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BNAI Strategic Plan 2008 Executive Summary BNA International is the international face of BNA. It was established in London, England over 30 years ago to promote BNA’s services and provide support for BNA’s customers outside of North America. In addition to maintaining this key role, BNAI has evolved by developing information services in response to needs for broader international, non-US-centric information. In particular, BNAI has built a significant presence in the areas of crossborder tax and intellectual property. As this plan will show, while aiming to maintain existing subscription revenue, future growth will be predominantly achieved through the expansion of non-subscription revenue and the development of additional delivery channels for our information – growth through being even more deeply embedded in our customers’ workflow. In line with this strategy, the European American Tax Institute was acquired in February 2008. EATI (www.eati.com) has been a leading provider of specialist training for professionals operating in the international taxation field over many years and is a perfect fit with our existing publishing in this area-allowing us to deliver our information in a far more personal way and opening up a new market for our existing publishing. EATI is a membership organization with over 300 members, with a training program currently containing 20 courses. We plan to build the membership, increase the number of attendees at the courses and expand the range of courses. This acquisition is a major opportunity for BNAI to grow both our revenues and profits. The plan begins with an analysis of our markets and the threats and opportunities offered by our position within it. Notes on our competitive position demonstrate the strengths that enable us to exploit this position and our response to the challenges we face. The key part of this plan sets out our strategy for growth, in both our sales and marketing functions and through new product development. Development of our offering in future years, coupled with new initiatives to be researched and proposed for other years within the time frame covered by this Strategic Plan will show steady growth in revenues and margin. In conclusion, this Strategic Plan demonstrates that in spite of the limited opportunity for increasing revenues from many of our more mature existing products, investment in the development of sales and marketing activity and in new products and delivery channels will allow BNAI to exploit a unique position in the provision of international legal and regulatory information. Note: All financials included in this plan (with the exception of the Table on page 6) are in pounds sterling.

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Market Analysis Overview of Market Primary markets by sector: • Law firms • Accounting/professional services firms • Tax/legal departments of multinational corporates Job titles/functions would include: International Tax Manager, Head of Legal, In-House Counsel, and Information Officer. Primary markets by geography: Tier 1: North America, UK. Tier 2: Belgium, Switzerland, and Netherlands. Tier 3: Germany, France. Tier 4: Eastern Europe and the Asia-Pacific region. Market Size/Share and Growth Rate BNAI focuses on those law firms, accounting/professional services firms and corporates that require cross-border information. This means the top tier of all these three market segments – which potentially covers several thousand law firms and corporates worldwide. In practice the market for our specialised information is a considerably smaller, more select group and their international offices. BNAI’s strength is primarily in two areas, International Tax and International Intellectual Property, but it has a developing niche position in subject areas such as securities and data protection. To give a perspective of market size, the International Bar Association has a membership (across all practice areas) of 16,000 individual lawyers, drawn from 190 Bar Associations. The specialist Taxes and IP committees of the IBA number c. 1400 and 1000 respectively. Within these committees, for our core regions of US, UK and Europe there are 750 IP lawyers and 764 tax lawyers. The main organization for international tax practitioners is the International Fiscal Association; this numbers 10,500 members worldwide. Numbers of individual members by key country are as follows: USA, 1124; Canada, 856; Switzerland, 757; Germany, 730; Netherlands, 666; France, 487; UK, 368; Belgium, 316. In the area of IP, the International Trademark Association has a membership of 4,600 trademark owners and professionals (44% in North America, 24% Europe, 13% Asia Pacific). The Licensing Executives Society has 10,000 individual members. To give an example of coverage, we sell to a majority of the top US law firms, while for corporates we sell to 53% of the Financial Times 500 and to 36% of the Fortune 500. Of BNAI’s Top 100 customers, 42% of them are law firms, 26% are corporates and 10% are accounting firms. BNAI’s top four customers, though, are the Big Four accounting firms who between them represent between 20-25% of BNAI’s turnover.

Competition BNAI is a significant player in two areas of the law, Taxation and Intellectual Property. Its key competitors are as follows: International Tax Training (EATI) Tax Executives Institute (TEI): •

The key competitor to the EATI is the Tax Executives Institute (TEI). The TEI is a non-profit international association of business executives responsible for the tax affairs of their employers.

