Financing Strategies for Every Stage of Your Business

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Bootstrapping, seed funding, equity crowdfunding, Series A. These are common strategies for businesses to get funded. The key is to identify when is the right moment and what type of funding is proper to seek.

Stage 1: Startup
In this phase and with the idea a reality a business may exist, but owner is responsible for finding customers, delivering a product or service and making enough money to survive. Most business owners are bootstrapping their way to the next stage of growth, which is building the company using nothing but personal savings and cash from first sales.  In venture capitalist terms, this is the “pre-seed” stage of financing. Typicall examples are crowdfunding campaigns. Until the business idea is something customers want, it’s generally not a good idea to take out a loan. Angel investors and venture capitalists want to see some early business results before participating in a funding round.

Stage 2: Survival
The business idea is something that customers want and will continue to buy into. The challenge is to grow  to become a business with revenues, expenses, assets and employees.  It is one of the hardest phases for new ventures.  During this phase, business will be in the seed phase of financing, when business gather working capital.  Here are some quick ways:

Angel investor offers financial backing to small startups in exchange for equity.
Equity crowdfunding is to raise capital for securities, such as equity and revenue shares.
Grants apply from federal and state agencies, as well as private companies.
Micro-lenders or small loans (less than $50,000, like are offered by individuals).
In this stage is too early for an SBA loan, which meeting criteria is difficult, like number of years in business, a credit card score and at least $100,000 in annual revenue.

Stage 3: Success
When business can sustain itself profitably, it may have reached the success stage. Ventures are welcomed unless the contrary of the stage occurs, like a natural disaster, economic downturn.  Entrepreneurs use financing in this phase to fuel growth, including new product line/service, new location or grow profits. Investors seek business’s track record.

Financing options in this phase are as follows:

In Venture capital, Series A consists between $2 million to $15 million in funding.
This is the stage for an SBA loan.
Short-term business loans for equipment purchase or to increase working capital.
Bridge loans for working capital while seeking long-term funding.

Stage 4: Take-off
Entrepreneurs choose to become a big business or selling the venture to start a new one. The best funding is to engage with a venture capitalist for Series B and Series C funding.

On Series B, there is a demand of product or service, more market research and development. Funding ranges $7 million and $10 million.
On Series C needs more capital for scaling and to acquire or merge with same venture.
Outside of these series, there are Series D and Series E financing rounds with same goals (continuous growth).

Stage 5: Maturity
A mature business will have a challenge to control finances. this is the stage where initial public offering (IPO) opportunities come. It requires close to $100 million in revenue and takes years of steady growth, continuous improvement of business idea as well as progressive funding.

 

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A New Journey Begins

Thanks for joining me!

I am Renzo. I am descended from the land of the Incas and great food. I decided to become a wordpress writer since 2016, currently helping startups, trying to reach a stage of angel investor soon (work-in-progress).  We are living in times where the balance really needs to weigh more on life rather than work.  As human beings (rich or poor) need to be in the constant battle for learn how to achieve such balance.

MY VISION: live once, take some break time when you can and leave good roots for future generations.  Our children are the future of this world. Teach them values worth to cultivate… not trends.

MY NATURE: I am a family man who enjoys the time to teach the qualities of life. I am a sports avid fan particularly on the NHL Chicago Blackhawks, a former half-marathon runner, and collegiate rugby player, a kids-soccer mentor and a supporter of the Leukemia & Lymphoma Society.

MY CURRENT STAGE IN LIFE: I run my consulting practice while helping business owners reach their ultimate business objective: maintain a financial order.

If you are starting a new business… let me help you

If you have a business and need someone to run your financials or growth guidance… let me help you

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Good company in a journey makes the way seem shorter. — Izaak Walton

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Strategic Planning and Corporate Finance

A Senior Bilingual Executive,Proactive Problem Solver and Dynamic Leader with US and international experience in Operations Management, Financial Management, Business Management, and Investment Management is currently offering his professional advisory services to individuals, small to medium business owners.

SERVICES (Contract and Fee Based)

  • Corporate Finance
  • Private Banking
  • Investment Management

I possess a 20 year career in corporate accounting and finance. The core of my roles in the industries have been on a hybrid style, that is supporting both business and finance functions from startups (early stage) to large organizations in both private and public sectors.

INDUSTRIES EXPERTISE

-Durable Medical Equipment
-Construction Interior Design
-Food & Beverages
-Manufacturing
-Aerospace
-Retail
-Taxation
-Real Estate
-FinTech | P2P Platform
-Mobile App Solution | SaaS
-Trade | Commodities
-Oil & Energy
-Agriculture
-Renewables

CONTACT INFORMATION
Renzo A Mazzini | Strategic Planning & Corporate Finance
E:  renzomazzini@gmail.com | rmazzini@marcfieldsllc.com
P:+1-305-992-8244 | +1-305-741-5630
LinkedIn: https://www.linkedin.com/in/renzomazzini/
Blog: rmfinancialllc.com
Website: http://www.marcfieldsllc.com

 

 

 

 

 

 

 

 

Small & Medium Enterprise

The financial management of the Small and Medium Enterprise is fundamental for the control and monitoring of its viability. Technical support and advice to facilitate the knowledge of a professional or business activity should comprise by the following setups:

  1. General Accounting Plan.
  2. Fiscal reports showing current company, offering solutions and alternatives to any economic difficulty to go through.
  3. Financial studies (investment, financing, operational, developmental –policies and strategies).

Preparation of feasibility projects

For professionals and companies that have staff that deals with accounting tasks, they in the need to possess:

  • A service of periodic review of accounting.
  • Support in the making of the annual closing.
  • Study of the advantages offered by Law in the application of deductions, bonuses and amortizations, to avoid paying more taxes on companies than strictly require.