Best Practice for Stunning and Simple Financial Models to Raise Funds
At some point, you may have to raise debt and/or equity from finance guys for your company. Here’s what you should know…
In another life, I worked as a financial analyst for investment banks and consulting companies like EY. I created and analyzed business models for small companies to multi-billion M&A deals. I’ve written credit analysis to determine interest rates on bank loans ranging from 50k$ to 500m$. I would receive financial plans (aka business plans commonly called BP) and supporting material from companies and assess their ability to generate cash.
No matter how large the transaction is, when you are asking for money for your company, you need to provide a BP at some point.
It’s crucial and you’d better understand that part, especially if you’re the CEO of the company. Don’t believe that everything is going to be okay because your accountant is on it.
You have to be involved.
You have to understand your BPs, shape them.
You have to know where you are going financially.
Or do you want to be the kind of Captain that leads a ship without looking at the itinerary and final destination?