Founded in 1944 by a group of corporate tax executives in New York, the TEI now has c. 7,000 members, aligned in 54 separate chapters, and claims to represent 2, 800 leading businesses in the United States, Canada, Europe, and Asia. In 1999, TEI founded its first chapter in Europe and a chapter in Asia in 2005.

It is exclusively an association of in-house tax professionals – tax professionals in public tax practice in law firms and accounting firms may not join.

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The TEI has both an educational and lobbying role. Its mission statement states that it’s “dedicated to the development of sound tax policy, compliance with and uniform enforcement of tax laws and minimization of administration and compliance costs to the benefit of both government and taxpayers”.

Benefits include: Training, Networking, Lobbying, and Information. Included as part of membership, the TEI bimonthly journal is The Tax Executive. It has officially designated RIA as its exclusive affinity partner for tax research. This relationship entitles Institute Members to significant discounts on RIAG products, as well as products marketed by RIAG's Canadian affiliate, Carswell Thomson Professional Publishing.

The TEI produces a directory of its members - the annual Membership Roster. Features member listings for the Institute’s 54 chapters, including information on the Board of Directors, standing committees, and continuing education opportunities.

Membership dues: $400 + $200 membership fees

The European Chapter of TEI •

The European Chapter of Tax Executives Institute currently numbers c. 260 senior tax professionals working for companies throughout Europe. The European Chapter claims to be the most rapidly growing Chapter in TEI worldwide. It provides: o

Education: The Chapter holds three meetings per year, one each in the fall, winter, and spring, in different locations within Europe. The format of these meetings includes a full-day educational program presented by a professional firm. The Chapter also sponsors a number of committees and discussion groups that hold regular conference call meetings on their specialised topics.

o

Networking: The Chapter holds its Chapter meetings over the course of two consecutive days. This allows the sponsoring professional firm to host a dinner between the days during which members have the opportunity to interact with colleagues as well as tax professionals from the sponsoring organisation in an informal setting. During the Chapter meeting, there is a Roundtable segment which allows members to exchange information and identify members with similar issues. There are further opportunities to ask questions and exchange information through the chat rooms in the TEI website.

o

Advocacy: The European Chapter maintains advocacy efforts with the European Commission and the OECD.

Taxation IBFD:

Based in the Netherlands, a long-established research institute. In US it has an agency agreement with

RIA.

• Products: Tax Treaties Database, Tax News Service, Tax Treaty Case Law Database, Regional Taxation “Databases” comparable to Portfolios, assorted journals covering a range of tax topics. • Strengths: Reference – Tax Treaties Database is comprehensive and provides text of all treaties not just those where the US is a signatory; Regional Taxation databases are comprehensive for Europe (less so elsewhere). BNAI & IBFD: • In essence, IBFD is strong on treaty information, treaty updates and European coverage. It does, however, have a wide range of reference materials covering other geographic regions. • BNAI can be positioned with BNA/TM to create a package offering greater practical help with the implications of laws and developments. • In their reference services, IBFD provides the facts of the law; from customer feedback and product analysis it appears that the TM Portfolios go deeper and draw out exactly what a customer should be concerned about.

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• BNAI takes the same practical approach – providing up-to-date guidance on what’s needed to do business overseas. IBFD’s journals have the reputation of being more academic – stating facts but stopping short of clarifying what a customer needs to do. Tax Analysts: • Products: Main service: Tax Notes. Main international service: Tax Notes International – weekly service – plus Worldwide Tax Daily. Also has Worldwide Tax Treaties. • Note: Tax Notes International also available through CCH. • Strengths: Generally perceived as providing excellent tax information and as a not-for-profit organization can pump out considerable volume at low cost. • Approach puts emphasis on volume – both its strength and weakness. •

