Marco Döring

💡 𝐊𝐞𝐲 𝐒𝐚𝐚𝐒 𝐓𝐫𝐞𝐧𝐝𝐬 𝐟𝐨𝐫 𝟐𝟎𝟐𝟒 & 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 𝐟𝐨𝐫 𝟐𝟎𝟐𝟓 💡 📊 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧𝐬 𝐒𝐭𝐞𝐚𝐝𝐲: SaaS valuations hovered between 6.0x–9.0x ARR in 2024 and are expected to stay in the 5.5x–8.0x ARR range in 2025, with potential upside. 💼 𝐏𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐎𝐯𝐞𝐫 𝐆𝐫𝐨𝐰𝐭𝐡: Boards and investors prioritized profitability over growth in 2024, a trend that may reverse if interest rates decline. 🚪 𝐓𝐢𝐠𝐡𝐭 𝐈𝐏𝐎/𝐌&𝐀 𝐌𝐚𝐫𝐤𝐞𝐭𝐬: Few SaaS IPOs and private M&A deals in 2024, but M&A and IPO activity could accelerate in 2025 with lower interest rates. 💰 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐁𝐨𝐭𝐭𝐥𝐞𝐧𝐞𝐜𝐤: Limited Partner liquidity challenges slowed VC and PE fundraising, delaying a rebound for early-stage venture deals until 2026 or beyond. 🤖 𝐀𝐈'𝐬 𝐑𝐨𝐥𝐞: Generative AI will dominate in content creation, but core B2B SaaS platforms remain resilient. 🚀 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 𝐟𝐨𝐫 𝟐𝟎𝟐𝟓: A solid year for SaaS growth using debt financing while equity remains limited. Economic uncertainty remains a key watchpoint. #SaaS #TechTrends2025 #AI #Valuations #Growth

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New client? The first thing I build is 𝙣𝙤𝙩 a Three Statement Model (it's this instead 👇). I build a 𝗖𝗮𝘀𝗵 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁. ~~~ 📌𝗦𝘁𝗮𝗿𝘁 𝗼𝗻 𝘆𝗼𝘂𝗿 𝗼𝘄𝗻: grab a personal cash flow template here 👉 https://lnkd.in/edmwgYCv ~~~ 𝗧𝗶𝗺𝗶𝗻𝗴? 13 weeks, 4 weeks, 7 weeks? Doesn't matter. I just need a general sense of what cash will do in the short term. When will I collect payments? Can I pay vendors? Can I make payroll? 𝗔 𝗙𝗿𝘂𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 What drives me nuts about these forecasts? They have become so overly "professionalized" that no one understands them. I just want to know: "What will my bank account look like next week?" "How about two weeks from now?" Enough of the fluff. 𝗤𝘂𝗶𝗰𝗸 𝗦𝘁𝗮𝗿𝘁 𝗚𝘂𝗶𝗱𝗲 Open a spreadsheet and whip this thing together. You build it like this: 1. Stuff that comes in -- minus -- 2. Stuff that goes out = What you have left. (repeat for next week) (💡pro tip: don't forget to add "float" to your beginning balance = checks that have been cut but not yet cashed) 𝗣𝗶𝗰𝘁𝘂𝗿𝗲 𝗧𝗶𝗺𝗲 In the example image I'm focused on three things: 1. Mapping out the past 2. Making thoughtful estimates about the future 3. Figuring out if I have shortfall (so I can do something about it 𝙣𝙤𝙬) 𝗘𝘅𝘁𝗿𝗮 𝗧𝗶𝗽𝘀 💡𝘗𝘳𝘰 𝘵𝘪𝘱 1: have unknowns? Just build a line called "unknowns" to make things conservative. 💡𝘗𝘳𝘰 𝘵𝘪𝘱 2: forecast expenses early, receipts late (again, make it conservative) 💡𝘗𝘳𝘰 𝘵𝘪𝘱 3: 𝗳𝗼𝗿𝗴𝗲𝘁 𝗮𝗯𝗼𝘂𝘁 𝘄𝗲𝗲𝗸𝘀, 𝗷𝘂𝘀𝘁 𝗯𝘂𝗶𝗹𝗱 𝗶𝘁 𝗯𝘆 𝗱𝗮𝘆. 𝗟𝗲𝗮𝗿𝗻 𝗶𝗻 𝗬𝗼𝘂𝗿 𝗦𝗽𝗮𝗿𝗲 𝗧𝗶𝗺𝗲 The best way to practice? Start with your own life: + paycheck in - expenses out Build a short forecast, maybe 4 weeks at most. How'd you do? If you were even 𝘥𝘪𝘳𝘦𝘤𝘵𝘪𝘰𝘯𝘢𝘭𝘭𝘺 close, you have the raw skills to do this analysis at the business level. 𝗧𝗟;𝗗𝗥 1. Map out history 2. Make conservative estimates about the future 3. Make a plan now ~~~ 👋 Hey, I'm Chris Reilly, and I teach Financial Modeling based on real Private Equity and FP&A experience. 📌 See Financial Modeling Courses 👉 https://lnkd.in/eG_uVhsE

