How to Utilize a C-Suite Strategy Advocate

Strategy Advocate

A strategy advocate is someone you hire to represent the interests

of your shareholders or investors within the C-Suite…… before the “activist investors” come to steal board seats.

A Strategy Advocate is for companies that care about their

investors and shareholders, whether those investors happen to be

all family members, or Venture Capitalists, or public investors.

The goal of hiring your own Strategy Advocate is to avoid missing

the big picture. To have your own internal advisor who will take a

hard look at your current corporate strategy and help you improve

it.

Having your own Strategy Advocate will change your vocabulary so

that investors can quickly and easily grasp, understand, and

appreciate the direction you are taking the company. For example,

Lime and Bird are not scooter companies, they are revolutionizing

the world of micro-mobility. Peloton is not the next exercise fad,

instead it is an artificial intelligence company that happens to

gather vast amounts of customer data using exercise as a platform.

Sometimes, strategy doesn’t need to change. But sometimes, your company needs to be re-imagined for the future.

Intro

Randy Warren

Chief Executive Officer

Warren Financial Service

o: 610-363-2000

WarrenFinancial.com

Harvard Business Review: “Once people reach the C-suite, technical and functional expertise matters less than leadership skills and a strong grasp of business fundamentals.”, Groysberg, Kelly, & MacDonald

A Strategy Advocate will:• Re-imagine your business for the

future• Analyze your corporate strategy from

the point of view of an investor, like having your own internal VC or having an Activist on your side.

• Seek to streamline and offload day-to-day responsibilities from C-Suite executives so they can focus on leadership, vision, and strategy.

A Strategy Advocate will listen to your company investor pitch as if

your company were trying to raise new capital from VCs or the

public markets.

The goal is to re-imagine your business. For example, you’re not in the logistics business, you’re a software company specializing in e-

commerce, utilizing AI to transform and invigorate the way B2B

supply chains function.

Lest you think that a Strategy Advocate is about creating a type of

Orwellian business “newspeak”, it’s important to point out that your imagination precedes your action. But without action, your

imagination remains just a fantasy.

In other words, you have to back up your claims with reality.

This is not an effort in creating “alternative facts”, doublespeak, or jibberish. This is an effort to reimagine where your company could

be in 5 to 10 years.

This is an effort to become your own disruptor, before activist

investors step in. And most importantly, before customers leave

you in search of the “next” big thing. Right now, in college dorms and back rooms all over Silicon Valley (and all over America)

young, aggressive millennials are crafting strategies filled with the

latest technology to capture your customers and steal your

business… worse than that…. there are VCs ready to fund them with millions and sometimes billions of dollars. If you deny it, you

may be the next victim of disruption.

Be Your Own Disruptor

“If you don’t cannibalize yourself,

someone else will”,Steve Jobs

The Process

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“Whether in services or manufacturing, the

trick is to stay ahead

of the curve. I believe

we should not wait to

be disrupted – we

should become

disruptors ourselves.”, Anand Mahindra

One of the most common mistakes that business leaders

encounter is valuing their business based upon the financials.

Every C-Suite executive must be able to talk about your company

for at least 15 minutes without referring to a single number or

financial ratio, even the CFO.

Strategy sells. Financials also sell, but only at some paltry multiple

of “existing” revenue, earnings, EBITDA etc.

To be able to articulate your vision and strategy for at least 15

straight minutes without the help of accounting and financial

ratios is a critical component of establishing a new vision, mission,

and strategy.

However, financials still matter. The goal then is to make your

financials so crystal clear that they speak for themselves, needing

no explanation and no further discussion.

If you wish to inspire your employees, customers, investors, and

board members, your current financials must be clear, and your

projections must represent your path to achieve your vision.

Your vision and mission must be broad enough to allow

implementation of your corporate strategy to tackle new markets

and new opportunities. For example, Intuit, best known for

TurboTax software doesn’t mention taxes in their vision. Taxes are too limiting. Their vision doesn’t even mention the B2C aspect of TurboTax. Instead their vision is broad enough to allow Intuit to

aggressively tackle the corporate finance marketplace. Clearly

shifting focus from a B2C customer to a B2B customer would be a

significant change, but the vision encompasses that possibility.

