The Six Minute StrategistBusiness Strategy, Frameworks for Growth
© John colley 2013
http://jbdcolley.com
Six Minute StrategistSix Minute
Strategy Analyser
StrategyAnalyser
Where do YouWant to Be?
Future ImpliedMetrics?
Strategic Options?
Growth Ratesand Deltas
Current Metrics?
Where are You Now?
© John colley 2012
http://jbdcolley.com
http://jbdcolley.com
Where are You Now?Where do You Want to Be?
3 or 5 YearsHow are You Going
to Get There?
© John colley 2013
http://jbdcolley.com
Definition of Business Insanity“Doing the same this year
as you did last yearand expecting a
different result”
© John colley 2013
http://jbdcolley.com
Step 1Three Questions
Last Year’s Revenues?Last Years Profit Before Tax?
No of Employees?
© John colley 2013
http://jbdcolley.com
© John colley 2013
Revenues
No. of Employees
PBT
Strategy AnalyserStep 1
Step 2
Step 3
Step 4
Step 5
Step 6
http://jbdcolley.com
Step 2Choose 3 or 5 years?Forecast Revenues?
Forecast Profit Before Tax?Forecast No of Employees?
© John colley 2013
http://jbdcolley.com
© John colley 2013
Revenues
No. of Employees
PBT
Revenues
No. of Employees
PBT
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Strategy Analyser
http://jbdcolley.com
Step 3Historic Key Metrics
Profit Margin (PBT/Rev)Productivity (Rev/No of Emp)
Valuation (PBTxMultiple)
© John colley 2013
http://jbdcolley.com
Valuation MultiplesRev <£5m = 4x
Rev >£5m<£15m = 5xRev > £15m = 6x
(These are estimates)
© John colley 2013
http://jbdcolley.com
© John colley 2013
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Revenues
No. of Employees
PBT
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Strategy Analyser
http://jbdcolley.com
Step 4Forecast Key Metrics
Profit Margin (PBT/Rev)Productivity (Rev/No of Emp)
Valuation (PBTxMultiple)
© John colley 2013
http://jbdcolley.com
© John colley 2013
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Strategy Analyser
http://jbdcolley.com
Step 5Growth Rates
3 or 5 year Historic GrowthRequired Growth
What is the Difference?
© John colley 2013
http://jbdcolley.com
Step 5Change in Profit Margin?Change in Productivity?
Change in Valuation?What is the Difference?
© John colley 2013
http://jbdcolley.com
© John colley 2013
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Required - Historic
Historic Growth Rate Required Growth Rate
Time in Years
Change in Profit Margin
Change in Productivity
Change in Valuation
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Strategy Analyser
http://jbdcolley.com
Step 6What are you going to do?
Only Three Choices1. Organic Growth
2. Acquisition3. Raise Capital
© John colley 2013
http://jbdcolley.com
© John colley 2013
Step 1
Step 2
Step 3
Step 4
Step 6
Step 5
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Required - Historic
Historic Growth Rate Required Growth Rate
Time in Years
Change in Profit Margin
Change in Productivity
Change in Valuation
What do You Need to Do? M&ACapitalOrganic
Strategy Analyser
http://jbdcolley.com
Challenge Your Own Assumptions...3 or 5 yearsRealistic?
Achievable?Test Scenarios
© John colley 2013
http://jbdcolley.com
© John colley 2013
Step 1
Step 2
Step 3
Step 4
Step 6
Step 5
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Required - Historic
Historic Growth Rate Required Growth Rate
Time in Years
Change in Profit Margin
Change in Productivity
Change in Valuation
What do You Need to Do? M&ACapitalOrganic
Strategy Analyser
http://jbdcolley.com
Work Sheet
© John colley 2013
http://jbdcolley.com
© John colley 2013
Step 1
Step 2
Step 3
Step 4
Step 6
Step 5
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Revenues
No. of Employees
PBT
Profit Margin
Productivity
Valuation
Required - Historic
Historic Growth Rate Required Growth Rate
Time in Years
Change in Profit Margin
Change in Productivity
Change in Valuation
What do You Need to Do?M&ACapitalOrganic
Strategy Analyser
http://jbdcolley.com
Can I Help YouToday?
© John colley 2013
http://jbdcolley.com
Can I Help You?More ComprehensiveStrategy Analysis?
Contact [email protected]
07813 672 612
© John colley 2013
Top Related