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.
Crowdcube
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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Simoné Streck
Simoné Streck Head of Content & Marketing
Simoné Streck 10+ years’ experience in the content creation and marketing spheres have laid the foundations for an innovative and creative approach to strategy development and execution.
As a knowledgeable writer and editor, she has the ability to turn the faintest hint of an idea into an engaging, thought-provoking piece.
Her degrees in English and Linguistics, as well as her background in teaching English, enable her to view the written word in a unique way.
Having worked with companies the world over, Simoné Streck has the innate ability to tackle writing projects of any size or scope.
Raj Anand
Raj Goodman Anand Founder and CEO
Oversees strategy, project and client management, product development, corporate development.
Raj is an accomplished C-level leader with several years’ worth of international experience in leading MNCs including Shell and European Commission, SMEs, high-tech research labs for British universities, and digital start-ups. Raj co-founded three startups, in technology, and successfully exited one.
He is the winner of several awards including: BusinessWeek’s Europe’s Young Entrepreneur (2007), 50 Most Influential People in Digital – Revolution Magazine (2009), Courvoisier Future 500 (2008) and Sussex Entrepreneur of the Year (2008)
Erica Da Silva
Erica Da Silva Senior Content Writer
A young woman with a sense of humour, Erica is always up for a challenge.
She thoroughly enjoys reading and takes interest in a wide array of topics. She loves learning and as such is constantly looking to write on diverse topics that can aid her in her quest for knowledge.
Erica has an extensive list of academic degrees to her name, a Bachelor of Sciences degree in Zoology and Ecology and Environmental Conservation, Bachelor of Sciences with Honours in Zoology, Master of Science specialising in Forensic Entomotoxicology and a Masters in Business Administration. Her extensive academic background has provided her with exposure to many different disciplines and has provided her with the ability to consistently improve her writing skills.
Erica prefers more technical and research intensive work as she enjoys learning from the writing that she produces.
Megan Wilkins
Megan Wilkins Lead Editor & Writer
Megan is a book-loving, yoga-practicing writer and editor.
She has a passion for nature, animals, and all things wine. When she’s not editing content, you can find her strolling through a vineyard, playing with her cat, or on Safari, crying with joy at the sight of baby hippos and trying to fulfil her quest to photograph the ever-elusive honey badger.
Megan holds degrees in both English Literature and Law, specialising in Intellectual Property, IT Law, Criminal Law, and Forensics. As a lawyer, she understands how important accuracy is when it comes to content writing.
As an editor, she is skilled in understanding what the client is looking for and making sure that the content provided meets their expectations. Her writing skills range from highly technical legal drafting to creative blogs and articles. She enjoys all forms of writing, with contracts being a particular favourite. However, any time she gets to write about and discuss wine or animals, she is happy.
Lili Flax
Lili Flax Senior Content Writer
Lili is happiest with her cat on her lap and pen in her hand.
She is a strong believer in ‘if you want to write well you have to read even better. ‘ Having grown up in a big fat Greek family, she loves sharing her culture through food and smashing plates.
Lili holds a bachelor’s degree in Pharmacy and a master’s degree in Biochemistry. Having worked in many of the poorest communities in South Africa, she dreams of a society where everyone has equal access to medicine. She believes that her pen is her strongest weapon in this regard. Due to her degree in biochemistry, Lili is particularly proficient in writing about medicine and technical topics. She sees any opportunity to write as a gift. Writing about new topics and industries is a passion of hers.
Ke Poyurs
Ke Poyurs Marketing & SEO Expert, Editor, Writer
Ke is a thirty-something creative with a bent for the experimental and penchant for off-the-wall ideas.
Passionate about crafting words and images, she specializes in digital marketing strategy and copywriting, with a focus on brand-building. In her personal life, she excels at being very awkward, being an excellent cat, snake and dog-mom and watching too many Youtube videos.
With a degree in photography, she first worked as a freelance photographer for The Iziko Heritage Museum, MCQP and a few non-profit organisations before beginning her career as a copywriter at Groupon South Africa. There she got her first taste for content marketing and social media, rising quickly from Junior Copywriter to Head of Special Projects, where she was in charge of content marketing, training and other marketing efforts.
With this experience, she has honed her skills in digital marketing, social media and brand strategy and, though she enjoys all forms of writing, she prefers long-form, authority-building content related to the digital sphere.
Divya Singh
Divya Singh Head of Tech & UX Design
With a focus on user-driven results in the Age of Immediacy, Divya is a UX design professional whose sole focus is to create products and experiences that people love to use.
A certified member of the Interaction Design Foundation (IDF) with more than 6 years of hands-on experience, Divya has a multidisciplinary approach that revolves around human-centred design. She is committed to staying up-to-date with the latest trends, techniques, and technologies; adapting her design process to the needs of the client.
SUMNER MAKIN
Sumner Makin Non-Executive Director
Sumner is the Principal at Bain & Company, having worked with various strategy consultancies across the world.
As an advisor for leading multi-national C-level executives through all stages of engagements, he was awarded the prestigious MCA Strategy Consultant of the Year 2016. Sumner has PhD, MSci and MA from University of Cambridge.
Sumner has extensive strategy and analytics experience, including proposition design, advanced analytics and pure strategy, across numerous industries, particularly retail and financial service.