHow are You Going

to Get There?

© John colley 2013

http://jbdcolley.com

Definition of Business Insanity“Doing the same this year

as you did last yearand expecting a

different result”

© John colley 2013

http://jbdcolley.com

Step 1Three Questions

Last Year’s Revenues?Last Years Profit Before Tax?

No of Employees?

© John colley 2013

http://jbdcolley.com

© John colley 2013

Revenues

No. of Employees

PBT

Strategy AnalyserStep 1

Step 2

Step 3

Step 4

Step 5

Step 6

http://jbdcolley.com

Step 2Choose 3 or 5 years?Forecast Revenues?

Forecast Profit Before Tax?Forecast No of Employees?

© John colley 2013

http://jbdcolley.com

© John colley 2013

Revenues

No. of Employees

PBT

Revenues

No. of Employees

PBT

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser

http://jbdcolley.com

Step 3Historic Key Metrics

Profit Margin (PBT/Rev)Productivity (Rev/No of Emp)

Valuation (PBTxMultiple)

© John colley 2013

http://jbdcolley.com

Valuation MultiplesRev <£5m = 4x

Rev >£5m<£15m = 5xRev > £15m = 6x

(These are estimates)

© John colley 2013

http://jbdcolley.com

© John colley 2013

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser

http://jbdcolley.com

Step 4Forecast Key Metrics

Profit Margin (PBT/Rev)Productivity (Rev/No of Emp)

Valuation (PBTxMultiple)

© John colley 2013

http://jbdcolley.com

© John colley 2013

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser

http://jbdcolley.com

Step 5Growth Rates

3 or 5 year Historic GrowthRequired Growth

What is the Difference?

© John colley 2013

http://jbdcolley.com

Step 5Change in Profit Margin?Change in Productivity?

Change in Valuation?What is the Difference?

© John colley 2013

http://jbdcolley.com

© John colley 2013

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic

Historic Growth Rate Required Growth Rate

Time in Years

Change in Profit Margin

Change in Productivity

Change in Valuation

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser

http://jbdcolley.com

Step 6What are you going to do?

Only Three Choices1. Organic Growth

2. Acquisition3. Raise Capital

© John colley 2013

http://jbdcolley.com

© John colley 2013

Step 1

Step 2

Step 3

Step 4

Step 6

Step 5

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic

Historic Growth Rate Required Growth Rate

Time in Years

Change in Profit Margin

Change in Productivity

Change in Valuation

What do You Need to Do? M&ACapitalOrganic

Strategy Analyser

http://jbdcolley.com

Challenge Your Own Assumptions...3 or 5 yearsRealistic?

Achievable?Test Scenarios

© John colley 2013

http://jbdcolley.com

© John colley 2013

Step 1

Step 2

Step 3

Step 4

Step 6

Step 5

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic

Historic Growth Rate Required Growth Rate

Time in Years

Change in Profit Margin

Change in Productivity

Change in Valuation

What do You Need to Do? M&ACapitalOrganic

Strategy Analyser

http://jbdcolley.com

Work Sheet

© John colley 2013

http://jbdcolley.com

© John colley 2013

Step 1

Step 2

Step 3

Step 4

Step 6

Step 5

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic

Historic Growth Rate Required Growth Rate

Time in Years

Change in Profit Margin

Change in Productivity

Change in Valuation

What do You Need to Do?M&ACapitalOrganic

Strategy Analyser

http://jbdcolley.com

Can I Help YouToday?

© John colley 2013

http://jbdcolley.com

Can I Help You?More ComprehensiveStrategy Analysis?

Contact Mejohn@jbdcolley.com

07813 672 612

© John colley 2013

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