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Page 1: Fast Growth Forum

@fastgrowthforum #fastgrowthforum www.fastgrowthforum.com

Fast Growth ForumTricky First Million

26 March 2014

Page 2: Fast Growth Forum

@fastgrowthforum #fastgrowthforum www.fastgrowthforum.com

Sponsors

Supporters

Page 3: Fast Growth Forum

Start ups need a child’s imagination

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And a relentless desire to win

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And some highly calculated risks

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Prizes can be enormous

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So how can you help yourself?

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Understand Markets

Watch for Demand Signals

Study People

Page 9: Fast Growth Forum

Mobile changes everything

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Changes which markets we connect to

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Even more in future

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We live in a great place

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London is on a roll

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Learn to work on the network

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New ways to tell stories

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New ways to sell

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New ways to work

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New ways to raise money

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10k business ideas

1k firms started

100 VC funded

20 IPO

2 market leaders

Nobel Prize in

Economics2006

ProfessorEdmund Phelps

Less than 10% of business ideas even get started

Page 22: Fast Growth Forum

62% of venture investments are <1x

0

10

20

30

40

50

60

x<0.5 0.5<=x<1 x=1 1<x<2 2<=x<5 x>=5

% Cost % Value

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Yes, start ups are

really tough

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You have no

customers

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No money

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You and your team are fighting an imaginary war

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Armed just with some big ideas

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The extreme risk of 62% is definitely not for everyone, including many entrepreneurs

and investors…...

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In fact a 2% loss ratio for banks lending to SMEs is already pushing the boundaries.

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So if you feel comfortable managing risk, you might as well shoot for the moon

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The capital which survives, creates businesses now accounting for 21% of US GDP…..

1978 1981 1987 1995 1995 1997 1999 1999 2005

and $1.4tn in new market value

creating 440k new jobs

with $545bn in new annual revenue

serving >1bn customers

Source: HIS Global Insight

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And in Europe we are starting to build waves of similar dimensions

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So what should you be thinking about when you are starting a business…

OpportunityOthers

Ownership

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How big is the opportunity….

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Who are the others….

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What level of ownership is available….

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Pick a field big enough to change the world

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Moving to Maslow’s Web

CommunicationsClothing

Discretionary Non-Discretionary

Media

Entertainment

Shopping

Travel

Energy & Housing

Education

Food

Finance

Health

Safety

1993-2003 2004-2012 2012+

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And in Europe we have no shortage of willing talent….

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Child’s imagination

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Relentless desire to win

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Highly calculated risks

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No short cut to being a grandmaster

“achievement is talent plus preparation.”- Malcolm Gladwell

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You have to learn take risks

Time Emotions Money

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What should you focus on in the business…?

OpportunityOthers

Ownership

CustomersConversationsConvenience

CostsCompetition

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Maniacal focus on the customer….

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Encourage conversations….

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Offer new levels of convenience….

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Leverage and manage cost structure…

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Let the competition worry about itself…

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So aim too high. The prize is huge and we all have an

amazing start just by being here

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Embrace your 62%

@cape♯risk62

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www.mendeley.com

The Importanceof Vision...at MendeleyJan ReicheltCo-Founder

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A brief introductionto Mendeley

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Mendeley extracts data and fulltext from PDFs, ..

..share and discuss their research in groups, ..

..lets researchers organize and annotate papers, ..

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..and aggregates everything in the cloud

..share and discuss their research in groups, ..

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A global research network with 2.6 million users;the 15 largest userbases:

University of Cambridge University of OxfordStanford University MITHarvard UniversityUniversity of Michigan Imperial College LondonUniversity College LondonUniversity of WashingtonCornell UniversityColumbia UniversityUniversity of EdinburghUC BerkeleySao Paulo UniversityUniversity of Toronto

2,000 Mendeley Advisorsaround the globe

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300 active third-party apps built on the Mendeley API

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Content Publishers

MetadataPublishers, service providers, ...

Social Layer Mendeley, ...?

Today

Am

ou

nt

/ Im

po

rta

nce

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Social Layer

Metadata

Content

Facebook, Twitter, Youtube, Pinterest...Creating and sharing “stuff” as a result.

