Endeavor Excelerator Strategy document

The Excelerator entrepreneurs will follow a development path that will allow the best to be selected as Endeavor entrepreneurs Preparation for ISP Endeavor staff will follow a broad outreach campaign to find the most aspiring entrepreneurs Through a rigorous and challenging selection process, the best entrepreneurs will be selected as ExEs The Selection process will be both evaluative and developmental, so that even Entrepreneurs that aren’t selected benefit from the process 3-year customised development process for each entrepreneur Focus on business fundamentals and business model innovation Greater need for ‘classroom’ training and in-depth coaching Access to local network Access to local MBAs Services Selection Some of the ExEs will develop into potential Endeavor candidates After an assessment by the MD and a senior VentureCorps, these companies begin selection process for Endeavor As ExEs, their selection path into Endeavor can be significantly fast-tracked It is expected that at least 10% of ExEs will be selected as Endeavor Entrepreneurs after 3 years These ‘success stories’ will be great role models for other ExEs and the community at large Other entreprenuers who are not selected for Endeavor will become Alumni's and ‘Friends of Endeavor’

Endeavor staff will follow a broad outreach campaign to find the most aspiring entrepreneurs

Through a rigorous and challenging selection process, the best entrepreneurs will be selected as ExEs

The Selection process will be both evaluative and developmental, so that even Entrepreneurs that aren’t selected benefit from the process

3-year customised development process for each entrepreneur

Focus on business fundamentals and business model innovation

Greater need for ‘classroom’ training and in-depth coaching

Access to local network

Access to local MBAs

Some of the ExEs will develop into potential Endeavor candidates

After an assessment by the MD and a senior VentureCorps, these companies begin selection process for Endeavor

As ExEs, their selection path into Endeavor can be significantly fast-tracked

It is expected that at least 10% of ExEs will be selected as Endeavor Entrepreneurs after 3 years

These ‘success stories’ will be great role models for other ExEs and the community at large

Other entreprenuers who are not selected for Endeavor will become Alumni's and ‘Friends of Endeavor’

Excelerator will look for a select group candidates, based on the quality of the entrepreneur and of the business The Business Less than R3 million in revenue At least 6 months in operation Has started to generate revenue Innovation or potential to innovate Patents Proprietary processes Price premium Niche market Etc Scalable or potential to grow BEE preferred, not essential The Entrepreneur An innovator, thinks outside the box Has role model potential Willing to learn Ambitious and wants to grow business Passionate Impeccable ethics Has experience/expertise in the industry Aligned to the Endeavor mission Works full time in the business

The Business

Less than R3 million in revenue

At least 6 months in operation

Has started to generate revenue

Innovation or potential to innovate

Patents

Proprietary processes

Price premium

Niche market

Etc

Scalable or potential to grow

BEE preferred, not essential

The Entrepreneur

An innovator, thinks outside the box

Has role model potential

Willing to learn

Ambitious and wants to grow business

Passionate

Impeccable ethics

Has experience/expertise in the industry

Aligned to the Endeavor mission

Works full time in the business

Excelerator entrepreneurs will be selected through a rigorous, multi-step Search and Selection process Research (50) FOR (30) 3 SORs (12) Final Review (12) Regional Panel (12) Public Declined (4) Approved (8) Endeavor staff Media VCorps Partners Stakeholders Involved Stages Endeavor staff Endeavor staff Endeavor staff VCs Endeavor MD A+/A VCs Search & Selection process will be both rigorous and constructive for every candidate There will be equal emphasis on evaluation and development of candidates at every stage in the process The process will take 6-8 months from the initial reviews to a Regional Selection Panel The Regional Selection Panel will have an 80% Panelist vote threshold , versus unanimity requirement of the International Selection Panel (“ISP”) With this slightly lower threshold, we hope to encourage more participants and successful applications

