$12M ARR
Run-rate target by December 2028 · ~$5.6M gate in 2027
01
The thesis: own a vertical, not a service line
The tiles industry is large, fragmented, relationship-driven and structurally under-digitised. A partner that speaks its language — batches, shade lots, ranges, trade counters, container imports — can command enterprise, recurring relationships that a generic IT agency never will.
The question in front of the board is not "how do we sell more IT?" It is "how do we build a $12M ARR European business?" Those are different problems. The first is answered by a sales team. The second is answered by a business unit with its own P&L, its own go-to-market, its own delivery capacity, and its own governance.
Our recommendation is unambiguous: launch Tiles IT Solutions as a dedicated vertical business unit. A vertical wins because it compounds — every engagement deepens sector IP, reference customers, and pricing power that a horizontal competitor cannot replicate. The plan below is grounded in real market data: it holds the board's revenue ambition, but sequences it to a ~3-year, pan-European build that the addressable market can actually support (see §02).
Why a vertical
Language is the moat
Speaking the operational reality of tiles — shade-lot tracking, trade portals, container-level imports — shortens trust-building from months to meetings.
Why recurring
Managed, not projects
Monthly contracts and managed operations turn one-off delivery risk into predictable, compounding MRR and durable enterprise relationships.
Why now
First-mover in a gap
No incumbent owns "digital transformation partner for tiles." The category is open across the UK, Italy and Spain.
02
Market & ideal customer — grounded in the numbers
The enterprise-scale accounts are the Italian and Spanish manufacturers, not UK retailers. That reorders the strategy: pan-European from Day 1, with the UK as commercial base — not "UK-first, then expand."
UK market
~$1.27bn
Entire UK ceramic tile market; led by Topps Tiles Group (~£296M). Only ~30–45 UK firms clear £10M+ revenue.
Italy
248 firms
€6.1bn tile turnover — the deepest pool of large, enterprise-scale manufacturers in Europe.
Spain
105 firms
€4.8bn turnover; ~24% classed "large" — the second supply-side heartland.
Addressable pool
~250–350
EU tile companies at £10M+ revenue — the realistic enterprise-tier universe.
The reality check that shapes this plan: the UK alone cannot supply 100 enterprise accounts. Winning 100 pure-enterprise logos means capturing 30–40% of every large tile company in Europe — not credible in 24 months. So we go pan-European from Day 1, add a tiered offer to monetise the whole pool (§03), and sequence the $12M ARR ambition over ~3 years to Dec 2028 with a hard 2027 gate.
| Segment | Where they concentrate | Primary transformation need | Tier |
|---|---|---|---|
| Manufacturers & exporters | Italy, Spain | ERP core, demand forecasting, B2B commerce, data & AI | A |
| Distributors & importers | UK, NL, DE, BE | ERP, inventory & shade-lot control, trade portals, logistics | A |
| Multi-branch retailers | UK | Commerce, POS/branch integration, CRM, customer experience | B |
| Ecommerce brands | UK & EU | Digital commerce, performance marketing, analytics, automation | B |
| Dealers & independents | UK & EU | One managed program; land-and-grow entry point | C |
03
The portfolio, packaged into a tiered ladder
Ten capabilities — commerce, technology, ERP, marketing, AI, automation, analytics, support, operations, customer experience — bundled into five managed programs, sold across three price tiers so we can land the whole market and grow accounts up to Enterprise.
Program 01
Digital Commerce & Trade
B2B/B2C ecommerce, tile-aware catalog (ranges, batches, shade), quoting, trade-account portals and POS integration.
Program 02
ERP & Operations Core
ERP, inventory with shade-lot & batch tracking, supply chain, logistics and systems integration across the business.
Program 03
Growth & Demand Engine
Performance marketing, SEO, content, CRM and account-based demand generation that fills the customer's own pipeline.
Program 04
Intelligence & Automation
AI, BI dashboards, analytics and process automation — demand forecasting, pricing insight, operational automation.
Program 05
Managed Experience & Support
Customer experience, service desk and ongoing managed operations — the recurring glue that makes it a partnership, not a project.