Tomorrow?

Am

ou

nt

/ Im

po

rta

nce

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What was Mendeley’svision on day 1?

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To revolutionize the way researchers and students work and create the world’s largest research community (2008)

To create the world’s largest research community and shareable academic database, open to everyone (2008)

Wants to help researchers manage, share, and discover academic knowledge (2008)

A “Last.fm” for research (2009)

The world’s largest research collaboration platform and database (2011)

Mendeley helps people to organize and collaborate on research projects and makes academic research

fascinatingly more accessible and transparent. (2013)

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Vision: It’s the story you tell. It’s a “fuzzy” understanding of what your company stands for.

• Why fuzzy? Because it should be robust for years.

• Can a vision ever be achieved? Goals can!

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Vision

Goals

Strategy

Tactics

Activities

High-level, long term understanding of what a company stands for

Short-term, day-to-day operational implementation *Adapted from Diana Railton

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Do something you

really, really like!

Develop your vision,

and translate it into a

great product

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Our vision helped Mendeley to create

(some sort of) reality and self-fulfilling

prophecy

“In other words, ‘vision’ is a popular industry narrative applied after-the-fact”? (Josh Miller, Medium)

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April 2013

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Have a strong (founder) team and stick together

Techcrunch/Web Summit EuropasAward 2013 for best start-up founders

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+ founders of + owner of

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“How Long Does it Take to Build a Technology Empire?” (www.ipo-dashboards.com)

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Because the journey is so long, vision is so important – it keeps the start-up together during high growth times.

You can only accomplish more things through and with other people, and vision helps to achieve internal alignment.

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But vision does more for the team…

Daniel Pink (2009):Drive: The SurprisingTruth About WhatMotivates Us

• Autonomy• Mastery• Purpose

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Mendeley’s vision was coming from passion and was driving

us to take entrepreneurship as a lifestyle.

The emotions are the hardest part.

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My Background

• Graduated from HEC School of Management with a focus on Entrepreneurship

• Co-founded PriceMinister and created product & sales platform

• Moved to Asia (Singapore / Hong Kong) to develop Club Med’s Asia Pacific digital platform & TBWA digital offering and met my creative business partner

• Exited PriceMinister in 2010 when acquired by Rakuten• Moved to London and opened Shopcade end 2011 after

being obsessed with social and shopping implications

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Getting critical mass takes time and effort

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This applies to big and small companies

Read Clayton Christensen on “Disruptive innovation”

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For today’s youth, keeping up with new fashion styles and

knowing where to buy them at the best price takes large

amount of time and effort.

16 – 25 year olds are hungry for novelty and not loyal to one brand. They constantly

hunt for the next “it” item using multiple sources, then go searching for where to go buy

the look at the best price. 50% shop at retailers who introduce new lines more

frequently than just once a season, and over 27% bought clothing from 5 or more

retailers in the last 12 months.

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Browse the hottest looks of the moment

Identify what people are wearing

Buy these items at the best possible price

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How we get feedback and develop features

User centric design

We regularly meet with our correspondents, content partners,

and hold monthly events with fashion industry insiders to showcase

the app and get feedback to ensure product updates are based on fashion

industry needs.

Lean Startup Approach

We only develop minimum number of features that have a clear need

and iterate on them until there’s a correlation with improvement in

performance data. We are not afraid of dropping stuff. We often test on web

before porting it to mobile as it’s more flexible.

Data driven business decisions

We have an always-on dashboard of userbase, engagement, sales, and

marketing. We often test new things and see how it impacts data, such as

new product features

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User centric design example

From blogger brunches held in LA and London

The bloggers wanted to see on Shopcade: more fellow blogger styles, ability

to see styles from other users, more emerging brands

So we launched:

“Looks” feature on Shopcade, so that both bloggers and our

community can upload their looks.

Shopcade Store, where emerging brands with no affiliate networks can offer

their products directly on Shopcade and be featured.

