THE ENTOURAGE START-UP PLAY BOOK

- 12 STEPS TO START AND GROW ANY BUSINESS

ABOUT THE AUTHOR

JACK DELOSA - A GEN Y ENTREPRENEUR AND INVESTOR
Jack Delosa is a Gen Y entrepreneur and investor and was recently described by Sunrise as The Young Aussie Millionaire That Didnt Finish Uni. Jacks career has spanned business, media and politics. From having his company listed in the Fastest 50 Start-Ups in Australia, to raising over $5m for his personal clients and acquiring businesses with his panel of investors, Jack Delosa is an emerging leader for future and existing entrepreneurs. Jacks focus is educating and developing a new breed of entrepreneur through his two business education institutions, The Entourage and MBE Education that collectively talk to over 10,000 businesses every year. Educating entrepreneurs where they are needed most, he also contributed to the development of the curriculum at the Branson Centre of Entrepreneurship in South Africa. Jack has consulted for brands such as Microsoft, Virgin and CPA on the topic of business growth and performance. Today he is a spokesperson for entrepreneurship in Australia as a regular blogger for Sydney Morning Herald, The Age, Start Up Smart, Dynamic Business Magazine and ANZ Bank. He has also been featured in BRW, Career One, Channel 7, Channel 9, Channel 10 News and Sunrise. In recognition of his successes, Jack has been listed as one of the top 10 entrepreneurs under 30 in Australia in the Dynamic Business Young Guns, and three times in Australian Anthills 30Under30 Publication. Jack is also an Accredited Advisor with Succession Plus, a boutique advisory rm focused on helping SMEs build value and exit.

www.the-entourage.com.au

THE ENTOURAGE
The Entourage was born out of a serious dissatisfaction with the traditional education system and how it was, or was not, educating entrepreneurs. We are now Australias largest community of entrepreneurs under 40, with over 10,000 members around the nation. We believe succeeding in business is hard. We believe to surround yourself with people who are smarter than you is commercially clever. And we believe in making in a difference. We also offer the most effective business education programs in Australia, as demonstrated by the following success stories

THE PROBLEM
Australian business owners list their number one challenge as growth. With consumer spending slowing, more educated customers and heightened competition, generating new business in a cluttered market space has never been harder. As a result of the current economic climate, fewer businesses are starting and more businesses are failing. According to the 2012 Dun and Bradstreet Business Start-Up and Failures Report: 1. Business bankruptcies have increased by 48% in the last 12 months alone 2. The number of businesses starting has decreased by 98% 3. Of the businesses that started between 2007 and 2009, one third have already failed Although the statistics say one thing, there are many examples of companies and Australian entrepreneurs around us who are thriving in the face of economic hardship and heightened competition. Now more than ever it is crucial for entrepreneurs to surround themselves with people who have been there done that experience, who can highlight the dos and do nots of growing a successful business.

1. DEFINE YOUR GROWTH PATH

DEVELOP YOUR 12 MONTH ROAD MAP
Research has identied that the number one difference between companies EFFICIENT that are good and companies that are great, is that the leaders of great MANAGEMENT companies have a long-term perspective. While most leaders are thinking month to month, some even week to week, the best business leaders in the WITHOUT EFFECTIVE world are thinking in terms of years and decades. Having a clearly dened LEADERSHIP IS LIKE and articulated strategy, enables the people within a business to align their STRAIGHTENING thinking and head in one clear direction. A friend and mentor of mine, Creel Price, started his business with $5,000 TITANIC. and a business partner and within 10 years had sold that business for $109 million. Creel encourages early stage businesses to have a one page, double sided business plan outlining where youre taking the business for the next 12 months and beyond.

DECKCHAIRS ON THE

Without a clear road-map we can become victims of The Entrepreneurs Curse wanting to do everything now. Rather than staying the course we chase every new opportunity that comes our way, before the core business is protable or fully exploited. Yes, we want to remain exible and open to shifts in direction, however not having a direction in the rst place is the fastest way to get to nowhere. As a start-up or growth stage business, effective leadership is paramount. Times are tough, the business model is changing and your team is under pressure. Effective leadership is not about overplanning or over-analysing, it is about setting a clear direction so that you and everyone else on the ship knows what direction you are heading. Efcient management without effective leadership is like straightening deckchairs on the Titanic. Focus more on leadership than you management in the early years. TO DO: On the next page start by identifying what are the three most important things for you to achieve in the next 12 months, and then what are the top 3 priorities for you to focus on each quarter to achieve your 12 month KPIs. This will give you the number one thing you need as a start up business; focus.