The offer
Three tiers, one partner
Enterprise $120k/yr (all 5 programs, dedicated pod) · Growth $60k/yr (2–3 programs) · Foundation $24k/yr (one program, land-and-grow). Enterprise is the flagship; the tiers feed it.
On the CEO's "no land-and-expand": the instinct — start whales at full enterprise value — holds for the Enterprise tier. But a mid-tier captures the majority of the market and generates the reference logos that make enterprise deals easier. Enterprise stays the headline; Growth and Foundation are the on-ramp, grounded in real spend (mid-market firms invest 3–5% of revenue in digital transformation).
04
Positioning & commercial model
We are the Digital Transformation Partner for the tiles industry — and we sell the way enterprises buy: executive-led, relationship-driven, account-based. Transactional motions do not close $120k mandates.
What we are not
- ×An agency taking briefs
- ×A software company selling licences
- ×An ERP vendor selling a module
- ×A transactional, project-by-project shop
What we are
- ✓A digital transformation partner for tiles
- ✓A recurring managed-services relationship
- ✓An enterprise, account-based commercial engine
- ✓A business unit with its own P&L and governance
Motion
Account-Based
A named Top-150 target list across UK, Italy & Spain, tiered A/B/C, worked as accounts — not leads.
Selling
Executive-led
C-level to C-level. The MD and solution principals carry relationships personally.
Value
Outcome pricing
Priced to a transformation mandate, not to hours — $120k Enterprise ACV, tiered below.
Retention
Managed & sticky
Monthly contracts + managed operations drive high net revenue retention.
05
The financial model
A realistic, back-loaded path to $12M ARR by December 2028 — reached through a blend of tiers across UK, Italy and Spain. 2026 builds foundation and proof; 2027 scales to a ~$5.6M ARR gate; 2028 compounds to the target.
MRR trajectory to $1.0M / month ($12M ARR) · Dec 2028
Recurring revenue run-rate at quarter-end, blended across all three tiers. Milestones labelled.| Milestone | MRR run-rate | ARR run-rate | Mix — Ent / Growth / Found | Phase |
|---|---|---|---|---|
| End Q1 2026 | $0 | $0 | 0 / 0 / 0 | Foundation |
| End 2026 | $85k | ~$1.0M | 4 / 6 / 8 | Proof & pan-EU pilot |
| End 2027 · gate | $465k | ~$5.6M | 20 / 35 / 45 | Scale gate |
| End 2028 · target | $1.0M | ~$12.1M | ~50 / ~70 / ~80 | Target hit |
Base case · Route B
~$12M ARR · Dec 2028
Enterprise-led, blended with mid-tier. ~50 Enterprise accounts carry ~half of ARR; Growth/Foundation build early MRR and references.
Acceleration · Route A
$12M ARR · Dec 2027
Achievable only by front-loading the mid-tier and hiring faster — higher execution risk on the 24-month clock. Held as upside, not the plan.
2027 protection gate
~$5.6M ARR floor
If end-2027 lands short of the gate, the scale investment is reviewed — the downside is still a material, profitable recurring business.
06
Team & organisation design
A business unit, not a sales department. Costs are fully loaded (salary/OTE + ~30% for employer NI, pension, benefits, tooling, overhead) using 2025–26 UK market data. Headcount ramps with proof — 14 at launch, ~37 at scale.
| Function | Role | Loaded each | Launch 2026 | Scale 2028 | Mandate |
|---|---|---|---|---|---|
| Leadership | Managing Director (BU Head) | £260k | 1 | 1 | Owns the P&L, carries whale accounts, board reporting |
| Sales | Enterprise Account Executives | £235k | 3 | 6 | Own tiered named accounts end-to-end |
| Mid-market AEs | £145k | 1 | 4 | Growth & Foundation tiers, higher velocity | |
| Business Development (SDR) | £65k | 2 | 4 | Account research, executive outreach, pipeline | |
| Pre-sales | Solution Principals | £150k | 2 | 4 | Shape programs, own technical trust |
| Marketing | ABM / Demand & Events | £95k | 2 | 3 | Named-account marketing & the events engine (§07) |
| Customer Success | Customer Success Managers | £95k | 1 | 6 | Retention, expansion within account, NRR |
| Partnerships | Partnerships lead | £120k | 0 | 1 | Platform, industry-body & channel alliances |
| Delivery | Delivery leads + pods | £120k | 2 | 8 | Managed-services delivery, flexed with partners |
| Total headcount | — | 14 | 37 | ~£2.4M loaded in 2026 → ~£6.3M in 2028 | |
Hiring reality
The AE is the gate
A UK Enterprise AE costs ~£235k loaded and takes 3–6 months to hire plus 6+ to ramp. Start the MD and first two AE searches before anything else.
