Your bank balance is not a reflection of your profit, and hence the money you get to keep. If you’re in business, a good understanding of how much cash you really have is a good place to start to make you more aware of how this funky "accounting" business works and how to get the most out of all the work you do to keep you records up to date.Read More
When you go into business, many people will tell you to know your exit strategy. Like just about everything else in business, there's two sides to this, there's a spectrum in between and your job is to figure out where you sit on that spectrum.Read More
One part of my role as CFO is to ensure my clients have enough insurance to protect against those factors over which we have no control, without overspending. Every dollar we spend on insurance is one we can't spend on product development or developing the right sales & marketing channels to grow the business.Read More
How much, you say? Apple’s financial statements for the year ending 26 September 2015 show $US205 Billion in cash and short / long term marketable securities (fancy finance speak for money in the bank and held in money market investments).
Apple, like many multinationals, are once again in the news in Australia due to tax. It was a key point of the 2016 Budget.Read More
There will be nuances of this unique to the film industry, which I'm not an expert in. However, any time you're looking for "other people's money" to fund a high risk venture, there are patterns of human behaviour that can be applied across industries.Read More
Accepting other people's money changes relationship dynamics. That is inevitable (and that includes business relationships). If you thought family gatherings were awkward now, imagine what they'd be like if one of your family has invested in your idea and you spend the entire event convincing them why things are awesome (especially if they're not).Read More
The financial metrics for growing tech companies are very different from many other industries and the fact remains no financial accounting system today measures these metrics. It is a universal truth that what gets measured gets the focus and attention. The question is, can these measurement systems “pivot”?Read More
Lots of methods have been used and many of them create inadvertant tax hell for the founders in particular, plus a complete mess for future capital raising rounds which then needs to get cleaned up before investors will cut a bigger cheque.Read More
In early stage technology companies, this one goes in cycles. The right answer for is based on the convergence of the problem you're solving, who your customer is (ie: who pays you money), and where the capital markets are at in their cycle.Read More
This question comes up a lot - how do I build up my business on the side to the point I can then quit my day job and still have an income?
A very few have managed it (normally those who can go without sleep). For the majority, the short answer is that you can't.Read More
You’ve recently signed a Shareholders agreement that has an allocation for ESOP of 15% of the Company, as part of a $500K capital raise. So where are those shares?Read More
I go to a lot of Board meetings, and I can count on one hand the number of times something was put to a vote. It does happen if it is impossible to reach consensus on an issue, if that’s the case then that means Board members are unaligned on the future direction of the company, and there is no other way to move forward.Read More
What is an IM? IM stands for “Information Memorandum” and is often used as a marketing document to provide an outline of a company to a prospective investor.
There are several terms used in capital raising on communications with investors which give helpful context on where an IM fits in:Read More