So I`m sure we`ve all been through it. Some of us, however, have advisors or financial experts at our disposal who can help us plan and put together the financials.
Others, however, are new to this sort of thing. WE have skills everywhere else but our Accounting classes from college are rusty. We need help.
The other day, I was discussing with a friend of mine my financials. He`s a consultant and strategist at a small private equity firm, and knows all about looking at a companies financials. He got into detail about structuring a good deal, pre money valuation, and calculating ratios that speak to an investor.
Did I understand all the stuff? Yes.
Does it mean I know how to do it? Not really that well.
I can justify basic financial outlook things such as costs, overhead, revenues, and other basic things you should know if you dare start a business.
However, I`m not super well versed in how to structure the numbers of an investment deal. What ratios do I use to prove the ROI to an Angel? How do I approach it?
Some of us need help. Anyone here able to blow a guy in the right direction?
One idea I had awhile ago and I thought it could work...
I saw a store in Japan once that was targeted at females ages 30-40.. selling products and food they would use. However, the store had so many features and things going on inside, people would come in flocks just to be there.
I thought, wouldn`t it be great if we took the Barnes and Noble model to a grocery store? A classy place with things to do. There are many women who spend time in grocery stores when they don`t want to. They see the same faces during the day. They`re mothers and wives. What if we had a supermarket set up with a coffee shop, place to relax for awhile, a place to test recipes for a small price, a place for the kids to play... ya know..
Going to the market suddenly wouldn`t be so rough.
In the end, I wouldn`t really endeavor to start a company like this, as I don`t have the expertise with that market. But it would surely be cool.
Think about this..
If you start an online advertising company and your idea is that good, there are plenty of juggernaut companies who have a good chance of wiping you out or redoing your idea faster and with more money. It can be daunting. I`d be careful.
On the other hand I have to agree with Craig. Try your hand at something unique and niche. Implement your own way of advertising into that and all of a sudden it`s your unique business that`s fueling a number of things.
I`ve heard time and time again from investors that they turn away companies with a revenue model based on advertising. Build into your company a few ways of making money, so when one of them doesn`t pan out, the others may.
Good luck and message me if you ever have questions. I have a good bit of experience!
I`m working on a business plan and am trying to find key statistics for social networking. As we all know, you can`t trust everything you find on the Internet. I`d like to know if any of you have had some luck poking your head around and found some good resources for data and statistics on these sort of things.
I write a blog about my business starting experiences. I think that one day, when my business is up and running, people will get a chance to see what it took for us to get there and appreciate it.
Here`s an excerpt from the blog that made me immediately think of my friends here at SuN and want to share it. I hope it`s helpful to people.
The blog is at http://creativistblog.wordpress.com
It was called "...on meeting Rich and learning lessons" (different Rich:) Taking
suggestions for starting a business is often a bitter, “no duh”
experience. You can scour the internet as long as you want to for
business advice, but you’ll rarely find something unique or
revolutionary. I’ve even sat down with entrepreneurs or with investors
who told me things that were “valuable”, but generic and kind of
obvious. That’s a good thing, because you can know that the practices
for starting a business don’t change too drastically. You can stay
behind the trends and adapt fast enough if the core values of what
makes a business happen rest in their places.I could summarize up for you right now exactly what they will tell you. Things like this:Don’t try starting a business alone, you won’t be successful.Make sure you have enough money.Know your market, and know the need. Don’t go for something that’s TOO niche.Write a through business plan so you can really test your ideas.Make sure you hire professionals to fill the gaps that you can’t.so on and so forth… it’s pretty run of the mill small business advice.In fact, it begins to be so much repetition that I often wonder what
new gems of information will keep me motivated when the same old has
ceased to deliver.Well, a couple of weeks ago I met with Rich. Rich is like me in some
ways, and not in others. He’s like me in that he works from home. He’s
like me in that he’s ambitious and entrepreneurial. He’s like me in
that he’s dead set on doing what he wants to do, despite what the world
will tell you is prudent to do. I like that.Rich isn’t like me in that he’s a coding geek. He’s exactly the opposite of me. He’s exactly what I need.Unlucky for me, I can’t have Rich on my side. He’s as deep in the
trenches as anyone could be with current projects. In a perfect world,
a guy like him would really help make Creativist happen. I don’t just
need a programmer. I need a programmer with visionary eyes, a positive
attitude, and an undying passion for making things happen.Despite my selfish lamentations over not having a guy like Rich, I
do have a lot of good that comes from my meeting with him, and that’s
the point of this entry. I got together with Rich and we talked shop
for awhile. It was an eye opening experience because he’s the first
programmer/entrepreneur I have spoken to. He had ideas that were from a
perspective one only gains from doing things and gaining experience.As I left Rich’s apartment invigorated from our meeting I thought
to myself, “I could read a billion articles and listen to every podcast
out there for advice, but I just got everything I needed by talking to
someone just like me“.I guess it doesn’t matter what people know unless you can make it
applicable to yourself. Looking back on my time as a self-made man,
most every single valuable lesson has grown from experience. It has
come out of the “make it happen” moments. It has come from the times I
stepped into a situation so uncomfortable, I just had to deal with it.
This time, I got advice and it was just as valuable… but this time it
was personal and I needed it.One day, some company will be lucky to have Rich… if he’s not in charge of his own that is.