There’s a lot of pressure on startups to succeed, despite the odds. It’s easy to let standards slip when you’re under pressure, so it’s important to start off by developing some good habits. There are countless startups that fail and disappear because they weren’t financially savvy.
Your business is based on solid thinking, careful research, and countless hours of hard work. All of which means nothing if you run out of money. You’ve got to look at your numbers from every angle, and make some intelligent strategic changes.
1. Know Your Cash Flow
Most owners of startups and small businesses have at least a fundamental grasp of the basic cash flows in their business. If you don’t have a massive background in finance, you’re not alone. The smart move is to build your knowledge and learn more as your business grows.
You need to be familiar with your full cash flow, taking into account every expenditure. You’ll have the power to tweak your priorities and develop a model that enhances your profit and minimises your outlay. Don’t hesitate to consult a professional.
2. Consultants are Useful
You can’t be good at everything. Recognise your strengths and come to terms with your weaknesses. In short, do the things you can do well, and find someone else to do the rest.
You don’t have to hire permanent staff members either. There are huge numbers of qualified freelancers with great references out there. Do the math and figure out what the best option is for you. This is definitely one area where spending a little cash can save you a significant amount of money in the long run.
3. Be Thrifty
Don’t spend money unnecessarily, and make sure that you have laid out your budget. You should expect fluctuations in your monthly spending and add this to your plan. The best case scenario doesn’t always happen as much as you’d like.
If you plan for the worst, you’ll have extra cash in the easier months. Turning this additional income back into your business is a great way to invest in your own growth. Take care of the bottom line, and you’ll have a much more stable business.
https://goodmanlantern.com/wp-content/uploads/2017/11/Raj7.jpg1125750GL Content Teamhttps://goodmanlantern.com/wp-content/uploads/2020/07/GL-logo-1-1.svgGL Content Team2017-11-29 12:39:052020-09-01 08:07:07There's a lot of pressure on startups to succeed, despite the odds
Crowdfunding is now emerging to be a popular and credible source of raising money for several startups. In the next few blogs, my aim is to showcase various sources of funding for British Entrepreneurs. A process we are helping many of our customers at Goodman Lantern with. First to be covered is CrowdCube, who are backed by Balderton Capital. Since 2000, Balderton has invested in over 100 companies, principally across Europe including Betfair, MySQL and the likes. CrowdCube has a good infographic analysis of the companies who have raised money on it’s site (although it is a little outdated?). Based on our research on 19th January 2015, we have gathered a list of companies who have raised money recently.
From our analysis of 8 companies funded we gather that a total of £1,713,500 was raised, although only £1,500,000 was required i.e. in total the companies were overfunded by 114.23%. The average equity offered was 12.08%. All the companies according to our analysis are consumer focused except Kino-mo. Most funded companies belong to Food and Drink sectors, followed by media, IT and leisure.
Company by Company Review
Taylor Street Baristasraised £1,713,500 although it’s target was £1,500,000, giving 8% of equity. In it’s own words the company describes itself as “We love great coffee. We really, seriously, passionately, deeply love great coffee; and since launching in 2006, Taylor St Baristas has been at the forefront of the specialty coffee revolution in London. Our dedication to quality is evident in every cup – each one is made to the exacting standards of our Head of Coffee and World Barista Championship judge, Andrew Tolley, using the world’s finest coffees.”
Good Egg Restaurants raised £216,080 although it’s target was £180,000 giving 24% of equity. In it’s own words the company describes itself as “After sell out pop-ups and street food markets, the team behind the ‘top 5 brunches in London’ (Huff Po), are launching The Good Egg restaurant. Entrepreneur Joel Braham, named the Evening Standard’s ‘2014 top restaurateur to look out for’ and ex-Ottolenghi chef Oded Mizrachi’s first restaurant will serve craft beers, cocktails and deli classics, with outstanding produce and exceptional coffee – and they’ll open 2 more in the next 5 years.”.
UBREW raised £93,140 although it’s target was £75,000 giving 10.00% of equity. In it’s own words the company describes itself as “UBREW is an open brewery,where you brew the beer. Simply put, that means you join as a member, turn up, and brew your own beers with our professional equipment and a community of like-minded beer lovers. UBREW has achieved over £12,000 in pre sales prior to launch, secured a 2650 sq foot property for the brewery on the Bermondsy Beer Mile and has over 60 group memberships. UK Craft Beer sales have reached £225m with growth of 79% in 12 months.”.
DeskBeers raised £111,780 although it’s target was £80,000 giving 17% of equity. In it’s own words the company describes itself as “DeskBeers is a craft beer subscription service focused on delivering great beer to workplaces. They currently deliver 12-1500 bottles a week across London and Brighton and now seek to expand their offering and territory. From the same team that created Stickygram, DeskBeers forecast revenue growth of over 200% year on year.”.
Gamesgrabr raised £273,260 although it’s target was £250,000 giving 6.67% of equity. In it’s own words the company describes itself as “The social platform where gamers play, share, discover and buy games. Described by BBC Click as ‘like Pinterest for gamers, a great place to go if you are looking for inspiration’ – gamesGRABR is a fast growing social network for people that love games and it’s available on mobile, tablet and PC.”.
Kino-mo raised £268,720 although it’s target was £250,000 giving 10% of equity. In it’s own words the company describes itself as “Kino-mo developed two products with a holographic effect – a 3D Display and an Advertising video-bike. The state-of-the-art technology allows 3D graphics to appear to float in mid-air. Trial projects have been delivered for global brands such as Samsung, Aston Martin & Intel and the company has sold licenses internationally. The former CEO of Clear Channel and the Chairman of BBC Children in Need is a member of the advisory board.”.
AutoTrip raised £145,140 although it’s target was £100,000 giving 14.29% of equity. In it’s own words the company describes itself as “AutoTrip saves organizations up to 35% of their vehicle mileage costs by automating the mileage reporting process through a connected device that automatically logs all business mileage to web-based software. AutoTrip are seeking investment to build on early sales and further develop the system. Their Chairman & Co-Founder is Andrew Wordsworth, who has created and launched 15 businesses, which have attracted over £250m in equity investment.”.
Luxtripper raised £189,280 although it’s target was £150,000 giving 6.70% of equity. In it’s own words the company describes itself as “Luxtripper is changing the way the world books travel because luxury does not have to be expensive! Users are matched to destinations and properties around the world in seconds using their technology and after a 1-year pilot and new website launch in December, they have created a simple winning formula that has already acquired 3000 members & nearly £500k+ revenue. Luxtripper is aiming to grow aggressively over the next 4 years.”.
https://goodmanlantern.com/wp-content/uploads/2015/01/emile-perron-xrVDYZRGdw4-unsplash.jpg10801920GL Content Teamhttps://goodmanlantern.com/wp-content/uploads/2020/07/GL-logo-1-1.svgGL Content Team2015-01-20 11:19:522020-08-20 10:47:09Learnings from successful companies on CrowdCube
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