Archive for February, 2017

Framing Your Ideal Investor

Monday, February 27th, 2017

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“We need more investors, can you help?” is a request I hear daily from entrepreneurs and executives, co-investors and seasoned corporate finance experts. The obvious response is “yes, maybe or no”. Sometimes the obvious is not the most helpful to gain control of the conversation and kick start movement. Let’s frame the real “need”. Remove the irrelevant, focus on the relevant information. You will get dramatically quicker towards your goal.

  1. You’ve asked for capital raising assistance. Are you talking about your ability to attract follow-on investments from your current investors, new investments from your current investors, new investors for your current businesses or new investors for new businesses? What is it exactly?
  2. Then, I am curious where is your current marketing time and money being deployed? Is it being directed to all investors, or those within a specific geography, deal size, stage, investor type? There are 5 generic types of investor for you. Those that are apathetic, pretenders, aspirants, serial developers and leading-edge investors. The first three make up the majority of your audience and are the most price-sensitive, the final two are highly value-driven. Who exactly are you currently talking to? Would you recognise the differences (past relationships, capabilities, substance, style etc)? Let’s agree who you should be talking to?
  3. Then, what are the existing or anticipated needs or needs that you can create for your ideal investors that you are uniquely able to address? How is your investor better off or personally better supported after realising their investment with your help? (Financial, intellectual, social, cultural improvements)
  4. Then, who ideally has a need now or one that could be readily developed for that “return” on their investment? Who has the means and authority to approve the investment? Who can move quickly? Who is not overly prescriptive about the your “past”?
  5. How do you best reach those investors and they you? (referrals, networking, publishing, speaking, awards, media interviews etc)
  6. How do you create the ideal conditions? (eager to meet you, strong word-of-mouth)
  7. How do you create the ideal time? (no disruptions, no delays)
  8. How do you create the ideal location? (neutral, zero distractions)
  9. How do you create the strongest first impression? (impressive content, credibility, rapport)
  10. What competitive, distinctive or leading-edge offerings do you have to draw them in as a current or a future investor? (increasing investment, intimacy)
  11. Are there gaps where you need to add new offerings or to create greater differentiation (value) between existing investor offerings?
  12. What have you jointly agreed to do next? (exchange information, call, meeting)

You can see quickly here that framing your investor question, creates a dramatically sharper point on your arrow.

 

© James Berkeley 2017. All Rights Reserved.

Five Family Office Traits That Throttle Success In Portfolio Companies

Monday, February 27th, 2017

Patient private capital is arguably more in demand today as a source of growth capital than at any time this century. CEO roles in businesses backed by ultra high net worth family offices (Michael Dell’s MSD Capital, Jorge Paolo Lemann’s 3G or Azim Premji’s (founder of Wipro) Premji Investment) are arguably more in demand than at any point in recent history. Free from the demands of quarterly reporting for public stockholders and the constraints of the private equity investing model, why, here is the “perfect” career option surely? All we need to do is focus solely on growing and nurturing the business and its’ brand, take prudent risk and never have to worry about the cost or availability of capital. Wonderful. What am I missing? Actually a huge amount. In an article published today, in the market-leading Family Office media publication, Family Capital, James draws upon his experiences with over a dozen families around the globe. Learn about the Family Office/CEO relationship dynamics and the consequences that are often overlooked by many Family Offices and CEOs until it is too late.

http://www.famcap.com/articles/2017/2/27/insight-five-family-office-traits-that-throttle-success-in-portfolio-companies

© James Berkeley 2017. All Rights Reserved.

