David Thomson - Blueprint to a Billion

David G. Thomson

Best Selling Author

david@blueprinttoabillion.com

CHAIRMAN

BLUEPRINT GROWTH INSTITUTE

BLUEPRINT GROWTH INVESTORS

©David G. Thomson

Blueprint Companies

Number ofCompanies

31%36%37%

96%69%64%63%

4%

18.8M $4.1 T

Growth Companies below $1B revenue

Market Value

Number of Employees

11,000

©David G. Thomson

...only 4% could

$4.4 T

Revenue

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$1B

ExponentialGrowth

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Normalized Time(years)

4 years 6 years 12 years

Inflectionpoint

Revenue $ Millions

Blueprint of Exponential Growth

Growth in every economic sector

2

2

2

4

10

13

14

14

18

22Consumer Discretionary

Industrials

Information Tech

Financial

Health Care

Materials

Consumer Staples

Utilities

Energy

Telecom Services

Percent of Companies

©David G. Thomson

Change since 2004

(4%)

5%

5%

$Million

Up-and-Coming Exponential Growth Companies

©David G. Thomson

The Cycle of America’s Growth Companies

1993

1000

©David G. Thomson

200920031999

Number ofCompanies

250

800 Companies

…2016

1. Energy

2. Capital Goods

3. Software and Services

4. Health Care Equipment and Services

5. Technology Hardware

6. Consumer Services

7. Diversified Financials

8. Materials

9. Real Estate

10.Commercial Services

©David G. Thomson

These Industries Lead the Next Growth Cycle

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• Create and Sustain a Breakthrough Value Proposition

• Exploit a High Growth Market Segment

• Marquee Customers™ Shape the Revenue Powerhouse

• Leverage Big Brother Alliances

• Become the Masters of Exponential Returns

• Management: Inside – Outside Leadership

• Board: Comprised of Essentials Experts

©David G. Thomson

Name of Conference and date

Name of Conference and date

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benefits =product + location +experience

©David G. Thomson

Create and Sustain a Breakthrough Value Proposition

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•Most Blueprint Companies grow in mature, not emerging markets•Utilize best management practices and technologies to stay close to the customer•Exponential growth requiresa portfolio of products/services •Partner with suppliers•Import ideas from other industries

Lessons from top CEOs

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Marquee Customers Shape the Revenue Powerhouse

TM

product consumer x

value proposition shaper x

lighthouse reference =

Marquee Customers

©David G. Thomson

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Leverage Big Brother Alliances

eBay AOL

little brother BIG BROTHER

Microsoft IBM

©David G. Thomson

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Big Brothers

• Innovation for emerging markets• Fill critical gaps in portfolio• Outsource specialized functions• License brands

“ …we all realize for innovation and certain pieces of the portfolio we have to turn to someone else”

Little Brothers

• Access and scale into new markets• Credibility with customers• Access to partner’s innovation and product line• Market intelligence–Customer demand–Bottlenecks in current offerings–Evolution and emergence of new webs or business ecosystems

Create win-win relationship

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Become the Masters of Exponential Returns

Earnings (EBIT)

Revenue

Hardware Business

Market Value

©David G. Thomson

$1B $4B

Fastenal A Different

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Jon Shirley and Bill Gates Jim Wright and Joe Scarlett

MICROSOFT TRACTOR SUPPLY

©David G. Thomson

Management: Inside – Outside Leadership

Source: Microsoft Archives

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Blueprint Leadership =Focus on relationships and products XDrive to innovate and explore X

Ability to manage the 7 Essentials

©David G. Thomson

Management: Inside – Outside Leadership

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Board: Comprised of Essentials Experts

Community Member

Other

(Marquee) Customer Management

Investors

(Big Brother) Alliance

(Blueprint) CEO

©David G. Thomson

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over 90% of Blueprint Companies leveraged

5 or more of the 7 Essentials

©David G. Thomson

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Your Essentials for Turbulent Times

1.Deliver “Way Better Value”

• Redefine Customer Benefits

• Focus on the Value Zone

• Innovate and Test

• Fail Fast, Often and Cheap!

• “Quick and Dirty” to accelerate Customer

Feedback

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Your Essentials for Turbulent Times

2.Exploit New Market Segments

3.Leverage Marquee Customers

4.Utilize Big Brother Alliances

• Move to Adjacent Market Segments or Geographies

• Form a Customer Advisory Board

• Encourage Customers to Sell for you!

• Fill a critical portfolio gap for a Big Brother Alliance Partner

• Leverage Partnerships to expand globally

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Your Essentials for Turbulent Times

5.Masters of Exponential Returns

6. Inside - Outside Leadership

7.Board of Essentials Experts

• Streamline core business -expenses and processes

• Strive for positive cash flow

• Formalize and focus Inside-Outside Leadership

• Build a board of long term investors

• Leverage board to develop Marquee Customer and Big Brother

Alliance relationships

©David G. Thomson

#1 Create and Sustain a Breakthrough Value Proposition 3.6

#2 Exploit a High-Growth Market 3.7

#3 Marquee Customers Shape the Revenue Powerhouse 3.4

#4 Leverage Big Brother Alliances 2.7

#5 Become the Masters of Exponential Returns 3.3

#6 The Management Team: Inside-Outside Leadership 3.8

#7 The Board of Directors: Comprised of Essentials Experts 1.4

Invest in Infrastructure 3.4

Average 3.2

Our Essentials Scorecard

Next Steps to Grow Your Business

Visit www.blueprintgrowth.com

• Take the 7 Essentials Scorecard• Link to BusinessWeek.com 7 Essentials Series• Link to David Thomson