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You want feedback from the righttype of people for your product

o We held a Bus Party during London Fashion Week with 600+ VIP attendees including Amy Willerton (Miss Universe GB), Fran (Made in Chelsea), Jade Ellis (X Factor), Diana Vickers (X Factor), Ella Catliff (LaPetiteAnglais), LilahParsons (MTV), Hilary Alexander (Telegraph),V V Brown (Musician), Natalie Suarez (Model), Vogue, Elle, Candid Magazine, Rough Magazine, Yahoo, Rodnik Band, Fake Club, Alice Luker.

o Not only was everyone photographed and featured on Shopcade mobile fashion app, they all gave feedback on the app.

o https://www.youtube.com/watch?v=11jFMpNbzaY

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Useful tools

Collaborate: Shopcaders’ usability Lab

Monitor: Analytics

Optimize: Multiple testing

Listen: Active Community

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Lean Startup Approach example

Conversion rate optimization

We discovered that contextualizing sign-up gates on users’ first visit based

on their intent and source led to quadrupling conversion rate. (ie. If they visit

Shopcade by searching for Motel Rocks skirts, we show messages about

Motel Rocks on the registration popup.)

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Think It – Build It – Ship It – Tweak It

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Data driven business decisions

Which push notifications to send on mobile:

After testing via email “deal notifications”, where people are notified when

products they want on Shopcade goes on deal, we found that those emails

had a high click-through rate and led to purchases. Thus on mobile, we

ensured this is one of the high priority push notification over all others.

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Weekly app downloads

Android iOS

Clear signs of necessity and addictiveness of

Shopcade is backed up by latest data and user response.

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Do:

Get feedback from the right peopleGet responses in real-life, not in the office

Preview your features to a small group of influencersThey already know you well and the market needs

and people generally want to be helpful

Really listen hard to criticismsDon’t just think they don’t understand

Get the whole team to look at their dataKeep people accountable, and they will focus

on delivering results

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Don’t:

Survey initial visitors about what they wantThey may not be your core demographic after all or

not know what they want unless you show them

Plug your site on blogs/forumsTakes too much time and impact is not guaranteed

Launch on dateLaunch on quality

Cool homepage everShow users what they want to see and keep it simple

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Final thoughts:

The product is not everything

MYTH: A good product attracts users

TRUTH: A good product retains users

MYTH: PR and events will get you users

TRUTH: PR and events will get you noticed by

investors and partners and get you feedback.

=> You need virality and build a product people love

and want to share.

=> You need marketing plans to get awareness and

distribution.

Page 99: Fast Growth Forum

Thank youP.S. Download our new mobile app for iPhone and Android.

+44 786 799 3803

[email protected]

Twitter: @nathgaveau

shopcade.com/nathalie

99

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Scaling Startups@rorystirling

@mmc_ventures

#fastgrowthforum

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Keynote

@rorystirling

@mmc_ventures

#fastgrowthforum

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“a talk that establishes the mainunderlying theme”

“establishes the framework for the following programme of events”

@rorystirling

@mmc_ventures

#fastgrowthforum

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WHAT THIS IS NOT

@rorystirling

@mmc_ventures

#fastgrowthforum

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Scaling Startups

@rorystirling

@mmc_ventures

#fastgrowthforum

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"Startup"

@rorystirling

@mmc_ventures

#fastgrowthforum

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"A startup is a company designed tosearch for a repeatable and scalable

@rorystirling

@mmc_ventures

#fastgrowthforum

business model"(Wikipedia)

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"Startup = Growth"(Paul Graham)

@rorystirling

@mmc_ventures

#fastgrowthforum

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A startup is a company designed to

grow fast

@rorystirling

@mmc_ventures

#fastgrowthforum

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The ONLY essential thing is GROWTH

@rorystirling

@mmc_ventures

#fastgrowthforum

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Everything else we associate with

startups follows from growth

@rorystirling

@mmc_ventures

#fastgrowthforum

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…you can use growth like a compass to

make almost every decision you face

@rorystirling

@mmc_ventures

#fastgrowthforum

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BILLION DOLLAR

STARTUP$

@rorystirling

@mmc_ventures

#fastgrowthforum

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Startup = Growth

@rorystirling

@mmc_ventures

#fastgrowthforum

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Scaling Growth

@rorystirling

@mmc_ventures

#fastgrowthforum

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“Scaling”

@rorystirling

@mmc_ventures

#fastgrowthforum

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"A startup is a company designed tosearch for a repeatable and scalable

@rorystirling

@mmc_ventures

#fastgrowthforum

business model"(Wikipedia)

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To be a STARTUP you need toGROW (fast) and to GROW you need

to SCALE

@rorystirling

@mmc_ventures

#fastgrowthforum

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What is scaling?

