BVP- Expanding Your Business

WHO IS BVP?BVP are Business Venture Partners specialists. Experts in helping businesses expand through Joint Venture Partnerships.  We specialise in identifying and helping Small to Medium enterprises who are well positioned and highly motivated to expand their current operations without risking all that they have achieved up to this point in time.

Whether you are interested in opening one additional branch or 20 of them throughout Australia, BVP is equipped to offer SME businesses an avenue for expansion that does not send them backwards in an effort to move forwards.

THE BVP TEAM

Darren Brown – Chief Executive Officer  As a business development professional with a degree in sales and marketing, Darren has had over 20 years experience in marketing, sales, sales team management, strategic planning and negotiation. He has lead teams of up to 200 people. Darren is target driven with a business consultative approach. He is also an energetic, high impact individual who enjoys the challenge of hunting out new opportunities with current and new clients. Proven ability to open, develop, and grow new territories and markets. Highly adept at launching new business units, with history of increasing sales revenue Experience in building and maintaining client relationships: Able to prepare and deliver presentations, create proposals and negotiate contracts.  Highly skilled in coordinating projects, “The Idea’s Man of the Group”

THE BVP TEAM

Gerard Crothers – Managing Director  Gerard has had 40 years of Financial Planning and banking experience, Gerard brings to the group a wealth of experience in this field Gerard true strength for the group is his ability to articulate and format company documentation and corporate governance for our clients  Gerard is a highly motivated individual that beings a lifetime of business skills to the group-Gerard is our “Compliance Man of the Group”

THE BVP TEAM

Max Pride – Chairman and CFO Max comes from a background of Corporate Management playing a major roll with the Fairfax Group and Ampol over the last 40 years  Max is an Accountant and brings to the group a wealth of knowledge in the Accounting Field, Max delivers our clients sound financial advice on all issues  Max’s corporate background has given him the great ability to lead the company from the Chairman’s roll and look the big picture facing SME businesses today“The Finance Man of the Group”

Our Team continued …….

Our strategy for consistently delivering results at the highest of levels is derived by our desire to surround ourselves with the best people.

We are very proud of our talented group of experienced professionals who thrive on delivering outstanding results to our clients.

Our people are previous business owners, managers and corporate executives who can readily identify with the challenges that our clients face in the bid to obtain business excellence.

It’s this level of expertise and understanding that allows BVP to tailor the ideal solutions strategy that meets our clients needs. Whether it is recruitment, marketing, lead generation, CRM Management, Finance or best practice accounting systems that you need, our team is ready to work with you.

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Perth

Hobart

Newcastle Central

Coast Townsville Gold Coast Brisbane Sunshine

Coast NT ACT

BVP – REGIONAL BRANCHES

Business expansion is a daring step that many small enterprises undertake each year. Done properly, business expansion can spur greater growth and increase market share; however done incorrectly, it can destroy your business and corrupt your existing resources.

The decision to extend the scope of your business needs to be a result of thoughtful consideration given to various factors, including the financial, logistical and even your emotional readiness. It is a decision not to be treated lightly.

Be Prepared- "Expanding a business doesn't just mean grappling with the same problems on a larger scale, there will be a whole new set of challenges-in essence, a very different business.

The key to growing your small business is to do it the smart way.

BUSINESS GROWTH

Has your business shown consistent profits over the last three to five years? This indicates that strong performance is not a result of a single profitable period and is representative of the regular performance of the business over a sustained period of time.

Has your business captured and retained a good percentage of the market? Maintaining your market share customer base indicates that your business has a group of loyal customers and that there is a greater share of the market that can be captured through expansion.

Thriving sales, high cash flow and a steady base of routine customers are generally considered tell-tale signs that your business is ready for expansion. There are however specific signs to look out for before moving ahead:

IS YOUR BUSINESS READY TO EXPAND?

Does your business have strong and consistent cash flow? It is important to have access to working capital when entering a period of expansion as you will likely incur an increase in expenses. Additionally, the regular expenses of the businesses will still need to be met during expansion.

Are you prepared to distribute control? Most avenues of expansion will result in a business owner having less hands-on control and assuming a more strategy-driven position. Keep this in mind when embarking upon the expansion process. If you are not ready to delegate management or pass on trade secrets your chances of a successful expansion are lessened.

A simple rule of thumb – Expansion timing is everything. Only expand when you have identified untapped opportunities that can benefit your business.

Market readiness continued…..

• Growth through acquisition of another existing business • Offering franchise ownership to other entrepreneurs• Licensing of intellectual property to third parties• Establishment of business agreements with distributorships • Pursuing new marketing routes (such as catalogues and online initiatives)• Substantial cash investments to support growth strategies• Employee stock ownership plans• Public stock offerings• Joint Venture Partnerships

• DO NOTHING and wait for consumers to see the light!

WHAT OPTIONS DO YOU HAVE?

MOST POPULAR MODELS ?Most small to medium sized businesses have looked seriously at expansion at one time or another. In many cases, due to the avalanche of challenges, expansion has been forced to happen in a restricted way that is limited to the options below; 

o A new branch office employing staffo A commission only structureo A Licensing or Franchise model

ALL HAVE POTENTIAL RISKS ASSOCIATED WITH THEM

Establish a new branch and employ staffo A risky choice when it comes to expanding. This option is very

resource intensive with a high potential for failure due to the costs involved and the fact that staff will always have the “job mentality”

o Trusting new management teams that will be somewhat alienated from you, the owner can be risky if they are not taking ownership with the required motivation and mental state.

o Your time which was devoted to head office will now be split between home and the new branch meaning that the personal impact that you have in the head office will be somewhat diminished.

