Wake Up and Sell the Coffee!

Wake Up and Sell the Coffee!
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A high-growth success story
Martyn Dawes set out to build a high-growth business with a simple idea and the will to do whatever was required to make it a success. Twelve years later he sold this business – Coffee Nation – for £23m.
Along the way, among many highs and lows, there was the thrill of seeing an idea come to life, costly failed trials and false starts, countless business plans, learning how and when to raise funding, the personal journey of surviving when success seemed so distant and securing contracts with some of the biggest retailers in the world. This is the story of how a great British business was built – from a blank sheet of paper – and how it came to be one of the nation's favourite consumer brands. It's also a guide to help any aspiring entrepreneur put their business on the path to high growth.
Through the course of an exciting narrative, Martyn shares his experiences of growing a business and his knowledge of what you should and shouldn't do. Mistakes to avoid are revealed just as honestly as the good decisions, making this is an unusually frank and valuable account for anyone looking to build their own business.
All areas from start-up to exit are covered, including:
– How to come up with an idea and know if it's any good – Researching and testing your business model – When you should not write a business plan and why not – The process of pitching to investors and raising funding – Negotiating contracts and controlling your finances – A special final chapter on how to set up a business for high-growth from the outset
Coffee Nation was based on the reliable principles of a simple idea, a compelling vision, a high-quality product and relentless enterprise. If you have the desire and vision to build your own high-growth business – or you want to read a fascinating story of how it has been done – look no further. It's time to wake up and sell the coffee.

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Martyn Dawes. Wake Up and Sell the Coffee!

