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Let's get performing together

Tactical.ly is pleased to present this proposal to Friends of Craft, aka

Dan and Adam,

Congratulations on the recent success of Beer Hug. Now you have a strong foundation of monthly recurring revenue and brand awareness, it's time to push on, and build a hugely successful business. I would relish the opportunity to be a part of that. I love building businesses and I love beer. So building a beer business is ideal.

There is a lot I don't know about both of you, Friends of Craft, and even your goals with this business. But I understand where you are in the journey and I have a strong appreciation for what I believe is needed to develop a highly profitable and enjoyable business that serves New Zealand craft beermakers.

I am operationally driven; I love process, systems, and structure. But only if it creates value and never to the detriment of efficiency. This passion means I have shared a lot of detail in this proposal. Some might call me verbose, but I consider it very important for Friends of Craft to understand how I might help in this next phase. But to get started, I thought you would appreciate this:

Tl;dr
This proposal comes from the belief that the foundations for success stem from high business performance that's established by the organisational architecture, and a focus on scalable growth, revenue and systems. I help develop, instill and document all of that. Moreover, I develop the systems to serve you now, but I design them for the future. This means the value delivered is still felt in years to come, long after our engagement together has finished.

I do all this for a monthly fee that is loosely based around an hourly rate. However my focus is delivering strong value as I only work with companies I am passionate about. Simply put, you choose how much time you want me to spend (based on my recommendation, or your budget) and we tackle the highest priorities first, always moving Friends of Craft forward.
Hayden Judd
Founder
Friends of Craft Proposal
8th May 2020
Prepared for:
Dan Phillips
Friends of Craft
Prepared for:
Adam Prentice
Friends of Craft
Hayden Judd Tactically Avatar
Prepared by:
Hayden Judd
Tactical.ly
Contents
Core objectives

Core Tactical.ly service objectives

We are huge believers in Objectives and Key Results (OKRs) and KPIs. Through The Brewery Tour, you are likely to smash your 2020 subscribers KPI in May 🍻, but you are yet to consider the deeper medium to long-term success metrics. We would love to be part of discovering those with you. As any value exchange must be measurable, here are some draft objectives for us to discuss, revise (or scrap) and build on to guide our engagement together.
Guiding our engagement with proven frameworks

Performing while transforming

All startups want to scale and grow – revenue, profitability, size and into international markets. Successful scale can be measured by the ability to grow and operate with optimal organisational performance – this is what enables robust and increasing profitability. We believe that focusing on a sustainable scalable growth (SSG) framework, alongside a focused organisational performance framework, are the key foundations for building long term business success.
Sustained Scaleable Growth Framework

Authentic purpose

A clear and defined 'why we do what we do'. A North Star, that guides every aspect from recruitment to customer management to product development and sales. To develop sustainable success, Friends of Craft must live and breathe their sense of purpose, vision, values and continually re-evaluate them to ensure they remain true.

A powerful brand

The fastest way to failure is to try to be all things to all people. To create a scalable business, it's crucial to build brand equity and emotional connections with customers. Building a brand is about developing and sustaining those relationships over time.  We help shape, influence, and lead your products and customer service to the correct target market.

Repeatable and scalable systems and processes

Creating a unique product, service delivery model, and brand isn’t enough. It takes repeatable processes to create a scalable business. Getting a few customers is easy; what requires dedicated focus and time is designing and implementing sales, operational and customer service processes that can be successfully deployed again and again at ever greater scale.

Customer retention

Acquiring new customers can cost an organisation around five times more than retaining current ones. Reducing customer defection rates by just 5% can increase profitability by 25% to 130%. Importantly, successful retention starts when the initial contact with a prospect is made, and then continues throughout the lifetime of the relationship.

An organisational backbone

As a startup gathers traction, yet money, time and diverse expertise is still in short supply, organisational architecture is often forgotten, or quick (and cheap) solutions are put in place. Instead of a myriad of inexpensive and inadequate operational solutions, forward thinking with an organisational framework will establish what will serve your business best now and in the future.

Flexible and adaptive leadership

Business owners must be the leader the business needs for each stage of growth. As the company's needs change its leaders need to keep evolving. That requires introspection, self-awareness, and a keen sense of strategy – both in the short and long term. Adaptive, flexible leadership comes from being mindful and continually sharpening the saw.

Organisational Performance Framework
What does organisational performance actually mean? High organisational performance is when the individual elements of your business seamlessly work together in harmony to achieve outstanding results. We believe these core elements can be boiled down to three main focus areas: motivation, external environment, and capacity and capability. When these areas are prioritised and given due focus, we move closer to an improved organisational performance that enables better revenue generation and encourages scalability, profitability and business stability.

Translating objectives to output

A blueprint for Friends of Craft

We don't know enough to prescribe the exact approach to helping Friends of Craft yet, but we understand what you are trying to achieve and where you are in your journey to achieving it. Our ethos is to remain nimble and agile, always focusing on the highest value output and where you need the most help.

