Credit Card Software

Description: Credit card dispute Software Company
Project: Growth support and finance raising
Finance raised: £500k Debt and Equity Finance

Client requirements

The client had a start-up software company which specializes in the development and hosting of internet based credit card dispute software. It has been developed for use within acquiring banks and large retail environments where it automates the processors associated with the raising and settlement of payment card disputes. For both Point Of Sale (POS) and card holder not present (CNP) transactions. The business began from a standing start designing and developing its software and at the same time trying to acquire sales for the product. The initial capital injected by the directors of the company was rapidly eroded and the search for investment began.

Project Approach

Genesis assisted in a number of ways to ensure the success of the company and the right type of funding was attracted into the business as follows:

  • Analysis of the market opportunity for payment card dispute software
  • Analysis of credit card fraud in the target markets
  • Competitive analysis
  • Business planning
  • Finalization of business plans for investor presentations
  • Relationship and investment management with the bank
  • Five year strategies

Results and Client Benefits

The company was successful in securing a loan from a High-street Bank under the DTI’s loan guarantee scheme and equity finance for the full amount required. The company won ‘ best young business’ 2004 at mustard uk com awards. The company has now grown to an annual seven-figure turnover and has developed leading edge technologies and an e-commerce trading model which is in great demand.

Employment Law Services

Description: Employment law and health and safety services
Project: Re-launch business under new structure
Finance raised: £750K (LGS loan) and equity investment

Client requirement

Two highly experienced executives in Employment Law and Health & safety services developed programmes and services to support SME’s. Initially they had gone into partnership with a small legal firm to deliver these services but the relationship proved extremely difficult and slow to develop.

Genesis was approached under the Mustard programme to assist the directors to dissolve the existing partnership amicably and restructure the business proposition so that it could be successfully launched. The client also had several issues and concerns relating to the market place, product and company branding, staffing requirements, operational systems and structure and obtaining necessary funding.

Approach to the problem

The first task was to divest the business from the legal firm, which was achieved over a six-week period. On achieving this, a full market survey was undertaken to assess the viability of the product offerings, identity and review competition and and develop a marketing strategy to enhance the mhl brand and image. Simultaneously the operations of the business were analysed and a staffing structure formalised based upon the financial forecasts agreed with the management.

A full financial plan and budgets were developed with the directors and 3-year forecasts produced to cover profit and loss, cash flow requirements and balance sheets. From this information the funding requirements of the business were calculated.

Results and Client Benefits

The outcome of this detailed work produced a full business plan, which received a loan from the DTI small firms loan guarantee scheme. The company also secured an equity investment from a regional venture capital fund.

The company is listed on the mustard.uk.com website as “one of the most successful products of the mustard.uk.com high-grown start-up programme”. According to Nick McKay, founder and managing director, “with the guidance and support received from mustard.uk.com, Genesis and the advantage technology fund, we were able to raise the finance and launch the company.

Since launch of the business, it supports now achieve seven figure annual sales and employ nearly 150 staff. The company was the subject of a trade sale in December 2006 for an undisclosed eight-figure sum. It is the biggest success story to come out of mustard.uk.com’s High Growth start-up programme.

 

Network Implementation

Description: WAN optimisation software
Project: Product development, raising finance, and marketing strategy
Finance raised: £2 Million Equity Finance 3iPLC

Client requirement

Three senior managers for a major telecommunications have designed a software package aimed at optimizing the productivity and efficiency of WANs. The software package was targeted at telecommunications companies. The client approached Genesis as they were struggling to raise the significant levels of finance needed to develop the product.

Project approach

Before any work could commence on the actual production process of the software package, Genesis ensured that all the software specifications were legally sound and that they were not infringing their existing employment contract covenants. Genesis also conducted customer surveys to engage their response and feedback. With extremely promising feedback Genesis rewrote the business plan to ensure that it was a powerful and concise tool that would attract the much-needed investment.

Results and Clients Benefits

Investors were found and the investment was raised in two stages, with the first being seed fund, and the second a development finance fund. The total investment raised exceeded the initial amount sought. The product was developed and marketed. The company operated very successfully boasting many large telecommunications companies as clients, before it was sold for a seven-figure sum to another company.

 

Rail Safety Equipment

Description: supplier of safety lighting to the rail industry
Project: viability study to support acquisition of manufacturing tooling
Finance Raised: £1 Million

Client requirement

Genesis were engaged to undertake market assessment to advise the client on the viability of acquiring the tooling for emergency lighting designed specialty for the rail industry. The client was under pressure to take over the project from their large joint-venture partner who had failed to sell the product to the UK rail services companies and claimed that the market at the particular time was saturated.

