Happy Elephant supping!

I agree that the goal is both awesome and achievable.  It's also great to
see a government project that supports our 'value earners'.  We're all good
at focussing on the needy but there's an endless supply of 'needs' (it's a
question of degree) and this focusses on increasing the pot instead of just
spending it.

We need to spend our tax dollars wisely = meanly. (Do you reallise taxpayers
are only one third of the population?). So, my priorities for company size
are:

I'd like to add my support for entrepreneurs and entrepreneurial focus in
education, especially to help people find their entrepreneurial flair, but
at low or no cost.  [Kids involvement with fund raising projects is ideal so
maybe a 'Kid's Foundation' where all the money is raised by school kids who
then choose their own favourite charities for their region (like baby
Lions)].

Our practical programmes to support entrepreneurs (eg. our cluster, BIZ
programmes, CECC, IoD, Cii etc) now seem to be pretty good but we have
somewhat less practical programmes to support new exporters (pace Cate's
breakfasts).  Marketing doesn't seem to be a national strength yet NZ only
really gets economic value from our Hi-tech businesses when we export (new
money, not the same old dollar going round and round).  So my first priority
is to support just what the cluster is doing - helping individual people in
companies like mine to export more through contacts, marketing, mentoring,
legal support, etc. [How about an international zine/publication 'Kiwi
Ingenuity'?]

Next, I think that if more of our $1m - $5m turnover companies were
obviously successful and quickly growing into $5m - $20+m companies,
generating forex without heart attacks and having fun doing it, then new
entrepreneurs would come out of the woodwork to emulate them.  We'd also be
focussing our few tax dollars (competing with kids' education, kidney
machines and kakapos) on likely winners with proven commitment, rather than
supporting new entrepreneurs who might just be dipping their toes in the
water.  (I'm not even convinced that we can 'create' entrepreneurs.  Like
chefs, they can be improved with training but must be born with the aptitude
to be a real winner (don't shoot me)).

So I'd focus support clearly and mainly on this group (not new startups).
I'd like to see national support with recognition for the business 'growers'
and 'exporters', maybe an honarary degree for reaching sustainable,
recognised steps like  2+ years at $1m T/O, $5m T/O, $10m T/O etc.

But I'd like to support our big companies too, since tomorrow's IP (with
experience to make it work) is often in the heads of the kiwis who are
employed by successful, vigorous and innovative companies.  Where would we
be without Taits?  So big company reserach programmes are a must (more
important to me than University programmes even).

Thirdly I'd like to support overseas investment, killing the myth that a
company sold to an overseas buyer is a loss to NZ.  We actually win twice
when we sell our companies offshore: once when the kiwi entrepreneur gets
the payout (which usually stays in NZ) and again when the new owner invests
in expanding its new acquisition (more jobs and experience, bigger markets
and exposure, investment in R&D).  [Who cares if the IP is owned by a
foreigner - it's yesterday's IP that's gone offshore - tomorrow's IP is in
the heads of the kiwi employees].  A 10% increase in a $200m company is
worth more that 20 new startups (lots of reasons) and overseas investment in
NZ is like a low cost loan with payback in yesterday's dollars, not
tomorrows (NPV reversed).  Also, running a big company is different from
running a new venture.  Entrepreneurs will want out eventually so we need
better exit routes for entrepreneurs so they can go and do it all over
again.

Lastly, I'd like us to recognise and support the entrepreneurial seeds
within otherwise rather staid companies.  For example, a national research
organisation has an innovative team developing specialist software for
growing asparagus which has a worldwide market, but without the business
infrastructure and skills to support international software sales.  More and
more ordinary companies are going to see the software based opportunities
for selling their expertise offshore and we need special training,
incentives and programmes to help ordinary managers see the not-so-ordinary
potential in their own companies and package it inside software for wider
markets.

[now back to my 2 page to-do list!!]

Happy new year, from  Sue



-----Original Message-----
From: Peter Brown [mailto:[EMAIL PROTECTED]]
Sent: 08 January 2003 09:57
To: Canterbury Software Email Forum
Subject: [csforum] What's the best way to eat an Elephant?


Hi All,

What's the best way to eat an Elephant? - One meal at a time.

I hope everyone had a great break and is ready for an awesome New Year!

At the end of this month we have an opportunity to have our say (as a
Cluster) about the ICT Task force report.  In general I think that the
report has an excellent goal and provides the beginning of a road map of
how to get there.  Rather than try and discuss the entire report on the
forum at once what I suggest we do is discuss it section by section over
the next week or so.

So have a skim through the 1st few pages to the end of section 2

While you're reading, keep in mind the requests of the Taskforce for
ideas on:
- The draft recommendations
- How to implement or action the report (also how could we as a Cluster
support the initiative)
- What type of group could drive the action plan forward

So to start the ball rolling. what do think about the first few pages...

My initial reaction to the Goal and Challenge of '100 * $100M companies
in 10 years' was "Awesome" then "so how do I get Nightside there, or
part way there?".  As a company we have goals out to 5 years, the goal
from the report gives us something to shoot for at the 10 year mark.
Even if we (as a country) get half way to this target it will be a
significant achievement!

Another thing that comes to mind is that we (as a country) are currently
developing people to become employees (e.g. you can view the entire
school/tertiary system as training people to work for others) if we want
to have a 100 companies at Phase D then it would also be great to have
200 at C, 500 at B.  This would mean that a significantly larger pool in
Phase A in needed - may be 10,000 or more?  So where will these
companies come from? We are actually going to need to start developing
more people to become entrepreneurs (rather than just letting them pop
out of the woodwork here and there).  Should this be a Business / Govt /
collaborative effort?

The Recommendations
===================

2. Commitment
Yes we want to grow - so how do we get there?
Who are the companies in the $20M+ group (a list would be nice), what
can be learnt from them in how they achieved their level of sales,
lessons etc?
Perhaps it would be good to look at a finer level of detail in Phase A
of the table e.g. smaller divisions like <$1M, <$3M, etc. and focus on
what can else can be done to help businesses the earlier stages.
Building a larger pool in Phase A should enable more companies to 'break
through' (more ideas + improved support = more chances of success).
Also when you're at this level the achievements of $1M, $3M etc. in
revenue are very significant - could/should these achievements be
recognized in some way?

Based on the figures provided in the report most NZ businesses are in
the very front edge (<$5M) so a commitment from the Government to making
it easier to create and run a small business in NZ would be a good
start.  Reducing compliance costs (and time) for these smaller
businesses would have the double effect of freeing up money to enable
growth and time to sell more (the benefit for those who don't want to
grow as much is that they get more time and some spare cash Hmmm. sounds
like a good place to focus the clusters support!)

Anyway, that's enough from me, now it's your turn (if you haven't gone
to sleep already.)
Do you agree / disagree, have further comments? Go for it!

Regards,
Pete

Peter Brown
Managing Director
Email [EMAIL PROTECTED]

Nightside Test Design Ltd.
64 Greenpark St.
Christchurch
New Zealand

Web www.nightside.co.nz

Phone (+64) 3 338-0034
Fax   (+64) 3 338-2034





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