Achieving Results: Fundamental Strategies for Growth and Profit
Every great institution rests upon a strong foundation of thinking coupled with the ability to execute against the decisions rendered from that intelligence. This base platform for success is most evident when examining the core business strategies of The Incubation Factory – a set of proprietary principals and governing rules that inform every decision and action made in the conducting of company business. In fact, it is the belief of the founders and management of The Incubation Factory that these strategies are what drives the success of this business.
These core strategies include:
Eliminating “Entitlement”:
The Incubation Factory template approach does not include existing personnel or associated founder equity provisions based on unverified, oftentimes inflated projections. This removes a major obstacle and predictable source of failure: The unrealistic expectations of entrepreneurs or inventors unfamiliar with the real world of business.
Sourcing the Right Deals:
The “Right Deal” means technologies introduced through proven channel partners tasked with identifying disruptive, high value, high growth businesses. The Incubation Factory then leverages trade secret methods and weighs against explicit criteria to vet and validate those opportunities – including rigorous scrutiny by subject matter experts.
Standardizing the Platform:
Economies of scale are created through standardization of business practices and processes in nearly every industry. We benefit greatly through utilization of Virtual Leadership (CEO, COO, CFO), Back Office Support, custom software and institutional governance delivered on an as-needed, at-cost basis. The standardized platform creates an “assembly line” for technology innovation.
Conducting Streamlined Launches:
The Incubation Factory platform approach reduces early stage burn rates by as much as 70% when compared to traditional technology launches. This represents a huge advantage in the quest to accelerate the growth of technologies within the confines of a budget.
Establishing Expenditure Dials:
As The Incubation Factory monitors and controls the expenditures of every company in the portfolio, spending can be advanced or slowed whenever the business case warrants an adjustment.
Enforcing Stop Loss Parameters:
Every company brought into the portfolio is examined and slotted into a “track” complete with governing parameters. If a technology fails to meet a milestone or shows signs of underperformance, The Incubation Factory can immediately stop spending until the company is cleared for revival or removed from the portfolio.
Building Custom Management Environments:
The Incubation Factory has developed a management strategy that provides interim management until select milestones are reached. This permits the opportunity to hire the “right” management team at the “right” time, hold them accountable to specific objectives and, unlike traditional models, replace them if necessary to ensure success.
Aligning Incentives:
Companies selected for inclusion under The Incubation Factory umbrella award standardized, equity-based incentives as a technique to ensure the leadership team and management team have “skin in the game” while keeping expenditures low and management motivation high.