How do I do it?

@rorystirling

@mmc_ventures

#fastgrowthforum

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Team & Culture

@rorystirling

@mmc_ventures

#fastgrowthforum

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Systems & processes

@rorystirling

@mmc_ventures

#fastgrowthforum

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Finally…

@rorystirling

@mmc_ventures

#fastgrowthforum

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3 M’s

@rorystirling

@mmc_ventures

#fastgrowthforum

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Management

@rorystirling

@mmc_ventures

#fastgrowthforum

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Market

@rorystirling

@mmc_ventures

#fastgrowthforum

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Momentum

@rorystirling

@mmc_ventures

#fastgrowthforum

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Thank you@rorystirling

@mmc_ventures

#fastgrowthforum

Page 127: Fast Growth Forum

VALUESWhy creating a high-performance culture

isn’t just beers and ping pong

27th Mar 2014 - 9:40am

Lord’s Cricket Ground, London

George Karibian

Founder, PaymentSense

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battle scars

credit card processing

for SME’s

Finalist 2004

Finalist 2005

Finalist 20062013 – Ranked

24th in Europe

founded 2009

founded 2012

overdraft financing

for SMEs

founded 2012

tech payments platform

for mobile apps

founded 2000

rollover to PE 2010

online office products

for SMEs

telco

for SMEs

Finalist 2004

Finalist 2005

Finalist 2006

founded 2003

exit to PE 2008

5 startups | 400k customers | £100m+ turnover

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values

so obvious – yet so difficult

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• peter drucker

• clear goals

• stamp out failure

• fear

the pyramids

extreme perhaps – but built a masterpiece

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• great past

• expense reports

• how would you handle abuse

• what xerox did

xerox

no different than the way they built the pyramids?

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welch matrix‘b’ players

• “we are family”

‘a’ players

• no brainer

• rock stars

• comp them

• develop them

• edge of comfort zones

• retain them

‘d’ players

• no brainer

• part with them

‘c’ players

• difficult to identify

• easy to deal with

• info bottlenecks

• credit for others’ work

• focus on reducing targets

• black boxes

• hold mgmt hostage

• political animals

• weed them out

• easy to identify

• difficult to deal with

• 2nd chancers

• training

• new role

• ease their move

b’s and c’s separate the few great companies from the many mediocre ones

a b

c d

results

+

+

-

-

valu

es a

c d

b

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accelarated natural selection

fre

q

risk / return

hi

lo hi

aim

here

land

here

9/10

their

safe

landing

zone

our

goal

fail fast - learn fast

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sunflowers

beware of the sunflower

a

a a

a a a

a a c a a

a c c c a a

a a c c c a a

a a c c c c a a

a a a c c c c a a a

a a a b b c b c a a a

a a a b b b c b c b a a a

a a a a b c a a a a a a a

a

a a

a a a

a a c a a

a c c c a a

a a c c c a a

a a c c c c a a

a a a c c c c a a a

a a a b b c b c a a a

a a a b b b c b c b a a a

a a a a b c a a a a a a a

a

a a

a a a

a a c a a

a c c c a a

a a c c c a a

a a c c c c a a

a a a c c c c a a a

a a a b b c b c a a a

a a a b b b c b c b a a a

a a a a b c a a a a a a a

a

a a

a a a

a a c a a

a c c c a a

a a c c c a a

a a c c c c a a

a a a c c c c a a a

a a a b b c b c a a a

a a a b b b c b c b a a a

a a a a b c a a a a a a a

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the rot effect

have only ‘a’ players around your table… and real magic begins to happen

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@fastgrowthforum #fastgrowthforum www.fastgrowthforum.com

Scaling Startups#fastgrowthforum

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STARTED USTWO 2004

£5,000

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to create a place where you actually want to be

more than life itself.

a place that truly isn’t a company.

a place where everyone is friends.

