You’re burning 𝘚𝘰. Much. Cash. 💰
Switching from a hockey stick performance-based model to no funding access anymore is hardcore.
And finding profitability in the short term is tough.
Here’s how to make your finance process more efficient:
1️⃣ Work with your accountant to help you budget.
2️⃣ Rework your cash flow statement to a weekly format (bonus points for proper MRR and burn breakdown).
3️⃣ Automatically connect all expense reports or pull your CC records in a larger data warehouse.
4️⃣ Work on adjusted profitability forecasts – 0 ad spend, staff cuts, license cancellations, event/travel budget halts.
BONUS TIP:
It’s never too early to consider M&A.
That’s what we’re talking with Dominic of Flippa.com today before our Flippa Exit meetup in Sofia. New video guides and answers coming soon 🎥
Prepare for acquisition:
1️⃣ Clean up your books, financials, contracts. Streamline to adjusted profitability. Work on a cleaner EBITDA while maintaining.
2️⃣ Make a data room that clicks. Due diligence is the most painful part of acquisitions. Build a complete data room with everything needed so it’s easy to review between NDAs and LOIs.
3️⃣ Work on exit scenarios and proposed roadmap for the next 12-18 months. Just like you pitched a business plan and forecasts to investor, sell the growth or profitability idea to a new buyer. Give them the future playbook.
4️⃣ Build up a couple of models with financial expectations. Type of buyer, time to close, price play a critical role. The higher the multiplier, the longer it takes to find a buyer.
Streamlining your finance and M&A processes can maximize your profitability and put your startup on the path to success.
Head to Flippa and assess the market opportunities today.
And if you need to work on streamlining your P&L and improving operational efficiency, my advisory firm and my agency have been supporting businesses going through cuts and optimizing budgets over the past 18 months. DM for a tactical plan.
