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 Didn’t
Finish Uni.”
Jack’s 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.
Jack’s 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 Anthill’s 30Under30 Publication.
Jack is also an Accredited Advisor with Succession Plus, a boutique advisory firm focused on helping SME’s
build value and exit.
www.the-entourage.com.au
2
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 Australia’s 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…
3
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 do’s and do not’s of growing a successful business.
4
1. DEFINE YOUR GROWTH PATH
– DEVELOP YOUR 12 MONTH ROAD MAP
Research has identified 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 defined LEADERSHIP IS LIKE
and articulated strategy, enables the people within a business to align their
STRAIGHTENING
thinking and head in one clear direction.
DECKCHAIRS ON THE
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 you’re taking the business for the next 12 months and beyond.
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 profitable or fully
exploited. Yes, we want to remain flexible and
open to shifts in direction, however not having a
direction in the first 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. Efficient 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 KPI’s.
This will give you the number one thing you need as a start up business; focus.
5
™DC:
™ILD
™I=G::
OVER ARCHING KPIS FOR THE NEXT 12 MONTHS
™DC:
™ILD
™DC:
™I=G::
™ILD
™DC:
™I=G::
™ILD
™DC:
FOCUS FORQUARTER 4
™ILD
™I=G::
FOCUS FOR QUARTER 1 FOCUS FOR QUARTER 2 FOCUS FOR QUARTER 3
™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 didn’t think that 8 months later I would be doing $100k per month!”
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2. MAGIC METRICS
– 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 “we’re
here to make money”, it is imperative that the business at it’s core is profitable.
What gets measured gets done. Therefore we need to measure the five most
important numbers in your business; the five numbers that equate to your profit.
‘Number of Leads’ x ‘Conversion Rate’ x ‘Number of Transactions’
x ‘Average Dollar Sale’ x ‘Margin’ = Gross Profit
“…AN INCREASE
IN EACH FIGURE
OF JUST 10%,
DELIVERS A 61%
INCREASE IN
GROSS PROFIT.”
Looking at each of these five numbers we are able to calculate our gross profit. The important thing about
identifying these figures, is that an increase in each figure of just 10%, delivers a 61% increase in gross
profit, 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 you’re a shop owner, it wouldn’t be the number of people
that walk past your shop, but might be the number of people that walk into your shop. If you’re an online business it
may not be total traffic, 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 profitability 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 first column as the figures you
project on doing over the next 12 months, in the 2nd column add 10% to each figure and work out
what your increase in gross profit will be.
Once you’ve run the numbers, outline the measures you will take to ensure the increase of 10% actually happens.
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MAGIC METRICS
Number of Leads
x
Conversion Rate
x
x
=
No. of Customers
=
=
x
No. of Transactions
x
x
x
Average Dollar Sale
x
x
=
Revenue
=
=
x
Margin
x
x
=
Profit
=
=
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3. OUTSIDE IN
– BUILD YOUR BRAND TO A POSITION OF MARKET LEADERSHIP
Your brand is not your logo. It isn’t 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.
As a start-up business, some say brand is not important and they couldn’t be
“A GOOD BRAND
more wrong. Anyone looking to build a significant 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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3. OUTSIDE IN
– 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 find out first-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 we’re offering?
2. What specifically 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 fulfill 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. Don’t 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.
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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
– 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 find 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 Australia’s
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.”
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 you’re pushing uphill.
Pushing to get leads, pushing to convince potential customer to go with you,
pushing to find partners, pushing to find growth opportunities.
After reviewing the press releases we had been putting out, Jess looked up and said very
unapologetically, “Jack there’s 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 find or
develop through research that
back up your argument? It’s not
enough to go to market with
your opinion.
3. You or your company are an
example of what you’re talking
about. Once you’ve established
you’re 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 you’re
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 you’ve built throughout the press release.
13
4. PUT YOURSELF WHERE
OPPORTUNITY CAN SEE YOU
CREDIBLE
– GAINING LEVERAGE AND CUT THROUGH IN THE MEDIA
FACTS
& STATS
L
TUA
FAC
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
– 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
The first thing to realise is that we are always selling. We’re selling our vision to
our team, we’re selling our product or service to potential customers, we’re 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.
we don’t want to be sold a car. We want to buy a house, we want to own a house, but we don’t 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, it’s 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 – What’s 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 wasn’t 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 fitness from a scale of 1 – 10?
OBJECTIVES
On a scale of 1 – 10, where do you want your health and fitness to be?
What would that look like for you, are there any areas of your health you’d like to work on?
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5. STOP TELLING, START SELLING
– HAVE YOUR CUSTOMERS BUYING MORE FROM YOU MORE OFTEN
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
specifically tailored to where they are, where they want to be and what’s 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.
STAGE
Situation
Objectives
Any Challenges
Results
EXPLANATION
Questions to determine
where your prospect is
currently
QUESTIONS TO ASK
1.
Questions to determine what
your prospect is looking to
achieve
1.
Questions to prompt the
prospect to talk about their
challenges
1.
2.
2.
2.
A tailored overview over what 1.
you do according to what the
prospect has told you they
need
2.
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6. STANDING ON THE
SHOULDERS OF GIANTS
– 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
SmartCompany’s 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 find complimentary businesses
and structure win-win deals.
When we talk about strategic partnerships we’re 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 you’re paying for marketing.
Firstly, you’re paying for it, which is never preferable. Secondly anyone who sees it knows that you’re
paying for it and the message therefore lacks integrity like the sales professional that continually starts
his sentences with “trust me”. I’d much prefer to deal with the professional that I’d been referred to by a
trusted friend.
