ExitPath has developed a very specific “Risk Reduction Criteria” in order to identify products and markets the company will address. We've developed these criteria over the years based upon what we've seen as successful actions within hundreds of great companies. By looking for companies that understand these principles, we are able to focus on those that will produce the greatest value proposition for the final customer, all the while providing excellent returns for you, your investors and employees. The criteria are as follows: • The product or business must address a high-demand market (pull vs. push) that is $250 million or greater in size, growing at double-digit rates. (Yes, we also work with "lifestyle businesses that will never get above a few million in revenue. But we won't delude you into thinking you're going to raise a VC round to accomplish what is essentially a high-paying job for you, either). A great idea in a billion-dollar plus and growing industry is ideal. • The company should be capable of achieving a1% or greater market penetration (relative to the above market size) within the first 12-18 months of product release and marketing. • Low volume economies of scale. We must be able to profitably create and sell very low production quantities, with mass customization being one of our core competencies. • R & D phase will ideally have relatively low funding requirements (ideally from concept to prototype for a reasonably established percentage of projected first-year revenues). ( This may appear ambiguous, but it's an essential part of a successful business strategy in the current and future marketplace. You NEED to get something tangible and revenue producing quickly, even a service that is a subset of your future business, to appeal to seasoned investors. Cashflow is truly king!). • The markets we address must have affordable and easily identifiable points of entry. (i.e. If you tell us you're going to capture 20% of all consumers, you better have some very well funded Trojan Horse you're riding within, or some other clearly demonstrable customer acquisition scheme. And you should truly know your customer demographic in detail.) • We don't design or develop around “unobtanium”; We commercialize and synergize existing technologies (innovate and integrate, vs. raw invention). (Our caveat here is when we have the rare opportunity to see a truly brilliant technology that has a clear order-of-magnitude market differential. In such cases, we will do everything within our power to help you accomplish funding, licensing, channel development, etc... as these disruptive technologies are some of the core technologies of the future.) • Our products must provide relatively fast and substantial ROI for the customer, investors and the company.(We like to see companies who are already generating revenues, even incrementally. That says more than any business plan or financial projection ever could.) • The product must have a relatively high perceived value in the marketplace.(And margins that allow for rapid internal growth with incremental funding. 2.7-3.5x multiples are minimum numbers in most cases.) These criteria are backed by our indelible mission statement: Fun, Fame & Fortune. • Fun is putting our people in the right positions for who they are, what they enjoy doing, and where they're truly great. Applying our core competencies, individually and as a group makes for an enjoyable, high-performance work environment. Productivity and performance are a direct result of being passionate and capable in your work. And that performance shows in how we effect your company. • Fame is the result of executing what we do exceptionally well. Developing and marketing “Best of Class” companies, products and services is a driving force for ExitPath, and the impetus behind our continuous improvement. And when the company wins accolades, we recognize the individual achievers who make it happen. They are the hands, hearts and minds of the business, and deserve tremendous individual recognition for a job well done. • Fortune is the natural result of abundantly serving the customer products and services they want and need, and accomplishing the above manifestos. We are extremely profit-minded, realizing that, by doing so we will create a substantial, sustainable enterprise, providing significant returns to our clients, employees, partners and shareholders. We welcome your views as well. Please share your "manifesto" with us through our "contact" page.