Mitesh Mehta, FCA’s Post

Smart comes second, sheer effort comes first. There are two ways to make money, the smart way and the non-smart way. The smart way isn’t very accessible, it requires a unique idea of brilliance, with the right backing at the right time or by putting existing funds into investments to grow wealth. It’s mostly VC backed startups where you spend someone else’s money to launch something groundbreaking. They usually fail, but if they do succeed, it’s big wins. The government only backs this type of innovation with grants. It’s the 1% route. Next is the non-smart way, where you launch a service or commerce business. It’s not groundbreaking, but has purpose driven by your passion. You live your business and it costs you nearly everything. You make smarter decisions as you grow, but winning is down to sheer effort and not giving up. The government doesn’t back this business, although SMEs maintain our economy. You finish first because you’ve built a sustainable business through grit and you can exit knowing the acquisition price is solid. I grew my business the non-smart way and I prefer working with these types of clients. Real people investing their hard earned money into their future. I’ve had meetings with many VC backed leaders and while some of them are brilliant, I often thought who’s daft enough to give this prat 500k. I’m no business tycoon, but none of the funded ventures we didn’t think were a good fit are actually still around. Most of the SMEs are. Grit & Passion can’t be brought It wins every time

Maximizing Cash Flow for Your Startup For startups, managing cash flow is essential to staying resilient and funding growth. Here are some smart strategies to strengthen your cash position: 1. Optimize Your Receivables Streamline invoicing to ensure timely payments. Consider offering early payment discounts or implementing automated reminders to improve collection speed. 2. Control Spending with a Cash Flow Forecast A cash flow forecast helps you anticipate and plan for high-cost periods. Review your forecast regularly and adjust for unexpected expenses to keep your budget in check. 3. Negotiate Vendor Terms Negotiate extended payment terms with suppliers to ease cash flow constraints, allowing you to retain funds longer. 4. Build a Cash Reserve Setting aside funds for unexpected expenses helps protect your startup from cash flow interruptions and offers more flexibility when growth opportunities arise. 5. Review Subscription Costs and Recurring Expenses Regularly audit all subscriptions and overhead costs to eliminate unnecessary expenses and reallocate funds to high-impact areas. 6. Utilize Financing Wisely Strategic use of financing options, like lines of credit, can help you cover short-term expenses without disrupting your cash flow. Efficient cash management allows you to make confident, strategic decisions that support sustainable growth. #CashFlow #StartupFinance #BusinessGrowth

Hi, I'm Milly and I am a little bit obsessed with Operational Efficiency. Like ‘macroeconomic’, or ‘disruptive’, or ‘vesting’, or my current favourite one that seems to have popped up out of nowhere ‘beachhead’, it’s one of those terms that takes such pride of place in the startup lexicon that newcomers are afraid to ask what it means for fear of looking like they don’t belong. Everyone starts at the start in entrepreneurship and there is no such thing as a stupid question, so, let's ask: ➡️ So what does ‘operational efficiency’ actually mean? Per my besties (💕Investopedia💕): “Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operating costs. The greater the operational efficiency, the more profitable a firm or investment is. This is because the entity is able to generate greater income or returns for the same or lower cost than an alternative.” In simple terms, you’re operating efficiently when your costs are going down and/or your revenues are going up, and you’re relatively more efficient than a competitor if the positive gap between spending and income is higher in your company than theirs. In a post-growth-at-all-costs world, operational efficiency is a particularly interesting metric. Spending £100m to generate £50m in revenue used to just be the done thing in ‘high-growth’ companies (I’m looking at you, SaaS), now investors are more inclined to think that spending £50m to generate £100m is winning. ➡️ Why is operational efficiency important? Simply-put, if you’re spending more than you’re bringing in, then the continued existence of your business is going to have to depend on outside capital. It’s not necessarily a bad thing to not initially be profitable - gotta spend money to make money, babes - but, these days, it’s harder and harder to raise equity investment, and even if you do find it relatively easy to access cash (i.e. you’ve won the demographic lottery and you have ‘AI’ on the ‘what we do’ slide of your investment deck), once you’re in the cycle of raise-and-deploy, part of your business model is always going to be about promoting shareholder or creditor interests - which can often be in conflict with the interests of your two other key stakeholders - your customers and your employees. In short, a business that operates efficiently from the off can have much greater post-exit upsides for its founders and, in many ways, can have a smoother ride on the path towards liquidity. Join me in an obsession with early-stage operational efficiency by reading the article I wrote about three key metrics to consider when planning for operational efficiency in your business. https://buff.ly/4c6RuYH ---------- #startups #strategy #operations Hi, I'm Milly and I help founders win. I’m an expert company builder and I want to help you beat the odds and build a business that’s destined for success, without breaking the bank.

