1. GROWTH Success and Failure

2. IS GROWTH IMPORTANT? Depends on where you are in the life cycle of the business Start up Second stage Maturity Exit

3. Traditional business life cycle

4. Sigmoid curve

5. A bankers perspective Who you are – personal reputation Understanding needs Ability to pay the loan back – think interest cover Security Keeping the bank informed

6. Focus as an entrepreneur Focus on the problem you solve – what is your market offering Charge and collect on sales Keep customers happy and the business generation model working Prepare cash flow and budgets Monitor performance weekly and manage cash daily

7. Tech Co. – what worked as we grew Industry undergoing significant change Held our pricing model Missed a lot of tenders – stayed at 30 people and $2m for longer than we wanted Recovered when competitors failed – grew to 200+ people and $8m quicker than we wanted Identified further opportunities to entrench market position Successful exit – taken over by public company – still operating

8. Supply chain solutions – what worked Market change created niche opportunity Large competitors targeted top 50 companies – we targeted next level down Built a great team and had fun Managed cash carefully and had good relationship with bankers

9. A growth trajectory – Supply chain solutions

10. Supply chain solutions – what failed Competitors targeted business and board chose not to sell Competitors targeted top staff and we couldn’t retain them Internal division and dispute Lost focus

11. Avoiding common traps Have enough money to cope with growth – equity – suppliers – clients - banks can help Capacity constraints – systems and people – be prepared so you can cope with extra workload As your organisation grows it changes – be aware of what to expect and prepare for worst case or back off – manage the downside risk to ensure survival Employ people who are better than you Prepare for exit from day one – even if you never do

12. Funding gap

13. Capital raising example Amount raisedStageCompany valueSourceOwner's equityValue of owner's equity $50kSeed$50kYou100%$50k $100k Start up$500kFFF80%$400k $500kEarly stage$2m20/1260%$1.2m $2mExpansion$8mP/E45%$3.6m Exit$10m$4.5m

14. Equity distribution Entity value SeedYou100%$50k Start upYou80%$400kFFF20%$100k$500k Early stageYou60%$1.2mFFF15%$300k20/1225%$500K$2m ExpansionYou45%$3.6mFFF11%$900k20/1219%$1.5mP/E25%$2m$8m Exit$4.5m1.125m1.875m$2.5m$10m

15. Some suggestions Clear goals about what you do (and make the choice about what you won’t do) Be objective – get an advisory board/independent advice in need Don’t get greedy - raise enough capital and share equity Hire right – people to do the job not who you like – and get diversity in the company Know when to recruit

16. Resources Barry J MoltzYou need to be a little CRAZY http://barrymoltz.com Michael Bungay StanierDo More Great Work http://www.domoregreatwork.com Al Ries and Jack TroutPositioning http://www.ries.com Jim CollinsGood to Great http://www.jimcollins.com Robert Kaplan & David Norton The Strategy Focused Organization Dr. Tom McKaskillInvest to Exit