why build for an exit? twenty recruitment case study adrian kinnersley – managing director twenty...
TRANSCRIPT
Why build for an Exit?Twenty Recruitment Case Study
Adrian Kinnersley – Managing Director Twenty Recruitment Group
Agenda
Lifestyle or Exit Reality of a Start Up Reality of Building for an Exit Timing – some good news Wheel of Fortune Secrets of Silicon Valley What’s your focus Challenges for the Future Conclusion Questions
Lifestyle or Exit
What type of business are you in or thinking of starting?
Lifestyle OR Exit / Valuable
What is the difference Definition of success
Neither is right or wrong As a founder / leader it is your responsibility to chose What do you really want / need short term and long term Every decision should get you closer to success
Decisive Leadership?
Reality of a Start up
Human Institution designed to create a new product or service under conditions of extreme uncertainty. Eric Reis
No Brand No People No Clients No Infrastructure No Office No Revenue No Suppliers No Culture No History Nothing of Value
You and your vision is your only collateral
Reality of building to Exit
05
10152025303540
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Transactions Greater than £10m in last 12 years
• Approximately 19,000 recruitment companies in the UK • Roughly 12,000 recruitment companies employ less than 5 staff (62%)• Only 10% employ more than 50 people • 5.4% turnover more than £5m• Average 0.05% chance of selling for more than £10m
FTSE low 3287 March 03
.com bust + Iraq war
FTSE high 6732 June 07 pre
credit crunch
FTSE low 3500 Mar 09
Timing – some good news
Wheel of Fortune – Ground up
Strategy
Growth
Current Markets
Adjacent Markets
New Markets
New Geographies
Headcount =60+
Brand
External
AwardsPR / Social Media
NetworkingWebsite
Client perceptionCandidate perceptionInvestor perception
Values
Culture
Internal
Induction
Training
Systems
Appraisals
Career Progression
ISO & IIP
Values
Vision
Team
Management
Skin in the gameStable
Future proofComp Control
Next GenStandards
Earnings
Strength
Visibility Quality
Contract : PermPSL : Spot
Diversification
Back Office
Discipline
ForecastingFin Management
Debtor daysCash-flow
InfrastructureTax planning
Documentation COO!!
Secrets of Silicon Valley
Secrets of Silicon Valley: What Everyone Else Can Learn from the Innovation Capital of the World by Perry Piscione.
Value People – They are all team players and should all be able to gain an equity ownership in the business. Value Ideas – Ideas are the prized commodity in Silicon Valley. Take Risks and Accept Failure – This is part of the human experience that makes you smarter. Innovate – Let go of old ideas and reach out to your customers for feedback. Always think of yourself as a start up – they are lean, hungry and open and have no legacy to tie them down.
What’s your focus – Isaiah Berlin
The fox knows many things the hedgehog knows one big thing
Challenges for the Future
Social Media / Mobile Value of information / database completely changed Candidate behaviour changes
RPO / in house recruiters New competition What are you doing to position your business appropriately
Margin pressure What’s your plan
Globalisation Global mobility of talent likely to increase
Regulation Increasing barriers to entry Increasing costs to business
Politics / Taxation
Conclusion
Exit = lot of hard work for a 0.05% chance of exit in excess of
£10m
Lifestyle = Lot of hard work but much greater chance of success
So why bother?
Questions ?’s