opportunity-based growth: how growthpath drives cash and profit

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Opportunity-based Growth for small and medium sized businesses is the proven approach to prosper under economic and technological change. It's GrowthPath's speciality.

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Page 1: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

About GrowthPath �

Page 2: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

GrowthPath’s customer base �

•  Turnover between $2m and $50m •  Established more than three years •  O!en privately owned •  Due to growth or a more complex environment,

our customers need be"er understanding of their pro#tability

•  Our clients want to make faster, be"er decisions about the key opportunities to pursue

Page 3: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

GrowthPath: Profit Engineers �

•  We’re hands-on with advanced real-world, SME #nance and IT skills.

•  We know small and middle-sized businesses. •  We don’t do tax, compliance, audits, company

structures, SMSF... : we’re not tax accountants •  We don’t sell so!ware packages: we’re not vendors •  We don’t use off-the-shelf methodologies: we’re

not a franchise

Page 4: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Tim Richardson�

•  Tim Richardson, CPA, is a former ERP developer, CIO and CFO of two international businesses.

•  A career launched in Australia and built with years of experience in Asia and Europe

•  Knows retail, manufacturing, wholesale, medical and professional services

Page 5: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Alan Rogers �

•  Alan is a CFO and Chartered Accountant

•  CFO roles in small to medium private and global public companies.

•  Turnarounds of medium-sized manufacturing, distribution and franchising operations.

Page 6: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Linda Vydra (Associate) �

•  Fashion entrepreneur (lydra.com.au) •  Lydra launched in 2010; fast growth,

now employs designers, production staff, interns and office staff. 

•  Social-media marketing and sales a key part of her success.

•  Linda teaches the use of social media to business students at Holmesglen’s Business Enterprise Unit.

Page 7: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

�Daniel Gundry (Associate) �•  Dan is a white-hat search expert (SEO)

and online marketing specialist •  Dan has helped Australian SMEs save

thousands of dollars and get great sustained sales with white-hat SEO.

•  Dan teaches SEO and online marketing at Holmesglen’s Business Enterprise Unit

Page 8: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Learn about our key services �

•  Opportunity Based Growth •  Become a Focused Agile Business •  Raising cash to #nance growth opportunities •  Cash'ow Search and Rescue (turnarounds) •  Become a Hybrid Online Business •  Transforming SME Finance Teams

Page 9: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Service Line �Opportunity Based Growth �

Page 10: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Opportunity-based Growth outperforms traditional strategic planning for smaller businesses facing change in their market ��

Page 11: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Profit Engineering through Opportunity Based Growth�

Increase contribution margin with a understanding of true customer and product pro#ts

Identify the top few drivers of growth and pro#t, and move away from backwards-looking accounting views of the business

Connect, improve or replace your business systems to get faster, more useful information

Upgrade your #nance team: make them front-seat passengers in your business

Page 12: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Service Line �Focused Agile Business Program�

Page 13: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Your different customers and activities are like holdings in an investment portfolio. In some, you should increase your commitment, and in some, it’s time to divest.

Page 14: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Rebalance your activities to prepare for the future. See good opportunities faster. Know your core strengths. Become a Focused, Agile Business

Page 15: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

The Focused Agile Business Program�

•  GrowthPath’s FAB #nds the comparative advantages of a business and uses this to rebalance

•  We move information to cash-based, fast short-term decision making for the fastest reaction to opportunities

•  Our operational experience allows us increase business 'exibility (agility), in order to respond.

Know what you do best. See opportunities faster. Take advantage.

Page 16: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

The Focused Agile Business Program�

(e FAB program delivers growth through focus and agility

Page 17: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

•  Separating future and past activities •  Fixing or exiting weak areas •  Put resources and a"ention towards growth •  Producing more cash with less tied-up capital

means a valuation-boost (good if you’re selling the business or raising cash)

The Focused Agile Business Program�

Page 18: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Service Line: Raising money

for growth��

Page 19: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Solution:�Investor-focused plansd projections ��

GrowthPath�can play central role in�

raising cash for�growth opportunities �

Page 20: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Corporate Advisory* Company Structure. Legals & Compliance. Listing & Share Registry.

Offer Marketing*

GrowthPath •  Financial Model and Valuation •  Projections and Scenarios •  Linkage to narrative discussion of barriers to

entry, differentiation, competitor and market analysis

Investor recruitment*

* GrowthPath has recommended partners for these roles

Page 21: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

We know what investors look for �

Page 22: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

What do investors need to know? �

•  Upside: (ey accept that things can go wrong, but they are excited by the chance that things go right

•  Financial levers of growth: this is what their investment decisions are based on

•  Barriers to entry and differentiation with respect to competitors

Page 23: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

We make �investor-ready financial

models �

Page 24: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

We build credibility through competitor analysis and market

research�

Page 25: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

For Founding Shareholders �

•  We offer education and advice about the process of raising funds, choices, shareholder dilution and valuations

•  We introduce trusted partners to manage the process

Page 26: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Cashflow Search and Rescue �

(Turnarounds) �

Page 27: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

�Don’t let your cash

position be a casualty of poorly managed growth�

Page 28: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

�Cashflow Search and Rescue �

Urgent and sustained cash'ow improvement which protects the long-term value

of the business

Page 29: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

A structured program moving from immediate threats to sustained turnaround

Page 30: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

GrowthPath and Online Business �

Page 31: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

In 2013, there is no such thing as online business.�

There is only business.�

Everything GrowthPath does helps online business •  Faster decision making •  Be"er cost insights to support tighter margin amidst more

competition •  Connected, more useful IT system

Page 32: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

•  Our team includes: ª SEO expert Daniel Gundry ª Fashion retail entrepreneur Linda Vydra ª Experienced online CFO Tim Richardson

•  Our holistic approach is based around pro#table hybrid online business ª  (retailers, or wholesalers establishing a retail channel)

•  We target the complete set of success factors: operational, marketing and technical

Online Action Team �

Page 33: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Finance Transformation at SMEs �

Page 34: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Has growth outstripped your systems and people? �

• Get back in control. • See the cash potential of

opportunities • Make fact-based decisions fast

Page 35: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

Are you on a mission to Mars with a compass and an old map? �

•  Finance systems, teams and business controls are o!en le! behind by growth

•  Bank pressure or investors will demand audit, control improvements and be"er cash'ow forecasting

•  It’s old fashioned, but true: prevention is be"er than cure

•  Poor controls means too much cash locked up in working capital, fraud risk and nasty surprises

Page 36: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

SME Finance Transformation:�People and Reporting�

•  Traditional #nance works to tax office deadlines. •  (e outcomes are designed to keep your tax-accountant

and bank happy. Your business is forced to adopt a one-size-#ts-all approach.

•  It’s not growth-focused. •  GrowthPath #xes SME Finance with new ways of

working, new systems, new reporting tools and simpler budgets and forecasts. We introduce fast but effective capital investment analysis and cash-based decision tools for tenders and other expansion opportunities.

Page 37: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

SME Finance Transformation: Systems and Controls �

•  We choose and implement systems, vendor-neutral. Or we #x your existing systems, o!en by connecting them properly so information is shared be"er.

•  We build light business controls and #nance processes that secure your business but don’t harm focus on pro#table, fast decisions

•  We’ve seen business controls save a business from a #nancial tsunami ... It may not be the most exciting thing we do, but it is one of the most important.

Page 38: Opportunity-based Growth: How GrowthPath Drives Cash and Profit

GrowthPath Pty Ltd L1 368 Johnston St Abbotsford 3067 Victoria, Australia www.growthpath.com.au [email protected] +61 3 8678 1850