The Basics:

  1. Provide growth capital so the company has flexibility
  2. Hire the right people to leverage the Vision
  3. Create alignment
  4. Do, Teach, Monitor the fundamentals alongside Management
  5. The ScaleCo team are experts at vision building, team alignment, systems, computers, accounting, financial reporting, sales team training, pipeline management, budgeting, corporate development and much more: reducing the risk (we’ve done it before), improving the results (better), reducing the time to implement (faster) and dramatically reducing the cost (efficient).

TAC Overview

We take small businesses that few people value and turn them into growth businesses that most people value.  The TAC Method (Transform, Accelerate and Consolidate), coupled with like-minded business leaders, entrepreneurs and other life-long learners, transforms smaller companies into growth companies.

CONCEPT: Almost all small businesses do not have the resources needed to scale.  Most small businesses have never seen significant growth and scale before – doing it the first time, is always difficult.  ScaleCo not only guides our partners through these turbulent times, but has the resources that transform these businesses better, faster and much more efficiently than they ever could on their own.

SOLUTION: We invest our time and capital to implement the TAC Method for our companies.  This builds the infrastructure to scale and saves our partner companies thousands of dollars and hundreds of hours.

The TAC Method
(Transform, Accelerate and Consolidate)

Align the team on vision, strategy, and roles

  • We implement the Entrepreneurial Operating System (“EOS”) to help companies achieve their growth plans (we are EOS Certified)
  • ScaleCo leads & participates in Focus Day, Vision Building I & II, and the quarterly and annual planning meetings
  • ScaleCo participates in weekly L10 management meetings (“a seat at the table”)

Alignment and realignment are a never-ending journey.

Team – We hire, promote, train & supplement the management team

  • Actively recruit gaps in the EOS Accountability Chart
  • Fill these gaps with ScaleCo resources initially

All teams need help recruiting as they grow and transform.

Systems (IT, CRM, Accounting, Operating & Other)

  • Systems assessed and updated to meet the company needs
  • Have expert select, implement and deliver performing systems

Most small teams cannot efficiently, including correct implementation, time and costs, implement new software and IT solutions.

Financial Reporting and Accounting

  • We implement the Great Game of Business (“GGOB”) to create an Open Book Management culture (we are GGOB certified)
  • Accounting, financial reporting, profitability analysis, KPI Dashboards
  • Process and procedures for accounting and human resources

Asking a small company team to transform their accounting and reporting has proven a difficult task and fails far more often than it succeeds.

Product/Service Positioning

  • The Marketing Strategy is developed during the initial EOS implementation
  • We create a forum for open discussion and reach consensus

Few companies know and can communicate their product or service to the market. We help them identify the true value, preventing wasted sales hires, training costs and lost sales.

Marketing & Lead Generation

  • Once you know your product and/or service, now you can create a marketing plan
  • Marketing plans only work if leads are generated
  • Leads are only good if qualified buyers are brought to the sales team
  • Process driven leads produce with data driven results that are extremely cost effective

Few companies spend marketing dollars in an efficient, data driven manner.

Sales Team Development & Training

  • We implement the AXIOM Sales Coaching Solution to help sales professionals achieve their goals (we are AXIOM certified)
  • Most entrepreneurs hire salespeople in their image – almost never works
  • We devise sales plans that scale and create teams to transform sales leads

Most entrepreneurs fail in building sales teams. We keep the entrepreneurs focused on the way they sell and train new people to sell in their own style.

Pipeline Management & Forecasting

  • Once a company can describe their product and/or service, generate leads, have trained salespeople follow up on the leads, they need a system to manage the sales force
  • Train the sales manager
  • Train the salespeople
  • Create reliable sales forecasts

Very few companies can grow and correctly forecast sales – if done correctly, it provides focus and goals for everyone.

Corporate Development

  • Acquisitions, Joint Ventures, Partnerships
  • Industry and competitive analysis

Properly capitalized and with management alignment, systems & reporting, lead generation, sales conversion and forecasting…opportunities for corporate development are created over time.

What does it look like?

Can we apply clear and measurable success criteria to each business to understand it’s progressive growth? What needs to happen to complete each phase of a company’s life cycle.

(Phase 0) Perfect Deal:

  • Vision for long term growth
  • Located within 200 miles of CLE
  • Easy to understand value proposition
  • Initial EBITDA $500K+
  • Revenue $2.5M+

(Phase I) Transformation: Typically completed within 18 months of acquisition

  • EBITDA positive and growing
  • Double digit revenue/gross profit growth
  • Healthy balance sheet
  • Core management team (top 4-6 members)
  • EOS implemented
  • Growth thesis proven / Scalable growth model identified
  • Reliable financials created
  • Company can complete a budget with ScaleCo assistance
  • Basic IT infrastructure in place to scale
  • Sales pipeline management implemented
  • Operationally capable management

(Phase 2) Acceleration: Typically completed within first 5 years of acquisition

  • Double digit EBITDA growth
  • Growing EBITDA margin
  • National market scope
  • True “middle-market company”
  • Management can create their own board documents
  • Management creates own budget without ScaleCo help
  • Ready to support debt
  • Must-have acquisition target

(Phase 3) Consolidation: Run as long as possible assuming a continual 25%+ annual IRR

  • Clearly established market leader
  • Occupies a % of a market
  • $100M+ value
  • Clear acquisition pipeline and strategic targets
  • International / Global market reach
  • Conducts robust internal financial planning and analysis
  • Successive capital raises (debt & equity) to support aggressive M&A
  • Strategically capable management

Ready to Talk