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Creating Jobs. Changing Lives.
NENSUPPORTING STARTUPS,AND SMEs TO GROW THEIR BUSINESSES
MentorWISE• Mentor
Network
• Helpdesk for entrepreneurs
• Workshops
• Mentoring Clinics
• Mentor Enablement
LearnWISE• Videos
• Courses
• Blogs
• Events
• Q&A
• Bootcamps
FundWISE• Investor
Network
• Pitch Labs
• Loan Connect
• Angel Investor Enablement
NEN Programs: Supporting Entrepreneurs
Accelerating business growth for early-stage and growth-stage entrepreneursSupporting entrepreneurs with mentoring, learning tools and investor connects
• Offers deep connects into the global entrepreneur ecosystem
• Helps address key business challenges
• Enables transformation for the venture
Mentoring for Business Success
Providing early & growth stage entrepreneurs with goal-based, time-bound, and structured mentoring
WF NEN MentorWise
Connecting startups to mentors through a new-age web and mobile mentoring platform that enables efficient collaboration and communication.
A curated network of industry leaders, seasoned entrepreneurs, experts and investors committed to supporting India’s high-potential entrepreneurs.
400+ Curated Mentors
Pitch Labs for entrepreneurs to practice pitching to investors.
Loan Connect for entrepreneurs looking to raise capital through debt options.
Engagements with Angel Investors facilitated by the NEN network.
Investor Connect
Assessing entrepreneurs' capital requirements to prepare them for successful interactions with angels and VCs across the globe.
Funding Support for Entrepreneurs
Anjana Vivek
Anjana Vivek, Director, VentureBean Consulting and Guest Faculty, IIM is a FellowMember of the Institute of Chartered Accountants of India (ICAI), with over 30 years’work experience. Prior to turning an entrepreneur in 2005, she was a full time facultyat IIM Bangalore (IIMB). Other positions held by her include COO at NSRCEL, IIMBand Vice President, Ernst & Young, heading their due diligence practice for SouthIndia.
Her areas of expertise are Business Planning for High Growth, Entrepreneurship,Valuation, Venture Capital, (Women) Leadership and Mentoring. She is a sought outinternational speaker and teacher. She is also an author of three books by invitationand founding Editor of the Venture Activity Reports 1993-98, of the Indian VentureCapital Association (IVCA). The books are on (i) Business Planning, (ii) Venture Capitaland (iii) Valuation (co-author). Her teaching presentations on slideshare.net havebeen Global TOP 4% and 5% viewed in 2014 and 2015 respectively.
Anjana is Venture Advisor at Unitus Seed Fund, Charter Member at TiE Bangaloreand Invitee to the TiE Governing Board, Executive Committee Member and Mentorat JGI Ventures and Jain University Incubation Centre. She was a Co-opted Memberof ICAI “Women Members Empowerment Committee” in 2014-15. She has heldpositions in committees of IIMB, ICAI, and FKCCI (Federation of Karnataka Chamberof Commerce and Industry) among others over the last few years. VentureBeanConsulting, founded by Anjana with two others, achieved a major milestones in 2016with over 130 clients, across industries and geographies within and outside India.The company has unique offerings for start-ups and early stage ventures.VentureBean has received accolades as an innovative consulting company and hasbeen featured in national and international media.
Founder-Director, VentureBean Consulting
VentureBean Consulting Private Limited
At the start: The Foundation
Strategic Financial Planning
Financial Forecasts
Valuation and Value Creation
For More
Agenda
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VentureBean Consulting Private Limited
BEFORE YOU START: The Foundation
• WHAT is your Dream?
• Dreams get you started
Best
.. LARGEST..
.. first.... contribute..
.. impact..
.. change.. 8
VentureBean Consulting Private Limited
BEFORE YOU START: The Foundation
• WHAT is your motivation .. for this Dream?
NAME
FAME
MONEYIMPACT
….OTHER
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VentureBean Consulting Private Limited
BEFORE YOU START: Reflections
• WHAT is the stage of your business/idea now?
• WHERE do you want to go from here?– Short Term: In the coming Year– Medium Term: 3-5 years from today– Long Term: 10-15 years
• Does the Long term map/connect to your Dream?