Mission & Vision

Mission and Vision

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Clarify the Company Financial Vision

Crystal Clear Financials with Visionary Projections

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Investors don’t really “believe” visionary projections. But every investor wants to see your visionary

projections, because if you don’t have a vision and a path to profitability, how can they get behind you?

Warren Financial will utilize our Business Planner

software tool to layout your plan graphically in 7

Steps

1) Input some revenue projections

2) Think through some accounting issues

(Payables like employees, mfg or service costs,

Receivables and how fast you may get paid,

and Cash Flows)

3) Think through your expected rates of company

growth

4) Think through how much capital you will need

to commit and how much investor capital will

be needed

5) Put together a company Cap Table

6) Now the forecast numbers are generated for

you to review

7) The graph shown below is also generated for

you to review.

The following graph makes your company easy to

understand for yourself and for your investors.

Speak the Vision

Mission, Vision, StrategyFrom the point of view of

The INVESTOR in your company

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We assemble a team of all-star investors to listen to

your investor pitch. Many have served on the board

of directors of major and minor public companies.

Many will be disruptors themselves. All will be

looking at your Mission, Vision, and Strategy from

the point of view of the INVESTOR.

This is not management consulting. This is not

supply chain, block chain, or any other chain. This is

not from the point of view of your customer. This is

not from the point of view of your board of

directors.

This is from the point of view of an investor looking

to buy into your company.

The CEOs of most public companies struggle to

spend 15 minutes explaining WHY an investor should

invest in their company without using financials.

Put away the financials. Every company tells

investors they will make them money. Think about

more than just ESG (Environment, Social,

Governance) issues. Think about more than just

finances.

Learn to speak the vision.

Profitability Metric

To help your constituents (board members, customers, investors etc)

get behind the company vision, make it come alive.

Give your investors a metric to track. For example, Lime, the “scooter” company (micro-mobility company) was definitively unprofitable

during 2019. During that same year of 2019 they grew their revenue

at a CAGR of 1323%.

Even a fast growing company can be criticized if they can’t show a path to profitability and a metric for investors to track. For example, the

IPO of Uber didn’t go very smoothly.

To show investors that they will be profitable in the future, Lime

pointed to the fact that each scooter has a 8 week break-even time

period after which the use of that particular scooter by a customer is

pure profit. Scooters lasted at that time for about 12 months. Clearly,

they are using all the revenue they bring in to reinvest in the company,

buying more scooters for more markets in more cities and more

countries around the globe. More scooters means more revenue AND

more earnings.

Don’t hide your profitability metric. Make sure it’s captures the essence of your vision.

Clarity Focus Inspiration Simplicity

The C-Suite is supposed to be the tower on the hill. The place that

all your constituents can look for vision, mission, and strategy.

But if the interior is distracted, the shining light on the hill will

grow dim.

C-Suite executives can not be burdened with day-to-day concerns.

They must remain focused. To be honest, your executives can not

remain focused unless they have help to handle their own

personal day-to-day financial issues.

Perhaps your company has provided your important executives

with restricted stock, stock options, a deferred comp plan, or other

financial benefits. Let’s assume your HR and Finance operations have done the best job possible and chosen a great plan and a

vendor to host those benefits.

What’s missing? Investment strategy. Strategy execution.

We’ve run into far too many CEOs and CFOs that have millions in personal dollars just sitting around in cash.

Your executives know that there are many possibilities out there

they should be taking advantage of including: Private funds,

Private Equity, pre-IPO Venture Capital opportunities, Angel

opportunities, Private Banking functions for their houses and

bridge loans, structured equity, commercial real estate, volatility

funds, and many other possibilities available to accredited

investors. But don’t leave them alone to do their own due diligence. Give them the gift of time so they can win in their

personal life while winning big for your company.