3 KEYS TO STRATEGIC PARTNERSHIPS
IDENTIFY A
COMPLIMENTARY
BUSINESS
IDENTIFY A
COMPELLING
OFFER
IDENTIFY A
COMPELLING
REASON
17
6. STANDING ON THE
SHOULDERS OF GIANTS
– 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 benefits 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 first 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 first 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 you’re a personal trainer, what are 12 things potential clients need to know about
health and fitness? If you’re 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.
18
6. STANDING ON THE
SHOULDERS OF GIANTS
– PARTNER WITH THE GOLIATHS OF YOUR INDUSTRY TO ATTRACT MORE BUSINESS
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
– DILUTE YOUR INVOLVEMENT BY RECRUITING,
TRAINING AND DEVELOPING BUSINESS SUPERSTARS
In the lead up to Richard Branson’s 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 YouTuber’s holding their breath when Richard
was asked, “what are the three core ingredients of a successful
business?” After pausing and reflecting Richard replies, “People, people
and people.”
“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 efficient management and effective leadership.
Efficient management is about setting up a system that measures and manages the core metrics in the
business. Sales targets that are reported weekly, core KPI’s that are reported to management, financial
information that the CEO or yourself as the owner need to be aware of such as creditors, debtors and a
monthly profit 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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8. ONLINE STRATEGY
– DRIVE TRAFFIC TO YOUR WEBSITE AND OPTIMISE FOR CONVERSION
For the first time ever, businesses of all shapes and sizes are on a level playing field. 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 traffic to your website
2. Convert more traffic 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
they’re 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
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9. PUT YOUR BUSINESS ON AUTOPILOT
– DEVELOP EFFECTIVE SYSTEMS AND AUTOMATE YOUR BUSINESS
TO REMOVE YOURSELF FROM THE DAY-TO-DAY
Managing a business that doesn’t have effective systems is incredibly difficult 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 fulfilled 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:
ave
our
elf
ime
nergy and
oney
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9. PUT YOUR BUSINESS ON AUTOPILOT
– DEVELOP EFFECTIVE SYSTEMS AND AUTOMATE YOUR BUSINESS
TO REMOVE YOURSELF FROM THE DAY-TO-DAY
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.
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
– DEVELOP EFFECTIVE SYSTEMS AND AUTOMATE YOUR BUSINESS
TO REMOVE YOURSELF FROM THE DAY-TO-DAY
CASE STUDY
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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10. KNOW THE NUMBERS
– DEVELOPING ACCOUNTING AND FINANCIAL INTELLIGENCE IN YOUR BUSINESS
As a growing business, your financials are your scoreboard. Too many early stage businesses make
decisions without the required financial 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 don’t keep a financial dash-board that allows them to see how they are tracking financially.
3 DIMENSIONAL FINANCIALS
Every growing business should have the following financial statements in place:
1. A Profit & 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 Profit & 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 Profit & Loss Statement is crucial because it gives you as the entrepreneur insight into whether you made
a profit or a loss for the month, and to what extent. When you begin tracking your monthly performance, as a
manager you become significantly more effective at driving the profitability 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 let’s you know as the business manager what is your overall
position of the business and it’s 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 significant cash deficit, it may be that the business
needs to assess it’s 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 financial 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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11. CAPITAL RAISING
– 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 you’re 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.
Let’s look into the specifics 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 significant 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 defined 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?
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11. CAPITAL RAISING
– 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, you’ll 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-Do’s” in order for you to become investor ready.
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11. CAPITAL RAISING
– RAISING VENTURE CAPITAL TO ACCELERATE OR FACILITATE GROWTH IN
AN EARLY STAGE BUSINESS
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 first business using none of my own money. I bought the business for less than
1 x profit 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
– SELL YOUR BUSINESS FOR THE HIGHEST POSSIBLE PRICE
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-flow
generated by their businesses, but the value of the businesses they’ve 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.
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THE ENTOURAGE
ENTREPRENEURS PROGRAM
Would you like to achieve greater profitability in your business?
Would you benefit from reaching hundreds of thousands of
targeted prospects?
Would you benefit from being able to raise money from investors
to grow your business?
The Entourage Entrepreneurs Program is Australia’s 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.
SALEABLE
The ability to build significant value into the business
and one day achieve an exit.
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 fit, and ensuring there is an
effective online strategy in place.
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.
CLICK HERE
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 I’ve 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 financial year. We have also expanded to other retail ventures by
working alongside Schnitz.” - Sheryl Thai, Cupcake Central
GRADUATE GENERATES TENS OF THOUSANDS IN PR!
“Since coming through The Entourage PR has been so easy! We’ve 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 definitely recommend it to anyone who runs a
small business and would like to grow it!” - John Nguyen, Ticket Ninja
GRADUATE TRANSFORMS BUSINESS WITH STRATEGIC
PARTNERSHIPS!
“Prior to coming through The Entourage I knew I could be doing more to reach more
qualified 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 first-tier brands, higher conversions for our sales team and best of all lower marketing costs.” - Grant Purcell, Sydney Princess Cruises
GRADUATES WIN SEVERAL BUSINESS AWARDS DUE TO
HIGH-GROWTH!
“At the start of 2012, Michelle and I felt like we were two rats running on a treadmill
that wasn’t 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 finalists in the Telstra Business Awards.”
- Catherine Langman, Cushie Tushies
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