An update on the POEM framework plus some extras which I used for a discussion at Covenant University for a GoGetters Entrepreneurial Workshop in February 2014

1. Startups & Angels
A Conversation with GoGetters
by
H. Tomi Davies
© 2014
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2. Our Conversation Today
• Who is TomiDee?
•Failure is acceptable!
•Your business POEM®
•Due Diligence
• My 3 Passions
© 2014
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3. about.me - Harry ’Tomi Davies (TomiDee)
Profile
• Futurist Techpreneur in love with all things tech and Africa...especially mobile & Nigeria!.
• Raison d'être: Helping people “Use Technology Better!”
Background
• Career with FTSE 100 level organisations in the UK, USA and Africa (IBM, Total, Marks &
Spencer, Ernst & Young, Sapient Inc., Mobitel)
• Co-author of business bests-sellers “Corporate Bold”(2011) and “Cracking the Success
Code” (2012).
• Recognised as an expert in IT-led business transformation
!
Currently
• Publisher of SupaStrikas, Co-founder of Laptops4Learning, Chairman of Mobile Monday
Nigeria, Angels Champion of Lagos Angel Network
• Director at Sproxil Nigeria, Strika Entertainment, TechnoVision Communications, Baas
Technologies, PeoplePrime, 1st Veritas and MBO Capital.
• CEO of TechnoVision, a Technology Services organisation based in Lagos, Nigeria
© 2014
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4. You can Fail, but Don’t Quit!
When things go wrong as they sometimes will,
When the road you're trudging seems all up hill,
When the funds are low and the debts are high
And you want to smile, but you have to sigh,
When care is pressing you down a bit,
Rest if you must, but don't you quit.!
Life is strange with its twists and turns
As everyone of us sometimes learns
And many a failure comes about
When he might have won had he stuck it out;
Don't give up though the pace seems slow -
You may succeed with another blow.!
Success is failure turned inside out -
The silver tint of the clouds of doubt,
And you never can tell just how close you are,
It may be near when it seems so far;
So stick to the fight when you're hardest hit -
It's when things seem worst that you must not quit!!
© 2014
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5. Failed! Thomas Edison & Colonel Sanders
• Click to edit Master text
styles
He failed 10,000 times trying to invent
the light bulb and after the 10,000th
time; he succeed. Today, his company
General Electric is one of the most
powerful companies in the world.
© 2014
Started out as an entrepreneur at the age of
66; when he developed a “Chicken recipe”
business idea. He took this business idea to
different restaurants and he was turned
down over a 1,000 times. These rejections
formed the foundation on which Kentucky
Fried Chicken was built
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6. Failed! J.K. Rowling & Michael Jordan
Rejected repeatedly by nearly a dozen
publishers she went on to become a
billionaire author of Harry Potter.
“Never be ashamed! There’s some who
will hold it against you, but they are not
worth bothering with.”
© 2014
'I have missed more than 9,000 shots in
my career. I have lost almost 300 games.
I have failed over and over and over again
in my life. And that is why I succeed.‘
Went on to become an NBA star and
some say the best basketball player of all
time.
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7. Failed! Richard Branson & Oprah
Dropped out of school at 16, was
described as having 'poor academic
performance' and has dyslexia. His first
business (student magazine) failed
despite showing strong potentials. He
has gone on to create the Virgin empire
and is worth over $4 billion
© 2014
Once said to be 'unfit for TV' and fired
from her job as a television presenter. Do
the one thing you think you cannot do.
Fail at it. Try again. Do better the second
time. The only people who never tumble
are those who never mount the high wire.
Today she’s worth over $3 billion
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8. Failed! Larry Ellison
He dropped out of University twice; and bounced from job to job without a
direction. His adopted father told him that he would not amount to anything in life.
He started Oracle from scratch and went on to become one of the richest drop out
billionaires in the world and the third richest American, with an estimated net worth
of US $28 billion
© 2014
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9. 1st Some Definitions...
• Entrepreneur
• A warm-blooded animal, male or female, who feeds on no
sleep, limited resources and a passion for change: aka,
any person who creates a company around his or her
vision of changing the world around them.
!
• Wealth
• a great quantity or store of money, valuable possessions,
property, or other riches.
• the state of being rich; prosperity; affluence.
!
• Vision
• a vivid, imaginative conception or anticipation
© 2014
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10. Next, The Context
• People invest in people, not just ideas - Investors buy into other
people first, then their story. That story when told must contain the
information necessary to quickly engage and retain the interest of any
potential investor
!
