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
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What is your opinion ☀️☀️ Should we take risk to get #investors on board or should we simply apply formula like ✅#ZOHO, which doesn’t include investors to regulate n streamline the founders vision & mission We have another business like ✅#mamaearth with investment they are getting exponential growth. The #startup needs to assess why the funding is required, and the right amount to be raised. ✅The startup should develop a milestone-based plan with clear timelines regarding what the startup wishes to do in the next 2, 4, and 10 years. ✅A financial forecast is a carefully constructed projection of company development over a given time period, taking into consideration projected sales data, as well as market and economic indicators. ✅The cost of Production, Prototype Development, Research, Manufacturing, etc should be planned well. Basis this, the startup can decide what the next round of investment will be for. A true suggestion & Guidance will be helpful to the entrepreneurs seeking fundings. Please write your comments
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💰 When cash flow dries up, even the best ideas can come to a standstill. For startups, managing finances isn’t just about funding growth—it’s about survival. Cash flow is the lifeblood of any venture, but it’s also one of the toughest challenges to manage. Early-stage businesses often face unpredictable income streams, unforeseen expenses, and the constant pressure to stretch every dollar further. The consequences? 💡 Innovative ideas that never reach their full potential. ⏳ Delays in critical growth milestones. ⚡ Teams struggling to stay motivated under financial uncertainty. Building something meaningful requires more than great ideas—it demands a foundation of stability and resilience. So how can cash flow become less volatile, more predictable, and a true enabler of growth? What are key approaches or insights you can support other entrepreneurs with?👇 #PowerOfTheCollective #EmpowerMeColelctive
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How often do you get to hear that a service based start-up got funding!! Yes it is a hard truth that service based companies find it rather difficult to secure funding. Why? Let us look at some of the hurdles- 1. Proving Scalability: Service based company can depend on a single or handful of people to provide services. Thus investors often doubt whether service-based businesses can grow big. It can be hard to convince them you can scale up. 2. Lack of Physical Assets: Service start-ups usually don’t have many tangible assets like property or equipment. This makes it difficult to provide collateral for traditional bank loans. 3. Validating Revenue Model: Showing a sustainable and recurring revenue model can be tricky, especially in the early stages when your business is still finding its footing. Service based business can pick up immediately or sometimes can take to scale up. 4. Talent Acquisition: Service based company relies heavily on talent. Investors may worry about this dependency and the attrition. Hiring and keeping top talent in a competitive market can be risky. 5. Competition from Established Players: Convincing investors you have an edge over well-established service providers can be a tough sell. Service depends on brand value a lot, thus customers weight towards going for a known name rather than a new player. Despite these challenges, many service-based start-ups have successfully secured funding. They do this by crafting strong pitches, showcasing innovative business models, and demonstrating a deep understanding of their target market’s needs. 1 thing that is changing the game is introduction of technology in this industry. How? lets keep that for the next discussion. Have you faced similar challenges while seeking funding for your service start-up? #servicebasedbusiness #startup #funding
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Is your Startup looking to raise capital from investors? We prepared this guide to help you Here are 10 things you’ll need 👇 1️⃣ A financial model Some call this a pro forma Others use of proceeds model They all represent the same thing… A blueprint for how you will make the future a reality 2️⃣ Your historical financial statements Investors want to understand what is currently & historically happening with your startup They’ll also want to understand all sorts of things like how much cash you have in the bank... how much money you're spending... how much debt you have... just to name a few... 3️⃣ A pitch deck This is where you’ll combine all of your data on your product, market, team, financials, and much more 4️⃣ Your cap table This will help investors understand who else has shares in your company, and at what price per share 5️⃣ Your formation documents Investors like to review this information to ensure everything was set up properly and there will be no surprises down the road 6️⃣ Additional Financial Data Investors love analyzing all sorts of financial metrics that won’t be found in your financial statements Common ones can include Customer Acquisition Cost (CAC), Net Retention Value, ARR / MRR 7️⃣ A competitive moat Think you got the most amazing idea? It won’t be long till your competitors learn about it The more defensible your idea, the more attractive it will be for investment 8️⃣ A large opportunity VCs don’t care about companies that generate profits in the hundreds of thousands each year They care about companies that can eventually be sold for the hundreds of millions (if not billions) 9️⃣ A strong founding team This may be the most attractive thing for investors The more experienced your team And the more institutional knowledge your team has on the market The infinitely more attractive you will be for investment 🔟 An appetite for failure Often times it’s the last key on the chain that opens the door Entrepreneurship is all about constantly iterating until you reach your desired income That means getting used to a ton of failure, each and every day That’s our take on 10 things your startup needs to raise capital What would you add? Let us know in the comments below
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In the world of startups, the term sheet is a crucial document. It sets the foundation for the future of the company. But here's the catch: too often, it's skewed heavily in favor of either the venture or the investor. Balance is key. Why? Because an unbalanced term sheet can spell trouble down the line. Here's why both sides should aim for equilibrium: Sustainability of Growth ↳ When terms are fair, startups can focus on growth instead of constant fundraising. This means more attention on building the business rather than managing financial hurdles. Longterm Partnership ↳ A balanced agreement fosters a true partnership between founders and investors. It's not just about money; it's about shared vision and mutual trust. Risk Mitigation ↳ For investors, fair terms ensure that startups aren't overburdened with obligations that they can't fulfill. This reduces the risk of the startup failing due to financial strain. Incentivizing Innovation ↳ Founders are more likely to push boundaries and innovate when they feel supported, not constrained by rigid terms. Attracting Talent ↳ Startups with sensible financial structures are more appealing to top talent. People are drawn to companies with a clear path to success, not just shortterm gains. To achieve this balance, both parties need to: Communicate Openly → Be transparent about expectations, goals, and concerns from the getgo. Seek Expert Guidance → Legal and financial advisors can provide invaluable insights on creating fair, sustainable agreements. Focus on the Bigger Picture → Remember why the partnership was formed: to create something valuable and impactful. In the rapidly evolving landscape of PropTech and InsureTech, where I’ve spent a significant part of my career, I’ve seen firsthand how balanced agreements pave the way for longterm success. So, if you're drafting or negotiating a term sheet, aim for balance. It’s not just about the present—it’s about setting the stage for a successful future.
