Due diligence for raising venture capital is a rigorous process. The process can be unnerving for even the most seasoned entrepreneur, however, well-managed due diligence can benefit your company many ways.
Many business owners understand what they want from their financial operations. The challenge is figuring out the best way to invest in the finance department given the company’s current stage of growth. Understand how a CFO, Controller or Bookkeeper can help your business and what each one may cost.
Managing cash is crucial for an early-stage business owner. Cash gives us the time we need to prove out a business model and build a sustainable business. Fast growing companies know how to manage their cash to successfully scale up.
If your company has receivables or inventory, chances are you’ve come across somebody who wants to lend you money against them. This loan type, called Asset Based Lending (ABL) is popular, but it comes with a catch.
It’s called a lockbox, and it can cause you real problems with your company’s cash flow if not carefully managed.
There are three simple Key Performance Indicators you can track that will readily provide you information you need about your company’s performance, profitability and liquidity. Measure these three KPIs and over time to help you spot trends and continuously improve performance.
If you are an entrepreneur with hopes of raising venture capital, know this: VCs are in the fundraising business, too. In fact, they need capital more badly than you do. No capital = no fund = no business.
VCs raise capital by promising their investors above market returns. A the way to increase returns is to negotiate the lowest possible cost basis for an investment. There are some things entrepreneurs can do to get themselves the best deal.