SPIRIT OF INNOVATION

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1 SPIRIT OF INNOVATION

2 10 YEARS LATER Acid Test of a Business Plan Seminar The practice of entrepreneurship Marc Bourgeois, Managing Director endurit gmbh

3 AGENDA 1. endurit today 2. Business Plan vs. Reality 3. Conclusion

4 DISCLAIMER THE OPTIONS THAT ARE APPROPRIATE FOR ONE ENTREPRENEURIAL VENTURE MAY BE COMPLETELY INAPPROPRIATE FOR ANOTHER.

5 AGENDA 1. endurit today 2. Business Plan vs. Reality 3. Conclusion

6 ENDURIT TODAY: BUSINESS endurit develops innovative web applications based on complex business processes Founded (change of legal form 2004) 10 Employees (min) (2 apprentices) Customers: small-large, all sectors, CH EURO World Market share:? 30% projects, 30% maintenance, 40% operations ~100 long term customers (real estate, car industry, languate teaching, wholesale, retail, government, hospitals, pension funds, lawfirms, end users (!), start-up industry) Customer loyality

7 VISIONS BECOME REALITY We develop, integrate and operate Solutions for E-Business, Websites and Digital Communication and advise customers in a number of European countries

8 ENDURIT TODAY: FINANCIALS Debts: CHF 0 (min) Funding: internal financing Return on assets: > 100% Net operating margin: ~23% Quick ratio: ~500% capacity utilisation: 100% Marketing budget: CHF 0 (min) (but sponsoring) Bad debt losses: 0 Growth: Avg. ~30%

9 AGENDA 1. endurit today 2. Business Plan vs. Reality 3. Conclusion

10 PERSONAL GOALS Strongly driven by passion / conviction / ideology / feu sacré Politics (improve competitive strength of our society), Army pursue my own ideas Power hungry, be my own boss Down-to-earth Self-confident Money is secondary No family yet Student life Business sustainability and size Tolerance for risk? Decision to become an entrepreneur

11 RECOGNIZING OPPORTUNITIES 3 loops Swiss Communication Bank (business idea, investment opportunity, presentation) Feasibility? Team? Business model? Funding? Index certificates Feasibility? Team? Business model? Funding? Tenacity despite failure

12 GENERATING IDEAS Investors invest in people, not so much in ideas Investor came to me We have to do something! Knew my work ethic Money, but no idea But many good ideas around (FirstTuesday, contacts to VCs), asking for huge funding Real passion: Internet business Alternatives Have another good idea Profit from good (and bad ) ideas of others Salary-substitute firm?

13 THE IDEA Helping internet start ups and large companies to realize their internet ideas Technical focus on business processes brought to the Net Business focus on managing the development process using technologies as fast follower services Cash generation and growth by maintenance and operations Money making potential

14 Weiterentwicklung (Lebensdauer?) OPERATIONAL COSTS OF CUSTOMERS Support Wartung, Lizenzen Hosting Inhalte pflegen Interne Kosten Opportunitätskosten (entgangene Gewinne)

15 THE IDEA Questions: Attractive? Durable? Timely? Anchored in a product/service that creates value for ist buyers or end users?

16 FEASIBILITY ANALYSIS Concept testing Industry/market feasibility analysis Advisory board Primary and secondary research Financial feasibility analysis deep pocket Learning by doing or by watching others making mistakes

17 WRITING A BUSINESS PLAN? Already wrote 2 For which audience? Too small? Helps to sort your thoughts Focusing on Products and markets Financials Milestones Exit strategy desirable? Personal loan! The successful idea has never had a business plan ;-)

18 INDUSTRY AND COMPETITOR ANALYSIS Industry analysis Emerging industry Competitors Large competitors (survivers: Namics, Crealogix) mainly working for banks/large enterprises Many marketing agencies diversifying to the Net Gap between these two worlds Future?!! Industry profitability Substitutes, new entrants, bargaining power of suppliers and buyers

19 DEVELOPING BUSINESS MODEL Core competencies Consulting process, time-to-market, low initiation costs Make or buy? Buy: Technology frameworks (but no offshore development) Make: Operations Partnerships? Interface with customers: 24/7 Value chain : strict cost control Target market: originally CH

20 PREPARING ETHICAL AND LEGAL FOUNDATION Code of conduct? Management by example! Confidentiality Access to customer s Digital communication Complete company data Strength and weaknesses Long term plans Legal foundation Sole proprietorship 2004 only: limited liability company (no publication/auditing)

21 ASSESSING FINANCIAL STRENGHT Years 2-4: disastrous, hard times additional tax claims Internet bubble

22 BUILDING VENTURE TEAM First partner: not an entrepreneur Consequence Performance-oriented, generous compensation Strict contracts of labour Loosing key employees is our biggest risk! Nonemployee members / Advisory board Lawyer Financial specialists Experienced entrepreneurs Not interested in compensation (matter of belief)

23 GETTING FINANCING OR FUNDING Strictly internal (bad experiences, others have not survived, personal sustainability goal) But: financing customers

24 FUTURE CHALLENGES Technological risks / new competitors Google IS our competitor Operational / legal risks Disclosure of client s data Loosing client s data Services offline Remain a learning organisation, not resting on our laurels Dependency on me

25 AGENDA 1. endurit today 2. Business Plan vs. Reality 3. Conclusion

26 I did it my way CONCLUSION

27 I've lived a life that's full - I've travelled each and every highway Long way from first business plan to reality Tempora mutantur, nos et mutamur in illis

28 Regrets? I've had a few, But then again, too few to mention. Prudent selection of associates Choose more carefully than your wife/husband Challenge vs. toughness No fear of superiority Prudent selection of partnerships

29 I did what I had to do And saw it through without exemption. Financing: also a question of type Business model: Service / platform vs. provider

30 I planned each charted course - Each careful step along the byway Personal beliefs are long-lasting But: Strategies are the current condition of error Use literature and support to launch your venture Networking Yes: real networks No: networking as end in itself

31 Yes, there were times, I'm sure you knew, When I bit off more than I could chew, But through it all, when there was doubt, I ate it up and spit it out. I faced it all and I stood tall... It s not exactly a stroll in the park. Critical issue or normal growing pain? Watch fixed costs (we live from them )

32 I've loved, I've laughed and cried Feu sacré Personal balance, peace of mind Self organization Be able to get away from everyday life

33 I've had my fill - my share of losing. But now, as tears subside, I find it all so amusing. Frustration tolerance When everything is Merde : think of how you will laugh about the situation in a couple of years

34 For what is a man? What has he got? If not himself - Then he has naught. To say the things he truly feels And not the words of one who kneels. Be courageous Don t deny your conscience, your beliefs

35 ARE YOU STRONG ENOUGH TO DO IT YOUR WAY?

36 IT S DIFFICULT TO SAY WHAT IS IMPOSSIBLE, FOR YESTERDAY S DREAM IS TODAY S HOPE AND TOMORROW S REALITY. Robert Goddard ( ), US physicist and space pioneer

37 CONTACT endurit gmbh Wilfriedstrasse 12 CH-8032 Zürich Phone Fax Marc Bourgeois Managing Director

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