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+SanFran

+Sydney

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Made me think hard

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What is ustwo about for me?

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EVERYONE DUMPS ON ME.

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why?

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empowered trusted rewarded

piglets working on products

they believe in ends in direct

wins for all piglets and

projects.

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everything I am about to

ask something that has

been suggested to me but I

shot down.

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TRUST!!!!

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why don’t we ask people if

they need a standup desk?

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we buy unlimited beers!!!

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Why do we pack people in.

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Why don’t we invest more

in training our piglets?

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Why don’t we plan projects

to effectively allow people to

think and not just produce.

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happy 5 years.

WTF!

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nyc pic

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1. What is your Desired Outcome?2. Why are Revenue and Profit Important?3. The Evolution of Revenue and Profit4. Should You Focus on Revenue Growth or

Profit Growth?5. What Does MVF Focus On?

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1. What is your Desired Outcome?2. Why are Revenue and Profit Important?3. The Evolution of Revenue and Profit4. Should You Focus on Revenue Growth or

Profit Growth?5. What Does MVF Focus On?

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TO Sell your

business for as much

as possible

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1. What is your Desired Outcome?

2. Why are Revenue and Profit Important?

3. The Evolution of Revenue and Profit4. Should You Focus on Revenue Growth or Profit

Growth?5. What Does MVF Focus On?

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Potential Size

Size (Revenue or

Users)

Your Confidence in Negotiating

Speed of Growth

Potential Profit Margin

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1. What is your Desired Outcome?2. Why are Revenue and Profit Important?

3. The Evolution of Revenue and Profit4. Should You Focus on Revenue Growth or Profit

Growth?5. What Does MVF Focus On?

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Marketing Channel Optimisation

Landing Page Optimisation

Strong Sales Process

Strong On-Boarding Process

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• Customer Montetization

• Cost of Customer Acquisition

TIME

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1. What is your Desired Outcome?2. Why are Revenue and Profit Important?3. The Evolution of Revenue and Profit

4. Should You Focus on Revenue Growth or Profit Growth?

5. What Does MVF Focus On?

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• Demonstrate you can pull levers to generate

profit, or

• Have line of sight on profit in the future

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1. What is your Desired Outcome?2. Why are Revenue and Profit Important?3. The Evolution of Revenue and Profit4. Should You Focus on Revenue Growth or Profit

Growth?

5. What does MVF Focus On?

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2009 2010 2011 2012 2013 2014 2015 2016

£500k per Month

Revenue

£1m per Month

Revenue

£1m per Month Gross Profit

£2m per MonthGrossProfit

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“Rough Diamond”

“Inconsistent Player”

“Talent Risk”

“Future Star”

“Key Player”

“Solid Professional”

“Consistent Star”

“Current Star”

“High Professional”

Performance

Po

ten

tial

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CREATING PROCESSES AND KPIS TO MANAGE YOUR BUSINESS WITHOUT LOSING AGILITY AND INNOVATION

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#BESTBUDS OR #DEVILBABY

Budweiser, "Puppy Love" 20th Century Fox,

Devil Baby Attack48,499,082 views, 1,861,707 shares 43,332,549 views, 2,031,736 shares

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A SHOREDITCH START-UP

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WE HELP BRANDS MEASURE SUCESSS &

IDENTIFY TRENDING CONTENT

Source: Company Management

• Real-time benchmarking

• Customizable data clusters

• 2,000 preloaded brands

• Granular social reactions

• Plus the bigger picture!

Page 278: Fast Growth Forum

WE PREDICT & IMPROVE CONTENT SHAREABILITY

Basic emotions

Primal responses

Cognitive responses

Intensity

Emotional valence

Schema disruption

Social motivation

Memorability

Enjoyability

Medium

Favourability

Interpanel agreement

and more...

