Wed, 8 September 2021
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Many entrepreneurs fail to build a financial forecast claiming they cannot predict the future.
The purpose of the financial forecast is not for future predictions, but rather for communicating the business plan to the investors.
From the forecast, the investor learns what growth rate the entrepreneur is considering.
The forecast shows where break-even may come in.
The investor can also gauge how much the entrepreneur knows about the costs and revenues of the business.
Big round numbers in the forecast indicate little knowledge of the costs and revenues.
Most financial forecasts can be driven by specific product quantities.
Finally, the forecast shows the interdependence between revenues and costs.
Increased revenues will drive variable costs higher leaving the fixed costs unchanged.
A financial model is helpful for managing the business.
If revenues double, the model shows what will happen to the costs.
If revenues get cut in half, the model shows what costs will drop and what will not.
It’s important to create a 3-5 year financial forecast to share with investors to inform them of the plan and demonstrate the startup’s credibility.
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Wed, 8 September 2021
Investor Connect - 603 - David Blackledge - Angel Investor (Grand Canyon University/Davis Miles Law Firm)
In this episode, Hall welcomes David Blackledge, Angel Investor, Professor at Grand Canyon University, and Attorney at Davis Miles Law Firm.
David is full-time faculty at Grand Canyon University’s College of Business and 2020-21 Teacher of the Year. Fall 2021 will be his seventh year teaching at the school which quickly became a second calling for him.
David is an active investor in multiple angel groups as well as a mentor and judge in many Arizona-based business competitions. He is currently a board member on various volunteer groups whose mission is to educate, accelerate and invest in entrepreneurs who are creating solutions to business and social problems. He has provided thousands of hours mentoring and advising students, startups, and others in professional matters such as interviewing, business formation and ownership, and fundraising.
David is also Of Counsel (a fancy phrase for part-time) at Davis Miles McGuire Gardner, a full-service law firm operating in the southwest US. He focuses his practice on startup and emerging businesses, particularly in various technology markets. The first thirty years of his professional career were in sales and operations management of high technology startups giving him a unique perspective on advising business owners, investors, and others in the business world.
David received his degree in Business Management from Penn State Smeal College of Business, an MBA in Finance from George Washington University, and his J.D. from Arizona State University’s Sandra Day O’Connor College of Law.
David discusses what excites him now in angel investing, some of the challenges angel investors face, and the state of angel investing post-COVID-19.
Music courtesy of Bensound.