A systematized approach to fund planning. Steps and components. by Hicham Zinalabdin Make The Maker

1. 1
Entrepreneur’s Secrets™:
Fund Planning
Hicham Zinalabdin
Aug 27, 2013
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2. 2
Too much wasted…
SIMPLY,BECAUSEOFNOTKNOWING
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3. 3
Presented information is to the best of our knowledge and
experience. “Make The Maker” or its team can’t be held
responsible nor accountable for any input, process, output,
result, or effect caused by using its methodologies.
Disclaimer
Copyright © 2013 All Rights Reserved “Make The Maker”

4. 4
Whatis
Entrepreneur’sSecrets™?
Fund
Fund
Characteristics
Creating Value
Fund Planning
Fundraising
Franchising
Concept
Branding
Structure
Relation
Management
Strategy
Pricing
Competitiveness
Sustainability &
Growth
Risk
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5. 5
Componentsof
FundPlanning
1. Exit
2. Risks
(Security)
3. Team
4. Time &
Value
5. Fund
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6. 6
Component#1
Exit
A mean to determine the shape and status
of the venture and its founder(s) at a
certain maturity period.
0
1
2
3
4
5
0 1 2 3 4 5 6
$M
Years
Founder(s) Value Venture Value
DEFINE:
1. Maturity Period (MP)
2. Venture Value @ MP
3. Founders Value @ MP
4. Form of Exit
5. Who’s Executing the Exit
IPO
Sell
Keep
Sell
Board
Stay
Buy
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7. 7
Component#1
Exit
Benefits of working with an “Exit Professional”:
External
Accreditation
Increased
Value
Fund
Attractive
Venture
Roadmap
Structure
Saving TAX,
re-do, time,
money,
Opportunity
Personal
Business
Knowhow Goal Accuracy Time Saving
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8. 8
Component#2
Risk(Security)
1. Identify
• Personal Liability
• Financial Risk
• Industry Risk
• Competitors Risk
• Market Risk
• Time Risk
• Quality Risk
• Team Risk
• Management Risk
2. Cost of
impact
3. Solution
• Terminate
• Mitigate
• Transfer
• Exploit
• Tolerate
4. Cost of
Solution
5. Cost/
Benefit
Analysisx Probability
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9. 9
Component#2
Risk(Security)
Copying
invention
Key
Employee
leaving
Price
increase
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0 100 200 300 400
RiskProbability
Cost of Impact Thousands
Probability vs Cost of Impact
Copying
invention
Key
Employee
leaving
Price
increase
0
50
100
150
200
250
300
0 50 100 150 200
ProbabilityxCostofimpact
Cost of Solution
Feasibility
ContingencyFund= Sum (Best Risk Options)
=10+50+100k
= $160k
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10. 10
Component#3
Team
1. List required functions (Not people yet!)
Expert Software Dev.
Mobile Dev.
Web + DB Dev.
Graphic Designer
Digital Marketing
GM/CEO/PM
2. Define job descriptions, duties, qualifications.
0 0.5 1 1.5 2 2.5 3
3. Who is needed when + criticality (Colored).
4. Cost of Salaries (Market Value)
Job $5k
$130 $260 $300 $330 $350 $400Salaries (Market Value)
$90 $200 $200 $230 $250 $300Salaries with Partnership
5. Cost of Salaries with Partnership
$500 from $1,770 (28%)FUND saved by Partnership:
$1,000 from $5,000 (20%)If you pay double the saving on EXIT:
Total Saving = 8% * $5,000 = $400
6. Cost benefit analysis
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11. 11
Component#4
Time&Value
-800
-600
-400
-200
0
Others
Supplies
Contengency (IP+)
Consultancy
Rent
Salaries
0
200
400
600
800
1000
1200
1400
1600
1800
Sales
($75) ($500) ($300) $700
Breakeven
Cashflow
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12. 12
Component#5
Fund
Personal
Credit Card,
Mortgage Security Loan,
Micro-Loan,
Business Loan,
Gov. Loan,…
Security
Debt
MyCo.
Corporate
$10,000
Employees
$100,000
$1,000,000
FreeMoney:Competition,Grants,Donation $100,000
$500,000
PrivateOffering $200,000 $350,000
Investor $200,000 $500,000
$5MY3
%10
Venture Value @ Inv. =$1.8M
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13. 13
Conclusion
FundPlanning
1. Aproblem well defined is half solved
2. Establishing with well defined goals assisted by specialized
professionals attracts experts and investors.
3. Knowing yourrisks defends investment.
4. Employee’s partnership can be the greatest source of
startup fund and the main reason to success.
5. Fund sources are many, utilizing the best of them properly is
a matter of good planning.
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14. 14
Time to Disagree…
QUESTIONSANDDEBATES
Thank You
Hicham Zinalabdin
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