24: Making Your Business Attractive to a Strategic Growth Investor with Anika Penn
If you want to make better business decisions and be better prepared for the future so your business can be more attractive to a long term growth investor, then this episode is for you. In this episode of Build Value By Choice, Nana is joined by Anika Penn, of investment management firm Baillie Gifford. Join the discussion on how Anika and her team approach the investment process, and her advice for you, the business owner.
KEY TAKEAWAYS
Growth investors look for profits through capital appreciation—that is, the gains they’ll achieve when they sell their stock (as opposed to dividends they receive while they own it). In fact, most growth-stock companies reinvest their earnings back into the business rather than paying a dividend to their shareholders.
The average holding time on Wall Street is 2 or 3 quarters, but with a growth investor it could be a decade of more.
Think about what kind of relationship you want with an investor and what would that look like? There are so many different kinds of investors for different types of business and for every stage.
Some investors want to see immediate margins and see that your cost price is going down and clientele is going up, but some understand that businesses can be in a phase of growing loyalty rather than numbers.
Everyone is always learning, learning how to run the company and learning how to work together while actually having to do the thing.
BEST MOMENTS
‘Where someone is based has never stopped anyone from investing’
‘You never want to be in a position where you’re desperate for that next steep and you’ll take whatever comes along’
‘Your assumptions can change, but the business model is stuck’
EPISODE RESOURCES
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ABOUT THE GUEST
Anika is passionate about connecting great ideas with capital, and has the privilege of doing this every day at Baillie Gifford. Of particular interest is helping women and minority entrepreneurs gain access to the capital and resources they need for their businesses to thrive. As the Entrepreneur-in-Residence at Smith College, she advised women-led start-ups on their business models and pitches to investors.
As co-founder and CEO of Frontier Health, a marketplace for innovative frugal medical devices for developing countries, she built the first global marketplace linking medical device innovators with health care providers in the developing world. Her earlier work spanned the fields of HIV/AIDS, reproductive health, cancer research, and civil rights policy. Before co-founding FH she worked at the apex of finance, regulation and medical research for several years and witnessed first-hand the difficulties small companies face bringing their health care solutions to market.
Anika is honored to serve on the Board of Trustees of Johns Hopkins University and as President of the JHU Alumni Association, from which she received a Master’s Degree in International Relations with concentrations in International Economics and China Studies. She holds a BA from Smith College with time spent studying Mandarin at Nanjing University.
PODCAST DESCRIPTION
Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement. We do this through a combination of interviews with industry leaders, and host presentations. We are certified value builder advisors and leverage a statistically proven methodology to help clients such as you scale or transition their business to the next chapter.
We care for our listeners and see their dreams as our own. We aim to foster a community that embraces freedom, generosity, and integrity. This is a show by entrepreneurs and business owners for entrepreneurs and business owners.
ABOUT THE HOST
Nana Bonsu:
“I am an entrepreneur and ex-Corporate Executive who’s applying his experience and knowledge from working in various ways to pursue my passion of helping small business owners increase their choices in life by leveraging my knowledge and experience, their employees, systems and money. I help small business owners transform their business and increase value through action-oriented education and implementation of strategies and tactics to make their business sellable even if they are not planning on selling. Known for establishing an environment for personal growth and development. My multicultural background equips me with the intuitive understanding of different cultures and how they impact business owners.”
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