OVER ARCHING KPIS FOR THE NEXT 12 MONTHS

DC: ILD I=G::

FOCUS FOR QUARTER 1 FOCUS FOR QUARTER 2 FOCUS FOR QUARTER 3

DC: DC: DC:

FOCUS FORQUARTER 4

DC:

ILD

ILD

ILD

ILD

I=G::

I=G::

I=G::

I=G::

1. DEFINE YOUR GROWTH PATH

DEVELOP YOUR 12 MONTH ROAD MAP

CASE STUDY NATHAN ACQUILINA

MASON CONCRETE GROUP ENTOURAGE ENTREPRENEURS PROGRAM GRADUATE $100,000 per month in 8 months $164,000 per month in 12 months 8 months ago I started off Mason Concrete Group with just 2 staff and myself. Through what I have learnt from The Entourage, I now employ 13 people and have up to 5 teams operating daily with 4 trucks and one Ute in action. Before I went into business I would imagine how awesome it would be to make $30k in one month, and I certainly didnt think that 8 months later I would be doing $100k per month!

 THE 5 FIGURES IN YOUR BUSINESS THAT DEFINE YOUR PROFITABILITY

Too often start-up businesses become unclear about their primary objective. Although your company needs to have a vision and a mission greater than were here to make money, it is imperative that the business at its core is protable. What gets measured gets done. Therefore we need to measure the ve most important numbers in your business; the ve numbers that equate to your prot. Number of Leads x Conversion Rate x Number of Transactions x Average Dollar Sale x Margin = Gross Prot

2. MAGIC METRICS

AN INCREASE IN EACH FIGURE OF JUST 10%, DELIVERS A 61% INCREASE IN GROSS PROFIT.

Looking at each of these ve numbers we are able to calculate our gross prot. The important thing about identifying these gures, is that an increase in each gure of just 10%, delivers a 61% increase in gross prot, demonstrating the importance of making never ending small improvements. Number of Leads: This is the volume of leads you expect to generate in a year. Leads are the people that have demonstrated some interest in what you do, for example if youre a shop owner, it wouldnt be the number of people that walk past your shop, but might be the number of people that walk into your shop. If youre an online business it may not be total trafc, but total opt ins. Generally people need to take a certain action before they become a lead. Conversion Rate: How many leads do you expect to convert into paying customers? Increasing your conversion rate from lead to paid customer is a very leveraged way to increase your protability without actually doing any extra activities. Number of Transactions: How many times approximately will the average customer transact in one year? Maximising repeat business is a very leveraged way of adding more value and further monetizing existing customers. Average Dollar Sale: What is the dollar value of your average sale? Idenitfying ways to upsell and cross-sell means better utilizing each transaction without adding on extra work. Margin: What is your gross margin as a percentage? By implementing effective systems and continuously reviewing your costs, you can increase your margin and enjoy the savings going direct to the bottom line. TO DO: Fill out the Magic Metrics Table on the next page. Fill out the rst column as the gures you project on doing over the next 12 months, in the 2nd column add 10% to each gure and work out what your increase in gross prot will be. Once youve run the numbers, outline the measures you will take to ensure the increase of 10% actually happens.

MAGIC METRICS
Number of Leads x Conversion Rate = No. of Customers x No. of Transactions x Average Dollar Sale = Revenue x Margin = Prot x x

 BUILD YOUR BRAND TO A POSITION OF MARKET LEADERSHIP

Your brand is not your logo. It isnt your tagline or your business cards. Branding is not intelligent design, catchy jingles or well placed advertising. Your brand is the feelings your customers associate with you and your business. Therefore your brand is not what you say it is, but what they say it is.

