Becker Growth Strategy

PSA: 🔊 Financial Projections equal not a Growth Strategy.  It is easy (and fun!) to imagine how much revenue your business could potentially generate in a perfect scenario–especially following a cash infusion. 📈 That said, distinguishing between existing value, latent value, and growth value requires some less sexy work to be done.  BGS offers a complete audit of the “3 P’s”: your Processes, your People, and your Plan. Do you have the production capacity to handle a drastic increase in sales volume? Do you have correct and efficient operational processes in place?  Are there certain aspects of the operational flow which should be automated? Is the team ready and able to execute the plan? After just 2 weeks, Becker Growth Strategy 🏒 “360 Degree Growth Audit”, will provide answers to the questions above with a custom and coherent growth strategy for your business.  If fundraising is on your 2024 to-do list, let BGS run operational diagnostics now which could both inform your use of funds and help answer tough questions from potential investors later. DM me today to book a free discovery call. 📞 #growthstrategy #fundraising #processdocumentation #operations #executiveleadership #teambuilding

“How much money do I need to raise?” That’s a question I’m often asked by food entrepreneurs. My answer is almost always, “Less than you think.” I’m friendly with a local entrepreneur who’s built a fast-growing $6 million food business. The Company is not yet profitable so she’s in fundraising mode and was approached by a large investor who wants to put $10 million into the enterprise. When you’re strapped for cash, it’s hard to say no to a Big Check, but rarely is it a good outcome. Let’s consider the consequences: 1)        Dilution of ownership - Let’s be optimistic and assume this business gets a 3X sales pre-money valuation of $18 million. The entrepreneur (along with all existing investors) is giving up 10/28 (35.7%) of the Company. It’s unlikely someone writes that big a check without wanting a major say (if not control) in the business. 2)        Inflated expectations – Along with this post-money valuation of $28 million comes the pressure for the business to grow quickly to a size that merits this kind of valuation. This leads to... 3)        Bigger mistakes - With a higher valuation and more cash in the bank, the entrepreneur feels pressure to take bigger risks. Rather than dip a toe in the water to test a new strategy, the Company might skip the iteration process.  In our 6th year Honest Tea had the opportunity to take in a big investment. If we had, we would have bet on product lines that weren’t ready for mainstream markets. (Honest Kids hadn’t yet launched and “Just A Tad Sweet” was just gaining traction.) Here are some ways to avoid being pressured into taking the Big Check: Always have leverage – Avoid negotiating with just one investor. Until documents are signed, you should be in active conversations with every potential investor you can find. For Eat the Change (𝗝𝗨𝗦𝗧 𝗜𝗖𝗘 𝗧𝗘𝗔) we’ve been fortunate to split the lead role in our last two raises between two major investors. Not only did we gain two strong supporters, we avoided giving one investor too much control. Raise less money more often – Even if my friend raises $2 million at a lower pre-money valuation of 2.5X sales ($15 million), she gives up 2/17 = 11.8% of the Company. Yes, she might have to raise more money again sooner, but if she executes well, the sales (and enterprise) should be higher for the next raise, which helps reduce further dilution. Fundraising can be intimidating, painful, and distracting, but as a founder, it’s your duty to make sure the enterprise has the resources to bring your vision to life. Think of it like a college exam – How well can you present and defend your thesis? Most investors come with fresh eyes and ask questions you haven’t considered. Use the fundraising process to make you and your enterprise stronger. And just in case you thought we outgrow fundraising, I’d be remiss if I didn’t share the link to PLNT Burger’s StartEngine campaign – I hope you’ll join us! https://lnkd.in/eRSnzsdF

Becker Growth Strategy is officially LIVE and seeking clients for the fall. BGS helps growing businesses scale gracefully as they engage in transformational change. Here is our ideal customer profile: 👉 $2MM per year in revenue (or a defined path to get there) 👉 Rapid Growth Potential (3X or more) 👉 Seeking repeatable, efficient processes  👉 Seeking a cohesive fundraising strategy Here is what we offer in our initial service package: BGS 30 day Growth Sprint: 💥 Business Model Audit 💥 360 Degree Operations Audit 💥 Process Flow Stress Testing 💥 SWOT Analysis and Risk Assessment 💥 Customized Fundraising Strategy 💥 Final Growth Strategy If this is of interest to you and your company, book a free consultation today! 👇 Please also share with anyone else who might be interested.