Tough times call for tougher measures! As Indian economy transitions from legacy to tech age, businesses including start-ups will face tough times on finance front. The presentation aims to help users understand the basics of managing their finances in difficult times and also on how to innovatively use financial engineering and intellect to tide over the rough weather.

1. Seemant Shrivastav

2. Agenda
• Bootstrapping – How to bootstrap your start-up
• Sources of Finance- Various sources of finances
• Managing your Company’s finances
• How to survive tough times
• Fundraising Trends
• Conclusion- Q&A

3. How to Bootstrap?

4. How to Bootstrap?
• Stick to a business domain you know and love.
• Start from own Home/Friends or relatives Home
• Try & manage as much work as possible amongst
founding team
• Find cost effective resources/interns
• Look for freebies , deals , free trials etc
• Plan and track your finances, avoid unnecessary
expenses
• Don’t waste time & money at conferences, seminars
unless your product is ready

5. How to Bootstrap? (2)
• Find team members to work for equity rather than cash.
• Build a plan around your budget, rather than around your
wishes.
• Defer your urge to find office space until you have customers.
• Ask for advance on royalties and vendor deferred payments.
• Choose a business model to optimize your revenue flow and
timing
• Moonlighting; and keep quiet about side project

7. Sources of
Finance

8. Start-up: Typical Financing Cycle

9. Equity Debt Barter(exchange) Others
VentureFunds CreditCards
PartneratVC's,CorporateHeads PersonalLoans SaasinsteadofProduct
AngelFunds&Networks VentureDebt(PEfundedCo) GetSeniorpeopletowork
AngelSyndicatePlatforms SMELoansbyNBFC's CustomerAdvances
MediaBarters Factoring Licenseyourproductsin mkt
HNI's Leasing GovernmentGrants&Incentives
Incubator/Accelerator LoanagainstCollaterals Barter-ConsignmentBiz WinPrizesincontests
CrowdFunding CGTMSE Backofficesupport Managingwithownrevenues
Friends&Family OfficeSpacevsproduct/equity Moonlightingonjob
Bootstrapping Exchangeresources GetFreeresources
Costoffund
Sources of Finance
Higher
Lower

10. Debt Financing: Lessor known Sources
• Banking Surrogacy
• CGTSME Loans
• MUDRA Loans
• Factoring
• Venture Debt

11. Managing
Finances

12. Basic Financial Terms
• Profit & Loss A/c
• Balance Sheet
• Cash Flow Statement
• Business Plan
• Budgeting
• Accounts Payable
• Accounts Receivable
• Direct Costs
• Indirect Costs
• Operating Margins
• Net profit
• Cash Burn Rate
• Debt Equity Ratio
• Current Ratio
• Debt Service Coverage
• Interest Coverage
• IRR/ROCE

13. Golden Financial Management Rules
• Never Invest your money without ensuring that assets
you acquire can generate a return which is at least
equal to the cost of your capital
• Invest your money in such a way that the assets will
generate an inflow of funds before liabilities demand
an outflow
(*source: Romancing The Balance Sheet by Anil Lamba)

14. Surviving
Tough
Times

15. Go Back to Basics
• Generate Profit & not Sales
• Cut unnecessary expenses
• Pay minute attention to cash flows
• Manage Working Capital efficiently
• Don’t use short term funds for long term purposes
• Be wary of unsecured & high cost debts

16. Further Survival
• Negotiate credit terms with Vendors and Customers
• Look for Hidden sources of cash (especially for slightly
mature business) in your books
• Sell off unwanted assets to generate cash
• Explore advances from Customers
• Lay off people (if unavoidable) on best possible terms

17. Fund Raising Trends

18. Hottest Sectors (Q1 FY 17)
• Fintech ($18.5 mn )
• Food Tech ($11.5 Mn)
• Real Estate Tech ($10 Mn)
• Health tech ($8.43 Mn)

20. Fund raise Questions
• How much funding should I raise?
• When should I raise money? At what stage should I
not?
• How much equity should I give? At what terms?
• How should I value my company?
• How should I give equity when I am unable to value
my company?

21. Fund raise Questions (2)
• How should I reach out to investors?
• How many investors would I have to reach to find
one?
• How long will this process take ?
• Should I appoint anyone for the process ?
• How much will the fund raising process cost
• What is the right structure/instrument

22. To Conclude
• Define your round – amount, tranche, dilution
• Structure a process – Project Plan and CRM
• Seeking advice – entrepreneurs, investors, mentors,
industry guys – ask for advice, you get money; ask
money, get advice
• Selecting a VC – Terms, Follow On, Strategic Support,
Brand Name, Time to money, Integrity/Competition,
Dilution
• Finding a good CA/lawyer

23. Seemant@attentiocs.com
+91-9820597897
Thanks