BNAI & Tax Analysts: • Again, BNAI can be combined with BNA/TM to create a package that combines BNA’s portfolios with BNAI’s useful practical coverage of global developments. Tax Analysts (apart from Treaties) has no reference service. • BNAI offers specialist coverage – transfer pricing, indirect taxes, EU – rather than one catchall service. • BNAI offers a service to subscribers by cutting out what they don’t need to read – ensuring they do read what’s important. CCH: • Products: Main international products: individual regional databases and tax guides, Global Transactions Library (including Tax Notes International, International Tax Planning Library, Global Tax Briefing, Tax Tracker News) and International Tax Treaty Expert Library • Strengths: Good coverage of particular countries. Approach takes text of law and provides commentary, section by section – a different approach to BNA and BNAI’s but arguably equally valid. BNAI & CCH: • With the possible exception of Asia – where customers require more Asia-centric information – BNAI rarely finds itself running up against CCH. CCH offers in-depth information on particular countries but difficult to obtain comparative overview. • ΒNAI + BNA/TM offers greater depth of detail and practical analysis on specific transactions e.g. transfer pricing, indirect taxes, corporate restructuring. • Section-by-section approach is a different approach to BNA’s transactional focus; liked by some but doesn’t rule out interest in also having BNAI/BNA information. • CCH’s geographical coverage can be uneven – strong on the Asia Pacific, less so on Europe. • Where CCH is mentioned in the context of selling BNAI, there is regular frustration with CCH’s lack of detail. Intellectual Property Sweet & Maxwell (a division of Thomson Legal & Regulatory): • Products: Main IP service: European Intellectual Property Review. Similar to WIPR’s layout. • Strengths: Sweet & Maxwell is very significant in UK domestic legal coverage. EIPR established since 1978, covers UK, EU and International IP developments. Provides a news section, articles and opinions, case comment and book reviews. Also includes a table of EC intellectual property measures. No on-line service. BNAI & Sweet & Maxwell: • WIPR is not UK-centric and thus offers a more comprehensive global IP news service. And BNAI’s sole concern is international, rather than seeing it as a distraction from core domestic business. Euromoney: • Products: Main IP service: Managing Intellectual Property. • Strengths: Close to market, aggressive sales approach. MIP is a significant competitor, founded in 1990, claims to have over 10,000 readers worldwide with three-quarters being senior in-house counsel in multinationals. Published 10 times a year and includes news, surveys, the movers and shakers, data, in-depth articles and interviews with IP figures and has advertising. Online available to subscribers with full archive for the past three years. Has a daily and weekly IP e-mail service allowing subscribers to receive the latest news and articles. A very comprehensive service with links to features, news and supplements. Alan Edmunds

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BNAI & Euromoney: • Euromoney’s distinctive approach – glossy, advertising-driven, heavy on people/firms – is attractive to some but others question.

Informa Legal Publishing: • Products: They have three IP publications: Trademark World, Patent World, and Copyright World. Has a magazine format – lots of colour and advertising. Does provide news and case comment, people-watch and some special focus articles. Half the magazine made up of a directory of IP services and law firms listings. Content looks weak but subscribed to by many law firms. Online: need to subscribe to have access to archives. Has an IP Resource Centre that has sections on People Watch, An IP Think Tank – discussing IP questions, IP Planner – Events, Special Issues and Find an IP Lawyer. Can subscribe to free monthly IP news e-bulletin. • Strengths: Possibly its accessibility, coverage of industry/people gossip, the fact that it offers three specialist services rather than one catchall title. Maintains regular direct mail promotions, although question mark over effectiveness. BNAI & Informa: • WIPR content is superior. Also, BNAI offers one comprehensive service rather than spreading coverage across three.

Threats/Opportunities Analysis Threats

• Economic downturn. Aside from anecdotal feedback, there is definite evidence of a less buoyant economy. Trials in 2007 were up by 21% on the previous year but down by 20% so far this year. Subscription order value is down by 4% in comparison with Period 4 2007. The global economy is going to be less benign for the immediate future. • The web – “free” information, particularly news, readily/easily available. However, BNAI is known for its ability to digest this wealth of information for our customers who value accuracy and insight. • Greater selectivity in purchasing – due to budget considerations and lack of time to make use of information. Increased centralization of purchasing. Being countered through use of salespeople and leadgeneration direct and electronic/web marketing. • Greater pressure on customers to be productive – less time for general reading. However, information overload can increase demand for good quality, succinct publications. The need to demonstrate immediate and practical value is an on-going challenge for all publishers – note success of BNAI’s Special Reports program. • Change in how information is received and used – away from traditional newsletters and journals towards customized information feeds, online databases or topic-based briefings. BNAI’s size and costs-base, and the fact that we are a specialist publisher, allows us to be more responsive than some others. Opportunities – general

