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Tuesday 26 th April 2005

Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

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Page 1: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Tuesday 26th April 2005

Page 2: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Presentation

to

Tuesday 26th April 2005

Page 3: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Business Success

through

Networking

Ken DicksonManaging Director, Axiom Executives Limited

Tuesday 26th April 2005

Page 4: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am here today• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 5: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am here today• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 6: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Why I am here today

• Academic interest in helping students/Universities

• Background

• Advisor to small, growing businesses

• Developed my own company 3 years ago

Page 7: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Academic interest in helping students/Universities

• Student – Glasgow University

• Certificate in Teaching Adults – Surrey University

• Lecturer in Management and Management Accounting – London Guildhall (Metropolitan) University

• Mentor, Enterprise Centre - Cambridge University

• Acting Finance Director, spin-out - London South Bank University

Page 8: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Background

• Qualified Accountant– FCMA

– MIP

– Practicing Certificate

• Experienced Finance Director/Financial Controller– Start-ups and early stage

– Small companies (< £2m turnover)

– Large companies (£500m turnover)

Page 9: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Advisor to small, growing businesses

• Start-ups– Helped set up 12 businesses in 3 years– Fund raising– Establishing financial and legal processes

• Turnarounds– Financing– Dealing with creditors

• Grooming for sale– Over 25 acquisitions and sales

• General management advice

Page 10: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Not only advice

but also hands-on experience

“We implement the advice we give”

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Page 12: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

axiom-e’s view

Strategic financial management is:• the application to strategic decisions• of financial techniques in order • to help achieve management objectives.

Page 13: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

axiom-e’s view

All organisations need to have:

• a clear and realistic strategy,

• the financial resources, controls and systems to see it through

• the right management team and processes to make it happen.

Page 14: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Business Success through Networking

How many of you have ever networked?

Page 15: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am networking with you• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 16: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Networking – definition (1)

Any suggestions?

Page 17: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Networking – definition (2)

1 LINKING OF COMPUTERS

The linking of computers so that users can exchange information or share access to a central store of information

2 GATHERING OF ACQUAINTANCES OR CONTACTS

The building up or maintaining of informal relationships, especially with people whose friendship could bring advantages such as job or business opportunities

Source: Encarta World English Dictionary

Page 18: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Networking – definition (3)

Networking is:• establishing, maintaining and utilising a broad network of contacts • in order to keep aware of public, political and internal issues and• to make informed decisions.

It includes:• identifying who to involve, as well as • when and how to involve them

in order to achieve objectives and minimise obstacles.

Page 19: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

What networking is about

“Networking is • making links from people we know to people they know, • in an organized way, • for a specific purpose, • while remaining committed to doing our part, • expecting nothing in return.”

Donna Fisher and Sandy Vilas, Power Networking

Page 20: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am here today• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 21: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Starting in business

Page 22: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

“No man is an island, entire of itself; every man is a piece of the continent, a part of the main.”

John Donne

Meditation 17, Devotions Upon Emergent Occasions

Page 23: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

In partnership

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“Two are better off than one, because together they can work more effectively.

If one of them falls down, the other can help him up. But if someone is alone and falls, it’s too bad, because there is no one to help him”

Ecclesiastes 4:9-10 (GNB)

Page 25: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

A small group

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“Two men can resist an attack that would defeat one man alone.

A rope made of three cords is hard to break.”

Ecclesiastes 4:12 (GNB)

Page 27: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Committee working!

Page 28: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Winning friends and influencing people

Page 29: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

A more complex Network

Page 30: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

HandshakesPeople

1

2

3

4

5

6

7

Page 31: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Handshakes

People Handshakes 1 0

2 1

3 3

4 6

5 10

6 15

7 21

Page 32: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Handshakes

People Handshakes Ratio 1 0 0

2 1 0.5

3 3 1.0

4 6 1.5

5 10 2.0

6 15 2.5

7 21 3.0

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Get connected

People Connections

N N(N-1)

2

Page 34: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Get connected (2): On your way to St Ives

Man 1

Wives 7

Sacks

Cats

Kits

Total

Page 35: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Get connected (2): On your way to St Ives

Man 1

Wives 7

Sacks 49

Cats 343

Kits 2,401

Total 2,800 extra contacts from each 1 made!

Page 36: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The benefits of networking (1)

Contact at networking meeting discussing canoeing• 1 company 1• Intro to 1 other person

– 3 companies (one closed) 3• Intro to liquidator

– Invited to work on turnarounds 2– 1 company going well

• Fundraising led to a Venture Capitalist–Referred several companies to axiom-e 5

– Intro to 1 other person• 1 company 2

• Intro to bank– Referred several potential clients to axiom-e 5 16

Page 37: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The potential of networking

Page 38: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

axiom-e’s view

It’s not who you know

but rather

who the people you know know!

