Six Minute Strategist Strategy Analyser

The Six Minute StrategistBusiness Strategy, Frameworks for Growth

© John colley 2013

http://jbdcolley.com

Six Minute StrategistSix Minute

Strategy Analyser



StrategyAnalyser

Where do YouWant to Be?

Future ImpliedMetrics?

Strategic Options?

Growth Ratesand Deltas

Current Metrics?

Where are You Now?

© John colley 2012





Where are You Now?Where do You Want to Be?

3 or 5 YearsHow are You Going

to Get There?

© John colley 2013




Definition of Business Insanity“Doing the same this year

as you did last yearand expecting a

different result”

© John colley 2013




Step 1Three Questions

Last Year’s Revenues?Last Years Profit Before Tax?

No of Employees?

© John colley 2013




© John colley 2013

Revenues

No. of Employees

PBT

Strategy AnalyserStep 1

Step 2

Step 3

Step 4

Step 5

Step 6




Step 2Choose 3 or 5 years?Forecast Revenues?

Forecast Profit Before Tax?Forecast No of Employees?

© John colley 2013




© John colley 2013

Revenues

No. of Employees

PBT

Revenues

No. of Employees

PBT

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser




Step 3Historic Key Metrics

Profit Margin (PBT/Rev)Productivity (Rev/No of Emp)

Valuation (PBTxMultiple)

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Valuation MultiplesRev <£5m = 4x

Rev >£5m<£15m = 5xRev > £15m = 6x

(These are estimates)

© John colley 2013




© John colley 2013

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser




Step 4Forecast Key Metrics

Profit Margin (PBT/Rev)Productivity (Rev/No of Emp)

Valuation (PBTxMultiple)

© John colley 2013




© John colley 2013

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser




Step 5Growth Rates

3 or 5 year Historic GrowthRequired Growth

What is the Difference?

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Step 5Change in Profit Margin?Change in Productivity?

Change in Valuation?What is the Difference?

© John colley 2013




© John colley 2013

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic

Historic Growth Rate Required Growth Rate

Time in Years

Change in Profit Margin

Change in Productivity

Change in Valuation

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Strategy Analyser




Step 6What are you going to do?

Only Three Choices1. Organic Growth

2. Acquisition3. Raise Capital

© John colley 2013




© John colley 2013

Step 1

Step 2

Step 3

Step 4

Step 6

Step 5

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic


Time in Years



Change in Valuation

What do You Need to Do? M&ACapitalOrganic

Strategy Analyser




Challenge Your Own Assumptions...3 or 5 yearsRealistic?

Achievable?Test Scenarios

© John colley 2013




© John colley 2013

Step 1

Step 2

Step 3

Step 4

Step 6

Step 5

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic


Time in Years



Change in Valuation

What do You Need to Do? M&ACapitalOrganic

Strategy Analyser




Work Sheet

© John colley 2013





© John colley 2013

Step 1

Step 2

Step 3

Step 4

Step 6

Step 5

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Revenues

No. of Employees

PBT

Profit Margin

Productivity

Valuation

Required - Historic


Time in Years



Change in Valuation

What do You Need to Do?M&ACapitalOrganic

Strategy Analyser




Can I Help YouToday?

© John colley 2013




Can I Help You?More ComprehensiveStrategy Analysis?

Contact [email protected]

07813 672 612

© John colley 2013

mailto:[email protected]

mailto:[email protected]