• Globalization – a more integrated global market, fewer barriers to doing business overseas. More customers than ever before can be global – creating considerable needs for international information/guidance. • Outsourcing – businesses can shop around for services but are not operating in a single market. Again, creates need for guidance. • Communications revolution 1 – huge potential in the way our customers work, want to work and also how we can deliver information. Note widespread adoption and expansion of intranets; improved ability to respond to requests for greater customization. • Communications revolution 2 – changes also offer opportunities for publishing – new problems for lawmakers to solve. • Expansion of EU. New Europe looking to tap into the wealth of the EU. Growing prosperity in Central and Eastern Europe. • Large emerging markets in south and south-east Asia.

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• Domestic Revenue service’s increasingly working together, trying to crack down on tax avoidance. Multinationals and their advisors having to work smarter. Opportunities to meet needs for information/solutions. • BNAI cooperation and BWD – new products, joint ventures, breaking down of platform barriers to selling BNAI in US, increased opportunity to sell more BNA content internationally • Non-subscription revenue – opening up opportunities to increase value of existing subscriptions and attract new customers. Opportunities – specific

The acquisition of the EATI offers probably the most significant opportunity for growth:

Development of training courses, allowing progression from one course to the next.

Development of new areas of training – an expansion of scope from the original focus of US for international.

In-house training – up to now, under promoted.

Development of membership – up to now, under promoted (but a lot rests on development of the membership package).

Development of content from round-tables – reports to send to members unable to attend/potentially sell to non-members.

Cross-selling opportunities – members have international tax information needs; considerable overlap but many new names too.

Development of existing chapters.

Development of new chapters in regions such as the US and Asia.

The launch of the Tax Treaties database offers considerable opportunity to generate interest in BNAI tax offering and undermine, in particular, the IBFD’s market position. The development of a Special Reports/Books program. These have proved to meet customer needs for detailed treatment of hot topics – and provided an entry-level product to widen our customer base. Advertising – although subscriber numbers are not huge, we have niche customers of value to advertisers. Evidence to date indicates that our budgeted expectations were overly ambitious – but also that there is market of some size if we develop vehicles such as our ezines, areas within our website (e.g. for recruitment agencies) and can make the look of our services more appealing to advertisers.

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Competitive Position Summary Data

$ 000’s Revenue Operating Margin Renewal Factor 12/31 File Value FTEs

2004 4601 914 73%

2005 4633 1033 75%

2006 4789 898 80%

19

20

21

2007 5278 1122 81% 21

Product Areas BNAI’s current revenues are derived from subscription products and one-off special reports, books and, more recently, international tax training courses and conferences. Year-to-date tax publishing represents 55% of revenues; intellectual property publishing provides 22% and other publishing (including BEER and WSLR) generates 23%. Special reports and books currently represent 3%. Nearly all products, including special reports, are available in print with web access included and there are a small number of web-only and CD-ROM services. BNAI’s role in providing sales and marketing services for parent company and TM products outside North America generates 8% of total revenues. Basis of Competition • • • • • • •

BNAI content – shares BNA’s high reputation for accuracy and usefulness. BNAI content seen as being practical and focused on needs of customers. A helpful balance of news and analysis. Gives insight – not simply stating facts. Information provided often difficult to obtain elsewhere. Customers appreciate our flexibility and willingness to be responsive to customer needs. Our small size, market position – a contender but not market leaders – and determination to grow means that we fight harder for orders and have to be more responsive to customer needs. BNAI sales team is energetic, focused, highly motivated, well educated and has foreign language skills. Marketing is well integrated with Sales, ensuring rapid follow-up of leads. Marketing also has increasing expertise in e-marketing and SEO.