3. OUTSIDE IN

As a start-up business, some say brand is not important and they couldnt be A GOOD BRAND more wrong. Anyone looking to build a signicant business with a good reputation and a strong following, needs to have a strong brand. A strong brand is crucial STARTS WITH THE in attracting new customers, strategic partners, media, investors and potential CONSUMER business partners. Many start-up businesses lack the level of consumer insight and market understanding to execute a growth strategy with any real accuracy. The number one objective of a start-up business should be to learn about the marketplace it operates in and work out how to sell to that marketplace. How do we do this? We speak to the marketplace.
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 BUILD YOUR BRAND TO A POSITION OF MARKET LEADERSHIP

A good brand starts with the consumer. The concept of outside in dictates that we go outside of ourselves and the business to speak with consumers to nd out rst-hand what they want. Imagine if you had the answers to the following question direct from your target market: 1. Is there a need for what were offering? 2. What specically is the need, is it different from how we initially assumed? 3. Is this something the market is happy to pay for? 4. What would be the triggers that would cause someone to buy from a brand offering this product or service? 5. What would they look for in a brand in this space? 6. Is there anything they would want to receive on an ongoing basis to help them with this need? 7. Where do they currently go to fulll this need? 8. What does the current provider / solution do really well? 9. What does the current provider / solution do poorly? 10. What characteristics would they want to see, hear and feel in a brand offering this product or service? Understanding and fully digesting the answers to the above questions ensures we go to market with the highest possible chance of success as we already know what to be, do and say to hit the trigger points of our consumer. The only caveat to this is that consumer insight cannot replace thought leadership. It was Henry Ford that said, had I of asked my target market what they wanted, they would have told me a faster horse. Yes we need to understand our consumer and know how to speak them, however this cannot replace innovation and risk-taking. Once we have the market research, it is then time to apply our own thought leadership and develop innovative ways to go to market. Dont be a follower. Blandness will kill you. TO DO: Do one thing that helps you better understand your target market. This may be an online survey with a gift on the thank you page, a focus group of between 8 14 people, or calls to existing / potential customers which give you a greater understanding of what is going to make people connect with your brand and buy from you.

3. OUTSIDE IN

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4. PUT YOURSELF WHERE OPPORTUNITY CAN SEE YOU

GAINING LEVERAGE AND CUT THROUGH IN THE MEDIA

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4. PUT YOURSELF WHERE OPPORTUNITY CAN SEE YOU

The difference between having no exposure and being visible in the media is like night and day. When you have no exposure it feels like youre pushing uphill. Pushing to get leads, pushing to convince potential customer to go with you, pushing to nd partners, pushing to nd growth opportunities.

GAINING LEVERAGE AND CUT THROUGH IN THE MEDIA

WHEN YOU ESTABLISH A PERSONAL BRAND AND When you establish a personal brand and business brand that is visible in the media, opportunity starts to nd you. BUSINESS BRAND I remember at the age of 21 having a glass of wine with a good friend and mentor of THAT IS VISIBLE mine, Jess Logan. Jess is the founder of BrandsRPeople2 and is one of Australias IN THE MEDIA, best brand and PR strategists for small to medium sized businesses in Australia. At the time of the meeting I was getting nowhere with the media, no publications OPPORTUNITY wanted to run anything we put out and it seemed like PR was reserved for those who STARTS TO FIND could pay for it. YOU.
After reviewing the press releases we had been putting out, Jess looked up and said very unapologetically, Jack theres one thing you need to get; no one cares about Jack. Get the fuck over yourself. Too many press releases go out and the focus is on the individual or the business and therefore the story does not have enough familiarity to appeal to a wide audience. I was certainly guilty of this as Jess so kindly pointed out.

A GOOD PRESS RELEASE NEEDS TO BE RELEVANT, CREDIBLE AND REAL AND WILL HAVE THREE THINGS:
1. Leverage off an existing issue what issue is currently in the media that is relevant to the story you want to put out? You want an issue that is current, credible and even better, controversial. 2. Facts and stats. What facts and stats can you nd or develop through research that back up your argument? Its not enough to go to market with your opinion. 3. You or your company are an example of what youre talking about. Once youve established youre talking about a current issue, that is backed up by facts and stats, you can then insert yourself or your business into the press release as an example of the argument youre constructing.

