Monday we greeted Al and Brenda Kwong Hing, just in from a trip to Copenhagen, via Paris (!) and attending our weekly management meeting. Normally, this is very inward focused, reviewing our task lists, pipeline and relationships. But today was an opportunity to meet with some important external players in the future development of BKH:
The corporate banker – with whom we are negotiating a line of credit to facilitate expansion via acquisition.
The corporate finance specialists – with whom we intend to make equity available in BKH.
The property developers – with whom we intend to build The BKH Academy at Manchester’s Airport City.
Our banker wanted to meet Al and I (to put faces to names) and also listen carefully to our vision for the next three years, adding colour to the detailed spreadsheets that we have already submitted (with sensitivity analysis) to show our worst, middle and best business projections from now to December 2014. Our corporate finance advisors answered questions and explained how we can create a financial promotion that would allow us to raise capital by selling shares to private individuals, with a tax wrap-around that would facilitate a 30% tax relief for investors on the way in. Our property advisors shared the very latest news on the Airport City development and also gave us 4 choices as to which property we want to build, how big and where on the development. Given that the whole development has been granted Enterprise Zone status by the Government, this also presents some interesting and attractive legitimate tax-planning opportunities. Afterwards, we defaulted back to our usual management meeting format, looking at ‘what’s going on right now’ and what we have to do next. We find it necessary to hold this meeting EVERY Monday now, as there is just so much to discuss. It was a whirlwind of a day, Al and Brenda leaving us at 15:30 to visit two dentists on their way to London, one a potential JV partner and the second a BKH Management client. My biggest take-away from the day was the realisation that dental principals can interact with BKH in 4 different ways going forward:
If you are looking for help in managing your practice – via BKH Management Services you can hire an experienced and expert team of trainers, consultants and coaches to tackle individual areas of concern or simply hand over the ‘running’ of your practice and focus on the dentistry;
If you are looking for a partner to share the burdens of ownership (and a planned exit route) – via the BKH Partnership model you can sell 50% or more of your practice and engage us as co-owners to grow your business (including all the benefits of Management Services outlined above).
If you are looking for a fascinating personal investment, later this summer we are going to announce ‘The BKH Wall’: an opportunity to become a shareholder and to invest privately and tax-efficiently in BKH;
If you are interested in property investment, sometime in 2014 we will offer shares (with up to 100% tax write-off) in The BKH Academy property development;
These are changing times for us all – but I sensed a real excitement in the room yesterday. Building any new business is tough – it requires time, money, people and passion – and we have all of those. We have come so far in 6 months – from a vision that Al and I shared over a breakfast meeting last Autumn to an amazing team of 14 people and our first Management clients and Partners, new additions to the team to be announced over the next few weeks and a real sense of anticipation. Our investment is around £1m so far – and a lot of hours – but we are having the time of our lives. Over the months ahead, we will be inviting you to share our journey with us.