building businesses from ideas
DESCRIPTION
TRANSCRIPT
![Page 1: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/1.jpg)
www.pembrideasia.com
Hugh MasonPartner, Pembridge Partners LLP (UK)
Director, Pembridge Asia Pte Ltd (Singapore)
Building Businesses from Ideas
![Page 2: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/2.jpg)
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, Netherlands1,800+ companies engaged
![Page 3: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/3.jpg)
Coming Up
1. Ideas BusinessesWhat is an ‘Ideas’ business?
Are ‘ideas businesses’ special?
2. The Early YearsHow businesses startHow businesses grow
3. Coming of AgeAttracting an investor
Letting go
![Page 4: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/4.jpg)
Part 1
‘Ideas’ businesses
![Page 5: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/5.jpg)
Fuelling the ‘Knowledge Economy’
Science
$
Products& Services
CultureResearch
InnovationCreativeIndustry
ArtTechnicalIP
AestheticIP
![Page 6: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/6.jpg)
The right vehicle for the journey
![Page 7: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/7.jpg)
Businesses: vehicles for ambition
Urge 1:Do great workCultural WealthWork focus
Urge 2:Build a better worldSocial WealthWorkplace focus
Urge 3:Make moneyEconomic WealthMarket focusPerhaps 5% of SMEs
![Page 8: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/8.jpg)
Part 2
The Early Years
![Page 9: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/9.jpg)
Most businesses don’t grow
Unwilling to
answer
Don't know
£5m - £50m
£2m - £4.99m
£500,000 - £1.99m
£250,000 -
£499,999
£100,000 -
£249,999
£60,000 - £99,999
£30,000 - £59,999
£10,000 - £29,999
Less than
£10,000
turnbanding
100
80
60
40
20
0
turnbanding
The number of businesses in the larger turnover bands falls rapidly
Turnover =>
Num
ber
of
Firm
s =
>
![Page 10: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/10.jpg)
The challenge of growth
Most small businesses scratcha living down here
This is where the good stuff is
In between there is anuncomfortable journey
![Page 11: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/11.jpg)
MaturityHigh
Medium
Low
Micro Small Medium Large
Size
One model of business growth
ClubsLevel 2
ArtisansLevel 1
Freelancers/ pre-start-up
Level 0
Value GrowersLevel 4
Value CreatorsLevel 3
AcquirersLevel 6
Value Realisors
Level 5
Public Companies
Level 7
![Page 12: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/12.jpg)
Foundations for growth: a team
CEO /Commercial / Sales
Director
Creative / TechnicalDirector
Finance Person Operations Person
Every business needs:• A Finder• A Minder• A Grinder
![Page 13: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/13.jpg)
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
![Page 14: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/14.jpg)
Operational process: a sales funnel
There needs to be a steady stream of possibilities coming downthe funnel to ensure that production resources are kept busy. That oftenmeans concentrating most on sales when the delivery team are busy!
![Page 15: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/15.jpg)
Part 3
Coming of Age
![Page 16: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/16.jpg)
Strategic planning: setting goalsPERSONAL 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.
![Page 17: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/17.jpg)
Attracting investment
• Investment in what?
• Projects might – or might not - be golden eggs
• Growth businesses keep laying golden eggs
![Page 18: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/18.jpg)
Inside the investor’s head
risk reward
![Page 19: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/19.jpg)
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,
whathave I got left?
![Page 20: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/20.jpg)
MaturityHigh
Medium
Low
Micro Small Medium Large
Size
Financing the stages of growth
ClubsLevel 2
ArtisansLevel 1
Freelancers/ pre-start-up
Level 0
Value GrowersLevel 4
Value CreatorsLevel 3
AcquirersLevel 6
Value Realisors
Level 5
Public Companies
Level 7
CompanyValuation
Time
RiskFFF
Self /Debt/SFLG
Angels
VCs
StockMkt
![Page 21: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/21.jpg)
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
![Page 22: Building Businesses From Ideas](https://reader033.vdocuments.us/reader033/viewer/2022051610/5495bbe5b47959f5708b4822/html5/thumbnails/22.jpg)
www.pembrideasia.com
Hugh MasonPartner, Pembridge Partners LLP (UK)
Director, Pembridge Asia Pte Ltd (Singapore)
Building Businesses from Ideas