*This was the original PV 1.0 draft* # Overview 1. Focus on the fastest growing highest potential business, offload others via sale or full time management 2. AI and automation usage will define and grow a gap in the business world over the next 2-5 years 3. Productized Services must be able to be turned into a Marketplace, Community, or SaaS 4. Revenue/Profit/Cashflow solves everything 5. Funding is for fools unless it's gasoline on a fire, Bootstrap whenever possible 1. Distribution Partner led, they bring the audience that determines the rest 2. Audience determines the product 3. Audience must be identifiable and score well on the [[Audience Scorecard]] 4. First sales should occur before service launch 6. We prefer Outreach (Sales, PR, Podcasts, Channel Partners), Ops Led Growth (Referrals, Other Ops), and Content (Social, SEO, Podcasts) 5. Minimize launch investment ($0-10K) (AVG $2K) 6. MVP should be free to test ($0, first sale = MVP) 8. Contractors > Employees 1. It should solve a single pain or problem for a single high value target group 2. Customers should save time or make more money as a result (measurable impact) 3. Single sale products must be over $3K with a target $8K+ LTV average 4. Recurring Service or Staffing otherwise 5. We love selling to the SMB $1-10MM, especially the Digital SMB (who thinks/used to think they're the startup) 6. 1 Studio Operations Partner, 1+ Distribution Partners, 1 Business ### Secret Sauce 1. [[Operational Excellence]] is our key differentiator 2. Competition makes the game fun (we like bloody waters) 3. Distribution > Innovation 5. Copy what works & sells, don't reinvent the wheel - [[GOTBook/4. Ideas To Be Expanded or Written/Buy, Borrow, Steal - Simplify]] 6. There should either be a SaaS product, paid community, marketplace, or media flywheel we can build on the back of our productized service 7. We want to build an army of small giants. 8. Start with a thesis that defines the reason for the business based on customer pains and lifecycle. Then lay out market testing and go to market strategy. We're not communists, so we don't write manifestos. ## Process ### 1. Pick An Idea or Find A Partner, Then Do The Reverse: - Bloody waters or a big audience - Develop a product for the audience - OR partner with a great creator in the community - Write the Thesis (Manifesto) ### 2. 30 Day Testing Sprint (First Sale): - Proof of concept (sale, positive ROI) ### 3. Prove The Model ($20-$50K/month): - Sales Funnel, 1 Channel working ### 4. Spin To Win - Spin out with GM/Apprentice - Quarterly review to stay in portfolio # Strategy The goal of this playbook is to build a portfolio of B2B SaaS, services, and digital product companies generating $10MM in annual revenue within 3-5 years. We target individuals and SMBs in the $1-10MM range. Our ideal business follows this growth trajectory: **Productized Services** 1. Month 1: Cashflow Positive 3. Month 3: $5-10K/Month 4. Month 6: $10-20K/Month 5. Year 1: $250-500K, Spin Out 6. Year 2: 500K-$1MM, Hire Scaler GM if needed 7. Year 3: $1-2MM 8. Year 4: $2-5MM 9. Year 5: $5-10MM ### Customer Lifecycle-Based We will serve customers at all stages of the [[Levels Of The Modern Economy|following lifecycle progression]]: 1. Freelancer ($25-75K/yr): Trades time for money; needs to niche down. Target with introductory, low-priced offers. 2. - MicroSaaS, DownWork, Marketplaces 3. Creator/Consultant ($75K-750K/yr): Developing positioning around outcomes; <50% revenue from time. Target with marketing, automation, and productivity tools and services. 4. - P360, Social Content, GhostWriter, Productized Ventures, Accountability Coach 5. Influencer/Entrepreneur ($750K-3MM/yr): Strong positioning and growth; time leverage. Target with licensing, partnerships, and media distribution offers. 