Streamline C-Suite Operations

Streamline C-Suite Operations

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C-Suite Personal Finance Concierge

Our Warren Financial portfolio management team will build your C-Suite executives the same detailed financial plan for their personal situation that you would expect for your company. Beyond just the plan is the execution of the plan. Warren Financial provides all the investment opportunities you would expect for C-Suite executives with concierge service so your executives remain focused on your company and not on their personal financial complexities.

ACCESS: the key

Warren Financial is your key to a whole new world of alternative investments. The Securities and Exchange Commission limits access to these investments to only those investors who have at least $1m investable dollars – “accredited clients”.

Warren Financial has worked to create a cadre or stable of selections of private funds and direct private equity opportunities for our accredited clients.

• Family Office approach leads to Alternative Investments for our accredited clients

• Pre-IPO private companies, unicorns (400% ROI)

• Venture Capital (25% annual ROI)

• Steady, consistent return funds not tied to the stock or bond markets (non-correlated 5%, 8%, 10%)

• Private Equity (higher minimums $1m+, longer lockups,

higher returns)

• Selection of alts based on your return requirements and risk tolerance

• Commercial Real Estate direct investments, not necessarily through REITS so that you the investor can reap the capital appreciation benefits along with the dividend distribution benefits. (mid-teens to low 20’s IRR) 8

Fully Custom Equity PortfoliosStreamline the C-Suite with “ACCESS”

“Don’t be afraid to give up the good for the great.”

- John D Rockefeller

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Cash Flow Planning & Forecasting

Executive Company Focus is Crystalized by Taking Care of

the Personal Side. Executive Financial Plan: (Sample financial output: tech software driven)

Personal financial plan for each executive

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Cash Flow Charts

The thing that’s important about the “Income & Assets Chart” is to notice that based on the income, spending, value of investments, and value of real estate, the overall “Total Assets” continue to climb. The investments are growing faster than the spending, forever. Another major factor is a good return on investment. The assumption here is an 8% average annualized rate of return. We believe we can achieve this for you and further we believe that your investment growth with Warren Financial will be significantly better than methods employed by other major advisory firms, such as a “globally diversified portfolio”. Past results have shown that Warren Financials implementation of Tactical Asset Allocation and the protection embedded in the Warren Safer Equity fund can provide superior long term results.

Visual Representation of the personal financial plan for each executive

Executive Company Focus is Crystalized by Taking Care of

the Personal Side. Executive Financial Plan: (Sample financial output: tech software driven)

Unique Strategies and Proprietary Funds Available

Only From Warren Financial:

• Warren Safer Equity Fund

• Long dividend & growth equity +

volatility hedge

• 10 year track record

• Rated 4 Stars by Morningstar

Hedge fund ratings

• WFS Alternative Investments– Angel investment opportunities

– Venture Capital, mezzanine pre-IPO opportunities (LIME)

– Special situations private equity

– Non-publicly available funds of 2 types (1) slow and steady (2)

aggressive 25%+, such as micro-cap

– Private Equity opportunities

Achieving Company focus by providing for personal financial needs…Access to special investments & technology

Refer to full Disclosures and Risk Factors in your Green Packet including info about the SP500, our 60/40 benchmark, dividends etc.

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Warren Safer-Equity Fund

9.51% Annualized ROI

WSEF 60-40 Benchmark

7.73% -3.37%

4.94%

25.38%

10.88% 0.78%

8.50%

21.60%

-6.81%

18.58%

How to Achieve Company Focus on

Mission, Vision, and Execution?

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Warren Financial

• Established in 1965 by Bill Warren

– Over 50 years of industry experience

• Headquartered outside of Philadelphia

– Clients in 19 states and abroad,

– Offices in Philly, Hilton Head Island and Atlanta

• Provides financial planning and asset management services to more than 280 clients

– Our most tenured clients have been with us for over 30 years. 93% Client retention.

• Senior management team with high-level experience in the financial services industry

• Our Customers are…

Executives that have saved for retirement, typically between $1m - $10m

Dual Income couples still working, such as doctors, consultants, engineers, lawyers, typically between $1m to $10m

Small to medium business with between 10 and 100 employees, executive pay packages, 401ks, deferred comp, etc

Thank you!Let’s Get Started

WarrenFinancial.com

610-363-2000

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