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.

CFO, FINANCE & OPERATIONS

1614274442872 (2)

Renzo A Mazzini
renzomazzini@gmail.com
P:+1-305-992-8244

Strategic Operational Leadership ∙ Problem Solving ∙ Change Management ∙ High Integrity & Morale ∙ Critical Thinking & Technical Analysis ∙ Leadership ∙Team Building ∙ Negotiation ∙ Persistence ∙ Resilience.

Holding Senior Executive Roles for private and public companies up to twenty billion. Directed and managed all aspects of strategic and tactical financial operations for over 20 years. Have compelling experience in fiscal management and controllership, and a strong aptitude for team building and communication. The experience in strategic planning and financial refinement makes me uniquely qualified to propel your business forward. In addition to structuring and refining financing organizations, I particularly enjoy creating partnerships with principals in growing companies to help them make decisions for the maximization of enterprise value and allow them to focus on the aspects of the business to improve the quality of live among stakeholders of the business.

Business Progression ∙ Financial Refinement Investment ∙ Management Successes

Key Skills: Strategic & Corporate Planning ∙ Joint Ventures ∙ Private Equity ∙ Business Acceleration ∙ Cost Savings ∙ Process Improvement ∙ Relationship Builder ∙ Financial Budgetary analysis ∙ Business Valuations ∙ Mergers and Acquisitions ∙ Interim CFO/Management ∙ Business Performance & Cash Flow

Master- Accounting and Finance (CFA), Keller Graduate School of Business at DeVry University ∙ BA – College of Business, Florida International University

Personal- Family ∙ Cooking ∙ Sports ∙ Leukemia & Lymphoma Society ∙ Cryptocurrency ∙ Real Estate ∙ Microcap Investments ∙ Wine & Spirits

SELECTED ACCOMPLISHMENTS

  • Business Progression – an evolution of 52.00 % in sales from commencement and a net profit margin of 97.8%. Settled and reduced point of sale billing costs by 30.00 % with credit card merchant companies changing positively NOPAT company levels versus industry.
  • Financial Refinement – raised liquidity ratios to 30% with new expense mechanisms. Reshaped the layouts from each of the business market units by cutting 40% of operating expenses (cost of goods sold, ending collection issues, readjusting labor costs).
  • Investment Management Successes – Raised working capital for equity on a USD 3M mobile P2P payment system. Raised working capital for equity on an USD 8M mobile application solution. Financed infrastructure for a US 5M seafood trading company. Raised working capital for a USD 11M food & beverages company. Project Values: USD 6M (private investment-German bank) for the development for the construction of an energy plant of biodiesel in Peru to produce and supply for multi-national markets (wholesale prices with off-take guarantees). USD 25M (private investment- LATAM group / institutional investment-German bank) for the construction and installation of a modular biodiesel factory in Colombia to produce and supply for the local and international markets. USD 100M (bank guarantee financing-German bank) for the harvesting and construction of an agricultural zone in Peru to reach the supply of raw materials and produce commodities from deforested hectares.

Current times involve an array of abilities to meet capital with business needs. I enable the likelihood of funding a particular deal or transaction with the most appropriate source of capital at reasonable and acceptable terms. Business owners at start-ups and middle-market companies face tight market timing pressures when building new ventures or managing operations with the risk and uncertainty of raising private capital. I work with you to minimize the risk, and uncertainty associated with the complexity of funding new and emerging middle-market ventures. In this world of cyclical economic change and adjustment of fiduciary commitments, the simple concept of corporate opportunity lies on three general objectives as the determination to whether such opportunity belongs to a corporation rather than to a delegate within an organization: the line of business; the interest or expectancy; and the equal opportunity. My business doctrine is solely concentrated on three core principles: Management, Analysis, and Research for the fostering and preservation of financial and socially-responsible returns.

CAREER SUMMARY

President/Founder, Marcfields-Capital Management, Miami, FL, International, 2010-Presently

Advisory on financial and business matters for domestic and international marketplaces, including Interim CFO/Management, Strategic Planning, Treasury and Cash Management, Fundraising, Financing, Investment Banking, Turnarounds & Restructurings, Mergers and Acquisitions, Private Equity. Please see Annex for companies that have been served.

Finance Director and Operations, AFIC, Miami, FL, International, 2005-2009

Leading role as Director of Finance for a million-dollar US-based consulting firm with the specialty in Fundraising and Financing middle and large markets. I single-handed economic opportunity zone projects from six million to one hundred million on behalf of under-developed nations in South America to establish socio-economic impacts.

Earlier Experience Includes: Financial Analyst, Real One, Miami, FL, 1999-2005

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.