Organization and Management In London there are currently 20 full-time staff and an editor on a short-term contract who are organized into three departments headed by a manager. There are also two editorial staff in DC which will be reduced to one following Joel Kolko’s retirement. A new publisher will be hired later this year to take responsibility for developing our nontax publishing. Strengths and Weaknesses Strengths

• Niche focus and closeness to customers allows BNAI to offer products and services of immediate and practical value. Huge potential in areas of training, conferences, reports, books. • Have expertise in international needs, particularly in the areas of international tax – based as we are in the capital for international law and finance. • Development of international sales force with language skills – now able to sell in depth, open up needs and sell across BNA and BNAI’s full offering. • Growing sophistication and effectiveness of email and web marketing – allows BNAI to reach a large audience and entice customers to buy from us. • Size and costs structure means able to respond quickly to customer needs and operate profitably in markets that would be too small for BNA. Alan Edmunds

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• Customer care is central to our activity – customers appreciate our high standards, flexibility and quick response times. • Geographical location and language skills allow us to provide real-time customer support for the majority of BNA/BNAI customers. Weaknesses

• Like any small company, our resources put limits on our ability to always respond to customer needs in the way we would like. Such a challenge can be countered through alliances with external organizations as well as cooperation with the parent company. • Cross-border information and guidance will tend to take second place to domestic compliance information in tough times. But BNAI’s focus on providing solutions and insight helps us to be more compelling. • Still developing the BNAI sales force to the optimum point of global coverage – but since the move to using salespeople in 2003, sales from the BNAI sales team have grown year on year (last year by 48%). • Need to develop for other areas of our publishing the same level of expertise that we have in international tax. Recruitment of a new publisher is under way. • With growing importance of technology, it’s crucial that we can meet customers’ changing demands in the area of electronic delivery. Having BNAI on BWD should give us that ability.

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Strategy Strategic Statement BNAI has several roles: • To meet international needs for practical cross-border information and guidance for a global audience, thereby ensuring the needs of non-US customers are catered for within the BNA brand. • To profitably serve markets that BNA would find uneconomic. • To be the international face of BNA – expanding sales of BNA’s services outside of North America, providing customer support for BNA’s non-US/Canadian customers. This is a crucial role in terms of the modern sales environment where the focus is increasingly on developing licenses, partnership selling, and dialog. While aiming to maintain subscription revenue, growth for the period covered by this plan will be predominantly achieved through the expansion of non-subscription revenue and the development of additional delivery channels for our information, all of which will help to ensure that we are even further embedded in our customers’ workflow. Core Strategy Elements Sales/Marketing strategy 2008/09

• •

In 2007, BNAI sales increased by 42% on 2007. In 2008 we are aiming for a 94% increase on 2007. Central to achieving this is: o Increasing sales revenue from BNAI’s five salespeople. o Tripling book sales revenue in 2008 to $150k and increasing to $275k in 2009. o Increasing 2008/09 special reports sales to $200K per year. o Holding at least two successful BNAI tax conferences in 2008 and three in 2009 o Obtaining advertising/sponsorship revenue. • Supporting this strategy will be increasing sales of BNAI content by BNA’s reps in the US – achieved through ongoing training, support (promotional, educational) and by having BNAI’s services available on BWD. • Since first hiring a BNAI salesperson in 2003, sales from the BNAI sales force have increased year on year. In 2007 Sales Team sales increased by 48% in comparison with 2006.

• The availability of BNA product and BNAI product on a single platform will expose greater numbers of BNAI customers to BNA product and make it easier for BNAI’s sales force to attract customers to it. It is therefore anticipated that sales revenues will increase accordingly. • Marketing is well integrated to support the BNAI sales force and ensures a regular flow of leads. It has been found vital to have a systematic program of conventional direct mail, prospect research, Search Engine Optimization (SEO), email and web marketing. Since 2007 there has been a decisive shift towards leadgenerating direct mail; enhancements to the website; the expansion of our email database with the development of free monthly Tax and IP ezines; the use of email marketing to sell not only special reports but also to generate trials/leads for subscription services. • We will demonstrate that our markets and current product range can support five sales people with the intention to increase this number if sales justify. • While sales force expansion continues to be a key element of our growth strategy, Special Reports, Books, Advertising and Conferences will be significant sources of growth in the immediate future. The acquisition of the EATI in February 2008, which its membership and training programme, fits in neatly with this strategy – delivering both growth and ensuring that BNAI is even deeper embedded in our customers’ workflow. • Falling circulation of mature products is a major concern but this, to some extent, reflects changing usage and expansion of alternative sources of information. While every effort will be made to maintain subscriber levels and move customers towards being subscribers rather than repeat buyers, customer needs have evolved. There is a greater focus now placed on immediate, demonstrable value. Evidence suggests we can respond to such a change through the development of non-subscription products. Alan Edmunds