It is important that any press release does not advertise your company or have a call to action like, go to www.yourcompany.com this will take away from the credibility youve built throughout the press release.
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4. PUT YOURSELF WHERE OPPORTUNITY CAN SEE YOU

GAINING LEVERAGE AND CUT THROUGH IN THE MEDIA

FACTS & STATS

FAC L TUA

CREDIBLE

YOU/ YOUR COMPANY

REL EVA NT

CURRENT ISSUE

TO DO: Write a press release using the above structure and circulate to media publications that may be interested.

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5. STOP TELLING, START SELLING

The rst thing to realise is that we are always selling. Were selling our vision to our team, were selling our product or service to potential customers, were selling a project to potential joint venture partner or the future potential of our business to a supplier. Nothing happens in business until a sale is made.

HAVE YOUR CUSTOMERS BUYING MORE FROM YOU MORE OFTEN

NO ONE LIKES TO BE SOLD TO. However, no one likes to be sold to. We want to buy a car, we want to own a car, but
we dont want to be sold a car. We want to buy a house, we want to own a house, but we dont want to be sold a house. Professional sales people have mastered the art of selling less, to enable their customers to buy more. How do we do this? By asking the right questions. In any sales situation, if you say something the prospect can question it. Where as if they say it, its true. Mastering sales is about determining what you need to ask in order to help your customers buy. The conversation structure we use to do this is called SOAR: Situation Where are they now relative to what you propose to do for them? Objectives Where do they want to be? Any Challenges Whats stopping them from getting there? Results Now that we have all the above information, we have permission to offer a solution and how we can help them achieve the desired result. Greg Stark, a personal trainer and one of our Scalable and Saleable Program Graduates implemented a sales system in his team that ensured he wasnt seen by the consumer as just another personal trainer, but as a tailored solution to their unique challenges. I had three personal trainers with 30 clients in Sydney, in under 12 months we have grown to 100 active members, 12 trainers, a CEO and a sensational support team. Greg says. The sorts of questions Greg would ask a prospect who was interested in personal training would be: SITUATION How would you rate your health and tness from a scale of 1 10? OBJECTIVES On a scale of 1 10, where do you want your health and tness to be? What would that look like for you, are there any areas of your health youd like to work on?

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5. STOP TELLING, START SELLING

ANY CHALLENGES Have you tried achieving those objectives in the past? What do you believe is preventing you from achieving those goals? RESULTS Now Greg has the information required to outline a Health and Fitness Strategy for the prospect that is specically tailored to where they are, where they want to be and whats been stopping them from getting there a conversation far more engaging than the generic sales pitch they just heard from the gym around the corner. TO DO: List out two questions you could ask at each stage of the SOAR process in order to better understand the needs of your prospect.

HAVE YOUR CUSTOMERS BUYING MORE FROM YOU MORE OFTEN

STAGE Situation

EXPLANATION Questions to determine where your prospect is currently

QUESTIONS TO ASK 1. 2.

Objectives

Questions to determine what your prospect is looking to achieve

1. 2.

Any Challenges

Questions to prompt the prospect to talk about their challenges

1. 2.

Results

A tailored overview over what 1. you do according to what the prospect has told you they need 2.

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 PARTNER WITH THE GOLIATHS OF YOUR INDUSTRY TO ATTRACT MORE BUSINESS

Too many start-ups and growth stage businesses have an unleveraged way of developing new business. Going from meeting to meeting, prospect to prospect, revenue generation is tedious, unleveraged and inhibits the growth of the business. When I look back on my business ventures and compare the ones which went terribly relative to the ones that worked out, the number one difference is the businesses that went well, had a leveraged approach to developing new business. In 2010, one of my companies was listed in the Fastest 50 Growing Start-Ups in Australia in SmartCompanys Fast 50. In the year leading up to this award, our only marketing activity was creating strategic partnerships with people that could drive us business. Firstly it was myself and eventually it was our entire team of Business Development Managers, all having one goal, to nd complimentary businesses and structure win-win deals. When we talk about strategic partnerships were talking about creating win-win relationships with other companies that can drive us business on a continual basis. The problem with paying for marketing is that youre paying for marketing. Firstly, youre paying for it, which is never preferable. Secondly anyone who sees it knows that youre paying for it and the message therefore lacks integrity like the sales professional that continually starts his sentences with trust me. Id much prefer to deal with the professional that Id been referred to by a trusted friend. 3 KEYS TO STRATEGIC PARTNERSHIPS