• Because investors (and partners) are interested in learning about the
business of the company first and foremost, Entrepreneurs need to
focus on how their product or service makes money by solving a
problem rather than just how delivery of the business solution is
achieved.
!
• The POEM ® framework provides Entrepreneurs with a model that
meets this need and which they can use day to day knowing you
need more than a brilliant idea or fantastic innovation to start and
sustain a successful technology business – it takes a clear vision!
© 2014
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11. The POEM ® Framework
PROPOSITION
ORGANISATION
ECONOMICS
MILESTONES
© 2014
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12. P is for PROPOSITION - what’s the value?
•Your vision should deliver a value proposition which
provides clear descriptions for the:
• Functions & Features on Offer (Customer
experience)
• Target Market(s), Segment(s) & Customer
Profile(s)
• Derived Benefits of Offer - WIIFM
e
is
• Alternatives and Differentiation
onc r lling
a e
. C Cle mp le ual
• Regulation & Compliance
1 .
ib t
2 . C o e d e p te d
• Competition & Substitution
3 . Cr nc re ize t
al
4 . Co nc om ten ion l
5 . Co st is sat ia
• Inputs & Dependencies
6 . Cu ns er erc
7 . Co nv m
• Elevator Pitch….90 second guide
o m
8
. C . Co
9 0
1
© 2014
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13. O is for ORGANISATION – who and how?
• PEOPLE
•
BOARD OF DIRECTORS/ADVISORS
• EXECUTIVE
•
•
•
•
•
•
•
•
•
MANAGEMENT
• SENIOR
• MIDDLE
• JUNIOR
•
CAREER PROFILE
EXPERTISE & EXPERIENCE
PERSONAL VISION/ MISSION/ OBJECTIVES
CAPABILITIES & COMPETENCIES
• TECHNOLOGY
•
© 2014
HUMAN CAPITAL
RESEARCH
ANALYSIS & DESIGN
PROGRAMMING & DEVELOPMENT
TESTING
COMMISSIONING/LAUNCH
•
•
•
•
MARKETING
SALES
CUSTOMER SUPPORT
CORPORATE AFFAIRS
• SELL
STAFF
•
•
•
•
• PROCUREMENT & LOGISTICS
• VENDORS
• MAKE
TECHNICAL
COMMERCIAL
OPERATIONS
• NON-EXECUTIVE
•
• PROCESS
• BUY
CLIENT
TGY
•
SERVER
• INTIMATE, PERSONAL, DESKTOP • APPLICATION, INFRASTRUCTURE,
SECURITY, SERVICES
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14. E is for ECONOMICS – show me the money!
CASHFLOW STATEMENT
PERIOD 1
P&L STATEMENT
ROI - NPV - IRR
INFLOWS
!
REVENUE
1,000,000
OUTFLOWS
FORECAST
Less DIRECT COST OF SALES
ASSUMPTIONS
700,000
GROSS MARGIN
!
ACTUAL
500,000
Less OPERATING EXPENSE
PERFORMANCE
EBITDA (Profit or Loss)
- EXPENSES
800,000
- INTEREST
70,000
- REVENUE
1,000,000
- LOANS & FACILITIES
- SHAREHOLDERS EQUITY
- REPAYMENTS
400,000
NET FLOW
930,000
•
•
•
•
•
$ SIZE?
% SHARE?
% INFLATION?
DEMAND
TRENDS
© 2014
300,000
700,000
500,000
200,000
BALANCE SHEET
ASSETS
FIXED ASSETS
LIABILITIES
1,300,000 PAYABLES
CASH & BANK
MARKET(S)
PERIOD 1
300,000 LOANS
RECEIVABLES
300,000
700,000 EQUITY
TOTAL ASSETS
2,300,000 PAID UP CAPITAL
700,000
1,000,000
RETAINED EARNINGS
300,000
TOTAL LIABILITIES &
EQUITY
2,300,000
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15. M is for MILESTONES – where are you…going?
• SEED
• GROWTH
• CONCEPT DEFINITION
• BUSINESS MODEL
DEVELOPMENT
• FOUNDER, FRIENDS &
FAMILY (FFF) FUNDING
!
• START-UP
• REVENUE, CUSTOMER & PROFIT
GROWTH
• INCREASED MARKET SHARE
• VC/PE FUNDING
!
