Ensuring Digital Signature Lawfulness for Startup Business Plan in Mexico

How to eSign a document: digital signature lawfulness for Startup Business Plan in Mexico

hi everyone this is alejandro cremares and today we're going to be talking about how to present financials for a startup with no revenue [Music] so before we get started make sure that you hit that subscribe button and this way you will never miss out on any of the videos that we roll out every week so the financials are super critical i mean when you're raising money it is without a doubt one of the things that the investor is going to zoom in the most in today's video we're going to be walking you step by step to how to really address it how to tackle it and really do it on a positive note and to come out strong so with that being said let's get into it so the financials always have a very important place in the pit stick typically you're going to be putting them towards the end of the presentation but remember there is studies that have determined that investors on average they spend two minutes and 41 seconds reviewing a pit stick and by the way you can use the pitch deck template below which founders are using all over the world to raise millions but here's the thing out of those two minutes and 41 seconds that investors spend on every presentation the one slide where they spend the most amount of time on is the financials and here's the thing we don't know where we're going to be tomorrow because things change rapidly and obviously you may not have revenue your company doesn't have revenue today but the investor wants to know how you're going to be able to monetize you know tomorrow in the future and that's why it is very important to really give them an understanding that you've done your homework that you have a good grasp on the numbers and that you know when money comes in or money would come in and money would go out so having those numbers in place really makes a difference again on the pitch stick the last thing that you want is to just take a screenshot and just copy paste it on your presentation be a little bit more diligent create a nice perhaps summarized version of that with a beautiful graph really nicely designed so that it's easier for them to digest because the investor they don't want to read they don't want to spend time they want to skim through the presentation and for that reason you want to make it stupid simple for them so that they're able to get it right away so when we're talking about what financials to show ultimately this is like everything i mean there's going to be some investors that are going to expect that you show them up to three year projections or maybe historicals then other people may want up to five years now some of the things where you're going to be putting an emphasis on are the following gross revenues net income cash flow profit margins rate of growth so those types of numbers they're going to give them an understanding of how to benchmark you against other players in the market and then also how they can potentially multiply with a potential investment the outcome either on the business or ultimately on their investment because they're going to be doing their numbers to estimate what potential returns they can make out of investing in your business and for this ultimately you want to make it easier for them and you want to give it in a way in which they can digest easily so startups with no revenue this is not uh you know on normal or or the type of thing that doesn't happen it happens all the time startups that don't have revenue during the early stages now obviously you're not going to be focusing as much on the way that you would engineer those numbers if you were a little bit farther along on the execution of your business but some of the things that you can talk about are the following unit economics user count profit margins retention rates so most of your numbers are really going to be projections so just keep it simple and go straight to the point so there's other metrics that you can rely on when you are pitching investors and perhaps you don't have those revenue numbers one of them is the market size if the market is big enough and really investors they want it they want the market to be 1 billion plus so that it justify the risk that they're actually really encountering by investing your business and that needs to be big enough and as they say investors would prefer investing in a mediocre team or average team that is executing in a super big market versus an amazing team that is executing in a very short market because the market is really going to be determining the returns that they get on the investment that they placed on you now the other thing that you could also talk about is the customer acquisition you can talk about the cost you can talk about perhaps the channels that you're using maybe the distribution that you have access to but this is another incentive to showcase to the investor that you know what you're doing that there is clear growth and that there is a great future and a lot of possibility if they were to invest in your business so financials are incredibly important you ultimately want to nail it on the financials keep it simple straight to the point and always remember if the investor is asking you for anything related to the financials maybe in a meeting and you're not sure as to how to respond don't make it up just tell them or or thank them for the question and just say if it's okay i will follow up via email with that answer and that's pretty much it so hit a like on this video subscribe to the channel so that you don't miss out on all the videos that were rolling out every week and leave a comment and let me know what you're up to nowadays if you're raising money as well shoot me an email at alejandro pantheradvisors.com we'd love to help out thank you so much for watching