Page 39: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am here today• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 40: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Use something suitable

• Index card system

• Outlook contacts

• CRM system (eg ACT)

• PDA

Page 41: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Meet and thank

• Do not take contacts for granted

• Ask for their advice

• Thank them for their help

• Keep in touch– Follow-up to meeting– Regular contact by phone, email etc

• Reciprocate

Page 42: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Good Networking Contacts

Some sociologists have found that “…acquaintances are more likely than family members to give individuals direct information and to recommend them for opportunities.”

Mark Granovetter, The Strength of Weak Ties

Page 43: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

How to network: Suggestions?

Page 44: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

How to network: Get yourself known

• Stand out

• Committees

• Articles

• Speaking

• Websites

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How to network: Meetings

• Informal get togethers

• Invite yourself (Accountants and Lawyers meetings)

• Formal discussions– Top Banana– Cambridge Enterprise & Technology Club

Page 46: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Focus on the Help You Are Asking For

• Finding a job/advisor/lead

• Referral to company

• Increase knowledge/expertise in target career/field

• Increase visibility to others

• Generate new business/professional contacts

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Develop Good People Skills

• Assert yourself positively

• Ask good questions

• Be a good listener

• Present yourself attractively

• Be viewed as knowledgeable or skilful in a particular area

• Show interest in empowering and helping others

• Reciprocate – what can you do in return?

• Do not look for the next contact whilst talking!

Page 48: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Make Name Badges Work for You

Suggestions?

Page 49: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Make Name Badges Work for You

• Always include your surname – Ken Dickson

• Print large & legibly – Have standard printed badge prepared

• Wear name tags on RIGHT SIDE – in the line of sight when shaking hands

• Add description below your name – name of company or sector

– (sometimes) job title

Page 50: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

What will I say?

Suggestions?

Page 51: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

What will I say?

• A mutual contact suggested you could help me…”

• “May I ask your advice?”

• Develop a 10-Second “Sound bite”

• Enlarge it into an expanded 30-second “elevator pitch”

• Can we meet to discuss our business plan?

• Prepare a set of opening lines, statements, questions, etc.

• Be prepared... practice, practice, practice.

Page 52: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

A word of advice

“Remember, part of networking is giving to other people. The best networkers know that networking is much more than passing around [CVs, business cards etc]. It involves building relationships over time...”

Jack Chapman, Build Your Network, Now!

Page 53: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am here today• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 54: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Networking

• Building and maintaining useful contacts

• A two-way process

• Not “ME” but “WE”

Page 55: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Who to network with?

Suggestions?

Page 56: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Who to network with: Funders

• 3Fs

• Business Angels

• Venture Capitalists

• Banks

Page 57: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Who to network with: Advisors

• Accountants

• Lawyers

• Marketing advisors

• Not always charged for

• Free advice can be expensive

Page 58: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

How axiom-e can help –Advisors

axiom-e has close working relationships with leading:

• Auditors and Tax advisors • Banks • Business Angel Networks • Corporate Finance Houses • Lawyers • Marketing, IT and HR advisors• Venture Capitalists

            

 

 

                                            

Page 59: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Who to network with: Stakeholders

• Suppliers

• Customers

• Employees (recruitment agencies)

• Government bodies– Inland Revenue– HMCE (VAT)– Small business service

Page 60: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Stakeholders Customer Owner Supplier

Sub-Contractor Administrator

Page 61: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am here today• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 62: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

“A man may rise from poverty to become king of his country, or go from prison to the throne, but if in his old age he is too foolish to take advice, he is not as well off as a young man who is poor but intelligent.”

Ecclesiastes 4:13-14 (GNB)

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Page 64: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

axiom-essentials

Key things that all businesses need

• Corporate structure

• Funding

• Legal and Company Secretarial Matters

• Accounting and Financial Administration

• Internet Presence

• Other Administrative Matters

Page 65: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The problem

The absence of relevant financial [or other necessary] support can prove costly.

Early assessment of requirements and appropriate input is necessary.

Page 66: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

CIMA’s view

“Appointing a finance director with the right skills to match the needs of the business is vital to its success.

Source:

CIMA Appointing the right finance director for your business

Page 67: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

How we can help – Our approach

• Adding value – the reason for working• Cost-effective – lower charges than expected • Flexibility – work undertaken when required• Professionalism – experienced and capable• Experienced – hands-on Finance Directors• Honesty – fundamentally necessary from both parties • Integrity – working for the client’s interests

            

 

 

                                            

Page 68: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005
Page 69: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am networking with you• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 70: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Watch out 1: An idea is insufficient

• Ideas do not make a business–Over 99.9% of ideas never progress from a person’s head

• Having a company does not guarantee success – Almost 40% of businesses fail in the first 3 years

– Be prepared: ensure you have all the essentials

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Watch out 2: Beware ostrich management

• Handle correspondence– in a timely way

– accurately/honestly

– keep copies of responses

• Piles of unanswered letters multiply– Get a competent person to help

• Proper filing systems– Computer

– Paper

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Watch out 3: Business Planning

• Ensure you Plan, Budget and Control your business– Need for realism

– Regular feedback/review

• “Unless you know where you are headed, it doesn’t much matter which way you go” The Cheshire Cat in Alice in Wonderland by Lewis Caroll

• “If you’re going there I wouldn’t start from here” Apocryphal story of advice given in some remote places!