6. - 3rd Brain, P360 White Label, Productized Ventures 7. Category Leader ($3-10MM/yr): Leading positioning; diversified revenue streams. Target with high-touch solutions, events and more. 9. Modern Industrialist (>$10MM/yr): Investor and owner; time independent. Target with capital and deal flow in addition to high-level networking. We support individuals at each stage of the lifecycle through a model that evolves from productized services to scalable businesses (downmarket and more) over time through organic growth and cross market opportunities. ### Funding We will bootstrap when possible, raising outside funding only when significantly accelerate growth, e.g. for specific portfolio companies. Growth funding will be considered for the right strategic opportunities. ### Distribution We will use a multi-channel approach for distribution, including: - Outreach: Sales, PR, podcasts, channel partners - Operational Excellence: Referrals, internal programs - AAA Content: Creators, Social media, SEO, podcasts, advertising - Experiments: Events, partnerships, sponsorships, etc. tested for key customer segments The channel mix will depend on the business and customer lifecycle stage. Experiments will determine highest ROI channels to scale. ## Growth: Bullseye Marketing We deploy a "bullseye" growth strategy focused on our ideal customers at each lifecycle stage. Key principles include:1. Identify ideal customers based on high CLV and low CAC 2. Craft messaging that resonates with ideal customer needs 3. Choose acquisition channels that directly reach ideal customers 4. Reduce spend on non-bullseye channels to increase ROI 5. Map the customer journey to develop targeted campaigns for each stage 6. Continuously optimize based on data to improve targeting and results This data-driven approach allows us to pinpoint where to allocate resources for the best returns and scale strategically over time. We run constant experiments across channels and customer segments, optimizing based on outcomes. # Operational Principles We commit to building on the principles of Operational Excellence written below: ## 1. Do More To Do More More actions = More Output. This is the secret that everyone knows and nobody does. ## 2. You Set The Rhythm Projects Move At The Pace Of Their Team Syncs. Sync more, be hyper communicative, and move faster. ## 3. If It Matters, It Must Be Measured If you want something to change you've got to be tracking it. ## 4. Be Present Respect The Time Others Give You. Time is the only nonrenewable resource you have. ## 5. Better Every Day Compound Your Improvements. Operational excellence starts with optimization. ## 6. Be Honest In Thought, Opinion, and Word; Even If It Hurts. ## 7. Be Hyper Communicative Leadership, success, and great client service all start with hyper communication. ## 8. Be Strategically Lazy By Seeking Leverage If you do it twice, automate it. Leverage AI & Automation to do more before you do more to do more. ## 9. By Endurance We Conquer We continue until the task is done, less it need never be done. ## Teams Our portfolio team takes an operations first approach driven approach: - Growth functions like marketing ops, sales ops, and customer success emphasize data, optimization, and results Experiment and scale, focus on maximizing single channel gains. - Technical staff in product development, software engineering, and data analytics to build and optimize offerings. Emphasize NoCode/LowCode + AI builders for speed to market. - Use of outside agencies/freelancers on demand to augment capabilities in a flexible, scalable way. If it isn't a core function, then outsource it. - Quarterly reviews of all portfolio companies to determine resource allocation and ensure they still support the ecosystem - Regular syncs/communication, especially for new initiatives in design and build phase  - An apprenticeship program develops internal talent to take on leadership roles over time. Mature companies spun out under hired GMs (internal or external) with equity stakes, while less mature companies remain in holding structure. Exits at 3-5+ years for strongest performers. ## Products & Services We offer products, services, and solutions targeted to individuals at each [[#Customer Lifecycle-Based |Customer Lifecycle]] stage: - Freelancers: Introductory, low-cost offers like SaaS, Media, productivity tools, online courses, and automations. Low prices ($25-75/mo) with ability to scale volume. - Case Studies: DownWorker - Creators: Marketing and business solution like social media management, SEO, paid advertising, and CRM. Mid-market prices ($150-500/mo) with customized options. - Case Studies: Podcast360, DownWorker - Influencers: Distribution, media, and partnership offers like podcast sponsorships, licensing for online courses, and digital good distribution. Variable pricing at a premium. - Case Studies: Podcast360 (White Label), - Category Leaders: High-touch