Endeavor staff

Media

VCorps

Partners

Endeavor staff

Endeavor staff

Endeavor staff

VCs

Endeavor MD

A+/A VCs

Search & Selection process will be both rigorous and constructive for every candidate

There will be equal emphasis on evaluation and development of candidates at every stage in the process

The process will take 6-8 months from the initial reviews to a Regional Selection Panel

The Regional Selection Panel will have an 80% Panelist vote threshold , versus unanimity requirement of the International Selection Panel (“ISP”)

With this slightly lower threshold, we hope to encourage more participants and successful applications

The Excelerator SOR and panel process will be more structured than it is for potential Endeavor Entrepreneurs SOR 1 The entrepreneur/ the product SOR 2 The business model/vision SOR 3 Financial review Final Review Excelerator Panel Entrepreneur(s) and role in the business Gap that entrepreneurs saw in the market Entrepreneur’s knowledge/’feel’ for their industry Viability and innovation in the product/service Focus on Stage Evaluate the growth potential of the business Business model and structure of business How the business operates, including revenue flows Long term vision for the company Evaluate financial statements Focus specifically on cash flow management Analyse financial projections Determine entrepreneurs’ readiness for the panel Select cohort of Excelerator Entrepreneurs Endeavor staff Industry-specific VC Endeavor staff Strategy VC Endeavor staff Endeavor MD Complete part 1, 2 & 3 of profile questionnaire (entrepreneur history and gap) Complete part 4, 5 & 6 (the market, business model, vision) Financial Statements template (IS, BS, CFS) Compile profile questionnaire Conducted by Required at this stage A+/A VC Final Profile Panel presentation 3-4 weeks 4-6 weeks 2-3 weeks

Entrepreneur(s) and role in the business

Gap that entrepreneurs saw in the market

Entrepreneur’s knowledge/’feel’ for their industry

Viability and innovation in the product/service

Evaluate the growth potential of the business

Business model and structure of business

How the business operates, including revenue flows

Long term vision for the company

Evaluate financial statements

Focus specifically on cash flow management

Analyse financial projections

Determine entrepreneurs’ readiness for the panel

Select cohort of Excelerator Entrepreneurs

Endeavor staff

Industry-specific VC

Endeavor staff

Strategy VC

Endeavor staff

Endeavor MD

Complete part 1, 2 & 3 of profile questionnaire (entrepreneur history and gap)

Complete part 4, 5 & 6 (the market, business model, vision)

Financial Statements template (IS, BS, CFS)

Compile profile questionnaire

A+/A VC

Final Profile

Panel presentation

The documentation completed during the S&S process will be used to compile the entrepreneurs’ profiles for the panel Process for compiling The entrepreneurs will complete the profile questionnaire After each SOR, the entrepreneurs will update the relevant section of the questionnaire, based on feedback from the SOR The entrepreneur will compile financial statements, with assistance from Endeavor staffers The panel presentation will be completed after the final review, mainly by the entrepreneur/s The profile will be compiled by the Endeavor staffers Key documents 6-part profile questionnaire, to be completed in 2 stages Diagram of business model (part of questionnaire, needs to be converted to electronic format) Financial statements Presentation for panel Excelerator internal documents Meeting reports Final profile for panel

Process for compiling

The entrepreneurs will complete the profile questionnaire

After each SOR, the entrepreneurs will update the relevant section of the questionnaire, based on feedback from the SOR

The entrepreneur will compile financial statements, with assistance from Endeavor staffers

The panel presentation will be completed after the final review, mainly by the entrepreneur/s

The profile will be compiled by the Endeavor staffers

Key documents

6-part profile questionnaire, to be completed in 2 stages

Diagram of business model (part of questionnaire, needs to be converted to electronic format)

Financial statements

Presentation for panel

Excelerator internal documents

Meeting reports

Final profile for panel

Guiding principles for the Excelerator development programme Guiding principles The Excelerator programme will aspire to create a culture of innovation among entrepreneurs, over and above any formal training on growth and innovation The programme will be more structured that the Endeavor ES programme, developing businesses as they go through the 5 stages of small business development Interventions will however be customised for each business based on initial level of sophistication and pace of development The Excelerator will rely on partnerships with other organisations or institutions to assist in delivering high quality services, particularly training and external consultiong Not all ExE’s will eventually become Endeavor entrepreneurs. The aim is to have at least 10% of ExE’s move to Endeavor . The other entrepreneurs will be developed to be successful in their own right.

