The Startup Garage had the opportunity to be a partner of the 2016 Hera Venture Summit. The Hera Venture Summit, hosted by Hera Hub, Hera Labs, and Hera Fund, brought together experts from both sides of the investment table to share best practices, essential tips and lessons learned. The event focused on equipping and connecting female founders and female funders. The TSG team was able to meet and collaborate with so many passionate women founders, funders and advocates.
As part of the event programming, TSG provided the following top 5 financial tips for Startups.
1. Develop feasible 5-year growth projections. It is important to set realistic projections that align with your addressable market size and key growth drivers to create an attractive, yet realistic, investor story. This also includes ensuring expense assumptions support your growth, especially when it comes to personnel and marketing related expenses.
2. Identify the KPIs and measurable milestones that matter. Developing key performance indicators are essential for internal strategy to help measure progress and identify productivity opportunities to help grow a profitable business. You also want to ensure you are measuring the metrics investors care about.
3. Review your accounting books and identify potential investor red flags. It is critical that you have your books in order so they don’t create additional risk in the eyes of an advisor. Ensure your books have the correct account classifications and that assets and expenses reflect proper accounting treatment.
4. Ask for the right amount of capital at the right time. It is important to ensure that your financial projections reflect the requested capital investment and that the timing of request aligns with your needs.
5. Find the right investor match. When searching for potential investors, entrepreneurs are eager to hear a “yes” and receive investment capital. Conducting due diligence on your potential investor will help create an effective, sustainable relationship for both parties.
We are looking forward to what the 2017 Hera Venture Summit has in store. Mark your calendars and see you next year!
Stay tuned for for more Startup tips from our blog and newsletter and request a free consultation below if you are ready to talk to our team.