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www.pembrideasia.com
Hugh MasonPartner, Pembridge Partners LLP (UK)
Director, Pembridge Asia Pte Ltd (Singapore)
Building Businesses from Ideas
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
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
Part 1
‘Ideas’ businesses
Fuelling the ‘Knowledge Economy’
Science
$
Products& Services
CultureResearch
InnovationCreativeIndustry
ArtTechnicalIP
AestheticIP
The right vehicle for the journey
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
Part 2
The Early Years
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 =
>
The challenge of growth
Most small businesses scratcha living down here
This is where the good stuff is
In between there is anuncomfortable journey
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
Foundations for growth: a team
CEO /Commercial / Sales
Director
Creative / TechnicalDirector
Finance Person Operations Person
Every business needs:• A Finder• A Minder• A Grinder
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
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!
Part 3
Coming of Age
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.
Attracting investment
• Investment in what?
• Projects might – or might not - be golden eggs
• Growth businesses keep laying golden eggs
Inside the investor’s head
risk reward
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?
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
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
www.pembrideasia.com
Hugh MasonPartner, Pembridge Partners LLP (UK)
Director, Pembridge Asia Pte Ltd (Singapore)
Building Businesses from Ideas
