Ilyas Anis’ Post

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📢 Corporate Finance Specialist | Board Advisor | Chartered Financial Modeler (CFM) | Valuation Analyst (FMVA®)

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

Chris Feng

Recruiting Lead at ContactLoop | Fostering Careers in AI & Tech

10mo

Ilyas Anis Your content is so useful.

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