Most management teams, including early stage ones, are disciplined enough to define, lay out, and then execute against a strategic business plan reflected in revenues, resources, costs, and cash flow. We call this a Business Plan.
Too often, the outcome being sought via a Business Plan is arguably too modest as predictability is valued above risk. This modesty is less so in Silicon Valley where “disruption” and “get big fast” are in the DNA of the ecosystem that encourages pursuing bigger opportunities. However in the Midwest, this modesty is more prevalent, in large part due to:
- Management’s experience, resources, and degree of risk aversion;
- An inability to connect to national/global capital markets and business development infrastructure.
In other words, at times not being in the center of a technology and capital belt on either coast is what limits growing to full potential in terms of revenues and enterprise value.
In addition to a Business Plan, many companies create a Plan B, which is a fallback strategy for when their Business Plan is not achieved and now a pivot or turnaround effort is necessary.
We at WISC Partners are proponents of what we call an Acceleration Plan. The purpose of the Acceleration Plan is to create revenue and value materially above and beyond that envisioned in the more modest or fallback plans. The Acceleration Plan is designed to help our ventures not only improve their odds of achieving their original Business Plan, but to “sprint past” their original plan by creating far greater revenue flow and enterprise value. In other words, our Acceleration Plan is an overlay designed to accelerate and boost performance outcomes.
We believe that Wisconsin ventures and their shareholders will derive great value from our design and then execution of an Acceleration Plan. Think of it as a booster shot, a cannon shot, and a rocket launch. Think of it as the thoughtful pursuit of windfall outcomes through additional knowhow and networks, something always needed and unfortunately seldom readily available in our area.
Every WISC Partner investment includes a well-tailored Acceleration Plan coupled with a carefully chosen team to help drive its execution. Yes, as investors we expect our portfolio members to deliver on the promises made in their Business Plan, but as a Strategic Operating Capital fund our true interest and greatest value-add is in the insights, resources, connections, and energy that we bring to bear. Our goal is not to just meet the original Business Plan, but to create significant overachievement of it and windfall results for all involved.
This Strategic Operating Capital perspective and approach is what makes us so unique. It is also what improves the odds that our carefully chosen investments deliver on their full potential, and allows us to together pursue outcomes and exists well above what we believe to be too modest of aspirations.
If you are interested in learning more about our Acceleration Plan model and what it might mean to you as an entrepreneur or investor, please contact us.