How Can SMEs Beat The Recession? Nigel Dunn October 2008

Topics 1. Common Areas of Business Weakness 2. Translating Great Ideas into Sustainable Business 3. Scalability Without Headcount 4. Market Conditions – How to Adapt & Survive

Calx Europe Background 25 years Hi Tech market experience 25 years Hi Tech market experience Ex-HP, Metrologie, Computer2000/Tech Data, Genesys Ex-HP, Metrologie, Computer2000/Tech Data, Genesys Accelerating Sales of Emerging Businesses Accelerating Sales of Emerging Businesses Mainly North American Hi Tech Companies Mainly North American Hi Tech Companies Clients Clients  Okcupid.com (US)  Bell Micro Europe  Adaptive Planning (US)  Teleonto (India)  Theorem Inc (US)  ActionBase (Israel)  Promethean (UK)

Calx Europe ‘Soft Landing’ 1. Virtual Management 2. Sales Agency 3. Partner/Reference Account Development 4. Talent Acquisition

Venture Capital Views Reasons why new businesses fail: Wishful thinking Wishful thinking Underestimating the sales cycle Underestimating the sales cycle Spending money in the wrong areas Spending money in the wrong areas Assumptions Assumptions Optimism vs. Objectivity

Building Repeatable Sales Proof of Concept leads to Critical Mass Profile your ‘ideal customer’ Profile your ‘ideal customer’ Make sure lots of them exist and are accessible Make sure lots of them exist and are accessible Who are your competitors? Who are your competitors? Build your ‘Value Proposition’ – Why me? Build your ‘Value Proposition’ – Why me? Find the key people Find the key people Find out how & why they buy Find out how & why they buy Create references Create references Analyse every win and loss – repeat success, avoid failure Analyse every win and loss – repeat success, avoid failure The more contacts you make, the more likely you will succeed

Value Proposition Customers buy value Why is your product or service different from others? Why is your product or service different from others? What difference does your product or service make? What difference does your product or service make? What extra value does it bring? What extra value does it bring? Can you quantify the extra value? Can you quantify the extra value? Have you examples of success? Have you examples of success? What happens if the client does not buy? What happens if the client does not buy? Is there a Compelling Event? Is there a Compelling Event? Your biggest competitor is ‘No Change’

Building Repeatable Sales Networking – Online & Face to Face Linked In Linked In Spend a little money Spend a little money Connect with ‘like-minded people’ Connect with ‘like-minded people’ Join Clubs e.g. IOD Join Clubs e.g. IOD Create and answer questions Create and answer questions Use Inmails and Introductions sensibly Use Inmails and Introductions sensibly Zoominfo – Getting contact details Zoominfo – Getting contact details Blogs Blogs Ecademy, Xing, Plaxo, Viadeo, Ning, Passado, Facebook, Inquisix, Jigsaw etc Ecademy, Xing, Plaxo, Viadeo, Ning, Passado, Facebook, Inquisix, Jigsaw etc Face to Face – IOD, Chamber of Commerce, Entrepreneur Clubs, Shows, Seminars Face to Face – IOD, Chamber of Commerce, Entrepreneur Clubs, Shows, Seminars

Scaling Without Headcount Keep Flexible – Put the Force where it’s needed It’s usual to contract out Payroll, Accounting, IT etc It’s usual to contract out Payroll, Accounting, IT etc What about Marketing and Sales? What about Marketing and Sales?Advantages Large pool of under-utilised experience Large pool of under-utilised experience Easy to access Easy to access Pay as you go - pay on results, don’t pay for failure Pay as you go - pay on results, don’t pay for failure Everyone is trying to prove themselves Everyone is trying to prove themselves Put the power where it’s needed (horses for courses) Put the power where it’s needed (horses for courses) Skill sets – knowledge, phone, face to face, background Skill sets – knowledge, phone, face to face, background Experience – market expertise Experience – market expertise Level of seniority/gravitas Level of seniority/gravitas Geography, languages Geography, languages No long term employee issues, obligations and costs No long term employee issues, obligations and costs ‘Try before you buy’

Current Market Conditions Recession looms Focus on costs – evaluate on ‘Return on Cost’ Focus on costs – evaluate on ‘Return on Cost’ Focus on value – differentiate and quantify it Focus on value – differentiate and quantify it Be realistic – make the tough calls now Be realistic – make the tough calls now Review forecasts – budget to survive Review forecasts – budget to survive Adjust costs now, ask the tough questions Adjust costs now, ask the tough questions Pay for results not failure Pay for results not failure Choose customers carefully Choose customers carefully Keep away from competitors Keep away from competitors Worth & value of customers Worth & value of customers Keep reviewing pipeline Keep reviewing pipeline Review ‘cost of acquisition’ of customers Review ‘cost of acquisition’ of customers Keep close to all your customers Keep close to all your customers Go the ‘extra yard’ on service Go the ‘extra yard’ on service Conserve cash – wait until 2010 for big investments Conserve cash – wait until 2010 for big investments

ANY QUESTIONS? Contact: Nigel Dunn T: +44 (0) M: