ABCN… the missing piece

Catch the Momentum

If you choose not to act, you have taken a dramatic action.

Ah…Life at the Network.

45 Minutes to…

Status of ABCN and “the World”– Would you rather be #1?

Identify the ‘next big thing’– ‘Transparency’?

Turn everything ‘upside down’– What are your ratios?

Do you want more revenue? So do we!– New tricks for an old trade.

Let’s see how much you know about ‘Your Network’

BelfastBostonBellevueBeijingBombayBrusselsBuenos AiresBerlin

“I See The Light!”

You know what I think…

We don’t know enough!

We are totally fragmented.

We are totally isolated.

We are totally without data.

We are totally blind.

What do you know about ‘your’ Locations Worldwide?

We only see the ‘tip’…in our own backyards. What are the ‘trends’?

8,000 CentersAsia is aheadEurope is catching upUK has too much $$NA is consolidatingLatin America is …?

“0” net center growth – Landlord exchange

It’s what you DON’T see that Counts.

Why “0” Growth…seems wrong

“Follow the leader”

There is WS growth

Artificial “High”

Real Growth this year.– Consolidation effect

• Supports pricing

VO, the new – old thing

What will the next generation look like?

If you don’t lead, the view never changes.

What does ABCN look like?

ABCN 600 centers, 35 countries– 15% external growth– 10% internal growth– 1,000 centers, 50

countries, 24 months

Regus 750 centers, 50 countries– 15% overall growth– 1,000 centers, 50

countries, 24 months

What will the future bring?

Only two real players globally

Only two able to serve the ‘corporates’

Only two able to impact market pricing

Only two able to ‘create’ new products

Only two able to ‘establish standards’

Only two able to extend their brands

It’s not the big that eat the small, it’s the fast that eat the slow!

Is Regus is ‘friend or foe’?

Competitors or Colleagues?

Are we constructive or destructive forces?

What can we do if we all band together at ABCN?

What should we do with Regus?– Anything?

Murky water makes it hard to tell a friend.

I had lunch with Mark yesterday… here is what he said

Regus is investing in its own infrastructure in the UK and elsewhere.

– Working or replacement of old IT systems

– Upgrading marketing systems– Expanding sales force– Working on becoming more ‘client

focused’.

Sounded good to me….but,

Mark also suggested that other operators were ‘price cutting’.

– We said we heard the same about Regus

– Said Regus was ‘holding firm’ & increasing in most markets.

Where is Regus’ focus and where are we?

Regus – GROWTH in WS and top line– Acquisitions at 30% arbitrage– More centralization

• UK Staff all fired last week…same ‘old’ central staff takes over.

ABCN – Growth in WS and new products… “bottom line”.– Faster, leaner model that is

fully distributed.– Limited capital, limited

commitment by Members • Must change for success

Sometimes ‘Style’ is more than enough.

How will ABCN’s Members succeed together?

Commit to common goals

Establish standards

Get rid of ‘the box’…

Here’s where we will concentrate…

The Next “BIG” Thing

“Industry Transparency”

We don’t need no stinking WEB BROKERS… or do we?

Navigation is tough… …without the right tools

What is “transparency”?

Industries should learn from one another.– We think the Serviced Office and the Travel

industries can do just that.

Client

Client

Client

WebBroker,etc.

ConventionalBroker

Direct

Serviced OfficeOperator

Direct Payment

Direct Payment

10

50

You need to ‘see everything’ in one place– All parties

OBC Model limits Visibility

What’s the ‘transparency’ model goal?

Increased Visibility

Increased Revenue

Lower Operating Costs

Client

Client

Client

WebBroker,etc.

ConventionalBroker

Direct

Serviced OfficeOperator

OBCSolutions

CommissionProcessing, etc

PegsTour

OBC Factory

UtellUnirez

OBCbook.com

PaymentProcessing

PaymentProcessing

ClientTravel

Agencies

PaymentProcessing

Are you ready to get ‘out of the box’?

Everyone Wins!

JD is … well, you’ll see.

ABCN is ready… for the future

And, working together…. …Nothing is impossible.

Even walking on water!

Get UPSIDE DOWN now!

“You want capital or not?”

“May all your wishes come true”…an ancient Chinese curse

He’s the 325,000,000 sq.ft. man!

We went on a Road Show

Create an investment fund for Members.

Have had offers from ‘top 10’ firms.

We now know what we need to do…– Turning “Upside

Down” isn’t rolling over.

– Here’s what I mean.Sometimes you’re the windshield… …Sometimes you’re the bug!

So, “What’s Upside Down”?

What’s your ‘revenue ratio’ of Space to Services?– 60/40, 65/35, 70/30?– Most common is 65/35, and

going down.• Declining telecom• Declining Services in general

Feel like things are slipping a little?

Make sure you stay connected!

Is Upside Down, Right Side up?

What should your ratios be?

– 30/70• Why? Turns you into a ‘non-

cyclical service company’.

How? Focus on:1. VO…the really big one.

2. IT…second and rising

3. HR…hardest to do

4. Vendor Programs… profitable and easy

5. Accounting Standards… the easiest and fastest.

A revelation is a simple act of faith

1st let’s Focus on the VO!

Global ABCN Backbone– Anywhere Office Access– You ‘own’ the client– A ‘disruptive technology’

Dedicated Sales and Marketing– Separate Website

• Separate Optimization– Separate Marketing Strategy– Who are potential partners

• Agency Companies• Registration Companies • IT Companies

• ABCN

Some things can’t be avoided!

Here’s an example

1.

2.

3.

White Site - Cell

TOTALLY different site

TOTALLY different staff

TOTALLY global market

Others are already there… …Are you?

2nd let’s look at IT & HR

A separate portal for each Center location

Dedicated internal Sales and Marketing staff– Separate Marketing

Strategy– Who are potential

partners• Clients • Vendors

• ABCN

Have you built a bridge to nowhere?

Dedicated “Client Service Portal”

Focus on HR & Services

Focus on IT Services

3rd let’s look our Vendors

Variety of programs delivered via the CentreCare Portal or directly.

They have Dedicated Sales and Marketing staff for you to use.– They already have a

Separate Marketing Strategy

– You already have a Partner!

• ABCN

WHAT’S YOUR PASSWORD?

Let’s do something that others say is impossible…Health Care

It’s Cocktail time here….adios.– OK

• OK▪ OK

» OK

How about another…

Free to all Centers– Participating in

training– $45 revenue per

user, per month– Free internal use– Can do ‘custom

marketing reports for fee income.

– Unique benefit to clients

And, just one more…freebie

Free Business Cards to new clients– Web driven process– Install on your client

portal or ours– 10% fee on all orders– Nothing magic

Business as usual for ABCN …

More revenue for you

We have the ‘team’…do you have the commitment?

Thanks…Questions???

Remember, it’s the second mouse that gets the cheese. Regus or ABCN?

ABCN… the missing piece