As investors you wear many hats including chairperson and mentor. Even though you are very experienced you are always looking for new ways to add value and help companies de-risk. Technology is one way which allows the business to measure cash management, effectiveness of cost reduction, retention, upsell and the cost of customer acquisitions.
Many founders wrestle with developing their startup financial projections. Here are five questions every investor is asking themselves:
How can I build on my investment?
A good technology platform is the basis for operational efficiency, delivering a single and consistent view of business activity. It helps identify inefficiencies, smooths the path to investment and provides visibility during mergers, acquisitions and carve outs.
When you invest in a great idea surrounded by poor infrastructure, you need to suggest key changes are made to build more value. Adding a powerful cloud-based ERP system to your business can provide numerous competitive advantages, like increased market share which in turn allows you to build the value of your investment.
How do I keep my investment risk-free and sustainable?
There is no such thing as a safe bet, but when it comes to an investment, you will always see very similar trends in businesses that are ready for seed investment. Financial forecasting is crucial. With NetSuite’s reporting mechanisms, you will be able to identify areas of improvement and risks so that you can protect your investment. For most investors, the ultimate goal is to increase ROI, which can be facilitated by NetSuite’s comprehensive systems. That way, you can rest assured that you invest into a reliable system once, rather than continuing to pump money into something that isn’t accruing value.
What is the best way to scale systems and processes?
A company without a sound infrastructure is a risky investment, no matter how innovative their idea is. After all, investing your hard-earned cash into a company that refuses to do the same seems a bit counterintuitive. By investing into a proven Business Management Solution, like NetSuite, you know that your time and finances are spent wisely in resolving business inefficiencies and solving operational problems. Ultimately this gives you the confidence that your investment is accruing value, which will translate through to potential buyers.
How comprehensive is the reporting framework?
If you want to be able to keep tabs on your investment and identify the right time to sell your shares, you need to have access to sophisticated cloud-based reporting technology. With NetSuite, you can monitor that Key Performance Indicators are being met, while analysing the trajectory and pace with which your investment is scaling. Furthermore, its centralised and comprehensive reporting network means that you’re able to drilldown into the most crucial areas of your investment, exposing potential weaknesses in the process.
What’s the impact of my investment on the end user?
There’s something intrinsically ironic about scale-ups that care only about their products and services, and not about their end users. As a shareholder, you have an important role to play here, as you can influence how much time and money is spent on developing distinct user personas and researching the pains and needs of the end user. This all starts by replacing archaic systems so that your investment can grow with your burgeoning user base. NetSuite, for example, provides a seamless integration of front and back ends of the business, meaning that marketing data, financial information, and product details can all be linked and compiled into a cloud-based CRM system that is both sustainable and dependable. This allows you to improve the user experience, which is, ultimately, an investment into the longevity and value of your business.