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Startups & Angels

A Conversation with GoGetters by

H. Tomi Davies

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Our Conversation Today

• Who is TomiDee?

•Failure is acceptable! •Your business POEM® •Due Diligence

• My 3 Passions

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about.me - Harry ’Tomi Davies (TomiDee) Profile • Futurist Techpreneur in love with all things tech and Africa...especially mobile & Nigeria!. • Raison d'être: Helping people “Use Technology Better!” Background • Career with FTSE 100 level organisations in the UK, USA and Africa (IBM, Total, Marks &

Spencer, Ernst & Young, Sapient Inc., Mobitel) • Co-author of business bests-sellers “Corporate Bold”(2011) and “Cracking the Success

Code” (2012). • Recognised as an expert in IT-led business transformation !

Currently • Publisher of SupaStrikas, Co-founder of Laptops4Learning, Chairman of Mobile Monday

Nigeria, Angels Champion of Lagos Angel Network • Director at Sproxil Nigeria, Strika Entertainment, TechnoVision Communications, Baas

Technologies, PeoplePrime, 1st Veritas and MBO Capital. • CEO of TechnoVision, a Technology Services organisation based in Lagos, Nigeria

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You can Fail, but Don’t Quit!When things go wrong as they sometimes will,When the road you're trudging seems all up hill,When the funds are low and the debts are high And you want to smile, but you have to sigh,When care is pressing you down a bit,Rest if you must, but don't you quit.!Life is strange with its twists and turnsAs everyone of us sometimes learnsAnd many a failure comes aboutWhen he might have won had he stuck it out;Don't give up though the pace seems slow -You may succeed with another blow.!Success is failure turned inside out -The silver tint of the clouds of doubt,And you never can tell just how close you are,It may be near when it seems so far;So stick to the fight when you're hardest hit -It's when things seem worst that you must not quit!!

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• Click to edit Master text styles

Failed! Thomas Edison & Colonel Sanders

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He failed 10,000 times trying to invent the light bulb and after the 10,000th time; he succeed. Today, his company General Electric is one of the most powerful companies in the world.

Started out as an entrepreneur at the age of 66; when he developed a “Chicken recipe” business idea. He took this business idea to different restaurants and he was turned down over a 1,000 times. These rejections formed the foundation on which Kentucky Fried Chicken was built

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Failed! J.K. Rowling & Michael Jordan

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Rejected repeatedly by nearly a dozen publishers she went on to become a billionaire author of Harry Potter. “Never be ashamed! There’s some who will hold it against you, but they are not worth bothering with.”

'I have missed more than 9,000 shots in my career. I have lost almost 300 games. I have failed over and over and over again in my life. And that is why I succeed.‘ Went on to become an NBA star and some say the best basketball player of all time.

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Failed! Richard Branson & Oprah

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Dropped out of school at 16, was described as having 'poor academic performance' and has dyslexia. His first business (student magazine) failed despite showing strong potentials. He has gone on to create the Virgin empire and is worth over $4 billion

Once said to be 'unfit for TV' and fired from her job as a television presenter. Do the one thing you think you cannot do. Fail at it. Try again. Do better the second time. The only people who never tumble are those who never mount the high wire. Today she’s worth over $3 billion

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Failed! Larry Ellison

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He dropped out of University twice; and bounced from job to job without a direction. His adopted father told him that he would not amount to anything in life. He started Oracle from scratch and went on to become one of the richest drop out billionaires in the world and the third richest American, with an estimated net worth of US $28 billion

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1st Some Definitions...

• Entrepreneur • A warm-blooded animal, male or female, who feeds on no

sleep, limited resources and a passion for change: aka, any person who creates a company around his or her vision of changing the world around them. !

• Wealth • a great quantity or store of money, valuable possessions,

property, or other riches. • the state of being rich; prosperity; affluence. !

• Vision • a vivid, imaginative conception or anticipation

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Next, The Context

• People invest in people, not just ideas - Investors buy into other people first, then their story. That story when told must contain the information necessary to quickly engage and retain the interest of any potential investor !

