This presentation discusses why entrepreneurs cannot build a successful company alone and need to seek funding and help. It covers that entrepreneurs need time to focus on their business, customers, employees, sales and expansion. It also explains that entrepreneurs who try to do everything alone are bound to fail, and should network, outsource tasks, and plan their cash flow. The presentation then discusses the options of bootstrapping a company without funding or seeking funding, noting the pros and cons of each approach. It provides advice on where to seek funding, including from business angels, government sources, venture capital firms and private equity. The best investors are described as those who have startup experience and have some of their own money invested.

1. The Purpose of this Presentation

2. What we’ll cover
1. Why one person cannot build a company
2. How do you know if you should seek
funding?
3. From where should you seek funding?
4. How much funding should you seek?

3. Entrepreneurs Need Time
To concentrate on:
» Their Business
» Their Customers
» Their Employees
» Their Sales
» Their Expansion

4. And They Need Time
To be human
14.7.2011

5. Unfortunately
We cannot do everything on our own

6. Why?
6

7. And the entrepreneurs that try
to do everything on their
own…
 Are bound to fail

8. Advice: Network
 Be networked and Get help!

9. Advice: Outsource
 Outsourcing mandatory tasks like your
bookkeeping will spare you a lot of time
 You should only concentrate on the things
that will make your company successfull

10. Advice: Plan your Cash-flow
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11. WHY DO YOU NEED TO PLAN YOUR CASH-FLOW?
Because you will have bills to pay
+
And you will often have to pay them
before you receive money for your sales.
=
A CASH-FLOW PLAN CAN SAVE YOU FROM
GOING BANKRUPT

12. And a good cash-flow plan
1. Will tell you if you need funding and
how much
2. Is demanded by all potential investors
in your company
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13. Should You
Bootstrap or Get Funded?

14. Option 1: Bootstrap
 “The art of creating a company
without funding”
 Entrepreneurs that bootstrap their way to
success will have to pay all of the company’s
expenses, and will have to keep a tight cost
control

15. How do you bootstrap a startup?
 Concentrate on Cash Flow
– Start selling from day 1. Create a liquidity plan!
 Make your customers fund your R&D
 Ask yourself, If you had to launch your product next
week, what are the features that it absolutely has
to have?
– Then get to work and forget the rest!!!
 Recruit slowly
 Minimize your costs

16. Time to market is critical,
especially when bootstrapping
”If you’re not embarrassed
when you ship your first version
you waited too long..”
Matt Mullenweg, CEO & Cofounder of Wordpress

17. Option 2: Get Funded
 What you will need:
– A Strategy
– A Business Plan
 From who?
– Business Angels
– Government
– VC, Private Equity
– For funding opportunities in Finland
check www.rahoituskone.fi 17

18. Getting funded will not only bring
you money
 It is also a very good way to transfer the
knowledge of the investor to you
 Business Angels and Venture Capitalists are often
smart people who can give you good advice
– And they usually spread the word of your company to
their personal networks

19. Pro’s and Con’s
 Bootstrap  Get Funded
– You can decide – You share the risk
everything on your own – More administrative
– You bare the risk work
– Less administrative work – Less distractions (you
– Harder to grow can outsource)
– Easier to grow
– The investors are likely
to act as mentors for
your company
– Fast to market
– You can get fired!

20. What is the difference between
VC and Angel funding?
 Business Angels  Venture Capital Firms
– Invest their own money – Invest someone elses
– Typical investment: money
10k-1m – Typical investment: over
– Prefer to invest early in 1m
the seed-stage – Prefer to invest in
– Invest their passion established companies
that seek exponential
growth

21. If you realize that you must
raise capital
 Raise enough capital so that you can
survive for the next 18-24 months
 Start to raise capital ahead of time
– normal funding rounds will take you 4-5
months

22. And please have a look at all of
your options before choosing one..

23. The best investors
 Have either founded or managed companies
before
 Have some of their own money in play
 Can see the problem and are excited about
your solution!

24. I hope..

25. And remember to Enjoy the Ride!
 Get Help before it is
too late..
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26. And Please
 Get Help before it is
too late..
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27. You cannot do everything on
your own!
 You must seek help:
– There are 18 accounting and financial
professionals working at Greenstep and
they would all love to help your company
become successful
14.7.2011 www.greenstep.fi 27

28. Br, Fredrik Teir
 Marketing Director of Greenstep &
Chief Editor of rahoituskone.fi
+358 440 16 1288
fredrik.teir@greenstep.fi
@rahoituskone