Backwards Business overview

70Less than 30% of new businesses generate enough revenues to survive beyond 3 years.

30

Why do all the

rest fail to mak

e

enough revenue

to

survive?

©THE MARKETING ENGINE LTD ON BEHALF OF BACKWARDS BUSINESS - 2013. ALL RIGHTS RESERVED

The Harsh Truth

0

17.5

35

52.5

70

Achieve their business goals

Become self sustaining

Can’t sell enough to survive


What if it was because the way most people approach business is back to front?


Entrepreneurial way


Inwards

90% of companies start with an entirely inward perspective:

• Its all about what we want

• Customers? Oh there will be plenty of them

• We know what the market needs


Kid Customer

king shareholder vs


89% had no real understanding of market mechanics

They gave detailed, rich descriptions of themselves, their

products and their objectives

Everything else including their market, funding needs and so

on, were a bit one dimensional


Paddington bear is the property of Paddington and Co Ltd. All rights

reserved

Finance

66% were having to re-finance they were so far behind their own targets:

• Its taken a bit longer to get market traction

•We’d be fine if we could just get a few deals


Entrepreneur myth

Well over half believed in the power of their entrepreneurial vision as all they needed

• My passion is all I need

• My belief will carry me through

• The product is so good it will sell itself


THE ENTREPRENEURIAL WAY

IDEA! DEVELOP LAUNCH LEARN DEVELOP LAUNCH ????

EUREKA MOMENT! A BUSINESS IDEA IS FORMED AND THE ENTREPRENEUR STARTS TO PLAN HOW TO GET IT TO MARKET AS FAST AS POSSIBLE BEFORE SOMEONE ELSE HAS THE SAME IDEA

THIS IS WHERE IT ALL GOES WRONG! ASSUMPTIONS ARE MADE AND ACCEPTED AS THE TRUTH WITHOUT TESTING. THE PRODUCT IS DEVELOPED TO FIT THE ASSUMPTIONS BUT NO ONE SPOKE TO THE MARKET.

PROUD MOMENT! TO A GREAT FANFARE THE PRODUCT IS LAUNCHED TO AN UNSUSPECTING AND USUALLY UNAWARE MARKET. THERE IS A FLURRY OF ACTIVITY AND NOISE THEN NOT MUCH HAPPENS.

ANALYSIS! WITH LITTLE OR NO SALES REVENUE, THE ENTREPRENEUR ASKS WHY AND GETS FEEDBACK USUALLY FROM SALES OR THE FEW CUSTOMERS TO HAVE BOUGHT. FEEDBACK IS USUALLY SKEWED AS IT COMES FROM A SMALL UNREPRESENTATIVE SAMPLE

FURTHER DEVELOPMENTS ARE MADE, BUT RARELY A FRESH START. THE CHANGES MADE ARE OFTEN CONSTRAINED BY BUDGET AND THE ENTREPRENEUR’S BIAS AND ‘EXPERT’ VIEW.

TENSE MOMENT! A NEW LAUNCH AND ANOTHER FANFARE, BUT THIS TIME THE MARKET IS MORE AWARE. USUALLY A FEW MORE SALES, BUT NEVER ENOUGH TO BE A SUCCESS.

REPEAT LAUNCH, LEARN AND DEVELOP CYCLE UNTIL THE COMPANY EITHER STARTS TO ENJOY SUCCESS OR GOES TO THE WALL - LESS THAN ONE THIRD SURVIVE AND THRIVE

THE LAUNCH-LEARN-DEVELOP CYCLE IS EXPENSIVE AND PUTS SEVERE PRESSURE ON YOUR FINANCES

WHEN YOU COULD AVOID IT IF YOU KNOW THE MARKET©THE MARKETING ENGINE LTD ON BEHALF OF BACKWARDS BUSINESS - 2013. ALL RIGHTS RESERVED

IN THE CURRENT CLIMATE HOW MANY LAUNCH-LEARN-DEVELOP CYCLES CAN A BUSINESS REALLY AFFORD?

Remember the 66% that were having to re-finance ©THE MARKETING ENGINE LTD ON BEHALF OF BACKWARDS BUSINESS - 2013. ALL RIGHTS RESERVED

10Top

1 unique attribute - their understanding of market



business growth Programme

The Core Principle

The value a business generates is directly proportional to the value it delivers its markets and customers.

!


The Backwards Approach


Unsurprisingly the more you invest in listening to the market at the beginning, the greater the chance that you will be able to make products that your markets understands, values, buys and is delighted with.

The days of hiring a gang of cut throat sales guys to generate sales is long gone. Modern customers are savvy and expect more from vendors no matter what they sell. It called the Connected Market.

This is about as logical as it gets - pretty much all markets will tell you what they PERCEIVE they want if you ask nicely !The trick is know who and what to ask and then listen very carefully.

Backwards Programme


Process and Timescales


Understand Plan Inform Mentor Measure

This an audit type of process to find out where the company is currently and covers: •Market •Products •Messaging •Marketing •Sales •Costs for the above !The output is a detailed report and recommendations if any are needed !Note: the tools and processes are designed to be tailorable to suit individual companies.

We measure throughout, but our last stage is to review the overall programme with the company in order to ensure that it has got the full benefit from Backwards Business.

The nominated team are mentored and supported through the project to ensure they understand what they are doing and: •Focused on the market’s need

• Implementing and using the processes

•Getting value from them

•Delivering on the project plan

• Increasing the company’s performance

Carry out structured knowledge transfer programme with the nominated people in the company. !This is designed to be carried out in a workshop setting and focuses solely on the company’s market and enabling it to deliver products the market •UNDERSTANDS •VALUES •BUYS • IS DELIGHTED WITH

Work with the management team to design •A Relevant project plan

•A target set of outcomes/results

•A knowledge transfer plan

• Identify owners for each element of the plan !

The purpose is to define which member of the company’s team will be responsible for learning, implementing and delivering each element.

Outcomes

1. Market focused company Embraces the core principle and uses it to manage revenue generation

2. Sustainable processes The Backwards Business tools and processes are embedded in the company

3. Improved revenue performance Better and more predictable sales and marketing results

4. Increased customer satisfaction Better relationships with the market and existing customers


Investment Framework

• A project being run with investment specialists in venture investment.

• Development of a model for enabling companies to prepare for and gain investment.

• 1 investment group already recruited with several more in early discussion

Backwards Objective

• Companies that are closer to their markets and delivering real value.

• As a result they are growing and benefiting both their stakeholders and their local economies

• Companies that are investment ready and attract investment if this is part of their plan


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