Guiding principles

The Excelerator programme will aspire to create a culture of innovation among entrepreneurs, over and above any formal training on growth and innovation

The programme will be more structured that the Endeavor ES programme, developing businesses as they go through the 5 stages of small business development

Interventions will however be customised for each business based on initial level of sophistication and pace of development

The Excelerator will rely on partnerships with other organisations or institutions to assist in delivering high quality services, particularly training and external consultiong

Not all ExE’s will eventually become Endeavor entrepreneurs. The aim is to have at least 10% of ExE’s move to Endeavor . The other entrepreneurs will be developed to be successful in their own right.

Excelerator Entrepreneur Service Program Stage 2 Survival Stage 1 Existence * Adapted from THE FIVE STAGES OF SMALL BUSINESS GROWTH , NC Churchill & VL Lewis, Harvard Business Review, June 1983 Stage 4 Take-off Stage 3 Growth Minimal to non-existent Minimal Developing Maturing Business systems Finding customers Poorly defined services / products Ability to deliver goods / services Balancing revenue and costs Cash flow and working capital Credibility and traction in the market place Preparing for growth Securing resources for growth Management capacity Managing rapid expansion Constructing mature organisational structure Venture and expansion capital Key concerns Phase 3 Expand Phase 2 Formalise Phase 1 Stablise Excelerator Development programme Programme focus Sales, basic finance, product development, operational strategy Growth and innovation strategy, advanced financial management, operational processes Implementing growth strategy, scenario planning, management skills Candidates have moved to Endeavor or alumni

Finding customers

Poorly defined services / products

Ability to deliver goods / services

Balancing revenue and costs

Cash flow and working capital

Credibility and traction in the market place

Preparing for growth

Securing resources for growth

Management capacity

Managing rapid expansion

Constructing mature organisational structure

Venture and expansion capital

The Excelerator will use 5 key elements to develop high potential entrepreneurs * Endeavor/Exelerator does not promise financing, strategic alliances, or other business deliverables. Rather, our programmes are designed to provide selected entrepreneurs with the access to tools and networks that will increase opportunities for financing, partnerships, and other support Mentorship Advice Guidance Personal development External Consulting Business school Interns Consulting partnerships Business basics and training Workshops Courses Seminars Strategic Introductions Growth Strategy Access to finance* Endeavor Network

Advice

Guidance

Personal development

Business school Interns

Consulting partnerships

Workshops

Courses

Seminars

Growth

Strategy

Access to finance*

Phase 1 of the programme will focus on stability and sales Cash flow management Introduction of financial management tools Build sales pipeline Address urgent challenges (from strategic assessment) Compliance and regulations Financial assessment [H; EC] Finance training [FT] Identifying financing options [H] Forecasting and planning [EC, H] Compliance workshop [VC, FT] Business priority Excelerator interventions Strategic plan Develop sales strategy Customers Channels Pricing Competitor analysis Marketing strategy Leadership skills Building a strong leadership team Strategic assessment [EC] Sales strategy development [FT, VC, H] Marketing strategy development [FT, VC, H] Monthly strategy & finance meetings [H] Personal skills assessment [FT] Analysing skill gaps within the business leadership [VC, H] Phase 1 H – Hands on by Excelerator staff VC – Venture Corps intervention EC – External consultants FT – Formal training MBA – MBA students Operations Strategy Organisational

