Zero Burn™
As every company and investor knows, investing in growth is risky because capital is used to fund overhead and development, otherwise known as "burn". This is true for any company investing in new products or product enhancements. Companies fund new product development from corporate or business unit budgets, venture investors fund operating losses with equity capital, and private equity sponsors manage a portfolio company's growth investments.
Regardless of how a growth investment is made, the problem is the same: capital is spent to fund burn. And when the company starts to miss its revenue projections, the burn is typically increased by investing more capital in sales and marketing. Of course, this only serves to accelerate the losses for the new product, which increases the revenue and profits that must be achieved in order to generate any equity value for the shareholders.
So how do we solve this investment problem? We call our investment model Zero Burn because it is designed to significantly lower the risk of investing in a failed product. We use our five-step Outcome-Driven Innovation process to deliver a complete and fully validated strategic growth plan and product road map before a company invests in any recurring burn. This reduces investment risk because no capital is invested in overhead, development, sales or marketing until the innovation process is complete and the value add of the product is quantified and validated with customers.
Read our case studies to learn more about how successful Outcome-Driven Innovation really is. We create growth plans that work.