6. STANDING ON THE SHOULDERS OF GIANTS

IDENTIFY A COMPLIMENTARY BUSINESS

IDENTIFY A COMPELLING OFFER

IDENTIFY A COMPELLING REASON

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 PARTNER WITH THE GOLIATHS OF YOUR INDUSTRY TO ATTRACT MORE BUSINESS

1. IDENTIFY A COMPLIMENTARY BUSINESS. To do this ask yourself 3 questions: a. Where do my customers go before they buy my product? b. Where do my customers go after they buy my product? c. Who services the same target market but offers a different product or service? 2. IDENTIFY A COMPELLING REASON. What are the reasons this company should enter into a partnership with you? What benets can you give them? Could reciprocate any marketing efforts, offer them sponsorship, offer them advertising on your website, promote them to your clients? 3. IDENTIFY A COMPELLING OFFER. The objective of a strategic partnership is to have the partner market your product or service to their list of clients. In order for this piece of marketing to have traction, the offer to the end user needs to be irresistible. The days of selling to consumers on the rst touch point are over. We are now in an era of relationship marketing therefore we need to offer consumers something for free or heavily discounted in order to engage them with the rst touch point. This might be something educational like a free report, a white paper or a video series. What are 12 things your customers need to know about what you do? Not your product, but about your solution. For instance, if youre a personal trainer, what are 12 things potential clients need to know about health and tness? If youre a marketing agency, what are 12 things your prospective clients need to know about cutting through the clutter and standing out from the crowd? These are the educational points you can build some educational products on. TO DO: Identify one complimentary business, one compelling reason and develop your compelling offer. Then approach the potential partner and begin the conversation as to how you may work together.

6. STANDING ON THE SHOULDERS OF GIANTS

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 PARTNER WITH THE GOLIATHS OF YOUR INDUSTRY TO ATTRACT MORE BUSINESS

6. STANDING ON THE SHOULDERS OF GIANTS CASE STUDY

GREG STARK BETTER BEING PERSONAL TRAINING ENTOURAGE ENTREPRENEURS PROGRAM GRADUATE

Grew client base by 300% in one year Strategic Partnerships Lulu Lemon, Lorna Jane, Endota Spa At the time I began with The Entourage, I had 3 personal trainers with 30 clients in Sydney. In 12 months we have grown to 100 active members, 12 trainers, a CEO and a sensational support team. We have grown from personal training to now delivering group exercise and corporate health across Sydney and Melbourne.

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7. PEOPLE, PEOPLE, PEOPLE

In the lead up to Richard Bransons 60th birthday, the team at Virgin publicized a competition where fans could submit questions and Richard would answer 60 questions on camera, on the day of his birthday. You could hear millions of YouTubers holding their breath when Richard was asked, what are the three core ingredients of a successful business? After pausing and reecting Richard replies, People, people and people.

DILUTE YOUR INVOLVEMENT BY RECRUITING, TRAINING AND DEVELOPING BUSINESS SUPERSTARS

YOUR INVOLVEMENT IN THE BUSINESS SHOULD BE DILUTED.

As an entrepreneur, it should be your aim to remove yourself from the day-to-day operations of the business as much as possible. Although this may not be possible in the beginning, as you run around doing everything, as the business matures, your involvement in the running of the business should be diluted. This is done through efcient management and effective leadership. Efcient management is about setting up a system that measures and manages the core metrics in the business. Sales targets that are reported weekly, core KPIs that are reported to management, nancial information that the CEO or yourself as the owner need to be aware of such as creditors, debtors and a monthly prot and loss statement. To set all of this up is no small task. In fact it is in implementing this overall system and staying disciplined with ensuring the reports reach the necessary people, that most entrepreneurs fall over on the path to building a valuable business. TO DO: Develop what you want your organizational chart to look like in 12 months from now.