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💡 **Why You Don't Need Investors Yet: A Guide for Early-Stage Entrepreneurs** 💡 In the excitement of launching a startup, it's tempting to seek external investors right away. However, rushing into investor deals at the early stages can have significant side effects: 1. **Loss of Control:** Early investors often demand equity and decision-making power, potentially steering your business away from your original vision. 2. **Pressure for Rapid Growth:** Investors typically expect quick returns, pushing you towards aggressive expansion that might not be sustainable. 3. **Dilution of Ownership:** Early funding rounds can significantly dilute your ownership, affecting long-term financial gains and influence. So, what should you do instead? Here are some strategies to consider: ### Bootstrap Your Way Forward - **Personal Savings:** Utilize your own funds to retain full control over your business. - **Revenue Generation:** Focus on generating revenue early to fund operations organically. - **Lean Operations:** Keep expenses low and prioritize essential investments that directly contribute to growth. ### Leverage Non-Dilutive Funding - **Grants and Competitions:** Explore government grants, business competitions, and incubator programs offering non-equity funding. - **Loans:** Consider low-interest loans or lines of credit as an alternative to equity financing. ### Collaborate and Network - **Strategic Partnerships:** Form alliances with other businesses to share resources and knowledge. - **Mentorship:** Seek advice from experienced entrepreneurs who can provide guidance without financial involvement. ### When to Consider Investors How do you know if and when you need investors? Here are key indicators: 1. **Scalability Needs:** If your business model requires significant capital to scale effectively. 2. **Market Demand:** When there’s a clear market demand and you need to accelerate growth to capture it. 3. **Competitive Edge:** If you need funds to develop a unique technology or product that gives you a competitive edge. Remember, securing investment should align with your long-term business strategy and vision. Take your time to build a solid foundation, explore alternative funding sources, and ensure you’re ready for the responsibilities that come with external investment. 🚀 Stay focused, stay lean, and grow smart! **Goz** #Entrepreneurship #StartupTips #Bootstrapping #FundingStrategies #BusinessGrowth #TheBusinessOfHealthcare
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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.
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Is your Startup looking to raise capital from investors? We prepared this guide to help you Here are 10 things you’ll need 👇 1️⃣ A financial model Some call this a pro forma Others use of proceeds model They all represent the same thing… A blueprint for how you will make the future a reality 2️⃣ Your historical financial statements Investors want to understand what is currently & historically happening with your startup They’ll also want to understand all sorts of things like how much cash you have in the bank... how much money you're spending... how much debt you have... just to name a few... 3️⃣ A pitch deck This is where you’ll combine all of your data on your product, market, team, financials, and much more 4️⃣ Your cap table This will help investors understand who else has shares in your company, and at what price per share 5️⃣ Your formation documents Investors like to review this information to ensure everything was set up properly and there will be no surprises down the road 6️⃣ Additional Financial Data Investors love analyzing all sorts of financial metrics that won’t be found in your financial statements Common ones can include Customer Acquisition Cost (CAC), Net Retention Value, ARR / MRR 7️⃣ A competitive moat Think you got the most amazing idea? It won’t be long till your competitors learn about it The more defensible your idea, the more attractive it will be for investment 8️⃣ A large opportunity VCs don’t care about companies that generate profits in the hundreds of thousands each year They care about companies that can eventually be sold for the hundreds of millions (if not billions) 9️⃣ A strong founding team This may be the most attractive thing for investors The more experienced your team And the more institutional knowledge your team has on the market The infinitely more attractive you will be for investment 🔟 An appetite for failure Often times it’s the last key on the chain that opens the door Entrepreneurship is all about constantly iterating until you reach your desired income That means getting used to a ton of failure, each and every day That’s our take on 10 things your startup needs to raise capital What would you add? Let us know in the comments below
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Yesterday, within a group for entrepreneurs I run, we discussed why it’s important to provide updates for current and potential investors. Although you can easily find many articles and recommendations on this topic, many startups make the same mistake. The fact is that even with the most thorough due diligence, an VCs know far less about your business than you do. Due to this information asymmetry, making decisions becomes very difficult. It may be irrational, but when current or potential investors receive regular emails from you, they get the impression that you are a good founder and that they understand your business better. This is why, out of two identical startups with identical problems, VCs will choose the one with whom they have built a relationship. Yes, writing emails monthly is tedious and time-consuming. But it works! Moreover, each such email has a “Ask” section, where you can ask for a recommendation for a specialist, partne, etc. This section is read not only by current investors but also by potential ones. I regularly respond to these requests because if I decide to participate in the next investment round, I will have a good connection with the founder. Don’t ignore this opportunity. By the way, at I2BF, we have put together a guide on how to write such emails for investors. I hope you find it helpful. Good luck with your business! https://lnkd.in/dj-rUWM9 P.S.: If you want to join the group, please write “+” in the comment section.
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