Project Approach

Genesis undertook the survey and returned with the evidence that the market had not been tapped at all and that there was significant latent demand for the product as all competing products were not technically inferior and had very limited life expectancy.

Result and Client Benefits

As a result, the client took over the tooling and set up a spin-off company to market the product. The new company achieved six figure sales in the first year from a complete standing start. Genesis has thereafter undertaken further research on the new product development and to identify new products to add to their portfolio of products.

 

Logistics Service

Description: Software Company-
Project: Raising finance
Finance raised: Financed by parent company

Client Requirements

The client has an established Software House specializing in Warehouse Management systems with accredited expertise in Bonded warehouses. In 1990, the company was acquired by a larger company specializing in materials management. The Merger was not profitable for both companies and the parent company agreed to an MBO.

The company applied to a regional Venture Capital Fund for finance acquisition of assets via an MBO and for funding business operations. The investor indicated that they would consider supporting the MOB subject to confirmation of market demand. The support has been requested as part of their due diligence process to ensure the project is investment ready.

Project Approach

The company was referred to Genesis by the investor in order to determine the demand for the products and services of the client. Genesis performed the following activities:

  • A review of the UK market using published sources available in the public domain to undertake a market overview and situational analysis and to determine the market structure and the key market trends.
  • A competitor Analysis to assess the major players in the industry. Both direct and indirect competitors were identified in terms of their core products and services.
  • A telephone survey of their existing customers to understand the main problems/difficulties that customers face within the identified markets targets.
  • The above findings were presented in the form of a market report

Outcome and Client Benefits

Based on the results of our support, the parent  company financed the MBO and the need for an external  investor was negated.

 

Joinery Company

Description: Manufacture and install standard and bespoke wooden products
Project: Business looking to expand and buy new machinery
Finance Raised: £100K Awarded grant for 15% of total project cost

Client Requirements

Genesis worked with a joinery company which manufactures and installs quality joinery products including doors, windows, conservatories, office partitions and wardrobes. The company supplies bespoke, made-to-order, manufactured joinery products of high quality. At the time of consultancy, the company was running as a sole-trader business and had been in operation for over five years.

It was then employing ten people and had an annual turnover of six figures. The company has a wide customer base that includes Councils, businesses and private customers and it typically quotes delivery times of around 12 to 14 weeks. Most of the components are made on a range of machines including cutter, routers, etc. that require skilled workers. However the company was suffering from a shortage of workers with suitable skills. To improve production efficiencies, the company owner proposed to invest in a new automated machine which would manufacture complete panels in a single operation.

Project Aproach

The new investment will also allow the company to employ more unskilled labour and by providing appropriate training the staff will then be more effectively employed in installations. In addition to the above investment, the client was also considering re-locating to bigger premises to encompass the needs of the expanding business. This required disassembly, removal and re-installation of the machines in the new premises. Genesis helped the client to apply for grant support from the DTI for the expansion project. The support activities conducted by Genesis were as follows:

  • Market research of the UK joinery market to underpin the proposed expansion application
  • Developed financial budgets and projections
  • Prepared and submitted grant application for 15% of the total cost
  • Provided support to liaise with DTI

Outcome and Client Benefits

As a result of our support, the client received the entire amount of the grant applied for.

 

Bedroom Manufacturer

Description: Manufacture and install wooden products
Project: Relocation to new premises and capital investment
Finance raised: £250K Awarded grant for total amount sought after

Client Requirements

The client manufactures and installs quality bedroom and kitchen fittings including cupboards, drawers, wardrobes and other units. The company employs 20 people and has an annual six-figure turnover. The company’s wide customer base includes Housing Associations, trade and private retail customers. Most of the components were made on a range of machines including CNSs, panel saws, etc. that require semi-skilled workers. The company had reached the capacity that its premises allowed and therefore, for efficient operation, the company required extra space to streamline material throughout and to avoid double handling. To improve production capacity, the client proposed to invest in new premises along with various items of machinery to streamline the operations of the business and improve the overall productivity of employees and production processes. Relocation to the larger premises would require disassembly, removal and re-installation of the machines in the new premises. The targeted premises also required some structural renovations to ensure that they are suitable for the business.

Project Aproach

Genesis assisted the company to apply for grant support from the DTI for the expansion project and we undertook the following activities:

  • Research of the UK market to underpin the proposed expansion and investment
  • Developed financial projections
  • Prepared and submitted the grant application to the DTI and provided support to liaise with them

Outcome and Client Benefits

As a result of the services provided by Genesis Consulting, the client was able to secure the entire amount of the grant applied for.