Here are the focus areas we would seek to understand and then help develop for your business. While you may have already tackled some of these components, we would still help validate their trueness, complete formal documentation and ensure their effectiveness for the business.

Increase scalability with an eye on performance

• (Re)affirm Friends of Craft's mission, vision and values. Ensure they are shared externally and internally to showcase your purpose.

• Draft success metrics and OKRs with a strong tactical acquisition and customer service strategy for the next six to twelve months.

• Review, refine or build financial models to develop strategies around hiring and systemising the business for growth and reducing founder reliance.

• Review and revise customer success principles and processes to ensure customer retention is optimised for strong profitability.

• Review sales and marketing processes to consider strengthening sales psychology and brand positioning for increased conversion ratios.

• Develop operational structure and embed the correct tools, systems and documentation to enable ease of scale.

• Review or develop general management processes and practices to build efficiency and add to the profitability.

Scalability and profitability through people

• Uncover and 'establish' an ideal culture and consider the perfect blend of people, processes and practices required to realise that culture (and scale into international markets).

• Build a sound organisational structure for the NZ market that deals to growth and is reproducible for international markets.

• Consider correct company structure to fit within operating models, balanced with scale and financial capability.

• Draft enticing job descriptions, career development/progression systems, and strong (correctly modelled for Friends of Craft) incentives/rewards and recognition processes for all team members.

• Develop sales and customer services continuity and growth plan modeled for new team members.

• Identify the conditions required to enable founders' growth activities into international markets, while keeping the New Zealand business strong.

Scalability of leaders and their world-class brand.

• Capture and share the Friends of Craft story externally/internally to showcase that rubber meets road when it comes to mission and vision.

• Review and support the development of Beer Hug's brand to ensure strong, long lasting brand equity is being built.

• Help develop conceptual models for future state, considering funding models, exit strategies, international markets and/or long term plan for founder.

• Leadership and founder support/sounding board for day to day general advice to help accelerate decision making.

• Growth mentoring/coaching in required domains.
What's the extra value

Value and discovery

From our experience, our value is felt at scale when we are adding actual capacity to execute on the uncovered and validated performance and growth improvements.

Regardless of our initial contract, be it discovery and planning vs COO delivery, we always seek to enable long-term growth and value. Throughout our engagement we will detail a backlog of recommendations and actions with an implementation plan via a Kanban board. We will 'size' these actions and prioritise them with you in a value vs. effort matrix.

Together we will determine how we tackle them and Friends of Craft can commission 'one-off' projects (over and above our monthly subscription). Friends of Craft is the owner of this backlog and it remains your IP to focus on, even if we complete our engagement.

Value vs expense

Options and budgets

We have considered these budgets based on what we know about Friends of Craft so far – your current position and desired growth into international markets. We seek to provide the highest value exchange possible for our subscriptions, becoming a pseudo co-founder of sorts, driving your business forward with every move. We are adaptable with our pricing models based on what level of focus you would like us to take. So as a starter for ten:
COO as a Service - Stability
$3,500
Per month, six month rolling agreement
Weekly tactical planning and founder support sessions.
Monthly retrospective, and strategic planning sessions.
Discovery, execution and delivery of organisational performance development with SSG focus.
~15 hours p/m.
Backlog and implementation plan creation for future improvement initiatives.
Limited Slack / phone support
Support for the execs to bounce ideas, ideate or simply as a sounding board. Response time limited to best efforts.
COO as a Service - Growth
$5,000
Per month, six month rolling agreement
Recommended for
Friends of Craft
Weekly tactical planning and founder support sessions.
Monthly retrospective, and deeper strategic planning sessions.
Discovery, execution and delivery of organisational performance development with SSG focus.
~22 hours p/m.
Backlog and implementation plan creation for future improvement initiatives.
Prioritised Slack / phone support
Anytime support for the founders to bounce ideas, ideate or simply as a sounding board (or to vent).
COO as a Service - Accelerate
$8,000
Per month, six month rolling agreement
Weekly tactical planning and founder support sessions.
Monthly retrospective, and deeper strategic planning sessions.
Discovery, execution and delivery of organisational performance development with SSG focus.
~38 hours p/m.
Backlog and implementation plan creation for future improvement initiatives.
Prioritised Slack / phone support
Anytime support for the execs to bounce ideas, ideate or simply as a sounding board.
Org performance Discovery
$5,000*
Flat fee project-based price
Investigation and discovery into required processes and systems
Tooling and technology recommendations to build efficiencies
Implementation backlog with prioritisation workshop
Tactical.ly Operations Dashboard (TOD) system and structure with kanban action board to guide implementation

Discovery and backlog development only

A one-off project with a flat fee to audit Friends of Craft to uncover and backlog the required organisational and operational policies, processes and documentation required to run or scale a business. If you are not ready for the full COO as a Service, which includes implementation during discovery, this is a low risk, but still valuable service.
*Discounts apply to COO as a Service if you decide towards the end of this engagement to transition into an ongoing implementation engagement.
How long should we work Together?

