By that other one I mean the common concept that either you are in business to make money or you are there to serve a higher calling to staff, society and the environment. Lord Browne - Group Chief Executive of BP - in a lecture to MIT suggested that actually these are too simple. Pure profit is short term by nature and the higher calling is too often a PR gloss put on top or even distracting such as the "Triple Bottom Line".
The more complex idea is that a good business fulfills it's purpose "by supplying goods and services at a price people can afford in a manner which makes the activity sustainable".
So where does that leave the (serial) entrepreneur?
Tuesday, 23 June 2009
Monday, 15 June 2009
Growth - now?
Interesting discussion at a workgroup this week, which followed a theme from MDHUBAlpha. What is a serious expectation of growth for our businesses both in the current climate and going forward. We have seen MDHUB members achieving serious growth rates of 50%-150% per annum over recent years but is it realistic to hit an exit target of £5m-£10m over say, a five year period.
Many entrepreneurs have set up businesses in the last 10 years with a very specific "build and sell" model, I'm pretty sure that what would have to have been extremely strong business models, specialist market niches or just brilliantly marketed companies will now have to be truly exceptional businesses to fulfill that dream over the next few years.
The other angle of the discussion was not new, but perhaps being re-visited, the changes needed to move from a £500k turnover company to a £10m turnover company. The key thoughts being: How do we keep the atmosphere, the small company enthusiasm, the personal customer service and what kind of management team do we need? With perhaps a more focused question of - am I really the MD to do this move?
I know one MD who was absolutely rigid about his abilities - he could take a company from £5-£15m but after that he wasn't the right person. He had achieved it at least a couple of times but I could never quite get at what ingredients worked and what was missing.
So is the time right for "build and sell" or do we need something else?
Many entrepreneurs have set up businesses in the last 10 years with a very specific "build and sell" model, I'm pretty sure that what would have to have been extremely strong business models, specialist market niches or just brilliantly marketed companies will now have to be truly exceptional businesses to fulfill that dream over the next few years.
The other angle of the discussion was not new, but perhaps being re-visited, the changes needed to move from a £500k turnover company to a £10m turnover company. The key thoughts being: How do we keep the atmosphere, the small company enthusiasm, the personal customer service and what kind of management team do we need? With perhaps a more focused question of - am I really the MD to do this move?
I know one MD who was absolutely rigid about his abilities - he could take a company from £5-£15m but after that he wasn't the right person. He had achieved it at least a couple of times but I could never quite get at what ingredients worked and what was missing.
So is the time right for "build and sell" or do we need something else?
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