🚀 Bootstrapping vs. Funding: Which Path Should Your Startup Take? 🤔 Are you thinking of taking your business to the next level? If yes the critical question becomes: Which path should you take to achieve success for your venture? Should you opt for Bootstrapping or seek funding? Let's look at the pros and cons of each of the approaches; 👢 Bootstrapping: Businesses grow from the money they generate and that is reinvested into the business to fuel further growth and expansion. This approach means relying on personal savings, revenue generated by the business, or small loans to fund operations and growth. Pros: ✅ Autonomy: You call the shots. No need to answer to investors. ✅ Lean Operations: Forces efficiency and smart spending habits. ✅ Ownership: You retain full control of your vision and equity. Cons: ✅ Limited Resources: Growth may be slower due to financial constraints. ✅ Risk: Personal finances are on the line, and failure could have significant consequences. ✅ Scaling Challenges: Expansion may be restricted without external capital. 💰 Funding: Opening the doors to investors in exchange for capital to accelerate growth. Pros: ✅ Rapid Growth: With more capital, you can scale quickly. ✅ Access to Resources: Investors bring expertise, connections, and mentorship. ✅ Mitigated Personal Risk: Your personal finances are less exposed. Cons: ✅ Loss of Control: Investors may have a say in strategic decisions. ✅ Pressure to Perform: Expectations to deliver returns can be intense. ✅ Dilution of Equity: Giving up shares means sharing future profits. So, which path is right for your startup? 🤔 It depends on your vision, resources, risk tolerance, and growth goals. Some thrive under the bootstrapping model, while others soar with funding. The key is to weigh the pros and cons carefully and choose the approach that aligns best with your long-term objectives. 💼 #StartupFinance #Bootstrapping #FundingJourney #FinanceInsights 🚀

this is how you can maximise your funds (just a strong "business plan" is not gonna help) If you want to stand out, you have to do more, I agree "Business Plan" is crucial, but it’s not everything. Here is how you can stand out in cash flow management and maximizing startup funds: ✅ Regularly Review Financial Statements Review your financial statements regularly to understand the financial health of your startup. Here is how to do it: ➖ Set a schedule and stick to it  ➖ Make adjustments based on what you find  ➖ Learn to understand your financial statements ✅ Implement a Cash Flow Forecast: A cash flow forecast can help you predict future cash inflow and outflow. Here is how to do it: ➖ Understand your current cash flow  ➖ Predict your future cash flow  ➖ Regularly update your forecast ✅ Monitor and Minimize Spending Keep an eye on your spending and try to minimize it where possible. Here is how to do it: ➖ Review your expenses regularly  ➖ Look for areas of unnecessary spending  ➖ Implement cost-saving measures ✅ Maintain a Cash Reserve: A cash reserve can provide a buffer in times of financial uncertainty. Here is how to do it: ➖ Determine how much you need in your reserve  ➖ Regularly contribute to your reserve  ➖ Only use your reserve in emergencies ✅ Use Technology to Your Advantage Technology can automate and simplify cash flow management. Here is how to do it: ➖ Invest in financial management software  ➖ Automate as many financial processes as possible __ PS: So, which one is your favourite strategy to maximize your startup funds? #CashFlow #StartUpFunds #FinancialManagement #StartUps #Entrepreneurship

🌟 Empower Your Startup with Ratio’s Boost and Trade Services 🌟 As an executive in a startup, managing cash flow and securing funding are paramount to your success. Ratio offers two innovative solutions: Ratio Boost and Ratio Trade. 🔥 Boost: Immediate Capital for Future Growth Boost is like the business version of Buy Now, Pay Later. Here’s how Boost can propel your startup: 💵 Immediate Funds Access capital now, based on your projected future revenue. 🔄 Smooth Cash Flow Maintain steady cash flow without disruption. 📈 Growth Focus Invest in new products, marketing, or expansion with flexible repayment from future earnings. 💼 Trade: Instant Cash from Existing Contracts Trade allows you to sell your accounts receivable to Ratio for immediate cash. Here’s why Trade is a game-changer: 🚀 Quick Cash Flow Turn your invoices into instant cash, bypassing long payment cycles. 🛡️ Risk Mitigation Transfer credit risk of invoices to Ratio. 📊 Reinvestment Use immediate funds to reinvest in your business and drive growth. Which Service Fits Your Needs? Opt for Boost if you need immediate capital to seize growth opportunities and prefer to repay based on future revenue streams. Opt for Trade if you have outstanding invoices and need immediate cash flow to keep operations running smoothly and invest in growth. Both services are tailored to provide the financial flexibility that your startup needs to thrive. Leverage Ratio’s Boost and Trade solutions to ensure your business is set for success. Discover how Ratio can support your financial needs and help your startup soar. Contact us today to learn more! #StartupFinance #BusinessGrowth #CashFlowSolutions #Boost #Trade #Ratio

