1 / 7

GMBF

GMBF. Start-up strategy Budgeting and raising finance July 2012. Budgeting & Business Planning. “ Why” rather than “how” Forces you to think about all aspects Brings organizational discipline critical in early stages Essential for equity financing

spayne
Télécharger la présentation

GMBF

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GMBF Start-up strategy Budgeting and raising finance July 2012

  2. Budgeting & Business Planning • “Why” rather than “how” • Forces you to think about all aspects • Brings organizational discipline critical in early stages • Essential for equity financing • Foundation for subsequent bank financing

  3. Business planning: a thought process • Like planning a journey: where do you want to go? How best can you reach there? • What does our business stand for? • What are the serious challenges facing us and how do we respond to these? • How will we stay different from competition? • Do we have what it takes to get to our destination – what exactly do we need and when? • How will the plan be financed? • but………

  4. Business Planning: some pointers • Must address the short term (operating plan) and the medium term (growth plan) • Long term, strategic plan may not be not too meaningful for start-ups, but required for equity raising • Plans are meant to be flexible and proactive • Alignment with personal objectives • Are numbers are derived from plans or vice versa?

  5. Bootstrapping for start-ups A different perspective on budgeting • Keep it lean and mean -- low-cost passionate staff, innovative compensation -- “use” technology • Minimize capital -- only to cover expenses -- retain control -- brings efficiency and economy culture • Get the cash flowing -- get the product out, even at break-even -- reduce liquidity pressures

  6. Financing start-ups: Debt • Bank finance is almost impossible, universally • More so in this region • Private financing available, but short term and very expensive • Market for convertible/hybrid financing virtually non-existent • Friends and family often relied upon Prepare for bank debt from Day 1

  7. Financing start-ups: Equity • Equity is the more common financing method. Typical equity financing stages are: Personal savings Friends and family Angel investors Venture capital Private equity funds

More Related