• Because investors (and partners) are interested in learning about the business of the company first and foremost, Entrepreneurs need to focus on how their product or service makes money by solving a problem rather than just how delivery of the business solution is achieved. !

• The POEM ® framework provides Entrepreneurs with a model that meets this need and which they can use day to day knowing you need more than a brilliant idea or fantastic innovation to start and sustain a successful technology business – it takes a clear vision!

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The POEM ® Framework

PROPOSITION ORGANISATION ECONOMICS MILESTONES

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P is for PROPOSITION - what’s the value?

•Your vision should deliver a value proposition which provides clear descriptions for the:

• Functions & Features on Offer (Customer experience)

• Target Market(s), Segment(s) & Customer Profile(s)

• Derived Benefits of Offer - WIIFM • Alternatives and Differentiation • Regulation & Compliance • Competition & Substitution • Inputs & Dependencies • Elevator Pitch….90 second guide

1. Concis

e

2. Clea

r

3. Compell

ing

4. Cred

ible

5. Conce

ptual

6. Concre

te

7. Custo

mized

8. Consis

tent

9. Conve

rsatio

nal

10. C

ommercial

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O is for ORGANISATION – who and how?• PROCESS

• BUY • PROCUREMENT & LOGISTICS • VENDORS

• MAKE • HUMAN CAPITAL • RESEARCH • ANALYSIS & DESIGN • PROGRAMMING & DEVELOPMENT • TESTING • COMMISSIONING/LAUNCH

• SELL • MARKETING • SALES • CUSTOMER SUPPORT • CORPORATE AFFAIRS

• PEOPLE • BOARD OF DIRECTORS/ADVISORS

• EXECUTIVE • TECHNICAL • COMMERCIAL • OPERATIONS

• NON-EXECUTIVE • MANAGEMENT

• SENIOR • MIDDLE • JUNIOR

• STAFF • CAREER PROFILE • EXPERTISE & EXPERIENCE • PERSONAL VISION/ MISSION/ OBJECTIVES • CAPABILITIES & COMPETENCIES

• TECHNOLOGY • CLIENT

• INTIMATE, PERSONAL, DESKTOP

TGY • SERVER

• APPLICATION, INFRASTRUCTURE, SECURITY, SERVICES

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E is for ECONOMICS – show me the money!P&L STATEMENT PERIOD 1

REVENUE 1,000,000

Less DIRECT COST OF SALES 300,000

GROSS MARGIN 700,000

Less OPERATING EXPENSE 500,000

EBITDA (Profit or Loss) 200,000

CASHFLOW STATEMENT PERIOD 1

INFLOWS

- REVENUE 1,000,000

- LOANS & FACILITIES 700,000

- SHAREHOLDERS EQUITY 500,000

OUTFLOWS

- EXPENSES 800,000

- INTEREST 70,000

- REPAYMENTS 400,000

NET FLOW 930,000

BALANCE SHEET

ASSETS LIABILITIES

FIXED ASSETS 1,300,000 PAYABLES 300,000

CASH & BANK 300,000 LOANS 700,000

RECEIVABLES 700,000 EQUITY

TOTAL ASSETS 2,300,000 PAID UP CAPITAL 1,000,000

RETAINED EARNINGS 300,000

TOTAL LIABILITIES & EQUITY

2,300,000

MARKET(S) • $ SIZE? • % SHARE? • % INFLATION? • DEMAND • TRENDS

ROI - NPV - IRR !FORECAST

ASSUMPTIONS !ACTUAL

PERFORMANCE

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• SEED • CONCEPT DEFINITION • BUSINESS MODEL

DEVELOPMENT • FOUNDER, FRIENDS &

FAMILY (FFF) FUNDING !

• START-UP • BANKABLE BUSINESS PLAN • ESTABLISHED CUSTOMER

BASE • FULL-TIME OPERATIONAL

STRUCTURE • ANGEL/VC FUNDING

• GROWTH • REVENUE, CUSTOMER & PROFIT

GROWTH • INCREASED MARKET SHARE • VC/PE FUNDING !