Page 279: Fast Growth Forum

AND ACTIVATE THE OPEN WEB WITH PAID MEDIA

Maximize peak sharing

Prolong burn-out phase

with Unruly

without Unruly

Brands use Activate to maximize earned media

• Make videos ubiquitous & shareable

• Maximize social spread and viral views

• Target super-sharers to slow burn-out

Page 280: Fast Growth Forum

WHY DO SHARES MATTER?

50xINCREASE

2006 2013

Source: Viral Video Chart

Page 281: Fast Growth Forum

…WITH GLOBAL ASPIRATIONS FROM DAY ONE…

Page 282: Fast Growth Forum

5. Expansion Plans

5.2 Geographic Expansion

Today

Regional Hub

Local Office

Sales Presence

London

2007

Paris

2010

Sydney

2010

New York

2011

Stockholm

2011

San Francisco

2011

Amsterdam

2011Berlin

2012

Singapore

2014

Chicago

2012

Hamburg

2013

Oslo

2013EMEA

Americas

APAC

LA

2012

GLOBAL GROWTH

Seoul

2014

Page 283: Fast Growth Forum

THAT’S QUITE A ROAD TRIP!

Page 284: Fast Growth Forum

BARCLAYS WATERSLIDE

2008

Page 285: Fast Growth Forum

EVIAN ROLLER BABIES

2009

Page 286: Fast Growth Forum

OLD SPICE GUY

2010

Page 287: Fast Growth Forum

T-MOBILE ROYAL WEDDING

2011

Page 288: Fast Growth Forum

ADIDAS ‘DON’T STOP ME NOW’

2012

Page 289: Fast Growth Forum

DOVE REAL BEAUTY SKETCHES

2013

Page 290: Fast Growth Forum

$25 million

FUNDING

Page 291: Fast Growth Forum

TECHNOLOGY & INNOVATION

International Winner,

Hot New Media and

Technological Platforms

Winner, Digital

Innovation

Winner, International

Impact Management

Team of the Year

Page 292: Fast Growth Forum
Page 293: Fast Growth Forum

INNOVATING WITH AGILE

Page 294: Fast Growth Forum

FAILING FAST

Page 295: Fast Growth Forum

ROLLING OUT XP

Page 296: Fast Growth Forum

BRAINSTORMING

Page 297: Fast Growth Forum

DECIDING

Page 298: Fast Growth Forum

TALKING

Page 299: Fast Growth Forum

SEARCH FOR PANDAS

Logo’s safe area

RECRUITING PANDAS

Page 300: Fast Growth Forum

GROWTH HACKING

Page 301: Fast Growth Forum

LEARNING

Page 302: Fast Growth Forum

DEVELOPING TALENT

Page 303: Fast Growth Forum

PLAYING

Page 304: Fast Growth Forum

OM NOM NOMMING

Page 305: Fast Growth Forum

THANKING

Page 306: Fast Growth Forum

Deliver WOW Share the Love

Embrace

Change

VALUES

Page 307: Fast Growth Forum

Deliver WOW

Page 308: Fast Growth Forum

Share the Love

Page 309: Fast Growth Forum

Embrace

Change

Page 310: Fast Growth Forum

THANK YOU!