(YOU & YOUR ADVISORS)

BOARD

CEO

SALES

OPERATIONS

FINANCE

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 DRIVE TRAFFIC TO YOUR WEBSITE AND OPTIMISE FOR CONVERSION

For the rst time ever, businesses of all shapes and sizes are on a level playing eld. Thanks to the internet, anyone with a good idea and the drive to implement can compete against multinational companies from their garage. Any small business can out-market, out-educate and even out-perform multi-billion dollar companies provided they have the right strategy on the web. There are three core skills early stage businesses must master in order to win online: 1. Drive more trafc to your website 2. Convert more trafc on your website 3. Systemise and automate the process as much as possible The effectiveness of your web strategy will depend on how well you can educate and build a relationship with people leveraging the technologies of the web. TO DO: Identify one way you can build better relationships with prospective and existing clients through your website. This might be: 1. Offering a complimentary report on the ten things prospective clients need to know about the solution theyre seeking ie: 10 Most Common Mistakes Made When Searching for a Personal Trainer 2. Offer a video series educating your prospective clients on what they need to know 3. Tweaking your product in a way that allows prospective clients to Opt In for something for free or to trial your product before they buy

8. ONLINE STRATEGY

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9. PUT YOUR BUSINESS ON AUTOPILOT

Managing a business that doesnt have effective systems is incredibly difcult and adds unnecessary pressure to an already stressful environment. Things like having each team member knowing their role in the company, having tasks completed in a timely manner, having clients that are happy due to fullled promises are all signs of strong systems within an organisation. As the entrepreneur, if you want to dilute your involvement in the business over time, the strength of your systems across each and every task in the business will enable that process of you removing yourself from the day-to-day operations. A simple structure for writing systems in a small business is to have you and your team write every system in the following format:

DEVELOP EFFECTIVE SYSTEMS AND AUTOMATE YOUR BUSINESS TO REMOVE YOURSELF FROM THE DAY-TO-DAY

ave our elf ime nergy and oney

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9. PUT YOUR BUSINESS ON AUTOPILOT

What is being done explain the task Why it is being done explain why it is important that this system is followed Who is doing it Use the Job Title, not an individuals name, individuals will come and go When does it need to be done What are the triggers that alert the appropriate person this task needs to be done How do we do the task List is dot points what are the steps to completing this task. This section can also be accompanied by a video that can be shot with an iPhone or Jing (www.techsmith.com/jing) if recording a task on a computer screen. TO DO: Identify one task in your business that could be systemised. Write a system using the above format.

DEVELOP EFFECTIVE SYSTEMS AND AUTOMATE YOUR BUSINESS TO REMOVE YOURSELF FROM THE DAY-TO-DAY

What is being done:

Why it is being done:

Who is doing it:

When does it need to be done:

How we do the task (dot points):

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9. PUT YOUR BUSINESS ON AUTOPILOT CASE STUDY

DEVELOP EFFECTIVE SYSTEMS AND AUTOMATE YOUR BUSINESS TO REMOVE YOURSELF FROM THE DAY-TO-DAY

LIZ ATKINSON ZEST POSSIBLITIES ENTOURAGE ENTREPRENEURS PROGRAM GRADUATE DOUBLED IN SIZE TOOK HER COMPANY INTERNATIONAL Not only have my companies almost doubled in size, The Entourage has helped me think bigger and I am now more focused on my long term goals. Since joining the Entourage, due to the systems we have implemented Zest Possibilities has gone International, and I have started working on a new book to encourage young female entrepreneurs.

