Bee Well Holistic Healing is a mental health clinic in Easton, MD, that helps its clients become the best, most powerful version of themselves. Your Startup Guru provided term sheet review and corporate due diligence services for the next stages of Bee Well’s journey.
Contact us today for help growing your mental health clinic as well as term sheet and due diligence advice.
Pixie Carwash App is a fantastic platform that seamlessly connects detailers with customers. With automated booking and scheduling, managing your appointments has never been easier.
Your Startup Guru helped Pixie with their financial projections, which helped them better predict their financial needs and budgets.
Contact us to launch and grow your business.
Cash flow is the lifeblood of any business and is essential for day-to-day operations, growth, and overall stability. However, managing cash flow can be challenging, especially when faced with unexpected expenses, delayed payments, or seasonal fluctuations in revenue.
In an article by Yahoo! Finance, small business bankruptcies rose with a 29% increase in Chapter 11 filings in September 2023 compared to September 2022
Mitigating cash flow problems requires proactive strategies and a solid financial plan to ensure the smooth functioning of a business. Here are some effective approaches for businesses to consider:
In conclusion, managing cash flow is an ongoing process that requires vigilance, strategic planning, and adaptability. By implementing a combination of these strategies, businesses can mitigate cash flow problems, ensuring financial stability and fostering long-term success.
Remember, each business is unique, so it’s essential to assess individual circumstances and tailor these strategies accordingly to effectively address cash flow challenges.
Contact Us or Book a Consultation for help with mitigating your business cash flow problems.
Gaia & Loki is a vegan restaurant that needed a three year financial projection for their business. Your Startup Guru worked with Gaia & Loki, through a partnership with the Institute for Entrepreneurial Leadership, to create an accurate and functional financial projection that will help them grow.
Gaia & Loki is a fantastic vegan restaurant in the heart of Jersey City, NJ. With a commitment of peace and purpose at every step, they source locally grown, organic ingredients whenever possible. Their chef has built a network of local food suppliers and small businesses that are equally as passionate about sustainable, ethical foods.
Contact us today for help with your financial projections.
Mesob Ethiopian Restaurant needed a three year financial projection for their business. Your Startup Guru worked with Mesob Ethiopian Restaurant, through a partnership with the Institute for Entrepreneurial Leadership, to create an accurate and functional financial projection that will help them grow.
Mesob Ethiopian Restaurant of Montclair, NJ is a favorite for both vegans & meat lovers with its authentic Ethiopian food. All their foods are prepared with imported Ethiopian spices blended daily. Their produce is always fresh and our sauces are prepared as ordered. The friendly staff and warm decor makes Mesob the perfect place to relax with family and friends.
Contact us today for help with your financial projections.
Brazilian jiujitsu academy Carlson Gracie South Bay requested financial projections to help plan for an upcoming expansion.
Accurate financial projections allow an academy to know how much they can spend on rent, service pricing, headcount break-even points, budget for their operating expenses such as marketing and payroll, and much more.
Brazilian jiujitsu academy Carlson Gracie South Bay offers classes throughout the week, one class in the morning and one class in the evening,so you can easily fit your training into your schedule. The student will learn techniques and principles that made Brazilian jiujitsu the most efficient and effective fighting art in the world.
Carlson Gracie South Bay students compete in the highest level tournaments and hold numerous titles at the World, Pan American and Open Championships at IBJJF, NABJJF, JJWL, Abu Dhabi, BJJ PRO and NAGA federations. They also have students competing at UFC and EBI tournaments.
Contact us today to get financial projections for your Brazilian jiujitsu academy.
Your Startup Guru created a custom-made 3-year financial projection for SaaS app company Park Yourself which allowed the founder to anticipate future revenues and expenses.
Hunting for a parking space or EV charging station can be unnecessarily tedious and incredibly frustrating at times. With just a tap, Park Yourself helps you seamlessly find and reserve your parking or charging spot on the go.
With the financial projection Your Startup Guru created for Park Yourself, they know when cash will be low, their break-even point, sales escalation, budgets, and more. No business, including SaaS apps, can confidently plan for the future without a thorough and accurate financial projection. Contact us to create a custom-made 3 or 5-year financial projection for your business.
Our client needed a valuation for the purchase of a pharmacy. A valuation is crucial to determine a reasonable purchase price range for a business. Several methods, adjusted specifically for pharmacies, had to be used to arrive at a valuation. The methods used were Enterprise Value, VC Method, Discounted Cash Flow Method, and the Multiples Methods based on historical financial statements. Then an average was taken from the calculated values to arrive at a valuation.
