The BOSI Portfolio Company Program. Education Advisory Operating Partner

The BOSI Portfolio Company Program Education Advisory Operating Partner

of 8 Introduction Based on original research conducted by serial entrepreneur and world-renown author Joe Abraham, BOSI is an award winning growth acceleration process for second stage companies. BOSI segments business owners based on their Entrepreneurial DNA and designs business plans, teams and go-to-market strategy mapped to the unique DNA of that entrepreneur. The BOSI process has been recognized by the Wall Street Journal and featured in numerous national media outlets. It has been endorsed by the likes of Seth Godin, Vistage CEO Rafael Pastor and BNI founder Ivan Misner. Today, BOSI technology and methodology power entrepreneurship platforms around the world. Companies selected to join the Portfolio Company Program are engineered for sustainable and scalable growth during the first 90-180 days. Following this process (which includes some growth acceleration), an operating team of proven entrepreneurs align with company ownership to scale the company over multiple years - and prepare the company for exit. In 2012, 13 companies went through the initial 90-180 day strategy and initial acceleration phase - and reported 200+ new jobs, $2 million in debt/equity funding and an average growth rate of 43.5% in the following 3 quarters. In mid-2013, the multi-year operating partner option was introduced to complete the Portfolio Company Program.

of 8 The Strategy and Initial Acceleration Phase Discover Phase: The BOSI team hosts a series of strategic planning and business modeling exercises using proprietary assessments and methodology. The financial team gets a rich understanding of the company s financial systems to identify hinderances to scalable and sustainable growth. The sales and marketing team evaluates the sales process, marketing materials, pipeline and other elements. The operations team looks for ways to improve performance, reduce risks and scale efficiently. All employees are assessed for Entrepreneurial DNA, skill set and capacity to participate in high-growth environments. Design Phase: BOSI s team takes the discoveries from the initial phase to start designing the company s new plan for sustained growth. This includes evaluating organic growth strategies and the role of acquisitions. A multi-year financial plan is created - one that applies shock treatments to ensure sustainability while identifying growth capital needs. A refined go-to-market strategy is designed which includes digital marketing and social engagement. A human capital (organizational) plan is designed identifying current gaps and future talent needs. Deploy Phase: Test and Measure The strategy designed across the various business units is integrated into an overall operating system led by a financial/business model that drives the company going forward. If the company is being invited into the Operating Partner Phase, the fractional C-Suite of BOSI Catalysts are identified and prepped for deployment. If the company is not entering the Operating Partner Phase, talent gaps are identified so the company can hire those positions directly. The strategy is deployed into the marketplace and initial results are measured and modifications are made to the strategy. By the end of the process, the company has a complete and actionable operating system for sustainable and scalable growth.

of 8 ROI on the Strategy and Initial Acceleration Phase - 2012 Case Studies Sporting Goods Venture: Founded by former college athletes. In need of capital, growth strategy and better operational processes. Within 6 months, company operations were streamlined, $400,000 worth of contracts secured, $350,000 in equity funding raised. 5 new hires engaged and trained. Today, the company s products are available in major retailers like Dick s Sporting Goods and worn by professional NFL players. B-2-B Professional Development Venture: In need of a re-engineered go-to-market strategy and operational plan. Too much was dependent on the founder/ceo. Within 12 weeks, company operations were restructured to free up CEO. Business model was re-engineered to allow for scalable growth. Company expanded from 1 market to 6 markets nationwide within 180 days of the accelerator process. Revenues quadrupled. Clients now include Fortune 50 companies. Healthcare Services Venture: Founded by two PhDs. Company had one large established hospital client - but was struggling to find ways to duplicate that success in landing new clients and expanding their proprietary process. Company business model and pricing system were restructured to allow for scaled distribution. Negotiations with a regional reseller were initiated and closed. Support was provided in closing another hospital client ($400,000+ in new annualized revenues). Proprietary software was developed to make internal processes and data collection/ reporting more efficient. Company is now poised to add a minimum of 5 new major clients this year and scale to over 25 within 3 years.