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 DEVELOPING ACCOUNTING AND FINANCIAL INTELLIGENCE IN YOUR BUSINESS

As a growing business, your nancials are your scoreboard. Too many early stage businesses make decisions without the required nancial information to make informed decisions. When something is observed and measured, we tend to place more emphasis on improving it. However the majority of small businesses dont keep a nancial dash-board that allows them to see how they are tracking nancially. 3 DIMENSIONAL FINANCIALS Every growing business should have the following nancial statements in place: 1. A Prot & Loss Statement. This is a statement that outlines the recorded revenue, cost of sales, and operational expenses of a company for the reported period. A Prot & Loss Statement should be produced monthly by a book-keeper and can be done automatically using any good accounting system such as MYOB, Xero or Sassu. A Prot & Loss Statement is crucial because it gives you as the entrepreneur insight into whether you made a prot or a loss for the month, and to what extent. When you begin tracking your monthly performance, as a manager you become signicantly more effective at driving the protability of the business. 2. A Balance Sheet. A Balance Sheet is a statement of the companies assets, liabilities and capital at a given point in time. A Balance Sheet is important because it lets you know as the business manager what is your overall position of the business and its net-worth on paper. Rarely will this be equal to the value someone is willing to pay for the business, however it is a good indicator as to the value you are building in the business. 3. Cash-Flow Forecasts. A Cash-Flow Forecast is a forward looking budget for the business and an estimate as to what the business is going to earn, and what the business is going to spend over the forecast period. For small businesses, generally one year of forecasts is more than enough as in times of highgrowth projecting revenues and expenses beyond 12 months can become guess work. A Cash-Flow Forecast will let you know whether you will have a positive or negative cash position in the coming year and to what extent. If there is going to be a signicant cash decit, it may be that the business needs to assess its payment terms, borrow some money or take on an investor to ride out that period. TO DO: Talk to an Outsourced CFO about the sort of nancial intelligence your business needs and talk to a book-keeper about handling your invoicing, bank reconciliation any other tedious tasks that are taking your time. A good book-keeper can be engaged for $30-40 per hour and will free you up to spend more time on bringing in more business.
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10. KNOW THE NUMBERS

 RAISING VENTURE CAPITAL TO ACCELERATE OR FACILITATE GROWTH IN AN EARLY STAGE BUSINESS

Early stage businesses raise capital for one of two reasons: 1. They want to create more demand and accelerate growth 2. They want to facilitate existing demand and manage existing growth Either way, if youre aim is to build a serious business, chances are at one point throughout your growth curve raising money from external investors may make good business sense. There is a real misconception among entrepreneurs when pitching for capital that the number one ingredient an investor wants to see is a great return. Not true. Most smart investors are asking themselves three distinct questions, in a very particular order, every time they are assessing an opportunity. Understanding these questions and in which order to address them is the key to a good pitch. THE THREE QUESTIONS ON EVERY INVESTORS MIND 1. Am I going to lose my money? 2. When am I likely to get my money back? 3. Am I likely to make any money? The main challenge most people face is that they jump straight to addressing Question 3 before addressing Questions 1 and 2. Lets look into the specics of each questions: 1. Am I going to lose my money? a. What is the experience of the entrepreneur? b. Has the entrepreneur engaged mentors and advisors with signicant industry and business experience? c. To what degree has the business achieved proof of concept? 2. When am I likely to get my money back? a. Is there a clearly dened exit strategy? b. What companies are likely to buy this business? c. What is the time line and how committed to the exit is the entrepreneur?

11. CAPITAL RAISING

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 RAISING VENTURE CAPITAL TO ACCELERATE OR FACILITATE GROWTH IN AN EARLY STAGE BUSINESS

3. Am I likely to make any money? a. What are the milestones achieved to date? b. Where is the growth opportunity in this business? c. What relationships or contracts has the business got that make the growth plan realistic? If you can tick each of these boxes through thorough preparation and a calculated pitch, youll be well on your way to getting the interest in the investor. TO DO: Go through and answer these three questions for yourself, this will help you identify a road map of To-Dos in order for you to become investor ready.

11. CAPITAL RAISING

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 RAISING VENTURE CAPITAL TO ACCELERATE OR FACILITATE GROWTH IN AN EARLY STAGE BUSINESS

11. CAPITAL RAISING CASE STUDY

BRAD MCHUGH AWE ELECTRICAL ENTOURAGE ENTREPRENEURS PROGRAM GRADUATE BOUGHT HIS FIRST COMPANY AT 19 DOUBLED REVENUE & CLIENT BASE OVERNIGHT Within two months of joining The Entourage, at the age of 19 I had found, negotiated and bought my rst business using none of my own money. I bought the business for less than 1 x prot and it immediately doubled my revenue and client base. We are now looking at our 2nd acquisition and are optimistic about an exit in 3 years. Thanks to Jack Delosa and The Entourage for helping me make it happen.

