Proven strategies on how to grow your business and manage the growth process.

1. Business Growth
Workshop
Day 2
Don’t leave it to luck!!
Proven strategies to manage and grow your business!
AWOVI
Consulting
Ltd
Griselda
Kumordzie
Togobo
June
2011
1

2. About AWOVI
!
Straight
talking
business
consultant,
accountant,
speaker,
mumpreneur,
blogger
&
aspiring
author.
Director
at
AWOVI
Consulting
Ltd
-­‐
advising
&
inspiring
SMEs
to
success.
www.awovi.com
Experience:
BSc
Electrical
Engineering
Griselda Kumordzie Togobo!
Mphil
Industrial
systems
&
manufacture
Big
4
firm
Prince
2
certified
practitioner
Chartered
Accountancy
qualification
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
2

3. Who are you?
!
1. Tell
us
your
FULL
name
&
business
2. Share
something
interesting
about
yourself
3. What
you
want
to
get
out
of
today
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
3

4. The plan
!
Agenda
10am - 4pm
10 am – 10:15am Arrival and refreshment
Introduction
Is growth=longevity?
SMEs Overview
John Smithʼs Story
Defining Key Growth Concepts
11:15 – 11:30am BREAK
What would you do with this?
How they did it?
1:00-2:00 LUNCH
Planning for growth in Africa
Be inspired by Dr Marcus Manns
Branding
15:45 – 4:00pm Evaluation forms
4pm End
!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
4

5. Aim
!
…….not
only
to
present
you
with
the
hard
facts
but
to
also
inspire
you
into
action
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
5

6. Ground rules !
1. Participate
2. two
way
dialogue
3. Enjoy
yourself
4. Watch
the
clock
5. Take
notes
6. Let’s
keep
our
phone
on
silent
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
6

7. Lets discuss!
Is
Growth
=
Longevity
!
Agree, !
disagree or!
don’t have a clue?!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
7

8. John
Smith
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
8

9. John Smith !
• 2007
• Picture
on
canvass
• Out
of
town
shopping
centers
• Little
to
no
competition
• unincorporated
Partnership
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
9

10. Time
line
2007
Started
18months
trading
£0! £2m!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.

11. John Smith !
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
11

12. 18months
2
years
£2m! Bankruptcy!!!!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.

13. Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
13

14. SME Background !
279,000
businesses
closed
in
2009
Highest
since
2000
This
is
a
‘death
rate’
of
11.9
per
cent
http://www.statistics.gov.uk/pdfdir/bdnr1210.pdf
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
14

15. SME Background !
2009
“Not
only
is
it
the
highest
number
of
businesses
closing
in
a
single
year,
it
is
also
the
first
time
that
business
deaths
have
outnumbered
business
births
since
the
series
began.”
-­‐
ONS
statistician
Andrew
Allen
http://www.statistics.gov.uk/pdfdir/bdnr1210.pdf
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
15

16. To conclude …..
Growth
≠
Longevity
!
!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
16

17. SMEs
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
17

18. SME Background !
4.5
million
SME
in
the
UK
at
the
start
of
2010,
an
increase
of
48,0002
(1.1
per
cent)
since
the
start
of
2009.
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
18

19. London based businesses !
London
• Highest
business
birth
12.6%
increase
• Highest
death
rates
13.7%
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
19

20. SME Background !
64.2%
of
private
sector
businesses
were
Partnerships
sole
proprietorships
27.6%
Companies
Sole
proprietors
companies
0
20
40
60
80
8.2
%
partnerships
Ref:
http://stats.bis.gov.uk/ed/bpe/BPE_2010_-­‐_Statistical_Release.pdf
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
20

21. How
do
businesses
grow?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
21

22. Business life cycle !
Starting
Growing
Maturing
Declining
Key
challenges
?
?
?
?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
22

23. Business life cycle !
Starting
Growing
Maturing
Declining
Key
challenges
• Establishing
• Dominating
• Sustaining
• Survival
presence
market
growth
• Competitors
• Startup
up
• Finance
increased
• Competitors
capital
levels
of
stock,
• Marketing
• Marketing
work
in
progress
• Finding
the
and
debtors.
right
people
• Marketing
• systems
break
down
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
23