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• Sales of Special Reports will be achieved primarily through direct mail, e-mail, SEO and customers buying online, with around 17% of total sales being generated by BNAI salespeople. Sales of books require trade marketing. We have already developed a database of bookshops/agents. • With the strategic objective in mind of developing revenue from non-subscription sources, the potential for generating advertising revenue will be developed in 2008. With our low subscriber numbers and a need to maintain the BNA brand image, we will begin by investigating the potential of limited advertising in/sponsorship of the free Tax and IP ezines, on the BNAI website and in TPI, TPTP and WIPR. Results to date indicate that advertising revenue is likely to bump c. $30k a year – small but useful to have. To increase this we would need time to develop a presence in this market and additional advertising vehicles – visually moreappealing services, development of website, more events. The regular ezines have proved attractive to advertisers.

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Editorial and Product Development Strategy 2008/09

Journal based services

New subscriptions to individual publications, with one or two exceptions, remain difficult to achieve so the emphasis is on ensuring that the collection, taken as a “library” meets subscribers’ needs for tax information across the board. We are unable to compete with the highly resourced news gathering organizations so the strategy remains one of presenting considered analysis of current developments. There is an ongoing commitment to sourcing strategic alliances with groups of law or accounting firms who can provide us with timely information regarding developments in their jurisdiction. A new print design will be implemented in the summer of 2008 to enable the publications to keep up with market expectations on presentation. “Home” pages on the web platform will continue to be developed, meeting the market’s expectation of timely information.

Special reports The Tax Planning International series of special reports continues to develop and a model now exists to ensure that all reports meet a minimum standard. Reports also cover topics that are peripheral to our core disciplines, and we continue to monitor opportunities for developing these. A special report on green taxes, planned for June 2008 is an example of this potential. Reaching new markets for such publications can also be achieved by means of alliances and partnerships and an example is of a potential report on cross-border real estate that is being explored to complement an IBA conference on the subject in September 2008. As well as international tax, freelance staff are assisting with the preparation of reports in the areas of intellectual property and data protection law.

Books Bringing the two volumes on Basic International Taxation to the market in 2007 has led to a number of approaches from authors. Not all are practical or desirable but our publishing strategy is one of developing major multiauthor titles, usually with the advice of a consultant editor, alongside taking opportunities and indeed seeking out single author titles in targeted areas. Multi-author titles on transfer pricing and intellectual property taxation will appear in 2008 and similar volumes on group tax planning and offshore tax planning are scheduled for 2009. Existing editorial resources suggest a target of two such titles in each year is achievable. A niche title on the use of double tax treaties will appear in July 2008, prompting both sales in its own right and acting as a promotional tool for the electronic product due to launch at the year end. Electronic services The new product on tax treaties proposed last year is due for release in the final quarter of 2008. The initial release of the product will include 12 jurisdictions that reflect the countries where BNAI has the strongest customer base. Treaties included are those between each of those countries, treaties with other main trading partners and treaties that have special significance in planning terms. A further category features treaties that have special significance in planning terms but which do not feature one of the core countries as a party. Development of a series of tools that will allow the product to be a renewable interactive tool, as opposed to a oneoff database purchase continues in conjunction with BNA staff. Research on the precise nature of these features will shortly be carried out. There is potential for developing other similar products but these must be informed by the levels of success and feedback from this initial product.