Publishing details

Acknowledgements

About the author

Introduction

Endnotes

My Early Life. Beginnings

Early career

My first business – Martyn Dawes Associates

Learning points

1996 – My Big Idea

TRM photocopiers

A research mission to the US

My mind turns to coffee

Early business planning

Knocking on doors

Professional business support

Spar

Learning points

1997 – One Step Forward, Two Steps Back

Letters from Spar, Alldays and Nestlé

Quest for funding

Trials begin at Spar and Alldays

Insight from venture capital firm

Learning points

1998 – Breakthrough Year

Eureka moment

The product must be the hero

Creating a destination

Search for new funding

Sales progress but on borrowed time

Rethinking the business plan

Presenting to investors

Presentation at the GEIF

A killer threat from left field

Learning points

Coffee Like It’s 1999. A chairman joins

Putting development funding to use

Good management disciplines

Pitching to retail partners

Summarising the Coffee Nation idea

Making calls

Texaco and Welcome Break

Operations director comes onboard

Trials begin at service stations

Seeking growth finance

Learning points

2000 – Raising A Million. A new business plan

Private equity investor roadshow

Feedback on our proposal

An approach from BP

Primary Capital invests

New premises, new team members

Roll-out

Learning points

2001 – A Year for Learning. A pressing matter

Seeking new locations

Refining our operating system

Informal CEO and chairman meetings

Airports and offices

Analysing our estate

Business development director

90% said they’d buy again

Learning points

2002 – Making Lives Better. List of challenges

Continued roll-out

Machine running costs and maintenance

Tesco. Developing a relationship

Price point

Additional issues

Smell the telematics

Customer feedback

Internal challenges

Monthly sales hit 400,000 cups

Ideas for a custom-made Coffee Nation machine

Learning points

2003 – Enter a Competitor. Strategic priorities

Orange award

New concession unit

Core customers

Tesco trials

Benelux trials

A battle over margin

Taking a big stride forward

Learning points

2004 – AIM in Mind. Me-too competitors

Café Primo

Being on budget

Team development

Seeking a UK MD

No foothold in the Low Countries

Crunch meeting with Tesco

Problems on the west coast

Progressing towards AIM

Learning points

2005 – Ganz Kaffee, Ganz Schnell

Development of 3G

Enhancing our brand in Tesco stores

Recruiting a UK MD

New opportunities. WHSmith Travel

Sainsbury and Somerfield

ExxonMobil

Moto

Tank & Rast

Business management

3G working prototype

Supplier of the year

Learning points

2006 – Trials, Negotiations and Cuts

Good opportunity, wrong time

A period of difficult negotiations

Term loan

Revolutionise my day

Delivering for Moto

Competitor customers

500 locations in sight

Esso overseas

Focus on the priority at hand

Learning points

2007-2008 – Coming Full Circle

Coffee heritage

A new start with Tesco

Expansion with Moto

Striving for 99%+ reliability

Baby G

Future growth underpinned

Learning points

Exit. Timeline & Process

My exit experience. Unsuccessful negotiations

Difficulty of timing

The winner’s curse

Tesco

Sale to Milestone

My feelings on exit

Learning points. Preparation for exit

Management terms following sale

Pay off ticking bomb share classes

Timing

Exit and your team

Final thoughts

Transition: Life after Exit

Coming to terms with success

Expanding my network

Life after exit, or just life

On entrepreneurship and the sale

Learning points

Think carefully about selling

Money

Do you know what you want to do next?

What will you get involved in?

Wait for the right opportunity

Serial Entrepreneurship

Top tips for considering opportunities. Passion

Resonance

Know thyself

Alignment

Sector agnostic

Narrow, deep and global

Think big

Idea versus hard work

The tyranny of choice

Evidence of a big, unfulfilled need

Timing

On trend

Business model

Ignorance, confidence and naivety

Inspiration

Designing A High Growth Business What you should do before you start – and at each stage – when designing your business for high growth

1. You

2. Idea. Solving a problem/meeting a need

Be a part of a growth market and/or create a new category

Can you be market leader?

A large, addressable market

A scalable opportunity

Does your business fit within a long-term trend?

Finally, a word on competitors

3. Business model

4. Vision

5. Research and testing

Proving the model

6. People. Hire the best

Qualities to look for

Employment terms

7. Business plans and fundraising. Plan early to encourage investment later

Meeting with potential investors

Working with investors

8. Early expansion. Facing challenges

Pitch to customers at the senior level

Competing with the Big Fish

Impatience for profit

9. Staying the course. Difference between plan and reality

Leaders in the business

Aim two feet below the brick

Endnote

Business books from Harriman House

Business Reimagined: Why work isn't working and what you can do about it

From Vision to Exit: The Entrepreneur's Guide to Building and Selling a Business

How To Become A Business Angel: Practical advice for aspiring investors in unquoted companies

Refreshingly Simple Finance for Small Business: A straight-talking guide to finance and accounting

Selling Your Technology Company for Maximum Value: A comprehensive guide for entrepreneurs

Spin-Outs: Creating Businesses from University Intellectual Property

Отрывок из книги

I would like to thank everyone who helped Coffee Nation on its way from the very early days through to the sale of the company in 2008 and beyond.

To our customer organisations – Welcome Break, ChevronTexaco, Tesco, Moto, Somerfield, Esso, Sainsbury & Malthurst Pace – thank you for choosing Coffee Nation and becoming our long-term partners.

.....

Within days I had penned a letter to Spar setting out how Coffee Nation was the only company set up to provide a bespoke coffee service exclusively for the c-store market. I didn’t have to wait long for an answer. They called me and on 23 December I was in their offices. Spar, by volume of locations, was actually the largest retailer in the world. There were no nerves though – I couldn’t wait to get in there.

I diligently talked through the Coffee Nation offer and how Spar could basically outsource coffee to us. I painted a picture of how we would make coffee-to-go from the local c-store an everyday part of life for the British public by emphasising quality, speed, value for money and the complementary nature of coffee to other products. By the end of the afternoon he had agreed that we should map out a programme of trials in various stores across the UK and if successful Spar would start rolling-out Coffee Nation across their estate.

.....

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