What documents to show investors at different stages

What documents should business owners present to investors at different stages of the business? This is one of the most important question to solve before embarking on a fundraising round or an exit. It can also save money and effort, as well as enhancing your confidence in front of investors when you’re going through this Read more about What documents to show investors at different stages[…]

WHAT INVESTORS LOOK FOR IN A FINANCIAL PLAN

We routinely create financial models for startup founders and also seasoned entrepreneurs who are getting ready to face investors. What they want is obviously to present their company in a way that is going to land them an investment, and a financial plan is one of those must-haves, at least in many of the more Read more about WHAT INVESTORS LOOK FOR IN A FINANCIAL PLAN[…]

TRANSACTION, LICENCE AND ADVERTISING FEES: what to look out for when calculating these revenue streams

The commonality between transaction, licence and safekeeping revenue is not obvious, as they represent very different types of business models, but from a financial planning perspective, they include similar types of calculations. The main commonality is that they are dependent on gross billings that are not recognised as revenue, or in the case of safekeeping Read more about TRANSACTION, LICENCE AND ADVERTISING FEES: what to look out for when calculating these revenue streams[…]

HOW TO CORRECTLY CALCULATE SUBSCRIPTION REVENUE AND OTHER MONTHLY CHARGES

Calculating revenue streams consisting of monthly or other periodic charges is in theory very straightforward: customers pay a regular fixed fee. However, calculating these charges correctly is a challenge, as projections involve using usage or retention assumptions that are difficult to incorporate correctly. SUBSCRIPTION FEES Let’s start from one of the most common revenue types Read more about HOW TO CORRECTLY CALCULATE SUBSCRIPTION REVENUE AND OTHER MONTHLY CHARGES[…]

HOW TO CALCULATE REVENUE PROJECTIONS AND DIRECT COSTS

PHYSICAL PRODUCTS Working on your customer base potential is the first step to building reliable financial projections for startups. To start, we can analyse one of the most common types of revenue stream for businesses: the sale of physical products. How to calculate products sold correctly, prices, volumes, customer preferences, inventory and other direct costs. Read more about HOW TO CALCULATE REVENUE PROJECTIONS AND DIRECT COSTS[…]

CUSTOMER ACQUISITION COSTS: How to calculate the cost of your market expansion.

Once you have set a target number of customers to reach, how do you reach these customers? Now that you have projected your customer base, you can calculate your marketing and sales costs and split these costs into the different channels that you are using. By doing so, you can validate every channel and see Read more about CUSTOMER ACQUISITION COSTS: How to calculate the cost of your market expansion.[…]

THE STRATEGY BASIS OF THE FINANCIAL PLAN

  After the market analysis, validation and drawing your business model, including your potential long-term strategy, it is time to put everything to test by creating financial projections. While the future is uncertain and trends change, we have a variety of data from the past to help us. The reality is that financial projections will Read more about THE STRATEGY BASIS OF THE FINANCIAL PLAN[…]

SIZING THE MARKET: What kind of soil do you need to grow your business’s roots?

Trees grow in size by first expanding their roots in the soil. Every specie of tree is different and it may need a different structure and acidity of the soil. Some need larger and deeper spaces to grow their roots to develop to their full potential, some need less. Different species grow at different speeds, Read more about SIZING THE MARKET: What kind of soil do you need to grow your business’s roots?[…]