Are You Thinking What I Was Thinking

Friday, February 17th, 2017
  • In all the nonsense about fake news, are we really saying the audience is permanently stuck second-guessing themselves or the decisions that they are making are not our preferred ones? (Brexit, Trump etc.)
  • Is there anything more unappealing than awards events, where people who have been successful in a singular profession and insulate themselves from the real world are suddenly “experts” on geopolitics, leadership, social issues and so on?
  • No one knows what the Trump presidency will have in store for us but the sun will rise and set each day, businesses around the world will trade with each other and culturally diverse communities will continue to interact. Perspective is more important than ever.
  • Watching the first 10 minutes of Bridget Jones’s Baby is a reminder that gratuitous use of swear words, displays a startling lack of intellect and a sign in neon lights to “move on”. The shame is the movie ending is worth watching but I wonder how many people stuck around.
  • Why do celebrities post naked or near-naked pictures of themselves on their social media accounts? If their objective is to protect their privacy, aren’t they throwing fuel on a fire that they have limited prospect of controlling?
  • Why are we “shocked” when a politician (Andy Puzder), a celebrity (David Beckham) or a business executive’s (Vice-Chair of Samsung) leaked private messages doesn’t caste them in a flattering light? They are normal human beings with the very same weaknesses and insecurities, prone to making dumb decisions.
  • The word “great” in business, science, sport, culture and so forth is so abused when describing individual performance that moments like Tom Brady’s Superbowl climax quickly become yesterday’s news.
  • If Americans needed reminding of why infrastructure spending is a priority take a walk through JFK, LAX or Miami airport and compare the experience with that in London Heathrow, Schipol, Dubai, Hong Kong or Shanghai.
  • Do CEO’s shop their own business on a sufficiently regular basis? Here in the UK, the major banks’ knee-jerk response to internet banking has been to slash the number of branches and make it exponentially more time-consuming for their customers to perform routine tasks (cashing a cheque). It is hard to see how that is in the customers best interest?
  • There is another high street presence, which is on a “life support machine” as societal mores change and the internet disrupts the sector. Thousands of bookies or sports betting shops solely exist on high-stakes fixed odds betting terminals preying on the most vulnerable members of society. In a town of 40,000 people there might be 3 or 4, thirty years ago, today in a deprived square mile of an inner city, there is probably 25 shops.

© James Berkeley 2017. All Rights Reserved.

Interview With Me: Forbes

Wednesday, February 8th, 2017

Forbes contributor and former Reuters reporter, Ralph Jennings, interviewed James on the discrete “welcome mat” likely to be laid out by the Trump presidency for ultra high net worth Chinese entrepreneurs directly investing into the United States. Politics aside, expect pragmatism to prevail.

Why Trump Will Let China’s Smart Elite Invest In The U.S. 

http://www.forbes.com/sites/ralphjennings/2017/02/07/trump-is-open-to-investment-from-chinas-smart-elite/#4a7d1a135fcb

Social Media: The Investors Perspective

Wednesday, February 1st, 2017

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I get asked by investors about the role of social media in stimulating the profitable growth of mid-market business-to-consumer and business-to-business targets seeking growth capital. My default response is ‘why does someone want to share their video, tweet, blog? Then, how does it help them (entrepreneur) and you (investor) achieve your goals in the next 12 months?’ If you don’t have a compelling answer to that question, it is probably a waste of time and going to have zero impact on the firm’s growth. Review any YouTube, Twitter, Instagram or Facebook listing of most popular videos, tweets, images or blog posts and there is always that one thing that made people share it. That is the secret sauce. The son of one of my old bosses, Sam Tsui, an American songwriter, has had incredible success attracting 2.5 million subscribers to his YouTube channel. Sam is talented (Yale-educated). He possesses a great voice. He has learned to leverage the medium with great effect (singing duets with himself) in order to create a strong brand.

However, sharing alone is insufficient for Sam and the businesses I describe because there is no taste or noise filter, think of profane rants from soccer fans, product disasters and compromising personal photos, dressed up as “comedy” or black humour.

There needs to be a “gravity” pull for your target audience and a reason to keep returning. That requires volume, value and consistent messaging (“VVM”) to create engagement. Paid promotion works to raise “conscious” awareness of your product or service for a millisecond but it does little to stimulate someone to act (subscribe, make the call, visit the store, buy). So long as you put the marketing investment in the appropriate context, there is little to worry about but you must be willing to be intellectually honest about the results.

© James Berkeley 2017. All Rights Reserved.