of 8 Operating Partner Phase Companies coming out of the Strategy and Initial Acceleration phase have the option (by invitation) to enter into a long-term partnership with BOSI. Upon execution of an operating agreement, a team of BOSI Catalysts come alongside company ownership to operate and scale the company. Key leadership roles and gaps are filled - including c-level oversight of sales, marketing, operations and finance (as needed). BOSI takes responsibility for growing the company, sourcing capital, acquiring and managing top-shelf talent and ensuring the KPIs (key performance indicators) of the company are monitored and met. BOSI stays with company ownership through multiple s-curves of growth and sits on the company s side of the table when negotiating terms for company sale. BOSI s primary compensation during this phase is tied to new revenues, profits and increases in company valuation. Program at a Glance

of 8 Compensation BOSI earns a majority of its compensation on the growth and increase in shareholder value of Portfolio Companies. By tying most of the compensation to performance, BOSI is in full alignment with ownership. A nominal monthly management fee (equal to the cost of one full time executive) covers a multi-person team in both the initial and operating partner phases. Both BOSI and the company have the option to cancel the engagement during the process with due notice. Who Should Apply Owners of second-stage b2b companies (> $2.5 million in revenue) who fit the following qualifications should apply. 1. Highly motivated to improve results immediately and position the company for significant and sustainable growth over the next several years 2. Frustrated with current results because they are not on pace with ownership s vision 3. Current human capital/talent gap are a key limiting factor to sustainable growth 4. Company has strong product innovation and/or client service but marketing and sales are under-performing 5. CEO is spending too much time in draining operating roles rather than in their area of gifting Who Should Not Apply Companies who fit the following traits should not consider the engagement. 1. If the BOSI Assessment, TED Talk or book Entrepreneurial DNA don t resonate in any way with ownership 2. Ownership that prefers to be the smartest person in the room at all times - and looking for validation of their brilliance rather than a plan that will actually result in sustainable and scalable growth 3. Lifestyle businesses that have reached a level of success providing a comfortable income and lifestyle for ownership 4. Ownership that would be satisfied with 5-15% annual growth - and scared of exponential growth 5. Companies that do not have the capacity or desire to put skin in the game to engage BOSI to grow the company

of 8 Why It Works There are some very specific reasons why the BOSI Methodology outputs such powerful marketplace results. 1. Authentic Pedigree: BOSI engages seasoned entrepreneurial operators who have built and sold high-growth companies. We don t use recent MBA grads, interns and corporate consultants to design strategy. The BOSI team has a results-focused approach that is mutually aligned with company founders. It shows in everything we do - including how we share risk and upside both now and in the future. 1. Proprietary Processes: The BOSI Process is one-of-a-kind and comes out of almost a decade of ongoing research involving over 1,000 companies. It is the core reason why our process gets significantly better results than any traditional one-size-fits-all coaching, consulting or strategic process. Everything we do is mapped to your unique Entrepreneurial DNA. 1. High Passion: BOSI engages team members to work on portfolio companies who are absolutely passionate about serving entrepreneurs and building breakthrough companies. It shows in the way we build strategy, solve problems and go far and beyond what we are initially paid to do - in order to help companies succeed. 1. Global Rolodex: BOSI has a global rolodex of talent, buyers, decision makers, executives, experts, VCs, angels, banks, suppliers, manufacturers, shippers, technologists and more. That rolodex is leveraged to help portfolio companies leapfrog the competition. How We Measure Ourselves At BOSI, we measure our performance internally and hold ourselves accountable across key areas that ensure our portfolio companies get the results they deserve. Sound Strategy: What strategy did we design for your company that is working right now? Relationships: What relationships (talent, JV s, customers, vendors) did we bring to the table? Staff Development: How did we foster innovation and entrepreneurism amongst the team? New Revenues: How did we impact new business? Overall Mission: Is our client, the ownership in a better place than before they met us?

of 8 Prior To Meeting With Us 1. Take the BOSI Assessment 2. Watch the BOSI TED Talk or read the book Entrepreneurial DNA 3. Visit BOSI Global and watch the videos on the site. Evaluate if you are a fit for the program. 4. Request a complimentary white-board session with BOSI Next Steps Once we receive your request, we ll schedule a complimentary 2-hour white board session at a BOSI location. During this session we ll conduct several strategic exercises to add value - and ensure there is a good fit for us to work together. Within one week of the white board session, we will deliver a Findings and Recommendations document with some guidance and advice - as well as recommendations on a go-forward relationship. If we mutually agree to move forward, we execute the engagement letter and schedule you in for your first strategy session.