24. Strategies
for
growth
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
24

25. Growth strategies !
New
products
Existing
products
Existing
market
Market
Product
Penetration
Development
Market
Development
Diversification
New
Market
International
expansion,
acquisitions,
product
proliferation
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
25

26. Growth strategies !
New
products
Existing
products
Existing
market
Market
Product
Penetration
Development
Market
Development
Diversification
New
Market
International
expansion,
acquisitions,
product
proliferation
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
26

27. Growth strategies !
New
products
Existing
products
Existing
market
You
are
here
!
New
Market
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
27

28. Any
Questions?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
28

29. Your growth strategy !
New
products
Existing
products
Existing
market
New
Market
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
29

30. Case
studies
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
30

31. What would you do with these?!
1.
2.
£500
3.
4.
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
31

32. A London business’
success story…..
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
32

33. A rapidly growing company…..
• established
in
1999
• a
small
stall
selling
its
smoothie
recipes
at
a
music
festival.
• More
than
£100m
in
revenue
in
2008
• employs
over
250
people.
• 8
international
offices
• Headquarters
is'FruitTowers’
Shepherds
Bush,
London.
Ref:
http://www.innocentdrinks.co.uk/AGM/innocent_annual_report_2007.pdf
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
33

34. A few of their awards…..
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
34

35. How did they do it?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
35

36. The challenge…….
New
products
Existing
products
Existing
market
Yoghurt
and
soups
Different
varieties
of
In
UK
existing
juice
Research
Overseas
New
Market
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
36

37. The strategy…….
Start
small
-­‐
one
city
or
region
Work
with
already
successful
brand
and
products
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
37

38.
Establish
a
presence
and
then
launch
other
products
on
the
back
of
that
success
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
38

39. Crucial decisions
taken ….
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
39

40.
America Vs Europe
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
40

41. Which opportunity do we pursue?
America
Europe
PROS
1. Use
current
manufacturing
in
1. Big
market
with
over
£350m
the
uk
2. One
currency
2. 15
countries
within
24
hour
3. One
language
drive
4. Retailers
already
asking
for
3. For
small
countries
local
innocent
distributors
eliminate
set
up
costs!
CONS
1. Different
countries
1. Start
a
whole
new
supply
2. Different
languages
chain
due
to
distance
3. Different
laws
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
41

42. un tr y
ich co or?
W h
ug of
ill yo
w
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
42

43. Sales were!
€2m
1st
year
€6m
2nd
year
€16m
3rd
year
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
43

44.
DIY
Vs
Outsource?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
44

45. Build our own factory or work with
an existing factory?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
45

46. Can they run a factory?
Adam
Balon's
CV
Education:
St
Johns
College
Cambridge,
MA
Economics
Employment:
McKinsey,
Business
Analyst:
London
and
Johannesburg,
Virgin
Cola,
Marketing
Manager
Jon
Wright's
CV
Education:
St
John's
College
Cambridge
-­‐Masters
in
Manufacturing
Engineering
Employment:
Bain
&
Company,
London
&
San
Fransisco
Richard
Reed's
CV
Education:
St
John's
College
Cambridge
-­‐
Masters
in
Geography
Employment:
DDB
London,
1995-­‐98
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
46

47. Do we have the capability to?
They thought they didn’t!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
47

48. If we outsource
could they steal
our idea or recipe?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
48

49. Research of recipe and
supplier sourcing kept
in-house
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
49

50. They outsourced
manufacturing because…..
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
50

51. Day 1: Finding the cash…..
1.
To
fund
growth
in
europe
2.
Assist
with
distribution
and
introduction
to
new
businesses
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
51

52. Debt
Vs
Equity
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
52

53. Deal with the devil or not?
Coke
invested
£30m
in
return
for
20%
equity
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
53

54. Why they went for Coke…..
Coke
has
no
decision
making
powers
Company
still
run
by
3
founders
Still
a
stand
alone
company
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
54