Cash flow management

Introduction of financial management tools

Build sales pipeline

Address urgent challenges (from strategic assessment)

Compliance and regulations

Financial assessment [H; EC]

Finance training [FT]

Identifying financing options [H]

Forecasting and planning [EC, H]

Compliance workshop [VC, FT]

Strategic plan

Develop sales strategy

Customers

Channels

Pricing

Competitor analysis

Marketing strategy

Leadership skills

Building a strong leadership team

Strategic assessment [EC]

Sales strategy development [FT, VC, H]

Marketing strategy development [FT, VC, H]

Monthly strategy & finance meetings [H]

Personal skills assessment [FT]

Analysing skill gaps within the business leadership [VC, H]

H – Hands on by Excelerator staff

VC – Venture Corps intervention

EC – External consultants

FT – Formal training

MBA – MBA students

Phase 2 will focus on formalisation and innovation Increase sales pipeline Strengthen customer/client relations Formalise all business processes Operations Admin/HR Assistance with formalising processes [VC] Strategic introductions within Endeavor network [VC, H] Sales training [FT] Business process training [FT] Business priority Excelerator interventions Strategic plan Develop growth strategy Innovation strategy Developing a medium and long term vision for the company Empowering management team Formal staff training Moving from entrepreneur to CEO Strategic assessment and progress review [H] Growth strategy development [VC, H, MBA] Innovation strategy and workshop [FT, MBA, VC] Peer coaching [H, VC] Training for senior management team [FT] Assess and design optimal organisation structure [H, VC] Phase 2 H – Hands on by Excelerator staff VC – Venture Corps intervention EC – External consultants FT – Formal training MBA – MBA students Operations Strategy Organisational

Increase sales pipeline

Strengthen customer/client relations

Formalise all business processes

Operations

Admin/HR

Assistance with formalising processes [VC]

Strategic introductions within Endeavor network [VC, H]

Sales training [FT]

Business process training [FT]

Strategic plan

Develop growth strategy

Innovation strategy

Developing a medium and long term vision for the company

Empowering management team

Formal staff training

Moving from entrepreneur to CEO

Strategic assessment and progress review [H]

Growth strategy development [VC, H, MBA]

Innovation strategy and workshop [FT, MBA, VC]

Peer coaching [H, VC]

Training for senior management team [FT]

Assess and design optimal organisation structure [H, VC]

H – Hands on by Excelerator staff

VC – Venture Corps intervention

EC – External consultants

FT – Formal training

MBA – MBA students

Phase 3 will focus on growth and expansion Implement growth strategy New locations/customers Regional or national expansion Implement innovation strategy New products/service New business processes Address new challenges Strategic introductions within Endeavor network [VC] Business priority Excelerator interventions Strategic plan Implementing medium-term vision for the company Broaden network Move to role model stage Strategic assessment and progress review [H] Vision and values survey and workshop [H, VC] Raising Venture Capital/Financing [VC] Increased exposure to Endeavor events [H] Media exposure [H] Phase 3 Throughout the programme Bi-monthly workshops with VCs and EEs on ‘generic’ topics relevant to all ExEs Invitations to all Endeavor events H – Hands on by Excelerator staff VC – Venture Corps intervention EC – External consultants FT – Formal training MBA – MBA students Operations Strategy Organisational

Implement growth strategy

New locations/customers

Regional or national expansion

Implement innovation strategy

New products/service

New business processes

Address new challenges

Strategic introductions within Endeavor network [VC]

Strategic plan

Implementing medium-term vision for the company

Broaden network

Move to role model stage

Strategic assessment and progress review [H]

Vision and values survey and workshop [H, VC]

Raising Venture Capital/Financing [VC]

Increased exposure to Endeavor events [H]

Media exposure [H]