Winner Best Content

Distribution Service

Winner Digital Innovator of

the Year

Winner 2012 Digital Innovation

Award

Page 311: Fast Growth Forum

Preparing Your Business for Exit

David Sidwell

Page 312: Fast Growth Forum
Page 313: Fast Growth Forum

FY97 FY98 FY99 FY00 FY01 FY02 FY03

£1.6m £2.5m £6.5m £10m £17m £24m £34m

Page 314: Fast Growth Forum

• 2005, £300k

• 2001, £2m

• 2007, £10m

• 2012, £440k

• 2007, £13m

• 2005, £1.8m

Page 315: Fast Growth Forum

Preparing your Business for Exit

1. Clear Proof Points

2. Scalable Business Model

3. Solid People

Page 316: Fast Growth Forum

The 7 Great Myths of Preparing Your Business for Exit

1. I won’t be happy until I have made lots of money

2. I’ll sell when I’m ready…and I know when I’m ready

3. I know what my business is worth, and I’ll not sell for less

4. Big spreadsheets showing long term sales forecasts are pointless

5. You need a Big Vision

6. All investment is the same: it’s just money

7. Selling my business is what I do all day

Page 317: Fast Growth Forum

Myth #1: I won’t be happy until I’ve made lots of ££££££

Page 319: Fast Growth Forum

Myth #2: I’ll sell when I’m ready……and I’ll know when I’m ready

Maturity

Crisis of

Growth through

Size

Leadership

Autonomy

Control

Bureaucracy

Internal Growth

Creativity

Direction

Delegation

Co-ordination

Collaboration

External partnerships

The Greiner Curve

Page 320: Fast Growth Forum

Myth #2: I’ll sell when I’m ready……and I’ll know when I’m ready

Page 321: Fast Growth Forum

Myth #3: I know what my business is worth……and I’ll not sell for less

Truth: You really aren’t the best judge. Honestly

Dream Value = 10-20x revenues

Tuck In: 2-5x revenues

Normal business:

3 x last year’s profits + cash at bank

Page 322: Fast Growth Forum

Myth #4: Big spreadsheets showing long term sales forecasts and market shares are completely pointless

Revenue and Valuation Forecast to 2018 - Assumptions and Summary

Core Planning Assumption: Increase in Money Under Management

Start Point £11.3m as at end March 2012

Organic Growth per month £200,000 = annual growth of £2,400,000

Investment Growth per month £300,000 = annual growth of £3,600,000

Market Growth Factor per annum 5.00%

Wastage from retiring clients per annum 5.00%

Revenues will be 3.00% of Funds Under Management

Split of Recurring Fees Income vs. Commission

Percentage of Recurring Fees Income will be 55% of Revenue initally and can be expected to rise

Valuation Calculation is Industry Standard: Multiple of Fee Income + Commission Income - Debt

Fee Income

multiple to be

used: 4

Low valuation = 3

Mid Market Valuation = 4,

Rising market valuation = 6

Summary: Organic Growth Model:

2012 2013 2014 2015 2016 2017 2018

actual

Funds £m 11,300,000 13,700,000 16,100,000 18,500,000 20,900,000 23,300,000 25,700,000

Valuation £ 595,668 £ 615,256 £ 771,456 £ 927,656 £ 1,083,856 £ 1,234,900 £ 1,362,100

Investment Growth Model:

2012 2013 2014 2015 2016 2017 2018

actual

Funds £ 11,300,000 14,900,000 18,500,000 22,100,000 25,700,000 29,300,000 32,900,000

Valuation £ 595,668 £ 635,656 £ 809,556 £ 1,025,756 £ 1,281,556 £ 1,532,200 1,743,700

“There is nothing so practical as a good theory”

Page 323: Fast Growth Forum

WHAT

HOW

WHY

You need clarity about your purpose and your Road Map

Myth #5: You need a Big Vision

Page 324: Fast Growth Forum

Would you hire them ? What for ?

They need goals/targets/appraisals

Myth #6: All investment is the same: it’s just money

“You can smell emotional commitment a mile away”

Page 325: Fast Growth Forum

Myth #7: Selling my business is what I do all day

Page 326: Fast Growth Forum

Preparing Your Business for Exit

1. Clear Proof Points

2. Scalable Business Model

3. Solid People – starting with …

You

Page 327: Fast Growth Forum

Preparing Yourself for Exit

1. I won’t be happy until I have made lots of money

What are your goals in life ?

How will this business help you achieve them ?2. I’ll sell when I’m ready…and I know when I’m ready

By the time you’re ready, it’s too late3. I know what my business is worth, and I’ll not sell for less

No, you don’t. Honestly.4. Business Models are pointless

The best possible value protection/creation strategy

5. You need a Big Vision

You need clarity about your purpose and your Road Map

6. All investment is the same: it’s just money

Choose the people, not the money7. Selling my business is what I do all day

Beware…almost impossible not to take your eye off the ball

Page 328: Fast Growth Forum

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