High Growth Venture Wheel of Success Turning the Wheel
Time & Place
Profitable
Management Major flaws
The Market Compelling Need Right Customer
Resilience
Long term problems Constrained
Robust Margins
Distribution Channels
WIN
Potential
WIN
Strategy
Innovation
Competitive Advantage
Vision Scalability
Making it Work
Sustainable
Realising the Opportunity Source: T. McKaskill, Winning Ventures (2006)
Growth Potential Score Index
Score / 5
Time & Place Compelling Need
Right Customer Distrib. Channels Innovation Comp. Advantage Sustainable Scalability
Go for IT!
57-70
Invest
43-56
Investigate
29-42
Few Possibilities
15-28 0-14
No Chance
Vision Strategy
“The Wheel of Success won’t guarantee that your business will move into high growth, it simply sets out a framework that shows that your probability of moving into high growth is greatly improved if you move towards the sweet spot in the centre. What you should achieve is a more profitable, more resilient and better managed business through the process.”
Robust Margins Resilience Management Profitable TOTAL
/ 70
Source: T. McKaskill, Winning Ventures (2006)
Golis has developed a VC’s screening criteria with the acronym: ‘MAMECH’. Notes: The larger the market, the more attractive the investment; Market Size
$1-$2 million profit from markets >$50 million Penetration rates <3-5% p.a Difficult to build market share >20% in 5 years. Net Profit after tax rarely >10%
What is the significant competitive advantage?
Advantage
Does business possess a core technology or capability from which it can generate a host of products? Revenue growth is a good indicator of whether the company is keeping up with technology. >15% p.a. growth required to stay ahead of competitors.
Management Team
Typically consists of entrepreneurial leader and several managers;
Endorsements
Which large customers have bought from company? Who are they?
Capital Requirements
How much is required and in what amounts?
History
Look at the history of the business and latest copy of the accounts Source: Golis, (2002), p. 167-171
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