55. Deal with the devil or not?
Be
careful
of
conditions
attached
to
investments
Seek
counsel
-­‐
Read
the
small
print!!!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
55

56. What the banks look for
Collateral
Competence 3C
character
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
56

57. Other forms of finance to
consider
IPO
Venture
Capitalists
Private Equity
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
57

58. Finding the team
Blend of local and imported talent!
Finance
team
Marketing
team
Sales
team
Operations
team
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
58

59. Finding the team
Blend of local and imported talent!
Finance
team
Marketing
team
Sales
team
Operations
team
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
59

60.
Finding the team
IT
Advisers
Human
Coaching
for
Resources
growth
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
60

61. Finding the team
Should
new
capital
equipment
be
leased
or
purchased?
Can
any
spare
cash
be
invested
temporarily?
How
do
I
finance
my
business?
What
is
the
cost
of
this
finance?
They are not decisions that you should make without professional help.
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
61

62.
Cash flow is your bloodline
Your
cashflow
is
e.g.
A
retail
business
the
net
of
all
which
purchases
on
the
money
credit
and
is
paid
in
cash,
has
a
great
coming
in
and
advantage
in
cash
flow
out
of
your
terms.
business
daily
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
62

63.
Cash flow is your bloodline
Its all in the timing!!
Payments
Receipts
1. Expenditure
e.g.
office
supplies,
travel
1. Cash
sales
-­‐
credit
2. Overheads
sales
are
not
included
3. Salaries
(tax
and
National
Insurance)
2. New
finance
-­‐
a
one-­‐
4. Stock
off
5.
Raw
materials
3. overdraft
finance
6.
Capital
expenditure
7. Work-­‐in-­‐progress
8. Lump
sum
VAT
and
tax
payments
9. You
must
pay
interest
10. Repay
capital
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
63

64.
Tips to manage your
bloodline
1. Forecast
your
cash
flow
2. Be
prudent
3. Budget
4. Identity
major
outgoings
and
provide
for
them
5. Invoice
and
collect
your
cash
fast
6. Include
key
indicators
e.g
age
of
debtors
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
64

65. Systems considerations
Get a great IT team!
Communication
Data
Finance
storage
reporting
Systems
Servers
Computers
Security
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
65

66. Bottom-line is to leverage ….
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
66

67. Don’t lose your core
values during
growth
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
67

68. Finally…..
Growth is
expensive and
risky
fail to plan
and you will
have planned
to fail
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
68

69. Any
Questions?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
69

70. What about you?!
Strengths
Opportunities
Strengths
Opportunities
Weaknesses
Threats
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
70

71. Barriers
to
growth
in
AFRICA
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
71

72. Already doing or have
plans to business in
Africa ?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
72

73. Doing business in africa !
Payin Trading
Ease
of
Doing
Star6ng
a
Ge8ng
Protec6ng
g
Across
Enforcing
Closing
a
Economy
Business
Rank
Business
Credit
Investors
Taxes
Borders
Contracts
Business
1
Singapore
1
4
6
2
4
1
13
2
Hong
Kong
2
SAR,
China
2
6
2
3
3
2
2
15
3
New
Zealand
3
1
2
1
26
28
9
16
United
4
Kingdom
4
17
2
10
16
15
23
7
5
United
States
5
9
6
5
62
20
8
14
6
Mauri6us
20
12
89
12
12
22
61
71
7
South
Africa
34
75
2
10
24
149
85
74
8
Botswana
52
90
46
44
21
151
70
27
9
Rwanda
58
9
32
28
43
159
39
183
10
Ghana
67
99
46
44
78
89
45
109
http://www.doingbusiness.org/
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
73

74. Different
people
Different
languages
Different
currencies
Different
legal
systems
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
74

75. Red tape
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
75

76. Political risk
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
76

77. Investors
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
77

78. Technology
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
78

79. Energy
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
79

80. Data collection
Be prepared to be a bit more hands on
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
80

81. The right team
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
81

82. Here are some positives
Cheap cheap plentiful
labour
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
82

83. Here are some positives
Lovely weather
Natural energy
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
83

84. Here are some positives
still developing
huge potential
Largest market next to Asia
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
84