Margin discipline
Partner-flexed delivery
Core delivery leadership is in-house; capacity flexes through vetted partners so gross margin holds as MRR scales.
Culture
Enterprise from day one
Senior, sector-credible hires. This unit sells C-suite to C-suite; the team must be able to sit at that table.
07
The events engine — real 2026 calendar
Industry events become a primary acquisition channel, run as a pipeline machine. In Year 1 we attend the big EU fairs and run pre-booked meetings rather than sinking six figures into flagship stands — that is a Year-2 decision once the model is validated.
| Event | Where & when (2026) | ICP reached | Yr-1 budget | Role |
|---|---|---|---|---|
| Surface Design Show | London · 3–5 Feb | UK specifiers, retail & ecommerce | £40–70k | UK anchor · exhibit + meetings |
| TTA / ExpoTile + Awards | UK · Jun / 8 Sep / 27 Nov | Retailers, distributors, dealers | £15–40k | UK credibility & membership |
| Cersaie — global flagship | Bologna · 21–25 Sep | Manufacturers & exporters (90k+ visitors) | £20–30k | Supply-side · attend + exec meetings |
| Cevisama Contract | Valencia · 28 Sep–1 Oct | Spanish manufacturers & exporters | £12–20k | Spain beachhead |
| Hosted executive roundtables | UK · quarterly | A-tier CxOs, invite-only | £10–15k ea | Highest-intent own channel |
Before
Named-account outreach
Target meetings booked with A-tier accounts before the doors open — the event delivers the room, not the discovery.
During
Executive meetings
MD and Solution Principals run a full calendar of pre-booked C-level conversations, not booth footfall.
After
48-hour follow-through
Every conversation enters ABM sequencing within 48 hours, tracked to opportunity and revenue.
Accountable
ROI per event
Each event reports meetings, pipeline, and closed MRR. Under-performing events are cut — the budget follows return.
Note the September clash: Cersaie (21–25), Marmomac Verona (22–25) and Cevisama Contract (28 Sep–1 Oct) fall inside two weeks — resource the EU swing as one coordinated campaign. Total Year-1 events budget ~£250–350k. Flagship Cersaie stand (€80–140k all-in) is deferred to 2027.
08
Execution roadmap
Phased and gated across three years. Foundation and proof in 2026, pan-European scale through 2027 to the gate, and the compounding climb to $12M ARR in 2028.
Phase 0
Q1 2026
Exit: $0 MRR · pipeline built
Foundation
Hire the launch team, package the three-tier offer, build the named Top-150 list across UK/IT/ES, stand up ABM and CRM, and open first executive conversations. No revenue expected — this quarter builds the engine.
Phase 1
Q2 2026
Exit: ~$20k MRR · first logos
First wins & proof
Convert the first flagship accounts (any tier). Prove the offer, the pricing and the delivery model on real customers. These become the reference base that unlocks everything after.
Phase 2
H2 2026
Exit: ~$85k MRR · ~$1.0M ARR
Proof & pan-EU pilot
Establish a repeatable acquisition motion and stable delivery. Cersaie + UK events feed pipeline; first Italian/Spanish conversations open. Evidence base for the Q2 commercial-validation gate.
Phase 3
2027
Exit: ~$465k MRR · ~$5.6M ARR
Pan-European scale — to the gate
Scale the engine across UK, Italy and Spain. Expand commercial and delivery teams against proven unit economics. End-2027 gate (~$5.6M ARR) governs the release of the final scale capital.
