Your Startup Guru

Helping you launch and grow your business


finance & accounting

Ain’t too proud to beg


This story is about Bob Hurley and the meteoric rise of one of the biggest surf brands in the world and a testament to the reality of the American dream.

These days, Hurley is known as a mega-brand, an archetype for all other hopeful companies to follow – but it wasn’t always so. Hurley was once the humble brainchild of a forward-thinking, passionate, sometimes eccentric and always intelligent man.

As an avid surfer it’s always interesting to see leisure sports brands turn into major companies.  As with most companies, financing is crucial.  For Hurley to move from startup to growth stages Bob had to find seed capital.  Even with promising companies founders have to ask around a lot to secure financing.

Bob begged.  He’s not ashamed of begging and begged a lot.  To any lender that would take a meeting.  Begging at 10:48.  Warning some nsfw language.


Don’t beg like Bob Hurley, contact us today for your fundraising needs!

Another happy client


I am very happy to happy to have helped Avalon Carver Community Center with their accounting and tax issues.

Sport Chalet is closing

Vestis Retail Group, the parent company of sports equipment and apparel stores Sport Chalet, Eastern Mountain Sports, and  Bob’s Stores has filed for Chapter 11 bankruptcy protection today.

I don’t have the financials for Bob’s Stores or Eastern Mountain Sports, but if the numbers for them looks like that of Sport Chalet, it looks like it’s another victim of passing trends and Amazon.  I wrote about the bankruptcy of Quiksilver and how it can save itself, and about Amazon‘s effect on Walmart.

sport chalet

Mountain sports presents another challenge above its sea-level cousin, surfing.  It costs a LOT more money to go skiing.  Skis, jacket, goggles, beanies, gas, food, etc.  The list goes on and on.  With the slow economic recovery putting Vestis’s holdings on a slower expansion pace, downsizing and keeping only strategic stores in wealthier markets would have slowed the cash flow hemorrhage.  Another factor unique to snow sports is the abnormally warm winters with little snowfall.  This climate factor greatly hurt sales.

Who knows what the boardroom meetings were like when CEO Mark Walsh, CFO Susan Riley, and others were meeting; nonetheless they should’ve listened to the decision-maker that had a closer eye on industry, market, and environmental trends.

In every business plan, I include industry and market analysis that covers the trends, threats, and emerging opportunities for every business.

What is Strategy Consulting?


One of the services we offer is strategy consulting.  However, the name is quite vague so what is strategy consulting?  It is a lot of things.  It varies by the needs of the client.  Some clients need help developing an overall strategy for the business.

Say they have a product but not much else.  So they need everything from naming of their product, research on where to sell their product, team building, etc.  Naming might require a psychographic analysis of branding.

If they are a little farther along, it can be an audit of what they’re already doing, or analysis of where to go next.  A business might be looking at weighing the pros and cons of expanding to a new market, introducing a new product, do a product overhaul, etc.  Product overhaul might require a net present value calculation of multiple alternatives.

Every situation is unique so contact us and let’s figure out what you need.

Another happy client!



I recently completed financial projections for Clear Wave Air. The Clear Wave Air Purifier is a revolutionary microbe killing system. Unlike other purifiers that depend on filtration to block out harmful microbes and molds, the Clear Wave Air destroys these harmful micro antagonist and it does it continuously, quietly, and efficiently.




The Importance of Bootstrapping

Bootstrap – adjective

A situation in which an entrepreneur starts a company with little capital. An individual is said to be boot strapping when he or she attempts to found and build a company from personal finances and/or from the operating revenues of the new company.

The business was a bootstrap operation for the first ten years.”



Most startups do not have a bunch of cash laying around.  So businesses have to make due with what little they have.  I often tell my clients that as the CEO/Founder, they are also the janitor. One potential client wanted to hire a marketing manager for her startup. Hiring a marketing manager was vastly beyond her revenue allowance. She should have allowed me to consult on how to manage her own marketing campaign; then she could’ve saved a fortune by being her own marketing manager.

The temptation to abandon bootstrapping is strong especially when investors come knocking.  One of my clients attracted large investors with a business plan I had prepared for him.  Initially, I budgeted a modest salary for him in the financial projection.  He saw that there was a good amount of retained earnings (something investors want to see), and had since budgeted a larger salary for himself.  I had to tell him to reduce his salary.  I am not alone in emphasizing this sentiment:

  • A red flag goes up for Mark [Cuban] when a Shark Tank contestant says that he’d be comfortable with a six-figure salary.  Ultimately, Mark and all the other sharks walk away from the deal.
  • Serial entrepreneur Neil Patel, founder of Crazy Egg and KISSmetricsreflects on how glad he was keeping a $5,000/mo. salary even after raising $4,000,000 in seed and series A rounds for KISSmetrics.

I advised my client to pay himself less and take in dividend income instead because it is taxed at a lower rate.  In business, cash is king and the CEO doesn’t want to be the kingdom’s worst drain.

Importance of a Financial Plan

learn vest

LearnVest CEO Alexa von Tobel talks on HuffPost Live about the importance of having a financial plan with their business plan.


LearnVest, a financial planning service for women, was acquired by Northwestern Mutual for $250 million in 2015.

Luckily for you, all of my business plans come with a 3-5 year financial plan that includes income statement, balance sheet, and cash flow statement.

Calculating what equity percentage to give

2000px-Cake_quarters.svgMy clients are often in the position of having to offer equity in their company to potential investors.  However, how does one know what percentage to give?

Well, one way is just by gut.  You got a person willing to invest $20,000 into your company but you don’t know want to give up too control so you offer 25%.  Conversely, on Shark Tank we see entrepreneurs be given very little money while giving up a large portion of ownership in their company.

There are other more quantitative methods such as asset-based, comparable, option-based, etc.  However for a start-up without much in assets or earnings per share data, these methods are difficult because there aren’t enough figures to go by.  Also, if the business is truly unique, then comparisons of “similar” companies don’t exist.

One of the more common measurement for valuing public and private companies used by investment bankers is the Discounted Cash Flows Method.  This is useful because with every business plan and financial projection I create for my clients, I create a cash flow statement.  With this I take the total projected cash flows from each year and adjust their future value into their present value.  This is to adjust for interest (i.e. $100 today doesn’t the same as $100 in ten years).  Then I take the discount rate (risk-free U.S. treasury rate is most common) to calculate the present day equity value of the company in X years using this formula:

dcf formula

The amount of investment capital received is the percentage of equity given.  There is obviously room for negotiation because forecasted cash flows is debatable and the amount of involvement (i.e. sweat equity) the investor wants to put in is also a factor.  Nonetheless, it is a gauge one can use to make sure they’re not giving up too much.


“We work 100 hour weeks to not work 40 hour weeks”


Serial entrepreneur and venture capitalist Nihal Mehta overcame $400,000 in debt at one point of his career.  The lessons he learned through his many failures before finding success is very common in entrepreneurship.

One cause of failure was poor cash flow management.  Good thing for you, with every business plan comes a cash flow analysis!  I can tell in which month/quarter you’ll likely be cash strapped.  I can tell you how much to ask, in either debt/equity, and what interest rates and payment duration will work for you.

See his insightful interview at:

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