85. Its all in the mind
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
85

86. Bottom line …..
"Every
successful
man
I
have
heard
of
has
done
the
best
he
could
with
conditions
as
he
found
them,
and
not
waited
until
the
next
year
for
better."
-­‐-­‐
Edgar
Howe
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
86

87. Case
study:
Dr
Marcus
Manns
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
87

88. Chiropractic & wellness centers!
§ Dr
Marcus
Manns
§ Started:
2003
§ Business:
Chiropractic
&
Wellness
Centre
§ Living
in
a
shop
§ Started
on
a
bench
with
friend
made
from
shop
§ Goal:
To
raise
the
average
life
expectancy
in
Ghana
from
57
to
60
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
88

89. Growth strategies !
New
products
Existing
products
Existing
market
New
Market
American
in
Ghana
working
as
a
chiropractor!!!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
89

90. Highlights ….
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
90

91. A meeting with the health
minister….
“who
sent
you?”
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
91

92. His strategy…….
Start
small
-­‐
one
city
or
region
Word
of
mouth
referrals
from
immediate
contacts
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
92

93. He did it …..
• 5
branches
• 1st
corporate
center
launched
in
Ghana
• 2009
Humanitarian
of
the
Year
by
the
Chiropractic
Leadership
Alliance
• Featured
in
international
magazines
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
93

94. He did it …..
http://news.myjoyonline.com/health/201008/51253.asp
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
94

95. The rewards……
Plus 2 more kids!!
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
95

96. How
to
leverage
your
brand
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
96

97. 2
1.
3
7
8
4
5
6
9
10
11
Source:
TES
Connect:
Miss
C
Rawlinson

98. Manchester
Coke
United
Ford
MSN
Messenger
Adidas
Body
Shop
Cadbury
X
box
Tesco
Motorola
Mc
Donalds
Source:
TES
Connect:
Miss
C
Rawlinson

99. What
is
a
brand
?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
99

100. A
brand
is
a
set
of
associations
“ that
a
person
(or
group
of
people)
makes
with
a
company,
product,
service,
individual
or
organization.
”
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
100

101. …….branding
is
an
attempt
to
“ harness,
generate,
influence
and
control
these
associations
to
help
the
business
perform
better.
”
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
101

102. Does
your
small
business
need
a
brand
?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
102

103. Does
your
small
business
need
a
brand?
1
• How
branding
can
help
you
stand
out
from
your
competitors
• How
a
brand
can
add
value
to
your
2
offer
3
• How
your
brand
can
help
you
engage
with
customers
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
103

104. Defining your brand
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
104

105. This is Innocents’ …
Defining your brand
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
105

106. Its your turn, what's yours?
Defining your brand
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
106

107. Any
Questions?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
107

108. So what 3 things have you
learnt today?
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
108

109. Lets recap…
1. Business
life
cycle
2. Growth
strategies
3. Key
considerations
for
growth,
-­‐
funding,
-­‐
market,
-­‐
Finding
the
right
team
-­‐
DIY
or
outsourcing
considerations
4. Cash
flow
management
5. Doing
business
in
Africa
-­‐
challenges
6. Branding
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
109

110. “
If
people
knew
how
hard
I
worked
to
gain
my
mastery,
it
wouldn't
seem
so
wonderful.
”
-­‐-­‐
Michelangelo,
Artist
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
110

111. Want to know more?
http:/
/www.awovi.com
Coaching
|
Consulting
|
Accounting
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
111

112. Lets connect: !
Tel:+44
7903
888
689
griselda@awovi.com
Sign
up
for
weekly
business
tips
from:
www.awovi.com
Skype
ID:
griselda0910
Like
AWOVI's
page
:
http://www.facebook.com/pages/AWOVI
Follow
me
on
Twitter:
@GKTogobo
Connect
on
Linkedin
http://uk.linkedin.com/in/gktogobo
Copyright
2011.
AWOVI
Consulting
Ltd.
All
rights
reserved.
112