You don’t have any trouble knowing whether you are a growth company. Growth companies are fast growing, niche leading companies. These may fit the strict definition of a Star: market share leader of a fast growth niche with likely prospects for continued growth and leadership.
Or, you could be a fast growing company missing that special something needed to attain market share leadership of a fast growing market.
When can we help you:
- When growth is outstripping system, organization or cash flow needed for continued growth.
- When seeking to reduce cash conversion cycle so as to leverage and internally finance organic growth.
- When needing financial model and projection package prior to seeking external financing via equity or debt.
What We Do
We can help you with strategic planning and tactical execution. This includes design and implementation of time-saving, cost-effective systems and organizational structures. We can advise and execute as growth needs and cash flow dictate.
Ideally, you are funding your growth through customer revenues and without debt servicing costs or equity delusion. It’s time consuming and expensive to seek outside funding, whether via debt or equity.
According to Equity Net, angel investors – (high income / wealth individuals) “invest in around 1 out of every 10 business investment deals considered” and “spend an average of 3.5 months conducting due diligence on each investment.”
The most common reasons angels reject deals are:
- Insufficient growth potential
- Overpriced equity
- Insufficient talent of the management
- Lack of information about the entrepreneur or key personnel
You see why having self-funded growth is so important? You not only need a plan and a model that work in theory, you need one that is working in practice. One that addresses each of the probable objections noted above.
Skip the Angel, Go Straight to the VC?
If you’re working with a venture capitalist firm you really shouldn’t be wasting your time reading this. Otherwise, the odds are very long that you’re going to go straight to a VC. VC’s as a group invest in only “1 out of every 100 business investment deals considered,” spend around “5 months on due diligence” and “it is best to be referred to a VC by someone who is known to the VC.”
We can help you maintain your growth prior to outside funding as well as create and present financial package for prospective lenders and investors.