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This innovation initially came to life when…
We used to be an outsourced sales and marketing organisation conducting campaigns for SMEs right up to large brands such as 3 mobile. We now use this ability of putting in place a sales and marketing division, in order to acquire a large equity stake in the businesses we work for. We have now become a hybrid blend of a private equity firm and a sales and marketing organisation, implementing sales systems and structures in exchange for up to 40% ownership in the business. A model such as this is a world first.
WHAT & HOW
The purpose of this innovation is to…
Previously SMEs who have outsourced their sales have had to deal with external parties who may not be completely aligned with the stakeholders of the business. This innovative model means that organisations can ‘tuck-in’ these services to their existing business.
It does this by…
Identifying SMEs that have a need for a stronger sales arm to the business, and putting a proposal to them based on stringent KPIs. Companies that are on the path to exit or IPO are preferred. If the company has not identified a clear path to exit, this is something Ifocus will help them develop and execute.
PURPOSE & BENEFITS
This innovation improves on what came before because…
For a number of years we were running campaigns for external companies, which were built on contracts that either party could and would break at any time. This is industry standard. By aligning the interests of the stakeholders and iFocus, we create one single business unit which has long term durability and a clear path to exit.
Its various benefits to the customer/end-user include…
We have acquired a significant equity holding in 2 organisations already. One in the lead up to IPO, the other to exit in 3 years. With Ifocus helping drive revenues significantly higher than what the companies could have achieved otherwise.
COMPETITIVE LANDSCAPE
In the past, this problem was solved by…
Companies outsourcing this to external organisations, which would be executing 8-10 campaigns at once. This meant sales companies were too thinly spread and not achieving optimal results. The Ifocus model ensures we only work with 2 companies at any given time, until the sales arm is running under management. It has become a focused investment vehicle, leading companies to exit.
Its predecessors/competitors include…
The Cobra Group and Sales Force.
TARGET MARKET
It is made for…
The market for this type of model is a SME doing $10m+ revenue that wants to bolster their sales arm, drive revenue with an intention to exit for the highest possible multiple.
DISTRIBUTION STRATEGY
It is available for sale through…
This model is built on referrals. It is not a mass-market product or an idea we push too aggressively. Because there is a limited number of transactions we can execute each year, it is about finding quality companies over quantity.
Our marketing strategy is to…
Consolidate the two existing assets within the business, get the sales arms to a point where they are running under management, then move to acquire further assets in other companies. We already have other companies waiting for us to be available to work with them under this model; it will be a qualification process once we are ready.
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To check out the Anthill SMART 100 Readers’ Choice winner for 2010, click here.
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