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Sprout Up TO Sept. 22, 2010

Common Startup Mistakes A finance guy’s perspective

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Introduction

mark macleod CFO

Advisor Investor

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Common Finance Mistakes

Making Money Spending Money Financing Everything else

and how to avoid them…

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Making Money

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Making Money: Services Unclear offering / positioning

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Making Money: Services

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Making Money: Services Poor acquisition & mining

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Making Money: Services Leaving money on the table

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Making Money: Services Not asking for the order

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Making Money: Products & Tech

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Making Money: Products & Tech Waiting too long to charge

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Complexity & user friction Making Money: Products & Tech

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Forgetting this… Making Money: Products & Tech

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Making Money: Products & Tech No options

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Making Money: Products & Tech Not loving users enough

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Spending Money

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

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Spending Money: Services Poor project management

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Spending Money: Services Not enough variable costs

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Spending Money: Products & Tech Hiring too much too soon

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

Subcontractors: Everything else

* Key: SR&ED eligibility *

Spending Money: Products & Tech Staff vs. subcontractors

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Spending Money: Products & Tech Lack of focus

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Financing Your Business

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Financing Customers: giving away too much credit

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Financing Customers: not knowing how to get paid

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Financing Government: using it as a bank

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Financing Investors: not understanding the game

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Financing Investors: not finding money that fits your needs

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Financing Not negotiating *everything*

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Everything Else…

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Everything else… Co-founders: vesting & marriage

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Everything else… Not defining culture & values

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Everything else… Forgetting the vision

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Thank you

mark macleod

@startupcfo

blog: startupcfo.ca web: realventures.com