Sproutup presentation220910 final

transcript

Sprout Up TO Sept. 22, 2010

Common Startup Mistakes A finance guy’s perspective

Introduction

mark macleod CFO

Advisor Investor

Common Finance Mistakes

Making Money Spending Money Financing Everything else

and how to avoid them…

Making Money

Making Money: Services Unclear offering / positioning

Making Money: Services

Making Money: Services Poor acquisition & mining

Making Money: Services Leaving money on the table

Making Money: Services Not asking for the order

Making Money: Products & Tech

Making Money: Products & Tech Waiting too long to charge

Complexity & user friction Making Money: Products & Tech

Forgetting this… Making Money: Products & Tech

Making Money: Products & Tech No options

Making Money: Products & Tech Not loving users enough

Spending Money

Spending Money: Services Not obeying the R/S ratio:

Spending Money: Services Poor project management

Spending Money: Services Not enough variable costs

Spending Money: Products & Tech Hiring too much too soon

Staff: Core areas - product, development, support, acquisition, key management

Subcontractors: Everything else

* Key: SR&ED eligibility *

Spending Money: Products & Tech Staff vs. subcontractors

Spending Money: Products & Tech Lack of focus

Financing Your Business

Financing Customers: giving away too much credit

Financing Customers: not knowing how to get paid

Financing Government: using it as a bank

Financing Investors: not understanding the game

Financing Investors: not finding money that fits your needs

Financing Not negotiating *everything*

Everything Else…

Everything else… Co-founders: vesting & marriage

Everything else… Not defining culture & values

Everything else… Forgetting the vision

Thank you

mark macleod

@startupcfo

blog: startupcfo.ca web: realventures.com