The internet, bank regulations, and customer choices now dictate how companies will be run in the future. Financial health and growth opportunities will be the main areas of concern for the entrepreneur, or deal maker, to get things moving and product growth secured.
It is virtually impossible to consistently get your projects completed without available cash and liquidity. Deals that promise soon to-be-delivered value in exchange for the investment mean you have to have a really desirable product. Startups must have a culture of financial discipline and frugality. Operating on a shoestring is suboptimal, as the desperate need for investment often has deal terms that are not in strategic interest of the company.
A great solution for new companies is to “strengthen the balance sheet” through an outside capital raise. When a deal opportunity arises through strategic partnerships, big marketing campaigns, decision to grow-by-acquisition, it is essential that a strong balance sheet be available. This strong balance sheet allows a more strategic analysis of the opportunity’s value, versus financial jeopardy or weakness.
Finally, as you decide to go public because of the inherently higher value placed on companies competing in hot markets – crypto, artificial intelligence, cannabis, e-commerce, mobile – make sure you are in one of these segments. Companies within these segments will be offered more high quality deals and better payment terms by partners and buyers.