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VentureBean Consulting Private Limited
Finance and Business Planning
• WHAT does the growth plan mean in financial terms• Finance is the Language of Business • The dreams need to be communicated in this language
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VentureBean Consulting Private Limited
At the start: The Foundation
Strategic Financial Planning
Financial Forecasts
Valuation and Value Creation
For More
Agenda
12 12
VentureBean Consulting Private Limited
Strategic Financial Planning
Three dimensions of time:
• Short term: Typically 1 year; month-wise; more easily available, fewer assumptions
• Medium term: Typically 3-5 years; Estimates and Guesstimates… trends
• Long term: Typically 10 – 15 years; less numbers
Action – minute to minute (Plan): Balancing Act between planned activities and unplanned sudden requirements..
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VentureBean Consulting Private Limited
Financial Planning
Translate into Financial Numbers:• Survival• Sustainability
This should be reflected upon for short, medium and long term:• Short term – Balancing cash burn for the
year/quarter/month/week/day plus investment where returns can come in the future
• Medium term – Survive and grow• Long term – Futuristic, trends and how your current growth is
aligned to these
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VentureBean Consulting Private Limited
Financial Planning
Four items to think about:
• Revenue• Profits/Costs• Cash / Cash Burn• Value
PLUS• Sources of Funding• Uses of Funding
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VentureBean Consulting Private Limited
Strategic Financial Planning
• Projections need to be achievable and realistic in the immediate term.. may get into dream zones in long term
• Periodically FLIP back and forth between time zones
• As you plan, keep an eye on the volatile business environment, changing patterns, disruption, expectation of the future in a few years and more
• As you work, check for patterns, consistency, thought process..
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VentureBean Consulting Private Limited
Projections are just … projections
• Periodically compare: Projections vs. actuals
• Try to see where the difference between reality and projection is and the reason for this– Is the difference due to errors in assumptions made– due to ecosystem changes or..??
• This helps you– understand your business and yourself better– get a better sense of how well you can project – project better the next time around
• Update the projections to reflect reality, this is a continuous and iterative process
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VentureBean Consulting Private Limited
Strategic Financial Planning
• Forecasting is like a game of probability.. of scenarios and chance.. with a dose of reality thrown in
• “To Trigger Thinking” you may also like to prepare with different scenarios in mind– Pessimistic, realistic and optimistic– Boot-strap and funded– With alternate business models; impacting strategy and cash
flow– And more..
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VentureBean Consulting Private Limited
At the start: The Foundation
Strategic Financial Planning
Financial Forecasts
Valuation and Value Creation
For More
Agenda
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VentureBean Consulting Private Limited
FINANCIAL FORECAST: Overview
• This is based on and driven by your business model• It helps to spend significant time thinking of your business
strategy and business model• A business model develops and evolves over time – it is not static
VentureBean Consulting Private Limited
FINANCIAL STATEMENTS
BALANCE SHEET: The State of affairs of the organization:
• PROFIT AND LOSS ACCOUNT: Working results for a given period:CASH FLOW STATEMENT: Cash receipts & payments during a period:
• If you do not understand the basics of financial statements please take time to learn basics.
• Reference http://www.slideshare.net/rajnishsingh92351/understanding-business-finance
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VentureBean Consulting Private Limited
Where the entrepreneur did not track finance
• A services business took advance in cash. The founder, Tim Perry did not keep track of project-wise expenses, on a regular basis. At the time of finalization of accounts, 4 months after a project was completed, Tim found out that he had made a substantial loss in the project. He realisedthat if he had tracked expenses, he could have contained expenditure and perhaps even been profitable in this key project.
• If you had been the founder what would you have done differently, to avoid the situation above?
• How can Tim take corrective measures to address this loss?
FINANCIAL STATEMENTS: Caselet
VentureBean Consulting Private Limited
Where the entrepreneur did not track finance
• Ram Kumar focused on sales and operations. He did not know how to read and interpret financial statements. After two years of business, there was a conflict between him and his co-founder Dinesh. Ram was given a statement showing loss in the business. Ram was shocked because he had expected the business to be profitable. He felt that it was his mistake in not keeping track of the finances on a periodic and regular basis.
• If you had been the founder what would you have done differently, to avoid the situation above?
• Is there any way in which Ram can address this issue?
FINANCIAL STATEMENTS: Caselet
VentureBean Consulting Private Limited
Look at• Various revenue streams• Capital expenditure (land, computers, vehicles, furniture
etc.)• Revenue expenditure (Salary, raw material cost,
maintenance and repair costs etc.)
You may be able to convert a capital expenditure into a revenue and vise-versa .. HOW?