The Enterprise value (EV) measures a company’s total value, often used as a more comprehensive alternative to market capitalization, also known as Equity Value. Also, if the company is not publicly traded, market cap is not an option. To calculate EV, you subtract the market value of liabilities and non-operating assets from the market value of assets and add in non-operating liabilities. Essentially, it is the value of the company’s net operational assets to all investors.
The Venture Capital valuation method is a common method used by venture capitalists to value an investment. To calculate this method, one estimates the investment needed, forecast startup financials, determine the timing of the exit, calculate the multiple at exit, discount to the present value at the desired rate of return, and from there determine valuation and desired ownership stake.
The Discounted Cash Flow Method is considered the most detailed and most heavily relied form of valuation for a business. To valuate a company using the DCF method, an investor makes estimates about future cash flows and the ending value of the investment and adjusts those future values to the present value using an appropriate discount rate. The sum of the discounted amounts is the intrinsic value of the investment.
The Multiples Method is a valuation method based on the theory that similar assets sell at similar prices. The method takes a financial ratio, such as price-to-earnings, or equity value, or enterprise value (as discussed above), then multiply it by a specific number unique to the industry sector that the subject company is in. This gives a calculated value of what the company is worth.
Pharmacy or not, no matter what business you are considering, contact us today to know that you’re getting a reasonable price for the company.
Not all industries get the same attention, and there is a pattern to what angel investors prefer. For example, according to a recent report based on an analysis of 2,492 transactions across 2,444 companies, all completed in 2019, angel investors are more likely to prefer certain industries and deal structure types (e.g., convertible notes).
Selected portions from the report below:
The 2019 data revealed a first-time decline in the information technology/software segment as a percentage of total transactions relative to other investment segments (2019/2018) — 29% of the investments (2019) were in information tech, compared with 38.6% (2018). Yet Information Technology still remains the dominant segment for angels.
Angel Investors Prefer: Consumer Products / Services sector saw significant growth, up from 18.2% (2018) to 25.75%.
If Healthcare and Biotech were combined, they would comprise 21% (2019) of transactions versus 18% (2018). We added Biotech as a discreet sector to track in 2019, but for comparison sake, you can observe that even without Biotech, the Healthcare segment continues to be a major category for angels.
We also noted an increase in Financial Services’ Fin Tech in 2019, which was too small in 2018 to warrant its own category. In 2019 companies in this sector participated in 3.55% of all transactions. The Energy sector also rose to over 3%, with a few related Environmental companies included.
And for this year, we found enough companies to warrant adding Ag Tech (1.2%) as a separate category and clearly growing. While Info Tech and Software is still the leading category for angel investing, but by a much smaller margin than in the past, we also acknowledge that Info Tech / Software is often a necessary core component of many other sector investments.
While we continue to see the use of SAFE notes, they are a minor percentage of all Seed transactions at 4.7%. The primary structures were 51% Convertible Notes and almost 41% Priced Preferred. SAFE’s are not reported in our data as frequently as we hear them discussed amongst early-stage entrepreneurs.
Series A transactions were (as expected) Preferred Stock 86% of the time, with 12% standard Convertible Notes associated with a Series A, typically a bridge to Series A, but distinctly beyond the Seed stage.
We did find SAFEs were most frequently used in Mid-Atlantic Region at 12%. The Mid-Atlantic use of SAFEs may be heavily influenced by US Federal DOE, NSF, NIH, and other grant money, which does not permit debt as a liability while grant funds are in use; hence early-stage companies who do not wish to price their round are opting for SAFE notes.
California was #2 in SAFE usage at 10%, influenced by California incubators and possibly by science companies vying for Federal grant funds.
There are considerable pre-money valuation and round size discrepancies when it comes to the various demographics of entrepreneurs. This highlights a disturbing flaw in the angel investment community, but that goes beyond the scope of this blog post.
Your Startup Guru fundraises for clients from a broad spectrum of industries, including restaurants, SaaS, fintech, and more. Capital ranges from $10,000 to over $10 million have been found.
We have solutions for you even if your industry is not what angel investors prefer because capital is sourced from private equity, banks, economic development authorities, grants, and more.
Contact us today for your fundraising needs.
Shred Moto Co. is a motorcycle dealership based in Chatsworth, CA. They came to Your Startup Guru for help securing the various permits and licenses needed to operate their business. However, as any business owner will tell you, permits are just the beginning. As such Your Startup Guru is providing bookkeeping services so ensure their new business continues to remain profitable and well managed.
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