So you’ve invented the most ingenious and lucrative product since bottled water. Now what do you do?
You don’t have any idea how to market the product, set up a business plan or manufacture your life-changing invention. Where do you find the people who can get your innovation off the ground? Will involving friends or family members doom your business before it’s even started? Once you bring in team members, what is the best way to divvy up shares in the fledgling business?
We turned to a seasoned entrepreneur, a venture capitalist and an experienced financial guru to tackle these thorny questions.
Are you hoping to secure capital to properly fund your business? If so, you need to know how to prepare to maximize your opportunity for success. Obtaining financing is a complicated process, but below are elements that the right CFO can help identify and execute to successfully raise early stage capital.
Understand short-term and long-term financial needs of the company. While insufficient funds may prevent your company from realizing its true growth potential, raising too much capital too soon may generate costs that far outweigh the benefits intended from financing growth.
Here is a trick question for you: Which is more important – Profitability or positive Cash Flow?
For those of you thinking, “Wait, how are they different in the first place?”…just keep reading.
As you noodle on that question, consider that 82% of entrepreneurial businesses fail because of poor cash management!
Dave Chase is a partner at Advanced CFO Solutions. At Advanced CFO Solutions, we provide outsourced accounting and financial services. We have served with more than 450 companies. Our clients see us as their strategic, outsourced CFO. We provide CEOs with critical information so they can make key decisions with confidence. We do this by leveraging our experience and technology to provide actionable information and results. And, we do it for a fraction of the cost of a full time employee. For more information, click here.
QuickBooks has long been the most popular accounting program for small businesses. As businesses grow, they eventually have additional software needs – CRM, inventory tracking, HR systems, marketing analytics, etc. As you expand into these systems, it’s extremely important that all your systems work well with each other. The more cohesive and accurate your data is, the better business decisions you can make. A big reason why QuickBooks is so popular is because it integrates with many software solutions out there – allowing for cohesion with your system data. Centralizing your data also allows for cost savings as you avoid double-entry of data. Here are two essential software solutions that integrate with QuickBooks.
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