Download - Do you need to get funded?
The Purpose of this Presentation
What we’ll cover
1. Why one person cannot build a company
2. How do you know if you should seek funding?
3. From where should you seek funding?
4. How much funding should you seek?
Entrepreneurs Need Time
To concentrate on: » Their Business » Their Customers » Their Employees » Their Sales » Their Expansion
And They Need Time
To be human
14.7.2011
Unfortunately
We cannot do everything on our own
Why?
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And the entrepreneurs that try to do everything on their
own… Are bound to fail
Advice: Network
Be networked and Get help!
Advice: Outsource
Outsourcing mandatory tasks like your bookkeeping will spare you a lot of time
You should only concentrate on the things that will make your company successfull
Advice: Plan your Cash-flow
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WHY DO YOU NEED TO PLAN YOUR CASH-FLOW?
Because you will have bills to pay
+ And you will often have to pay them
before you receive money for your sales.
=
A CASH-FLOW PLAN CAN SAVE YOU FROM GOING BANKRUPT
And a good cash-flow plan
1. Will tell you if you need funding and how much
2. Is demanded by all potential investors in your company
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Should You Bootstrap or Get Funded?
Option 1: Bootstrap
“The art of creating a company without funding”
Entrepreneurs that bootstrap their way to success will have to pay all of the company’s expenses, and will have to keep a tight cost
control
How do you bootstrap a startup?
Concentrate on Cash Flow – Start selling from day 1. Create a liquidity plan!
Make your customers fund your R&D Ask yourself, If you had to launch your product next
week, what are the features that it absolutely has to have? – Then get to work and forget the rest!!!
Recruit slowly Minimize your costs
Time to market is critical, especially when bootstrapping
”If you’re not embarrassed when you ship your first version
you waited too long..”
Matt Mullenweg, CEO & Cofounder of Wordpress
Option 2: Get Funded
What you will need: – A Strategy – A Business Plan
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From who? – Business Angels – Government – VC, Private Equity
– For funding opportunities in Finland check www.rahoituskone.fi
Getting funded will not only bring you money
It is also a very good way to transfer the knowledge of the investor to you
Business Angels and Venture Capitalists are often smart people who can give you good advice – And they usually spread the word of your company to
their personal networks
Pro’s and Con’s
Bootstrap – You can decide
everything on your own – You bare the risk – Less administrative work – Harder to grow
Get Funded – You share the risk – More administrative
work – Less distractions (you
can outsource) – Easier to grow – The investors are likely
to act as mentors for your company
– Fast to market – You can get fired!
What is the difference between VC and Angel funding?
Business Angels – Invest their own money – Typical investment:
10k-1m – Prefer to invest early in
the seed-stage – Invest their passion
Venture Capital Firms – Invest someone elses
money – Typical investment: over
1m – Prefer to invest in
established companies that seek exponential growth
If you realize that you must raise capital
Raise enough capital so that you can survive for the next 18-24 months
Start to raise capital ahead of time – normal funding rounds will take you 4-5
months
And please have a look at all of your options before choosing one..
The best investors
Have either founded or managed companies before
Have some of their own money in play
Can see the problem and are excited about your solution!
I hope..
And remember to Enjoy the Ride!
Get Help before it is too late..
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And Please
Get Help before it is too late..
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You cannot do everything on your own!
You must seek help: – There are 18 accounting and financial
professionals working at Greenstep and they would all love to help your company become successful
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Br, Fredrik Teir
Marketing Director of Greenstep & Chief Editor of rahoituskone.fi
+358 440 16 1288 [email protected]
@rahoituskone