FINANCIAL FORECAST: Overview
VentureBean Consulting Private Limited
Think through • Requirements of cash infusions at different stages of the
business• Resource constraints • Possible valuations at these stages
FINANCIAL FORECAST: Overview
VentureBean Consulting Private Limited
Think through • Requirements of cash infusions at different stages of the
business• Resource constraints • Possible valuations at these stages
FINANCIAL FORECAST: Overview
VentureBean Consulting Private Limited
FINANCIAL FORECAST: Preparation
• Uncertainties and unknowns can be captured through:– Scenario and sensitivity analysis– Templates that allow for different scenarios – i.e.
optimistic, pessimistic, expected. For example making the changes in the input, the output financials should show the impact
• Use tools available – i.e. spreadsheets• Link and create templates, suitable to your requirement
VentureBean Consulting Private Limited
Financial Forecasts
• Key elements in a forecast– Revenue– Costs: operational, sales and general administration – Capital expenses– Working capital expenses– Earnings– Tax, interest and other costs– Sources of funding– Uses of funding
• Reference http://www.financialexpress.com/news/forecast-financials-in-a-business-plan/83853/0
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Planning
Financial ForeAt the start: The Foundation
Strategic Financial casts
Valuation and Value Creation
For More
Agenda
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VentureBean Consulting Private Limited
Strategic Planning – Creating value
• Alliances and partnerships, whether relating to advisors/mentors or to operations or to investment should lead to value creation not value depletion
• Understand financial and non-financial aspects of business and transactions and impact on growth and sustainability
• Most importantly, is it adding to your brand perception in the market or depleting from this
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VentureBean Consulting Private Limited
Strategic Planning – Creating value
• Preparing for alliances and partnerships across the life cycle, this includes– Partner identification– Due diligence review– Forecasts and valuation (with and without deal)– Negotiation, acceptable and non-acceptable terms (deal
breaker and deal maker issues)– Other deal terms and conditions– Deal closure– Post deal integration– Exit plan if required for eg. for VC
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VentureBean Consulting Private Limited
Valuation
• Based on– Tangibles and intangibles– Data and assumptions– Subjectivity and objectivity
• Many methods of computation including but not limited to– Multiples of revenue, earning, user base etc– Cash flow based, discounted– Exit valuation– Cost based
• Must factor statutory, accounting, tax implications
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VentureBean Consulting Private Limited
Valuation
• Driven by markets including flavor of season, competitive scenario, team at helm etc.
• Driven by percentage of stake offered, negotiation etc.• Driven by demand vs. supply• Deals can sometimes be structured to accommodate valuation
perceptions; by linking to future performance etc.• For more on valuation: detailed notes are at
http://www.slideshare.net/anjanavivek/valuation-basics (from the popular set of the TOP 4% and 5% viewed on SlideShare in 2013, 2014)
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VentureBean Consulting Private Limited
At the start: The Foundation
Strategic Financial Planning
Financial Forecasts
Valuation and Value Creation
For More
Agenda
34 34
VentureBean Consulting Private Limited
VentureBean
The VentureBean Knowledge Hub: Insights and more @:– http://www.linkedin.com/company/venturebean-consulting-private-limited– https://www.facebook.com/VentureBean-Consulting-Private-Limited-
387846908091034/– https://twitter.com/VentureBean– www.slideshare.net/anjanavivek
About VentureBeanVentureBean, a Business Consulting company, is focused on helping clients grow business; profitably. We work in multiple areas, from business planning to review and assistance in building business/revenue models, funding, funding strategy and more and have been recognised in national and international media for our pioneering approach to consulting. Over the last 4 years, VentureBean has worked with over 130 clients, across India and abroad. These are across industries and range from start-ups to large corporates. More about us, the work we do and our experienced team at www.venturebean.com.
ContactFor more information and inputs: [email protected]
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Ishwar JhaMumbai, India
and more…
Investors and Funding Mentors at WF NEN
Kiranbir NagBengaluru, India
Tripat Preet SinghBengaluru, India
Suresh Narsimha, Bengaluru, India
Anil Joshi,Mumbai, India
Jay Jain,Indore, India
Gaurav Shah,Mumbai, India
Deepak AgrawalBengaluru, India
CONTACT US
Plot No. 3 & 3A, Subramanya Tech Park, EOIZ Industrial Area, Whitefield, Bengaluru – 560066
India
Four Main Street, Suite 120, Los Altos, CA 94022U.S
www.wfnen.org
[email protected] / [email protected]
India
US
