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In this case study, Adrian Kinnersley, Managing Director of Twenty Recruitment Group, explores the delicate balance of building a company for lifestyle versus exit. He discusses the realities of startups, the challenges of growth, and strategic timing. Delving into the secrets of Silicon Valley, Kinnersley highlights the importance of focus, innovation, and building a solid foundation in the face of uncertainty. With statistics illustrating the competitive recruitment market, he urges entrepreneurs to define success on their own terms while navigating the path to potential exits.
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Why build for an Exit?Twenty Recruitment Case Study Adrian Kinnersley – Managing Director Twenty Recruitment Group
Agenda • Lifestyle or Exit • Reality of a Start Up • Reality of Building for an Exit • Timing – some good news • Wheel of Fortune • Secrets of Silicon Valley • What’s your focus • Challenges for the Future • Conclusion • Questions
Lifestyle or Exit • What type of business are you in or thinking of starting? • Lifestyle OR Exit / Valuable • What is the difference • Definition of success • Neither is right or wrong • As a founder / leader it is your responsibility to chose • What do you really want / need short term and long term • Every decision should get you closer to success
Reality of a Start up Human Institution designed to create a new product or service under conditions of extreme uncertainty. Eric Reis • No Brand • No People • No Clients • No Infrastructure • No Office • No Revenue • No Suppliers • No Culture • No History • Nothing of Value • You and your vision is your only collateral
Reality of building to Exit FTSE high 6732 June 07 pre credit crunch FTSE low 3287 March03 .com bust + Iraq war FTSE low 3500 Mar 09 • Approximately 19,000 recruitment companies in the UK • Roughly 12,000 recruitment companies employ less than 5 staff (62%) • Only 10% employ more than 50 people • 5.4% turnover more than £5m • Average 0.05% chance of selling for more than £10m
Strategy Growth Current Markets Adjacent Markets New Markets New Geographies Headcount =60+
Brand External Awards PR / Social Media Networking Website Client perception Candidate perception Investor perception Values
Culture Internal Induction Training Systems Appraisals Career Progression ISO & IIP Values Vision
Team Management Skin in the game Stable Future proof Comp Control Next Gen Standards
Earnings Strength Visibility Quality Contract : Perm PSL : Spot Diversification
Back Office Discipline Forecasting Fin Management Debtor days Cash-flow Infrastructure Tax planning Documentation COO!!
Secrets of Silicon Valley Secrets of Silicon Valley: What Everyone Else Can Learn from the Innovation Capital of the Worldby Perry Piscione. • Value People – They are all team players and should all be able to gain an equity ownership in the business. • Value Ideas – Ideas are the prized commodity in Silicon Valley. • Take Risks and Accept Failure – This is part of the human experience that makes you smarter. • Innovate – Let go of old ideas and reach out to your customers for feedback. • Always think of yourself as a start up – they are lean, hungry and open and have no legacy to tie them down.
What’s your focus – Isaiah Berlin The fox knows many things the hedgehog knows one big thing
Challenges for the Future • Social Media / Mobile • Value of information / database completely changed • Candidate behaviour changes • RPO / in house recruiters • New competition • What are you doing to position your business appropriately • Margin pressure • What’s your plan • Globalisation • Global mobility of talent likely to increase • Regulation • Increasing barriers to entry • Increasing costs to business • Politics / Taxation
Conclusion • Exit = • lot of hard work for a 0.05% chance of exit in excess of £10m • Lifestyle = • Lot of hard work but much greater chance of success So why bother?