• ESTABLISHED • COST & PRODUCTIVITY

MANAGEMENT • NEW PRODUCTS/SERVICES • SELF FUNDING

… and when will you get there?

M is for MILESTONES – where are you…going?

• EXIT • ACCEPTABLE BUYER WITH AGREED VALUATION

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On Due Diligence…

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!“Due Diligence” is a systematic collection of relevant business information for the purpose of analysing the business, its vision, current status, practices, processes and policies in order to form an opinion for an investment decision.

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DD Business Information Required

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PROPOSITION !• Market

analysis !• Customer

analysis !• Sales analysis !• Competition !• Pricing/Profit

margin !• Regulation !• Suppliers

ORGANISATION !• Organisation

Chart !• JD, R&R !• Processes -Sales -Marketing -Procurement -Logistics -Customer -Staff !• Technology

(Users, Front & Back end, INF)

ECONOMICS !• (Current &

Historical Performance) !

• Projections (3-5 years)

• Balance Sheet

• Cash Flow • Profit & Loss • Taxation • ROI/NPV/

IRR/ROCE

MILESTONES !• Market

strategy !• Business

development !• Customer

growth !• Operation

growth !• Stage

Funding expectations

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Fact-based Opinion from DD

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MANAGEMENT

Entrepreneurial Vision, Track record of success, Management depth, Operational capability

FINANCES

Revenue Strengths, Credible future profitability, Acceptable Cash needs

ECONOMICS

MILESTONESEXIT

Feasible strategy, Good exit routes, Feasible –follow on investment, Satisfactory exit value 

MARKET

Product/Service Line, Competitive advantage, Market Growth potential

PROPOSITION

ORGANISATION

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CONCLUSION

• The POEM ® framework provides Entrepreneurs with a model that meets the need for organising the business of their company in a form which they can use on a day to day basis.

• Each Entrepreneurs determines the level of detail required for each particular situation they find themselves in be it operational, marketing, selling, soliciting for funding or recruiting resources POEM ® provides guidance for execution while ensuring that all critical information are included in consideration

• Because investors don’t only come to organised pitch events and you may run into them anywhere, a simple mental model such as POEM ® that can be backed up with as much documentation as required gives you edge in todays world where a growing number of entrepreneurs are competing for a shrinking pool of capital.

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Laptops4Learning

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Laptops4Learning (L4L) is a non profit Social Enterprise that secures support from donors, corporate sponsors, school communities and Government authorities for the use of screen-based technologies as a teaching and learning tool to Provide disadvantaged Nigerian primary school children and their teachers access to screen-based technologies in a suitably enabling, safe and secure Environment. !!!!!!!For additional information visit http://l4ln.org/

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Mobile Monday Nigeria

Mobile Monday (MoMo) is the world’s leading community of mobile industry visionaries, developers and influential’s with a presence in over 100 countries fostering cooperation and cross-border business development. Mobile Monday Nigeria is organised by a group of dedicated volunteers to drive the development of the mobile ecosystem in Nigeria through sponsored virtual and live networking events, workshops, seminars and educational activities targeted at the designer and developer communities to share ideas, best practices and trends from global markets. !!!!For additional information visit http://www.momonigeria.org/

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The Lagos Angels Network (LAN)

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The Lagos Angel Network is a newly formed association committed to providing early-stage seed funding and mentorship in Nigeria. Members acknowledge that anything they invest in companies through the LAN is money that they can afford to lose in its entirety. However, they recognise they may also earn a healthy return on their investments while supporting the development of the Nigerian economy by helping new technology-driven business owners grow and strengthen their start up businesses. !!!!

For further info email : contactus@lagosangelnetwork.com

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QUESTIONS?

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THANK YOU!

eMAIL: td@tvcng.com Twitter: @TomiDee Skype: TomiDee