Future state

Through our service provision our purpose is to create redundancy for ourselves, rather than reliance. We are strong believers in enablement over execution. So throughout our relationship, we will also be seeking ways to enable growth in others and helping you develop the right people, processes, systems and support network.

That said, we hope to remain in partnership with Friends of Craft for the foreseeable future. So after our first six months, our engagement can continue as is, or it can be increased (or lowered) in regards to our time/effort. When we are all ready and should we all agree, we would welcome the move to a purely advisory role at the board level.
Need to know a little more?

Some questions you may have

Here are just some of the FAQs you may have or want to consider. They mostly relate to our COO as a Service where we are more heavily involved in the implementation of organisational performance improvement of your business. We will cover anything and everything else when we meet to review the proposal together.

How is the service agreement structured?

We keep it simple and simply expect the same respect we give. Our agreements are made as good faith 'six-month rolling contracts'. But we understand things change, so our contracts have a one month no-fault termination policy.

Who is best suited for Tactical.ly's service?

Honestly, nearly everyone. From startups looking to scale, or to established SMEs that want to improve their gross profit or look for an exit strategy. Our Leadership Mentoring and COO as a service exist to easily help your executive team achieve improved organisational performance.

We often work with businesses that are just getting started and need operational excellence to form their foundations. Other companies need to scale and are building new internal teams. And others need to find the right GM or COO on a full-time basis and need help identifying what they will do, what the job description should look like, and who to hire.

Still not sure? Let's chat.

Can't I just scale my business myself?

Of course you can, but the #1 reason companies fail is they run out of money. It typically is not because the product or service fails – businesses just run out of time. Tacitcal.ly helps you grow quickly and sustainably. Plus, business ownership is emotional and we are there for the human, emotional side of running a business too.

Is our intellectual property safe?

Of course. We build long standing partnerships based on trust and respect. Whilst we bring our learnings from a wide range of clients, that's all we bring from them (and take). To be sure though, our contract includes a mutual NDA to protect us both.

If you would prefer to sign an NDA before the contract, no problems, just let us know.

Why not find a co-founder or hire another exec?

The person you likely need at this juncture of your journey, is the second or third most senior role in your business. To hire well, you need to consider the correct motivating package, which is costly from a cash + equity perspective. It's also a big move that requires the right foundations in place (which we can help you with you).

Without strong operational processes in place you can be severely impacted in the future as it relates to your people and culture, bookkeeping, financing, and business processes. A typical COO role can be between $200k-$250K plus equity packages, depending on the stage a company is at. This does not include the operational burden of hiring time, onboarding, and the cultural impact if they don’t work out.

What won't you help with?

Honestly, not much (in the business sense). We have been there and done that, so we are willing to help however you need to ensure your business grows - we bring a founder approach to working with you.

That said, should you require any assistance through a restructure or performance management of a team member, we will largely assist with the mechanics and mentor you through the delivery. If you want actual execution of these functions that can be arranged at an additional cost outside of our agreement.

What if we don't vibe with our consultant?

That's okay, we have a couple of spares. Seriously, it happens sometimes (and vice versa). You are only going to get the immense value we deliver if you are comfortable with your COO or Mentor. As with our values we just expect honest transparent communication and we will make sure we are all happy :-).

Worst case is we can break our contract with a one month notice. We don't build in large punitive break clauses because we start from a place of trust and respect (and we believe in the value you will receive).

What are your payment terms?

Our costs are provided here as exclusive of GST. We provide our service as contractors; we are not a large business serving a multitude of companies, so we hope you see us as an extension of your team and treat our invoicing almost as payroll. We will issue your invoice at the start of each month with payment due on the 20th of the month of invoicing.

Who will you work with?

As we have discussed this proposal is specifically for Friends of Craft and Hayden Judd (me :) to work together. However, we often bring in specialists for certain functions or for any subject matter expertise outside of my specific domain. I'll chat with you if I see a good opportunity to bring in Aidan or Rich - and it doesn't even cost you extra :)
Aidan Kenealy
Growth Strategist, COO and Mentor
In 2013, Aidan founded, grew, and sold EMGN.com, New Zealand’s fastest-growing and largest entertainment website – EMGN grew three-fold over three years. His expertise is helping small, high growth startups realise their vision for success.
Hayden Judd
Tactician, COO and Mentor
Hayden has successfully scaled three businesses into high-performing companies, in London, New York, and Auckland. He has a proven track record that is solidified by our values. Ultimately, Hayden listens and learns to thoughtfully uncover the fastest and best path to success.
Rich Poole
Business Advisory and Exit Strategist
Using his experience of 25 years of riding the business rollercoaster, including working in a family business, start-ups and negotiating a company sale to a Fortune 500 company, Richard helps other business owners and managers with their business needs and pain points.