Throughout the programme

Bi-monthly workshops with VCs and EEs on ‘generic’ topics relevant to all ExEs

Invitations to all Endeavor events

H – Hands on by Excelerator staff

VC – Venture Corps intervention

EC – External consultants

FT – Formal training

MBA – MBA students

Formal training* will be provided by our training partners, and based on the entrepreneurs’ needs Raizcorp How does business work? Will my business make money? GBSE Accounting, financial management & risk management The Business Place Accounting Mentorship Programme for Entrepreneurial Development Finance and financial management Raizcorp Towards compliance GBSE Corporate Governance, Labour laws and Business Ethics Compliance GBSE Business Protocol and Etiquette Performance and talent Management Business Processes Raizcorp How do I get in the door? Power Selling GBSE Marketing and Selling Customer relation Management Sales Raizcorp Who am I? Assertive Communication GBSE Personal Mastery Entrepreneurial Leadership Personal skills GBSE Creativity and growth through innovation Post modern leadership, benchmarking your business and future business Innovation * This is not an exhaustive list of training options

Raizcorp

How does business work?

Will my business make money?

GBSE

Accounting, financial management & risk management

The Business Place

Accounting Mentorship Programme for Entrepreneurial Development

Raizcorp

Towards compliance

GBSE

Corporate Governance, Labour laws and Business Ethics

GBSE

Business Protocol and Etiquette

Performance and talent Management

Raizcorp

How do I get in the door?

Power Selling

GBSE

Marketing and Selling

Customer relation Management

Raizcorp

Who am I?

Assertive Communication

GBSE

Personal Mastery

Entrepreneurial Leadership

GBSE

Creativity and growth through innovation

Post modern leadership, benchmarking your business and future business

Criteria for an entrepreneur being asked to leave the programme Companies may be asked to leave the programme if The entrepreneur/s do not meet the goals set out at the strategic assessment at the beginning of the year, or fail to show any meaningful progress towards meeting those goals The business plateaus, with no growth and the entrepreneur/s preferring to become “lifestyle entrepreneurs” The entrepreneurs do not introduce any innovation into their business model, becoming a “me-too” business that does not reflect Endeavor’s innovative culture There are legitimate reasons to doubt the integrity of the entrepreneur’s values or behaviour

Companies may be asked to leave the programme if

The entrepreneur/s do not meet the goals set out at the strategic assessment at the beginning of the year, or fail to show any meaningful progress towards meeting those goals

The business plateaus, with no growth and the entrepreneur/s preferring to become “lifestyle entrepreneurs”

The entrepreneurs do not introduce any innovation into their business model, becoming a “me-too” business that does not reflect Endeavor’s innovative culture

There are legitimate reasons to doubt the integrity of the entrepreneur’s values or behaviour

Areas of expertise that need to be developed by Endeavor staff Financial assessment tools, models or programmes Find and assess the best tools for financial assessments Select most appropriate for various levels of sophistication Find appropriate model/tool for forecasting & planning Financing options Examine various financing options investigate requirements and pre-requisites of each Find and partner with relevant organisations (e.g. banks, government agencies etc) Finance and financial management Identifying skills gap Find appropriate tool/s for assessing gaps Mission and values Find/develop values survey Design ‘mirror’ workshop to develop/improve mission and values Organisational development * This is not an exhaustive list of training options Strategic assessment Develop strategic assessment framework (with consulting partners e.g. Edge) Sales strategy basics Strategy – assessment and development

Financial assessment tools, models or programmes

Find and assess the best tools for financial assessments

Select most appropriate for various levels of sophistication

Find appropriate model/tool for forecasting & planning

Financing options

Examine various financing options

investigate requirements and pre-requisites of each

Find and partner with relevant organisations (e.g. banks, government agencies etc)

Identifying skills gap

Find appropriate tool/s for assessing gaps

Mission and values

Find/develop values survey

Design ‘mirror’ workshop to develop/improve mission and values

Strategic assessment

Develop strategic assessment framework (with consulting partners e.g. Edge)

Sales strategy basics