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12. DEVELOP A PATH TO EXIT

Janine Allis sells 65% of Boost Juice for $65 million. Sir Richard Branson invests $10 million into creating Virgin Blue only to list it on the Australian Stock Exchange three years later for $2.3 billion. Creel Price starts, builds and exits a business for $109 million in under 10 years. Dean McEvoy and Justus Hammer start and exit Spreets in 10 months for $40 million. Domenic Carosa takes his company public at the age of 25. What do all of these entrepreneurs have in common? The understand end-game. Most of the worlds most successful entrepreneurs have built their wealth not through the cash-ow generated by their businesses, but the value of the businesses theyve built and being able to monetise this value at a point of exit. To maximize your exit price you need to identify several potential acquirers of your business. If you can have 3 or 4 businesses or individuals each competing for the purchase of your business, this will drive the price higher and ensure you get the best deal. TO DO: Identify 3 businesses that may purchase your business in the next 3-5 years, and write a list of what they will be looking for in a business like yours.

SELL YOUR BUSINESS FOR THE HIGHEST POSSIBLE PRICE

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THE ENTOURAGE ENTREPRENEURS PROGRAM

Would you like to achieve greater protability in your business? Would you benet from reaching hundreds of thousands of targeted prospects? Would you benet from being able to raise money from investors to grow your business?
The Entourage Entrepreneurs Program is Australias leading education program for entrepreneurs under 40. Presented by a range of world-class entrepreneurs, this is a rare opportunity to learn from those with been there done that experience, while creating relationships with a community like-minded business owners.

High-level entrepreneurs all over the world share two skill-sets:

SCALABLE The ability to achieve rapid growth through the early stages of a business. This involves creating partnerships with big brands to leverage through their clientele, PR and utilizing the media to build your business, ensuring the brand has a message-to-market t, and ensuring there is an effective online strategy in place. SALEABLE The ability to build signicant value into the business and one day achieve an exit. This involves being able to raise money from investors in order to accelerate growth, potentially acquiring complimentary businesses, and developing a path to exit which sees you be able to cash out of the opportunity at the highest possible price. These are the skill-sets of highly successful entrepreneurs all over the world.

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to Learn More and Apply for The Entourage Entrepreneurs Program.

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PAST GRADUATES
GRADUATE GROWS TO $2M REVENUE!
Doing The Entourage Entrepreneurs Program is probably the best thing Ive ever done. in just over one year we have built Cupcake Central to a wellrecognised brand within Melbourne with two retail stores in prominent locations, with a projected turnover of $2 million this nancial year. We have also expanded to other retail ventures by working alongside Schnitz. - Sheryl Thai, Cupcake Central

Since coming through The Entourage PR has been so easy! Weve been featured in the MX, news.com.au, Telegraph.com.au, Shoestring Launch, Anthill Online, Dynamic Business Magazine and many more outlets. This exposure would have costed tens of thousands of dollars in advertising and much much more in building our brand name! A big thanks to the Entourage...I would denitely recommend it to anyone who runs a small business and would like to grow it! - John Nguyen, Ticket Ninja

GRADUATE GENERATES TENS OF THOUSANDS IN PR!

Prior to coming through The Entourage I knew I could be doing more to reach more qualied prospects. Through The Entourage I learnt the step-by-step system of how to approach complimentary businesses to set up strategic partnerships. Within a month I had created strategic partnerships with other companies to drive us more business. This resulted in a huge increase in our bottom line, an increase in the number of cruises we run, strong relationships being built with some rst-tier brands, higher conversions for our sales team and best of all lower marketing costs. - Grant Purcell, Sydney Princess Cruises

GRADUATE TRANSFORMS BUSINESS WITH STRATEGIC PARTNERSHIPS!

At the start of 2012, Michelle and I felt like we were two rats running on a treadmill that wasnt going anywhere. As two working Mums our available working ours are limited, so we needed to work SMARTER not HARDER. Enter some fantastic advice from Jack Delosa and our advisor Frank Choy In the last 6 months, we have signed on 5 new commission-only based Sales Reps, 15 new retail stockists, and increased our monthly sales by 25%. We have also won several business awards are now nalists in the Telstra Business Awards. - Catherine Langman, Cushie Tushies
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GRADUATES WIN SEVERAL BUSINESS AWARDS DUE TO HIGH-GROWTH!