adapting and growing in times of major technological

and economic change

What GrowthPath does

1. Raising funds for investment in growth

2. TurnaroundCashflow Search and Rescue

3. Online retailfor wholesalers and

existing retailers

4. Business Engineering

Business restructuring, outsourcing and valuation improvement

5. Finance capabilities• changing systems. • Building finance processes

and controls. • Building fact-based rapid

response to threats and opportunities

We don’t have a magic wand.But years of experience means we do have a box of tricks.

Tim Richardson

• Tim Richardson, CPA, is a CIO and CFO and IT guru with experience in Australia, Asia and Europe

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.

Online Action Team

Linda Vydra• Retail-fashion entrepreneur • Linda launched Lydra in 2010; the

business has grown fast and now employs designers, production staff and office staff. 

• Lydra produces most of its range in a studio factory in Fitzroy, Melbourne.

• Lydra's product range is available in retail outlets throughout Australia.

• Linda has made direct marketing and online sales a key part of her growth.

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

Online Action Team

Daniel Gundry• Dan is a white-hat SEO expert • Before SEO specialisation, Dan

coded sites and hosted• Last five years working in the

UK, now back in Australia• Dan has helped Australian

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

Support Team

• Catherine McDonald: Experienced SME book-keeper

• Tris Mardiastuty: market research, basic book-keeping and office support

Challenge 1: Raising money for growth

• The problem:some opportunities require investment

capital

• The solution: convincing investors of the potential of the opportunity or releasing cash tied up in the business

• The outcome: funds for growth

Solution:Investor-focused plans

and projections

Plans which highlight upsideUse market research to

establish points of difference and sustainable advantage

Deeply integrated valuation and narrative

Fund raising track-record

• It can be harder to raise $1m than $100m • Via small scale equity offers, we’ve helped

raise more than $10m for transport, IT, manufacturing, online and other established businesses

• Via bank negotiations, we’ve increased working capital funding for manufacturers and traders

2: Cashflow Search and Rescue

Solution:Cashflow Search and Rescue

cashflow management, bank and supplier negotiations, short-term profitability improvements and cost control: experienced.

Balance urgency and supplier and customer relationships (which are the value in the business)

Understanding variable costs, true margins and hidden cross subsidies are key to turnaround and sustainability

Cashflow Search and Rescue

Key cashflow recovery challenge: Preserve the supplier and customer relationships that underpin the value of the business

Note: Cashflow Education via simulator

• We have developed a SME cashflow simulator(Mac and Windows

compatible)

• The simulator provides much better insight into how cashflow behaves in real-world situations

• Like a game, much better than teaching with spreadsheets

Cashflow Turnaround track record

• In Europe and Australia, Alan and Tim have been involved in large and small turnarounds, restructures and ‘Chapter 11’ reorganisations.

• In manufacturing, distribution, retail and wholesale.

• We differ from pure-accounting approaches because we search for and maintain the core value of the business

3: The shift to online: how-to for traditional retailers ...and opportunities for wholesalers

Online poses challenges for existing businesses

• The situation: Online (& foreign) competitors are cheap and

taking market share

• The challengeExisting retailers can’t compete on priceBuilding a new online-only brand is a road to

nowhereTherefore, simple e-commerce solutions fail

• Our BenefitsFocus on a profitable roadmap for hybrid online

businesses.

The GrowthPath approach is superior

• GrowthPath adds real experience in the day-to-day challenges of online business for wholesalers and retailers moving into online business

• Most service providers are offering technical solutions but...little insight into the complexities of systems

and processes adapted to traditional retailand the conflicts with existing customers

GrowthPath: online fightback for existing retailers

• Our team includes:SEO expert Daniel GundryFashion retail entrepreneur Linda VydraExperienced online CFO Tim Richardson

• Our approach is based around profitable hybrid online business (retailers, or wholesalers establishing a retail

channel)

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

Success factors for online fightback: retailers

• Don’t compete on price with low-cost pure-plays (dead-end)

• Don’t create an secret online-only brand hidden from your existing customers (dead-end)

• Operational challenges:Much more volatile demand and faster competitor

reactionNeed rapid margin and cashflow forecasting, product

and customer profitabilitySystems readiness and supply chain flexibility in the

face of large surges and extreme seasonalityFraud, online promotions and fast competitor response,

and customer service expectations

Success factors for online fightback: Wholesaler

• For wholesalers, online is a chance to build a direct retail channel

• Obviously this carries risks but if the retail channel is transforming or shrinking, it may be the right time to make the move

• Case study: hardware wholesaler

Online track record

• Tim: CFO of significant hybrid business ($70m)

• Daniel: SEO expert• Linda: established entrepreneur with a

fast growing locally manufactured fashion business where her social media efforts make a big part of her growth in traditional retail

• We all are attached to the Holmesglen Business Enterprise Unit.

4: Creating and improving value (refocus, restructure,

prepare for sale)

The challenge: adapting to change and preparing a business for sale

• To improve return on assets and cashflow performance (key to business value and price)

• To focus on strengths and adapt to the new environment of high AUD, growing online commerce and unprecedented uncertainty

Restructure/re-engineer: Track Record

Alan and Tim both played key roles in adjusting medium to large businesses to challenges such as• Rapidly rising currency • New overseas entrants• Transition to digital products• Surprise economic slowdown and cash

crunch• We also have divestment experience

(selling businesses and parts of businesses)

Restructuring

Restructuring a business means a) Separating profitable (good) and cross-

subsidised (weak) activitiesb) Fixing or exiting the weak areas and

reinvesting in growthRe-engineering usually associated with large businesses.However, SMEs often carry subsidised baggage (offers, products or customers) from the early days.Re-engineering for value applies to SMEs and is path to opportunity-based growth.

The Focused Agile Business Program

Read about our structured FAB Program on the GrowthPath website

5: Stronger Finance Capabilities

The challenge: adapting an SME finance team for new challenges and circumstances

• A business often outgrows its finance system, finance team and business controls

• Growth, bank pressure or the wish to find funding may lead to demands for audit, control improvements and better cashflow forecasting

• Prevention is better than cure: cheaper and much less risk

The possibilities...

• A medium to large SME has five to ten people in finance.

• Probably the greatest concentration of smart, analytical people in the entire business

• But often they are not unleashed on improving the business

SME Finance Transformation

• GrowthPath is highly experienced at selecting and implementing new systems, business controls and finance processes with a

focus on profitable, fast decisionsAudit selection and readinessTraining and strengthening the “Accounts

dept” into a centre of profit and cashflow focus

• YES! It’s possible.

Finance Transformation track record

• More than fifteen ERP & Finance implementations from MYOB to SAP including selection and vendor negotiation. Saved 25% to 35% of expected cost.

• Built several green-fields finance teams• Radically sped up forecasting and month end

closing from large multi-site businesses to Australian SMEs. Outsourced transactional work.

• Achieved high growth through speed of decisions and accuracy of cash costs.

• Run end-to-end initial external audits• Relevant white papers available on website

GrowthPath’s difference

Why GrowthPath?

• Success-based fees.• We are hands-on and do the work needed to get a

result: we’re all-in• We know SMEs and we teach small business

management so we know how to communicate• Equip a business to win in a fast-changing

business environment it’s not about accounting, it’s about fast, profitable

decisions and a focus on opportunitiesReal skill transfer. TAE and teaching experience.

• We don’t do tax, compliance, audits, company structures, SMSF... : we’re not a public practice.

GrowthPath Pty Ltd368 Johnston St, Abbotsford 3067Ph: 03 8678 1850info@growthpath.com.auwww.growthpath.com.auThank you for your time