Entrepreneurs, senior management and business owners are aligned in that all want successful outcomes and business growth. However, often the entrepreneur and/or senior management become so involved and focused on business strategy that aligning financial strategy with the business owner (or potential business owners) goals is lost in translation. The pot of gold at the end of the business rainbow is dependent upon aligning both the strategic and financial plan.
3 questions to check whether strategic success is aligned with financial success:
- Can the strategy be described in an “elevator pitch” that includes financial goals? Often the business strategy is described in much detail but when financial questions are asked, there is no clear answer. Be able to give a clear financial response when investors or potential investors ask for strategy or plans.
- Does the financial strategy support the strategic business plan? Often in a strategic growth discussion, there are many projections and clear business strategy goals. It is important to also consider the financial strategy aspects of these goals in creating the strategic growth plan. Does 10% growth for the business revenues require 0%, 10%, 20%, etc…increase in costs? It is important to be able to articulate these relationships and what growth means to the financial strategy.
- Is there clear alignment between the strategic growth milestones and the financial strategy milestones? Often times the strategic business description includes in-depth and well articulated business success milestones. However, these milestones must be aligned with clearly articulated financial strategy milestones in order for business owners (potential owners) to have clarity and comfort in a business’s long term success.
Driving business success is an exciting goal for all business’s. Even though the business strategy is often easier and concrete than the financial strategy, long term business health and well-being is concretely centered on the financial strategy.
Workshop: How To Create Projections When You Have No Revenue
Your potential investors want to see your revenue projections. There’s a problem: you’re a startup and have no revenue on which to base projections. What do you do? Believable revenue projections are a must in order to win the trust of potential investors and create a basis for your strategic growth.
For this workshop, come prepared to make a short presentation (1 to 3 mins) on your business plan and to participate in an interactive discussion. If you don’t have one, attend anyway and learn the essentials of creating realistic and sound revenue projections for your successful enterprise. Think like an investor!
This workshop is open to undergraduate and graduate students and postdocs. Lunch will be served and registration is required.
Dianna Raedle is responsible for advisory, business development, and investments activities at Deer Isle Group, and has over 20 years of experience in both public and private markets across the capital structure. Since founding Deer Isle, Dianna has raised approximately $5 billion in assets including $100mm in seed capital from OPIC for an Africa focused private capital fund.
Prior to founding Deer Isle Group, Dianna co-founded Millennium Americas where she was a member of the Investment Committee and was on the investment team. Millennium Americas was an advisor to Millennium Global Investments Ltd., a ~$12 billion London based investment management company for the Millennium Global Special Situations Americas Fund (MGSS). Prior to Millennium Americas, Dianna had extensive experience creating highly structured transactions at ABN AMRO, and SBC Warburg Inc., where she was a Director and at Credit Suisse First Boston (London and Switzerland), where she was a Vice President.
Dianna is on the Board of Directors for the Harvard Business School Club of New York and is Board Emeritus for the Harvard Business School Club of New York Community Partners program. In addition, she is a mentor for the Princeton University Keller Center for Technology and Entrepreneurship. She is also a 2011 winner of the International Women’s Entrepreneurial Challenge, sponsored by the Manhattan Chamber of Commerce.
Dianna has an MBA from Harvard Business School and a BA from Princeton University. She has Series 3, 7, 24, 63, 99 and 79 Registrations.
The purpose of the Deer Isle blog is to provide value add information related to our core business which is providing advisory and capital raising solutions for growth strategies and complex capital situations.
We often receive similar questions from our clients – hopefully – we can provide some answers to the most commonly asked questions.
You are always welcome to contact us directly for a more in depth discussion.
The Keller Center at Princeton University is hosting Deer Isle Group CEO Dianna Raedle who is presenting her workshop, How to Create Projections When You Have no Revenue on Friday, November 17, 2017. The workshop, designed for new entrepreneurs who are developing business plans, is part of Dianna’s on-going collaboration with The Keller Center who’s mission is to “educate leaders for a technology-driven society, by innovating education and fostering entrepreneurship, innovation and design.” Learn more about the workshop and The Keller Center here.
Deer Isle Group CEO and Founder, Dianna Raedle, is speaking at the Princeton Entrepreneurship Council’s inaugural Tiger Entrepreneurs Conference in Boston, October 19th & 20th. Dianna will be on the Investment Trends panel at 3:15 PM on Friday. Find out more about the Princeton Entrepreneurship Council (PEC) and conference here.