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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
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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
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 FTSE high 6732 June 07 pre credit crunch FTSE low 3287 March03 .com bust + Iraq war FTSE low 3500 Mar 09 • 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
Strategy Growth Current Markets Adjacent Markets New Markets New Geographies Headcount =60+
Brand External Awards PR / Social Media Networking Website Client perception Candidate perception Investor perception Values
Culture Internal Induction Training Systems Appraisals Career Progression ISO & IIP Values Vision
Team Management Skin in the game Stable Future proof Comp Control Next Gen Standards
Earnings Strength Visibility Quality Contract : Perm PSL : Spot Diversification
Back Office Discipline Forecasting Fin Management Debtor days Cash-flow Infrastructure Tax planning Documentation COO!!
Secrets of Silicon Valley Secrets of Silicon Valley: What Everyone Else Can Learn from the Innovation Capital of the Worldby 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?