consulting and advisory work, live events, high-level masterminds and coaching programs. Premium pricing ($5K+/yr). - Case Study: ClickDown (3rd Brain) - Modern Industrialists: Equity, deal flow, and capital investment opportunities in addition to high-level relationship building. Revenue share and high equity stakes. Pricing and solution complexity increase with customer progression. Offers at every stage are customized based on our knowledge of the needs and journey for that profile. Strong customer relationships and data inform new products. # Venture Portfolio We are looking to build a portfolio of **CCR-unchy businesses: C - Control C - Cashflow R - Revenue Growth** We bootstrap as much as possible, raising outside funding only when absolutely necessary to fuel rapid growth for top performers while maintaining full control. - Partner with [[Productized Ventures#Customer Lifecycle-Based|Creator/Influencers]] - Creative deals can drive growth as effectively as raw funding. Our creator partners are to be viewed as investors, not operators. Unless a specific role is assigned and awarded. - Provide up to 70% equity in exchange for self-funded/sweat growth for 6-18 months, with option to restructure ownership. - Utilize alternative funding like revenue-based finance, factoring, and debt to minimize dilution. - Growth targets 2-3X annual, under 100% YoY growth should be considered stagnant - Preferred terms are 5 year vest, 6-18 month cliff. Our team and builders will take the same vesting schedule as the creators we partner with. Acceleration trigger will be used if phantom equity on a buyback structure is not. ## Founding Creators/Distribution Partners - Pursue partnerships, sponsorships, and collaborations with aligned creators, influencers, and media companies to facilitate customer acquisition and growth. - Negotiate revenue share, equity, or profit-sharing deals as a way to fund growth without large amounts of upfront capital investment. Let partners earn in as the business expands. - Focus on partnering with creators part of our lifecycle that are able to bootstrap and self-fund their businesses initially. This aligns well with a low-funding model and allows more control/upside. - Consider offering founders a higher equity stake (30-70%) in exchange for direct assistance in growing/operating their companies for 6-12 months to prove out the model and bootstrap the business. - Look for founders with their own networks, audiences, and connections that can drive early growth. These are true Distribution Partners. ## Prioritize Cash Flow - Focus funding on key growth initiatives that can directly drive revenue and stabilize costs. Minimize spend on "nice to haves". - Help teams establish financial discipline through accurate forecasting, budgeting, and metrics monitoring. Reinvest at a redline pace (10% net margin) until we reach a growth plateau, then re-evaluate. - Explore alternative funding options like revenue-based finance to limit equity dilution. Cash flow, not fundraising, should sustain operations. - Institute zero-based budgeting and aggressive cost management. All expenses must be justified based on ROI. ## Drive Revenue Growth - Provide growth marketing, sales, product, and technical expertise to help scale top line results. This hands-on support and accountability fuels real growth. - Help teams determine optimal pricing, packaging, and upselling strategies based on customer segmentation and journey mapping. Increase revenue from existing customers. - Consider M&A or acquisitions by strategic buyers as an alternative to fundraising if revenues plateau. Sometimes exits are the best path to growth. ## Exits & Timelines - Maintain a 3-5 year timeline to exit through a strategic sale or creator buyout. This incentivizes founders and any investors to focus on rapid value creation. - We don't (ever) want to sell a cashflowing asset, but we should always be ready to - Consider recapitalizing or restructuring certain portfolio companies by selling ownership stakes to provide liquidity to early investors while still maintaining control. Then re-invest capital into other portfolio companies with greater growth potential. - Discuss options which provide partial exits for founders while keeping minority stakes in the portfolio. This meets investor needs while allowing the business more time to maximize value.