Case Study – Purpose MediaJuly 2014

Sector: Ecommerce, web design & on-line marketingNo of employees: 13Turnover: £500,000Location: South Normanton, DerbyshireGrowth Manager: Tim SuttonService used: Access to finance, Business development coaching,

leadership & management

Snapshot – impact of GrowthAccelerator

• Purchase of larger offices to enable expansion• Robust internal systems and workflow processes have

enhanced ability to project manage larger value projects. Average order value up from £500 to £7,500.

• Directors aware of need to become enablers not doers• Clear strategic direction• Solid financial foundations, historic growth 30% each

year. Forecast 140% growth over next two years• Turnover year end 2012 was £280K (before Growth

Accelerator) and for the latest year end 2014 was £500K, an increase of 78%

• FTE jobs for the same dates above 4.5 FTEs and 13 FTEs• Operating Profit has doubled over the same period.

About Purpose Media

Purpose Media was founded in 2009 by Matt Wheatcroft and two former colleagues of EMTEX, Tim Lenton and Rob Marshall. The company is now an award winning e-commerce website developer and on-line marketing specialist. It focuses on the design and build of content managed websites and e-commerce solutions that integrate back office accounting and stock control systems. Specialisms include:

• Updateable CMS websites• E-commerce websites• Integrating websites with accounting and stock control

systems• Multi-lingual websites• On-line marketing strategy

In addition to bespoke website design, Purpose Media also provide online marketing and Sage integration services which integrate web, business and accounting systems, to provide real time stock control, order processing and data management. Customers range from sole traders to large corporate clients in the retail, manufacturing or wholesale industries.

How GrowthAccelerator has helped

Strategic planning

The management team has been strengthened by high profile non-executive appointments. Adviser/mentor, Richard Crooks and marketing consultant Bev Cook were appointed in 2012. In 2014 Brett Critchley was appointed. Brett has successfully grown and sold two businesses, including Orchid IT, which was sold to an £80 turnover company, GCI.

Monthly board meetings ensure the business continues to be structured, managed and operated in a way that will maximise value.

Team development

A formalised system of appraisal and KPI’s/ in now in place for all staff, with clearly understood values and a set of “person attributes” are referenced when recruiting.

Marketing

High profile marketing campaigns continue, including partnerships with Derby County FC, Sheffield Steelers. Derbyshire County Cricket Club, Sheffield Wednesday FC & Mansfield Town FC, Mansfield 2020 and Marketing Derby.

A regular programme of direct marketing targets specific retailers, wholesalers and manufacturers.

Leveraging new strategic relationships with complimentary businesses who have potential to refer work delivers a regular flow of new business

Customer retention is high at 98% and over 50% of customers by an on-going consultancy package.

Systems and processes

Underpin growth, improve customer satisfaction and deliver profitability. An eight-step client management plan is in place together with a bespoke system for clients to be able to manage multiple websites.

The business challenge

In 2011, having outgrown its initial incubator unit start-up offices, a more robust business strategy and marketing plan was devised.

This review highlighted that a brochure website for ten clients could deliver the same profit as one e-commerce website.

In order to grow margins, increase the quality of client and also achieve the overall aim of being acquired by a larger agency, a decision was taken to shift the focus to e-commerce websites, develop key strategic referral partnerships and develop a suite of on-going support service packages to develop a portfolio of recurring clients.

The meant that Purpose Media had move to larger offices, develop and implement internal systems and processes that would sustain growth, and equip the leadership team with the skills required to increase turnover, maintain profitability and manage a growing team and client base.

“As a former business adviser myself I am always

eager to seek ideas from others who have been

there and done that before me. You can learn a

lot from their journey, replicate what worked and

hopefully avoid making the same mistakes.”

Matt Wheatcroft, Managing Director.

Finance

The taking of up front deposits and letters of engagement that clearly set out final payment terms has maintained regular cash flow. Banking arrangements comprising of four separate accounts for current account, VAT, corporation tax and savings have created a business with solid financial foundations.

Apart from the loan outstanding on the building which has just been sold to cash buyer for a £50,000 profit, the business is remains self funding and has incurred no bad debts.

Purpose Media has applied for a further grant of £125,000 to buy larger premises 4,500 sq ft to support growth of £2m by 2016.

The following have been the key changes and actions that have driven success

• Strategic development – Regularly updating and revising the business plan and

taking outside advice• Product & Market development – Ensuring customer needs and demands are met – e.g

retainers and addition o creative services – High profile marketing campaigns and sponsorship

deals• People development – Directors now lead not do – Employees have a clear development plan and

appraisals – Use of non-executives as coaches and mentors• Processes – Enable good project management and high levels of

customer satisfaction

With a skilled team, a management board which meets monthly to discuss performance, plan strategy and other developments, a successful client base, regular retained income and a sustained track record of turnover and profitability, Purpose Media now has value and skills that will be attractive to an acquirer.