Commission only sales peopleo First off, while there are many reasons for taking a commission only

sales job, not needing the income from a full-time one is high on the list. Another reason is not really needing a job but wanting to be semi-employed. Put another way, these are people who want to be employed but who don’t want to work. You may already have a few of those people now!

o Commission only sales people tend to be more committed to themselves than the company therefore the new branch maybe compromised or short lived. It is also difficult to build a large organisation under this model

Licensing/Franchisingo Certainly the best of the 3 options as you do have “buy in” from the

people involved, but there are some negatives to this structure;• Initial documentation and compliance in expensive• The larger the organisation grows the hard it is to control

Licensees/Franchisors• The process is long and drawn out with disclosure documents,

agreements and “cooling off’ periods• Collecting royalties can be time consuming and expensive• The Licensing/Franchise fee can be financially difficult• Finally when this model goes bad it can go very bad!

JVP’s are Joint Venture Partnerships formed between SME business owners wanting to expand and individual parties wishing to invest in a win/win business opportunity.

It is a business agreement in which parties agree to develop a new entity with new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets

The BVP model sees an equity contribution from the new partner in the form of capital and the clients contribution comes from the value associated with the I.P (Intellectual Property) attached to the business.

The JVP’s are legalised business entities that are supported by Joint Venture Agreements and all the necessary documentation required by law.

INTRODUCING JVP’S

WHAT IS THE BVP FORMULA?PHASE 1

The growth process begins with understanding our clients short and long term goals, needs and wants. A process quickly followed by the need to conduct honest and transparent assessments of strengths and weaknesses

Gaining an understanding about how to best develop the structures and processes that will further enhance the organization's core capabilities.

Identification of overall capital requirements for the successful expansion

Developing business plans that are in line with the overriding goals, culture and objectives for our clients long term success

Development of exit plans for owners that are realistic and achievable

BVP use its vast recruiting knowledge and expertise to identify individuals who are at a point in time they are looking for opportunities to display their skills through other avenues.

Once all quality assurance checks are completed, cultural fits are analysed along with appropriate financial securities.

With all boxes ticked, including a meet and greet with the client, the JV partnership has reached the formal documentation stage.

All legal documentation is developed and formalised as per agreed terms between all parties.

Offices if required are identified and management programs are installed depending on the structures put in place by the client.

On average, JVP’s will take between 1 and 2 months to formulate.

PHASE 2

CLIENT

• Have always envisaged business expansion

• Have looked at Franchising and licensing

• Want to grow with limited risk

• Have been shocked by the need for large capital outlays

• They have a fantastic product or service

• They have less than 20 employees

• Profitable with very little debt

• Lacking capital to expand quickly

JV PARTNER

• Experienced professional who does not see long term gains stuck in a “job”

• In their time of life where opportunities start to get fewer and fewer

• At the peak of their working career

• Looking to maximise their personal R.O.E

• Happy to invest in their own success pathway

THE JVP SNAPSHOT

Your business can develop quicker, reach a wider market and earn more money.

You can grow without borrowing money or seeking outside investment.

You can access new markets and distribution networks.

You gain access to additional resources, such as technology and specialist staff.

This structure offers protection by sharing risks with your venture partners.

Only a temporary commitment is required, as joint ventures often only last for a particular project or goal.

It can take time to build a strong and trusting relationship between you and your business partners, taking into account different work cultures and management styles.

Time must be spent clearly communicating the goals of the venture to avoid problems with business partners.

There is the risk of conflicting objectives between the business partners.

Partners may commit uneven levels of investment, assets or expertise to the project.

Equal leadership, direction and support may not be provided by the partners at the beginning of the venture.

ADVANTAGES DISADVANTAGES

SUMMARYImagine finding the best sales manager you could find and rather than paying a wage, he/she pays you for the right to develop a branch. A branch that becomes a new business entity with all profits shared between the new joint venture partners…… that’s how it works! In essence, Business Venture Partners expand businesses by building new branch offices in such a way that they become self-funding, robust, professional and most importantly, successful.

BVP offers a complete package that combines our expertise in recruitment, marketing, lead generation, CRM systems, capital raising, management and account systems.

WHY US? Business Venture Partners has the team that helps clients get businesses

fit and ready to expand through the supply of a large sales network

With offices and staff based around Australia, BVP services our clients in the following ways;o Motivational network meetingso Sales training courseso One on one mentoring and training as requiredo Trouble shooting and conflict management as requiredo Exit management and replacement if requiredo Business mentoringo Cash flow projectionso Financial planningo Succession planning

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“We help find the funding, create the sales structure and build the most motivated sales team our clients have ever seen”

1. Are you a business owner?2. Is growing your business something you have always wanted to do?3. Are the logistics involved with growing your business holding you back?4. Has the investment needed for growth dented your enthusiasm?5. Is franchising an exercise that does not sit well with you?6. Do you have a product or service that deserves to reach a wider

audience?7. Are you frustrated at not being able to find key staff?8. Do you often wish that staff cared as much about your business as you

do?9. Is the dream still alive to grow your business?10. Do you need an exit strategy that sees the business still growing?

CAN THE BVP GROUP HELP YOU?

10?

THE NEXT STEP

Peter BennettDirector    BVP Queensland Pty Ltd T/As BVP Sunshine Coast ACN- 158 243 522 AddressInnovation Centre Sunshine Coast,90 Sippy Downs Drive, Office: +61 7 564 11101Sippy Downs QLD 4556 Mobile: +61 419 784 994AUSTRALIA  Email: [email protected]