Why do 90% of startups fail at fundraising? Because of missing out on the backbone of fundraising. The financial aspect! How not to be one of them? Here’s what you need to have in place: ⇒ 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐫𝐨𝐣𝐞𝐜𝐭𝐢𝐨𝐧𝐬 Forecast your future sales, expenses, and profits to show growth and stability plans. ⇒ 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭𝐬 Show detailing earnings, spending, and savings over time. ⇒ 𝐂𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐓𝐚𝐛𝐥𝐞 (𝐂𝐚𝐩 𝐓𝐚𝐛𝐥𝐞) Record ownership. Show who owns what in your startup. ⇒ 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 Calculate your startup's worth for equity negotiations with investors. ⇒ 𝐔𝐬𝐞 𝐨𝐟 𝐅𝐮𝐧𝐝𝐬 Outline how investor money will be spent to grow the business. ⇒ 𝐁𝐫𝐞𝐚𝐤-𝐞𝐯𝐞𝐧 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 Determine when your startup's income will surpass its expenses. ⇒ 𝐑𝐢𝐬𝐤 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐚𝐧𝐝 𝐌𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧 Identify and plan for potential business threats. ⇒ 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 Ensure there's enough cash available for daily operations. ⇒ 𝐄𝐱𝐢𝐭 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 Plan how investors can profit from their investment in the future. ⇒ 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 Follow all legal and financial rules to avoid penalties. ⇒ 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 Inform investors about the startup's financial health. ⇒ 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐨𝐧𝐭𝐫𝐨𝐥𝐬 Protect company funds from misuse. ⇒ 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 Use systems and tools for effective financial management. ⇒ 𝐍𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧 Discuss and set investment terms to benefit your startup. Besides your financial aspect, there are other things to consider as well, such as: Don’t invest much time and resources before you are confident people want what you are offering. 💰 Prepare your team. Train them, motivate them, and tell them your goals clearly. Avoid over-investment in expensive technology before validating the marketing assumptions. Did you find it interesting? Repost now! ♻️ Follow Ilyas Anis for more. #finance #financialprojections #investors #startups

3 Essential Tips to Mitigate Cash Flow Issues in Your Startup ! As a startup founder, maintaining a healthy cash flow is critical to your business's survival and growth. Here are three practical steps to help you manage cash flow issues effectively: 1. Closely Monitor Expenses 📉 Keep a keen eye on every penny that goes out of your startup. Regularly reviewing your expenses helps you identify unnecessary costs and opportunities for savings. Use financial tracking tools to streamline this process, ensuring you stay on top of your spending. This proactive approach can prevent financial surprises and keep your budget in check. 2. Negotiate Favorable Payment Terms with Vendors 💼 Building strong relationships with your vendors can give you leverage when negotiating payment terms. Aim for extended payment deadlines or discounts for early payments. These favorable terms can significantly improve your cash flow, giving you more flexibility to allocate funds where they are most needed. 3. Establish a Financial Buffer for Unforeseen Challenges 💡 Prepare for the unexpected by creating a financial buffer. Set aside a portion of your revenue each month into an emergency fund. This buffer will act as a safety net, allowing you to navigate unforeseen challenges without jeopardizing your startup’s operations. Implementing these strategies will help ensure your startup remains financially resilient and ready to tackle any cash flow challenges that come your way. Stay proactive, negotiate wisely, and always have a financial cushion to secure your startup’s future. 🌟💡 Follow for more @abhisheksengupta2006 #StartupTips #CashFlowSolutions  #Entrepreneurship #ExpenseManagement #StartupFinance #VendorRelations #CashFlowManagement #FinancialPlanning #abhisheksengupta

The balance between liquidity and profitability is one of the most critical dynamics for any startup. Think of liquidity as your startup’s lifeline—the ability to quickly access cash to cover immediate expenses. Profitability, on the other hand, is your startup’s pulse—it shows how well your business is converting resources into income and sustaining growth. Effective cash flow management is like keeping that lifeline strong and steady. With positive cash flow, your startup can confidently invest in growth opportunities without the worry of falling short on bills or payroll. It’s like having a safety net that lets you take bold steps forward, knowing that if challenges arise whether it’s an economic downturn or an unexpected cost you’re ready. But it’s not just about having cash on hand. Startups need a well-rounded financial strategy that balances both liquidity and profitability. This means setting clear targets for liquidity ratios and profit margins and keeping a close eye on your financial health. Regularly monitoring your costs, receivables, payables, and inventory is key to staying on top of your game. And let’s not forget the importance of strong relationships with investors and lenders. These connections can be a lifeline in themselves, providing the necessary funding to boost liquidity or invest in profitable ventures when the time is right. In short, managing liquidity and profitability isn’t just about survival—it’s about positioning your startup for sustainable success, ready to seize opportunities and weather any storms that come your way.