• Need for realistic costed plans showing sensitivity analysis

Page 73: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Watch out 4: Cash is King

Sales is vanity, Forget salesmen’s egos

Profit is sanity Forget accounting measures

Cash is reality. Cash is King

• The world does NOT owe you a living or funding or…• Banks are risk averse• Investors need to make a return• A sale by itself does not put money in the bank!

– Credit control

Page 74: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Watch out 5: Mr Micawber’s advice

“Annual income twenty pounds, annual expenditure nineteen pounds, result happiness. Annual income twenty pounds, annual expenditure twenty one pounds, result misery.”

Adapted from Mr Micawber’s advice to David Copperfield in

David Copperfield by Charles Dickens (a great Portsmouth person!)

• The proportion of spend to income is highest for start-ups

• Stupid Alice’s advice (in Rob Parsons The Money Secret)

– manage cash and beware loans that can’t be serviced

Page 75: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Watch out 6: Reputation

• Hard to earn, easy to lose

• Honesty is the best policy

• People remember problems

• Association

Page 76: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den

• Who would you invest in?

• Why?

• What do you need to know?

Page 77: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Page 78: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Incorporated in 1990 1999 2003

Page 79: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Incorporated in 1990 1999 2003

Employees 40 8 3

Page 80: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Incorporated in 1990 1999 2003

Employees 40 8 3

Investment to date £0 £6m £0.1m

Page 81: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Incorporated in 1990 1999 2003

Employees 40 8 3

Investment to date £0 £6m £0.1m

Turnover 2004 £2.9m £0.05m £0.02m

Page 82: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Incorporated in 1990 1999 2003

Employees 40 8 3

Investment to date £0 £6m £0.1m

Turnover 2004 £2.9m £0.05m £0.02m

% of market scheduled for 2007 <1% >40% >70%

Page 83: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Incorporated in 1990 1999 2003

Employees 40 8 3

Investment to date £0 £6m £0.1m

Turnover 2004 £2.9m £0.05m £0.02m

% of market scheduled for 2007 <1% >40% >70%

Forecast profit 2007 £0.9m >£3m >£1.5m

Page 84: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den:

Select the company to invest in

A B C

Forecast turnover 2007 £5m £5m £5m

Incorporated in 1990 1999 2003

Employees 40 8 3

Investment to date £0 £6m £0.1m

Turnover 2004 £2.9m £0.05m £0.02m

% of market scheduled for 2007 <1% >40% >70%

Forecast profit 2007 £0.9m >£3m >£1.5m

Profit 2004 £0.6m £(1m) £(0.08m)

Page 85: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

The Dragon’s Den: Best factors?

A B C

Forecast turnover 2007 £5m £5m £5mIncorporated in 1990 1999 2003Employees 40 8 3Investment to date £0 £6m £0.1mTurnover 2004 £2.9m £0.05m £0.02m% of market scheduled for 2007 <1% >40% >70%Forecast profit 2007 £0.9m >£3m >£1.5mProfit 2004 £0.6m £(1m) £(0.08m) How much would you invest? ? ? ?

Page 86: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Health Warning 1

“If you love money, you will never be satisfied;

if you long to be rich, you will never get all you want.”

Ecclesiastes 5:10 (GNB)

Page 87: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Health Warning 2

In your search for riches,

watch out for gems

Page 88: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Health Warning 2

Gems = Green Eyed Monsters

• Yourself – Trying to keep too much – Losing £15m without thinking!

• Others– Trying to take your ideas, company, reputation– But: small part of a lot > 100% of a little

Each funding round may dilute your share by 40%• be prepared!

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The benefits of networking (2)Writing articles for local magazines• Increased awareness of axiom-e’s name

Treasurer of CETC• Increased awareness of axiom-e’s name• Linked to better-known people and access to membership list

Lawyers breakfast meetings• Contacts made about 1 year later by two clients• Introduced lawyers to axiom-e client• Low-cost/free advice from lawyers to start-ups

Website• 4 clients contacted axiom-e following internet search• Shows clients we know about internet

Page 90: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Outline

• Why I am here today• Definitions• Building a database of contacts• Some practicalities• Who to network with• Business Success: the fundamentals• Warnings from experience• Question time

Page 91: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Any Questions?

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Summary

• Enjoy meeting interesting people but watch out for

• Networking– is a two-way process

– requires effort

– needs proactive approach

• Get known for the right reasons

• Watch your reputation

• Know one person who knows the people who…

Page 93: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005

Thanks for inviting me to speak and for your contributions.

Best of luck with your enterprises.

Ken DicksonManaging Director, Axiom Executives Limited

www.axiom-e.co.uk

Page 94: Tuesday 26 th April 2005. Presentation to Tuesday 26 th April 2005