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10 Keys To Investor-Friendly New Venture Financials

Startup Professionals Musings

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Demonstrate an understanding of business operation realities. Define an exit strategy for investors to liquidate their share.

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To accept funding or not? The tipping point for taking outside investment

The Next Web

This process included several rounds of financial forecasting to understand the cost of achieving where we wanted the business and brand to be, and whether we could pay for that cost ourselves. This will have a significant impact on the amount business owners could realize on the sale or other liquidity event for the company.

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Missed Expectations and The Eighty Percent Acquisition Rule

Berkonomics

Eighty percent of all businesses purchased by another company or by a new investor-operator fail to meet the stated expectations of the buyer after one year. As with the fifty percent rule discussed last week (fifty percent of startups fail within two years), this rule is hard to find an author willing to be quoted as the source.

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Missed Expectations and The Eighty Percent Acquisition Rule

Berkonomics

Eighty percent of all businesses purchased by another company or by a new investor-operator fail to meet the stated expectations of the buyer after one year. As with the fifty percent rule discussed last week (fifty percent of startups fail within two years), this rule is hard to find an author willing to be quoted as the source.

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Selling your business? Find the emotional buyer

Berkonomics

A financial buyer will analyze your numbers, past and forecast, to the n’th degree, and calculate the price based upon the result, after carefully comparing your numbers with those of others in the same and similar industries.

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There are three kinds of business buyers.

Berkonomics

A financial buyer will analyze your numbers, past and forecast, to the n’th degree, and calculate the price based upon the result, after carefully comparing your numbers with those of others in the same and similar industries.