Archive for August, 2016

What Does A Family Office Do

Wednesday, August 31st, 2016

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Spending time trying to define the differences between a “Private Office”, a “Private Investment Office”, a Single or Multi “Family Office”, is largely an exercise in futility. They are all labels that started with clarity but overtime have diffused into a host of different products, services and relationships serving the needs of HNW and UHNW individuals. There is no faculty. Today, there are hedge funds (SAC), private equity firms (Blue Pool Capital), investment firms (George Soros), lifestyle and concierge service firms, lawyers (DLA Piper), accountants (KPMG), search firms and a host of others morphing into one or more of these labels.

If you are establishing such an organisation today, seeking to utilise their services or do business with them, it is far more valuable to powerfully state, “we are an expert in …..” or ask “what exactly are you an expert in?” A great response, “We are the market-leading expert in accelerating the preservation of UHNW clients’ inter-generational wealth and the generation of income to support their lifestyle needs.” A lousy response, “we are an expert in financial and non-financial needs of UHNW clients including….(a laundry list of services)”

The listener wants to quickly know why THEY should give you the time of day. If you cannot peek their interest quickly, perhaps you are a commodity they can do without or you don’t value your own services highly? Which is it?

© James Berkeley 2016. All Rights Reserved.

Idiotic Management: British Telecom (BT)

Tuesday, August 30th, 2016

A call from a Jennifer Williams at BT, our broadband service provider’s security department, alerts us to suspicious activity. The call request details send us to their main customer telephone (30 minute wait) or their chat line function, hosted in some far fetched location, where you spend 30 minutes trying to get someone, who can input your account details accurately.  If BT’s management are truly serious about lowering the costs of fraud, and improved customer care, they would do well shopping their own business processes. They make the keystone cops look like MI5.

© James Berkeley 2016. All Rights Reserved.

Fishing For Investors

Monday, August 22nd, 2016

 

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In August the docksides and inlets in North Norfolk are lined with kids casting bait (bacon or salami are highly effective) on primitive fishing lines to catch the abundant crabs that lie close to the surface. Perhaps the crabs know the odds are stacked in their favour or they are so greedy but little boys and girls pluck them out at will before returning them to the sea.

What would entrepreneurs and executives give for a similar ease with the capital raising process? The reality today is that unless you are a well known “brand” with a powerful investor network, raising money is hard. Investors can be very choosy, they largely congregate in locations with big clusters of potential businesses to invest in and they are drawn to people, who have demonstrably made investors serious cash on cash on multiple occasions.

1. What are you doing to dramatise your value to your ideal investor(s) and the singularity of your investment proposition? (Use of powerful language, a peer of opinion makers, harnessing evangelists, creating excitement and so forth)
2. Why invest in you? (“Hot” proposition in the investor’s sweet spot)
3. Why invest now? (Brief window of opportunity)
4. Why invest in the manner you are proposing? (Special circumstances).

Time is the most precious commodity. You cannot rely on the kids fishing line, you must caste a fishing net to attract potential investors. You need to know where the high potentials reside. You need compelling “bait”. You need multiple conversations to be constantly moving in parallel, not sequential stages. You need to be constantly replenishing the investor pipeline with high quality leads. This is not a kids sport, this is your wealth at stake. Time to get serious.

© James Berkeley 2016. All Rights Reserved.

Abandoning Growth

Thursday, August 18th, 2016

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I am at a zoo in the English countryside with my daughter, watching rare breeds of monkeys play and eat. Once they have chewed on the best bits of lettuce they flick them off their perch onto the floor so they can make room for new supplies. They don’t hoard or persist in trying to nibble away at food that has passed its’ “sell by” date or they are bored with.

Yet in many expansive mid-market and larger businesses I see huge amounts of time invested and energy deployed in processes and activities that have long ceased to be effective. Managers lack sufficient focus, organisation, and the volition to make “tough calls” on what to abandon.

The consequence is that they are becoming less productive, they are self-limiting their value to their clients and the organisation’s growth potential.

Assuming there is no “spare capacity” in your business, in order to ascend to the next level of growth:

  1. What exactly are you going to stop doing or do less of this month and the month thereafter?
  2. When are going to schedule the time and where are you going to implement that?
  3. How will you measure progress and success?
  4. Who must be held personally accountable to ensure your goal is met?

In my own business, I have consciously made a decision to abandon working for owners of startups and early stage businesses unless they past a stringent “smell test”. I will only offer strategic advice on dramatic growth opportunitiest to investors with substantial means and managers of businesses with upwards of £50M enterprise value from 1st September. I plan to keep a bi-weekly calendar. Account for the time saved (emails not read, calls not scheduled, meetings not set, and follow up not required) in rejecting the offers and the increased productivity earned.

I currently receive 3+ requests a week from entrepreneurs and small business owners, particularly seeking help attracting growth capital. They have an unquenchable appetite for advice but by and large, a poverty mentality in paying for it and investing in their own performance. Sorry I need to better invest my time if I am to be more valuable to clients, who want to go where I want to go.

If monkeys can make that simple determination without fear, why cannot intelligent managers and ambitious organisations?

© James Berkeley 2016. All Rights Reserved.


 

 

 

 

Trusting Your Fundraising Technique

Tuesday, August 16th, 2016

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The crucible of the Olympics separates those, who implicitly trust their technique honed over early mornings and thousands of hours of practice and those, who fear the headlines that will be writ large about their despair. The “mental toughness” commentators talk about is really a mindset issue. A “fear of failure” cripples talent. A “no fear” mindset allows talent to flow.

Owners and top managers in growth businesses don’t have to wait four years for their golden opportunity. Rarely is your failure final, nor are you likely to be written off publicly.

Why cannot you walk into that investor meeting knowing you have tremendous value to bring and do your absolute best without fear? Why cannot you exude implicit confidence in your recommendations and demonstrate absolute credibility? If you knew you couldn’t fail what would you say to the current or prospective investor and how would you direct the conversation to convert the opportunity?

Many entrepreneurs and executives tell me hundreds of reasons why the investor passed on the opportunity. Most have reasonable language techniques but they don’t trust themselves in the moment. They freeze, their mind becomes scrambled and they default to “selling” (proving their worth) rather providing value (showing their worth) to the other party. When their conversation is subordinated to a sales pitch, which is quickly rejected, it is game over.

Believe in your skills and expertise implicitly and maintain a mindset that failure is temporary at worst. Your audience want you to succeed. They are investing 60 minutes of time because they believe it will be time well spent building a formal or informal relationship with you.

© James Berkeley 2016. All Rights Reserved.