In this session I walk through the different types of startups and how to best finance and scale them. We’ll learn — Difference between a startup and a business — The six types of startups — Finance options for startups — How to begin scaling

1. Lunch & Learn on
Understanding Startups
In this session I’ll walk through the different types of
startups and how to best finance and scale them.
We’ll learn
— Difference between a startup and a business
— The six types of startups
— Finance options for startups
— How to begin scaling

2. I’m a father, husband, adventure seeker,
designer, entrepreneur, innovation strategist,
technologies, researcher, and a more.
Hello

3. What is a Startup?
A startup is an organization in search of a repeatable business model. A
business is one that is executing on that model.

4. Types of Startups
Stanford University. outlined and taught by Steve Blank

5. Lifestyle
Work to live their passion. Freelancers, Independents,
Solopreneur, etc…

6. Small Business
Work to feed families. This is the the most common type
of business.

7. Scalable
Born to be Big. Often swinging for the fences, raising
large rounds of VC capital and striving for IPO.

8. Buyable
Acquisition Targets. Building something that grows but
bypassing VC and able to walk away with millions (but
not billions).

9. Enterprise
Innovate or Evaporate. Large organizations that are
often institutions and pillars of efficiency but may have a
hard time innovating.

10. Social
Driven to make a difference. With less focus on profits
and more on the good they are able to create in the
world. Social Innovation, Non-Profits, etc…

11. Overview
Which one are you: Take a minute to think about which
one you are in and the differences between them.
Lifestyle
Small Business
Scalable
Buyable
Enterprise
Social

12. Financing Options
Who’s going to pay for it all - and for how long?

13. Bootstrap
One of the most common options but one of the hardest.
Requires stretching resources - both financial and
otherwise - as far as you can.

14. Customer Financing
Getting your customers to pre-buy from you in exchange
for early access, special deal(s), prestige, etc…

15. Debt
Get the money now (if you can) and pay later with
interest. Using either personal debt, business debt or
both. From bank loans, lines of credit, borrowing against
receivables, leasing options, credit cards, etc…

16. Grants
Grants are non-repayable funds or products disbursed
or given by one party (grant makers), often a
government department, corporation, foundation or
trust.

17. Investors
Getting others to invest in your future growth with the
goal of getting a good return later. Examples like
Friends, Family & Fools, Angel, Venture Capital, etc…

18. Cash
Have plenty of cash to weather the storms because
growth sucks cash. Don’t just focus on the P&L, make
sure you understand cash flow.
✦ Cash Flow
✦ Accounting
✦ Financial Leavers

19. Income Amounts (each month)
Expense Amounts (each month)
Total each
line item
Total each
line item
TOTAL of all expenses (each month)
TOTAL of all income (each month)

20. Your Power of One
Change you would
like to make
Annual Impact on
Cash Flow $
Impact on
EBIT $
Price Increase % %
Volume Increase % %
COGS Reduction % %
Overheads Reduction % %
Reduction in Debtors Days day(s)
Reduction in Stock Days day(s)
Increase in Creditors Days day(s)
Your Power of One Impact
You can increase the price of your goods & services
You can sell more units at the same price
You can reduce the price you pay for your materials / labor.
(Operating Expenses) You can reduce your costs.
(Accounts Receivable) You can collect $$ faster.
(Inventory) You can reduce the amount of stock on hand.
(Accounts payable) You can slow down payments.
7 main financial levers

21. Get Organized
Tighten up your execution habits and stop relying on the “heroics” of you
and your team.

22. Identify Processes
Identify 4 to 9 processes that drive your business and
focus on making those better, faster or cheaper to
deliver.
✦ Tours
✦ On-boarding & Off-boarding
✦ Billings (1st of the month, prorations, snacks)
✦ Phone & Email Inquiries
✦ Social Media Engagement
✦ Member Animation
✦ Community Outreach

23. Write it down
Take time to write down how you do things and where
you put things. This will allow others to keep the same
quality while also letting them find ways to refine your
practices over time and share with others.

28. Scaling Up
Free your time to focus on the important activities
necessary to grow your business while getting everyone
aligned to execute your plan.
✦ People
✦ Strategy
✦ Execution
✦ Cash

30. Managing Yourself
You can’t always put yourself last.

31. Take Care
Having a strong and fulfilling personal life provides an
important foundation for sustaining your efforts in the
business.
✦ Finances
✦ Fitness
✦ Friends
✦ Family
✦ Faith

32. Thank You
schaapy@gmail.com