Phase 4
2028
Exit: $1.0M MRR · $12M ARR
Compound to $12M ARR
Compounding references and events drive the target year. Reach ~$12M ARR run-rate by December 2028 — ~50 Enterprise accounts plus the Growth/Foundation base — with the unit self-funding from H2 2028.
09
The investment ask
A net funding envelope of ~£6–7M ($8–9M) over 3 years — front-loaded, and released in tranches each gated by a review. Revenue offsets most of the gross spend in 2027–28; the CEO must be ready to fund real losses through 2027 before the unit self-funds.
Tranche 1
£1.0M
Foundation · released at launchLaunch team, three-tier packaging, ABM & CRM, Top-150 list, first events.
Q1
Tranche 2
£1.3M
Build · released after Q1 reviewFull commercial team, delivery pods, event calendar, first customer proof.
Q1 gate
Tranche 3
£1.2M
Proof-to-scale · after Q2 validationCompletes the ~£3.5M Year-1 commitment; opens pan-EU scale.
Q2 gate
2027–28
~£3M net
Scale · against the 2027 gateLargely revenue-funded; drawn only on a validated model. Self-funding from H2 2028.
Gated
Use of funds
Return: a business exiting December 2028 at a $12M ARR run-rate, contribution-positive from H2 2028, with a defensible category position and a scalable pan-European platform.
Year-1 cash to commit now: ~£3.5M (Tranches 1–3, ~$4.5M). The full 3-year net envelope of ~£6–7M is released only as each gate is cleared — the board never commits the whole amount up front.
10
Governance & decision gates
Three explicit gates protect the capital: two in year one, plus the end-2027 scale gate. If the unit fails to clear them, the investment is reviewed — capital is protected by evidence, not optimism.
Q1 2026 — Performance Review
Gate 1- ›Launch team hired and operational
- ›Three-tier offer packaged & priced
- ›Top-150 list built across UK/IT/ES; ABM live
- ›Qualified pipeline created; 2–3 logos in late stage
Q2 2026 — Commercial Validation
Gate 2- ›≥ 8 logos signed, incl. ≥ 3 Enterprise
- ›Repeatable, evidenced acquisition motion
- ›≥ 3× pipeline coverage
- ›Decision: release scale capital, pause, or pivot
| KPI | Cadence | Owner | Board threshold |
|---|---|---|---|
| Net-new logos (by tier) | Monthly | MD | On plan vs quarterly ramp |
| MRR & ARR run-rate | Monthly | MD | Within 90% of plan · ~$5.6M end-2027 gate |
| Qualified pipeline coverage | Monthly | Sales | ≥ 3× forward target |
| Event ROI (pipeline & closed) | Per event | Marketing | ≥ 5× event cost in pipeline |
| Net revenue retention | Quarterly | Customer Success | ≥ 100% |
| Managed-services gross margin | Quarterly | MD | ≥ target margin band |
11
Key risks & mitigations
The plan is ambitious but grounded. These are the risks the board should weigh, and how the model absorbs them.
Addressable market is finiteStructural
Only ~250–350 EU tile firms clear the enterprise bar. Mitigated by the tiered offer (monetise the whole pool) and the pan-European footprint from Day 1 — not UK-only.
Enterprise cycles run longLikely
6–12 month cycles could slip the ramp. Mitigated by a foundation quarter, front-loaded pipeline, the events engine, and the mid-tier providing faster early MRR.
Senior UK talent is costly & slow to hireModerate
An Enterprise AE is ~£235k loaded and 3–6 months to hire. Mitigated by starting MD/AE searches pre-launch, SDR leverage, and partner-flexed delivery.
Delivery can't scale with salesManaged
Selling faster than we deliver erodes trust and margin. Mitigated by partner-flexed capacity and in-house program leadership from launch.
12
The deliverable set
This document is the Business Expansion Strategy — one of eight board-ready deliverables that together operationalise the launch. All are now built and reconciled to one model. Click any to open it.