Effective Entrepreneurship

1. Chinese Entrepreneurs Global (CE Global) Effective Entrepreneurship John Caines 24th February 2010, Imperial College, London

2. Aims • Chinese Entrepreneurs Global (CE Global): • a platform for young Chinese entrepreneurs (or entrepreneurs who have a China focus)  • to share entrepreneurial ideas/information and experience worldwide • to promote entrepreneurship within the Chinese community in a global context. • to maximize the success rate of new business startups • to inspire young, professional Chinese to be entrepreneurial and enterprising. • John Caines: • to support the ALL of above by: • Sharing own experience and ideas • n.b. Not ‘answers’ so: be active listeners – question, validate, interpret

3. Agenda • My Story: • ‘Where I’m coming from’/Context • Unanticipated Connections • Lessons from my Executive phase • Lucky Breaks • From Opportunity to Focus • High Probability, Low Cost Entrepreneurship • Lessons from my Non Executive phase • Q&A

4. John Caines-The Official Story Entrepreneur Foundations Portfolio Unilever, ACMA London Business School MBA Westbury Homes CFO Chaired 8 companies; today: Zeta,Meta Morphose, e2train Chaired SWAIN Coach CEO’s + SSE Angel Investor Author/Prof Maxima Minerva JMCA 2000 1975

5. More about Maxima (l)

6. More about Maxima (ll) • Initially Systems Integrators: • American core product • Deployed in 40 countries • Then added UK Public Sector (Own IPR) business • First external funding (VC): 1997 • ‘Crossing the Chasm*’: • Customers • Competitors * Geoffrey Moore

7. The Real Story:Many bumps on the road Entrepreneur Foundations Portfolio Unilever, ACMA London Business School MBA Westbury Homes CFO Chaired 8 companies; today: Zeta, Meta Morphose, e2train Chaired SWAIN Coach CEO’s + SSE Angel Investor Author/Prof Maxima Minerva JMCA 2000 1975

8. The Real Story: LUCKY BREAKS (l) Entrepreneur Foundations Portfolio Highwaymen FC+GKH Unilever, ACMA London Business School MBA Westbury Homes CFO Chaired 8 companies; today: Zeta, Meta Morphose, e2train Chaired SWAIN Coach MD’s + SSE Angel Investor Author/Prof Maxima Turnarounds Minerva JMCA Bank Manager: Cricket Squash Club+ CVDF + Westbury 2000 1975

9. Lucky Breaks:Improving the Odds Entrepreneur Foundations Portfolio Unilever, ACMA London Business School MBA Westbury Homes CFO Chaired 8 companies; today: Zeta, Meta Morphose, e2train Chaired SWAIN Coach CEO’s + SSE Angel Investor Author/Prof Maxima Minerva * e.g. From general IT consultancy into specialist ‘productised’ solution JMCA 2000 1975 Lucky Opportunities - Source and Response Random, Random Generated, Objective

10. Importance of ‘Lucky’ Breaks-“I’m not alone” e.g. ‘Generalist’ software developer: Sources of Business Year 5 Year 3

11. From Creating Opportunities to Focus…… Focus vs Opportunity – A Key Question?

12. LESS (Market) is MORE (Effective) Entrepreneur Portfolio Chair and Coach MD’s Vertical Vertical Maxima Vertical Minerva JMCA 2000 1975

13. Go Vertical? • Narrowest viable market definition • E.G. 21- 100 of top UK fund raising charities; • E.G. Owner managed flow line production food plants in S.E. USA between $20 and $200 million p.a. • Relationship Database • Progressively learn and record everything about its members (n.b. permanent and temporary attributes) • Don’t sell; ask for information, offer non threatening real value (white papers, events, performance benchmarks, budget calculators) • Communicate regularly • Establish your Credentialsas ‘the leading expert’ in ‘xyz’for your community • Speak, write, survey • Run events where community meets • Live in yourvertical marketcommunity

14. From sustained vertical marketing • Sell from strong base of awareness/credibility/AUTHORITY • With confidence from knowledge/status/proven applicability Prepare for a medium term investment; accept early bonuses

15. The Entrepreneurial Journey* High Probability, Low Cost, Low Risk For Understanding and 'Luck' With deep expertise .... Network -> Needs Opportunities (to use Deep Expertise) Innovate ‘Offering’ Find that first customer FOCUS on tightly defined market Live in that Market -> Authority -> Leadership Branch out incrementally *Re: Knowledge based B2B service (not ‘e’ led). Low Investment; Low Risk; Ethical.

16. The Entrepreneurial Journey* High Probability, Low Cost, Low Risk Prof Selling Customer Service With deep expertise .... Network -> Needs Opportunities (to use Deep Expertise) Innovate ‘Offering’ Find that first customer FOCUS on tightly defined market Live in that Market -> Authority -> Leadership Branch out incrementally *Re: Knowledge based B2B service (not ‘e’ led). Low Investment; Low Risk; Ethical.

17. Key Lessons from my Portfolio phase • Perspective • Knowing your required outcome, being able to stand outside a situation/your organisation and ‘look back in’ • Leadership AND Management of Others and Self • Personal Qualities/Values • Techniques/Processes • Alignment/Commitment • Cornerstone team • Internal • External • ‘Less is more’ Business Plans • Wasted effort and counter productivity of overly detailed plans (published vs. input?) • Plan B (Focus vs. Opportunity) • ‘On a Page’/Weekly Reports • Maximise Delegation + Freedom of Action/ Avenue of Correctness • A ‘Bias for Action’ ;Successful Leaders ACT “as if …….” • The Value of a good Coach/Mentor/Chairman • + Training in ‘(Relevant) Networking/ ’ Professional sales capability/Negotiating skills

18. Chinese Entrepreneurs Global (CE Global),24th February 2010, Imperial College, LondonEffective EntrepreneurshipTHANK YOU For further questions and comments: John Caines jmc@eqap.com + 44 (0) 7785 253539 www.johncaines.com

19. Chief Alignment Officer?

20. My World andYours * LBS * For info: www.cotswoldshuttle.com

21. Professional Selling • To put yourself in your Buyers’ mind set • Understanding where they (and you) are in the process • To avoid wasting your time on no hopers • To avoid death by non decision • To know when and how to achieve your fair share of the value you are providing c.=Achieving your required outcome without use of formal authority