BANKABLE BUSINESS PLAN
• ESTABLISHED
•
• ESTABLISHED CUSTOMER
BASE
• FULL-TIME OPERATIONAL
STRUCTURE
• ANGEL/VC FUNDING
• COST & PRODUCTIVITY
MANAGEMENT
• NEW PRODUCTS/SERVICES
• SELF FUNDING
• EXIT
• ACCEPTABLE BUYER WITH AGREED VALUATION
© 2014
… and when will you get there?
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16. On Due Diligence…
!
“Due Diligence” is a systematic
collection of relevant business
information for the purpose of
analysing the business, its vision,
current status, practices, processes
and policies in order to form an
opinion for an investment decision.
© 2014
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17. DD Business Information Required
PROPOSITION
!
• Market
analysis
• Customer
analysis
•
•
!
Sales analysis
!
Competition
!
• Pricing/Profit
margin
•
!
• Organisation
Chart
!
•
ORGANISATION
!
Regulation
!
• Suppliers
© 2014
!
JD, R&R
!
• Processes
-Sales
-Marketing
-Procurement
-Logistics
-Customer
-Staff
!
• Technology
(Users, Front &
Back end, INF)
ECONOMICS
!
• (Current &
Historical
Performance)
!
• Projections
(3-5 years)
• Balance
Sheet
• Cash Flow
• Profit & Loss
• Taxation
• ROI/NPV/
IRR/ROCE
MILESTONES
!
• Market
strategy
!
• Business
development
!
• Customer
growth
!
• Operation
growth
!
• Stage
Funding
expectations
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18. Fact-based Opinion from DD
MARKET
PROPOSITION
Product/Service Line, Competitive advantage, Market
Growth potential
MANAGEMENT
ORGANISATION
Entrepreneurial Vision, Track record of success,
Management depth, Operational capability
FINANCES
ECONOMICS
Revenue Strengths, Credible future profitability,
Acceptable Cash needs
EXIT
MILESTONES
© 2014
Feasible strategy, Good exit routes, Feasible –
follow on investment, Satisfactory exit value
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19. CONCLUSION
• The POEM ® framework provides Entrepreneurs with a model that meets
the need for organising the business of their company in a form which they
can use on a day to day basis.
• Each Entrepreneurs determines the level of detail required for each
particular situation they find themselves in be it operational, marketing,
selling, soliciting for funding or recruiting resources POEM ® provides
guidance for execution while ensuring that all critical information are
included in consideration
• Because investors don’t only come to organised pitch events and you may
run into them anywhere, a simple mental model such as POEM ® that can
be backed up with as much documentation as required gives you edge in
todays world where a growing number of entrepreneurs are competing for a
shrinking pool of capital.
© 2014
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20. Laptops4Learning
Laptops4Learning (L4L) is a non profit Social Enterprise that secures
support from donors, corporate sponsors, school communities and
Government authorities for the use of screen-based technologies as a
teaching and learning tool to Provide disadvantaged Nigerian primary
school children and their teachers access to screen-based technologies
in a suitably enabling, safe and secure Environment.
!
!
!
!
!
!
!
For additional information visit http://l4ln.org/
© 2014
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21. Mobile Monday Nigeria
Mobile Monday (MoMo) is the world’s leading community of mobile industry
visionaries, developers and influential’s with a presence in over 100 countries
fostering cooperation and cross-border business development. Mobile Monday
Nigeria is organised by a group of dedicated volunteers to drive the development
of the mobile ecosystem in Nigeria through sponsored virtual and live networking
events, workshops, seminars and educational activities targeted at the designer
and developer communities to share ideas, best practices and trends from
global markets.
!
!
!
!
For additional information visit http://www.momonigeria.org/
© 2014
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22. The Lagos Angels Network (LAN)
The Lagos Angel Network is a newly formed association committed
to providing early-stage seed funding and mentorship in Nigeria.
Members acknowledge that anything they invest in companies
through the LAN is money that they can afford to lose in its entirety.
However, they recognise they may also earn a healthy return on
their investments while supporting the development of the Nigerian
economy by helping new technology-driven business owners grow
and strengthen their start up businesses.
!
!
!
!
For further info email : contactus@lagosangelnetwork.com
© 2014
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23. QUESTIONS?
THANK YOU!
eMAIL: td@tvcng.com
Twitter: @TomiDee
Skype: TomiDee
© 2014
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