Conferences and training

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BNAI held its first conference in May 2008 and it has been widely acknowledged as successful. A further conference on a related topic will take place in October 2008. The series of “Managing…” titles (the first was “Managing the effective tax rate” and the second will be “Managing cross-border investment”) has considerable potential and will help identify BNAI’s conferences in a crowded market. Once the brand has been established in our strongest area of international taxation, extension to other areas such as intellectual property and data protection can be considered. The acquisition in February of the EATI has taken BNAI a stage further into this market. Aside from its annual meeting of members, which will be developed and branded as such, EATI mainly features training courses, in-house training and networking events. The development strategy has several strands: •

Reinforce and/or reintroduce networking “chapters” in existing areas, mainly European cities but also in New York.

Extend the coverage of these chapters to other European and US locations.

Develop chapters where there is a demand for networking but recognising that the EATI model has been to make these free events (and there is significant other similar activity that will render any attempt to charge unproductive) it will be necessary to ensure that such events act as promotional opportunities for paid-for products or activities.

Promote BNAI/EATI as a supplier of in-house training in international tax and data protection (where another arrangement is in place) and subsequently extend this to other areas.

Develop the range of training courses offered and seek to identify alliances which can make this “must-have” training rather than “nice-to-have”. An example is the current liaison with the Chartered Institute of Taxation in the UK to develop a US tax training course to serve the requirements of their examination papers in the Diploma in International Tax. If successful, similar courses on other jurisdictional papers (which are regularly added) can be developed.

Develop a means of making this training available online, using webcasts and podcasts from tutors as well as “live” sessions.

Content from courses can be related back to BNAI’s core publishing activity by making available training manuals.

Current activity is in the area of international tax, where BNAI is strongest. The model that can be developed can and will be recreated in other areas of our publishing.

Resources While a number of the projects outlined above can be moved forward using external contributors and advisers who will be paid appropriate fees, rising revenue targets can be achieved only by producing more products, selling more of those that are produced or – most appropriately – a combination of both. The junior editor, who took responsibility for many of the more basic editorial tasks when hired in March 2008, if she is to remain part of a currently highly motivated team, needs to be given responsibility commensurate with her growing experience. Thus another junior editor who can be similarly developed will need to be hired in early 2009. Conferences and training events require significant effort in managing speakers and trainers, venues and liaison with delegates. This is a specialist role and when the current EATI manager retires at the end of 2008 an event manager plus a, possibly part-time, administrator will need to be hired. The technical elements of the events can be handled by existing resources. In areas other than tax, the forthcoming retirement of the long-standing editor of World Intellectual Property Review allows us to reconfigure the resources available to develop this area where we have a presence but little volume.

Financial Projections for 2009 Assumptions We are forecasting 15% revenue growth this year and a further 7% in 2009 as the impact of the recent EATI acquisition begins to be felt. Confidence is high that we can achieve the course sales and membership revenues we estimated in the acquisition proposal submitted to the Board. 2009 will also be the year when the full benefit of our new Tax Treaties product will be realized. Additional revenue growth will be generated by our books publishing and tax conference program. Alan Edmunds

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The analysis shown below provides a comparison of revenues (in pounds sterling) by product category for the years 2007-2009. We anticipate some decline in revenues from our existing non-tax subscription services but we hope to see this reverse in the future as this publishing area is rationalized and expanded by our new publisher. Sales of special reports should also improve as more resource is applied in this area. Expenses will increase by 5.5% next year but with strong revenue growth we will continue as in previous years to maintain an operating margin of 20%. Financial Projections 2009 v 2008 and 2007 in Pounds Sterling BNAI existing subscription products BNA Special Reports Tax Treaties Advertising BNAI Conferences EATI Annual Congress EATI Training Courses EATI Memberships Books Total ÂŁ Revenues Change in Revenues % Expenses Operating Margin Change in Margins %

Alan Edmunds

2007A 2298000 236000 75000 0 6000 0

24000 2639000 2078000 561000

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2008E 2196000 244000 100000 10000 16000 30000 34000 240000 80000 85000 3035000 15.0 2471000 564000 0.5

2009 2057000 275000 100000 160000 16000 60000 50000 300000 100000 139000 3257000 7.3 2606000 651000 15.4

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BNAI Strategic Plan 2008  

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