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The Finance Function at a Crossroads: Stability vs. Innovation. Can DATEV Bridge the Gap? In today's rapidly evolving digital landscape, the finance function faces a crossroads. We can either cling to outdated practices such as searching for documents in the archive in the attic, or embrace innovation and transformation. We're taking a critical look at DATEV to see if it can be our digital transformation partner. DATEV: A Legacy of Stability Let's be honest. DATEV isn't exactly the epitome of cutting-edge technology. But that doesn't mean it can't be a valuable tool. Stability and reliability are crucial in finance, but so is agility. Digitalization: The Key to Agility Professor Prof. Dr. Robert Mayr, CEO of DATEV eG, nailed it when he said, "Digitalization is the foundation for being able to react more flexibly and quickly to changing requirements and ensures greater resilience in uncertain times." Indeed, digitalization is the key to unlocking agility, efficiency, and a competitive edge. It's about automating mundane tasks, leveraging data for informed decision-making, and fostering seamless collaboration. Collaboration with C&P Capeletti & Perl Gesellschaft für Datentechnik mbH To ensure that we leverage the full potential of DATEV, we are working with the consulting experts at C&P, in particular Jens Hellmold and Philipp Klöpper. Their knowledge and expertise accompany us on this path of transformation and help us to make DATEV an important enabler of our strategic goals. Cc: Kristin Könnecke Annette Schiering Markus Hoffmann Daniel Caspar Meryem Loukili Sandra Küst Maurice Henry Büttgenbach Desiree Schrön Hamburger Revisions-GmbH What are your thoughts on DATEV? Have you explored it for digital transformation? #futureoffinance #accounting #digitaltransformation #DATEV

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New client? The first model I build is 𝙣𝙤𝙩 a Three Statement Model... Instead, it's a 𝗖𝗮𝘀𝗵 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁. ~~~ 📌𝗦𝘁𝗮𝗿𝘁 𝗼𝗻 𝘆𝗼𝘂𝗿 𝗼𝘄𝗻: grab a personal cash flow template here 👉 https://lnkd.in/edmwgYCv ~~~ 𝗧𝗶𝗺𝗶𝗻𝗴? 13 weeks, 4 weeks, 7 weeks? Doesn't matter. I just need a general sense of what cash will do in the short term. When will I collect payments? Can I pay vendors? Can I make payroll? 𝗔 𝗙𝗿𝘂𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 What drives me nuts about these forecasts? They have become so overly "professionalized" that no one understands them. I just want to know: "What will my bank account look like next week?" "How about two weeks from now?" Enough of the fluff. 𝗤𝘂𝗶𝗰𝗸 𝗦𝘁𝗮𝗿𝘁 𝗚𝘂𝗶𝗱𝗲 Open a spreadsheet and whip this thing together. You build it like this: 1. Stuff that comes in -- minus -- 2. Stuff that goes out = What you have left. (repeat for next week) (💡pro tip: don't forget to add "float" to your beginning balance = checks that have been cut but not yet cashed) 𝗣𝗶𝗰𝘁𝘂𝗿𝗲 𝗧𝗶𝗺𝗲 In the example image I'm focused on three things: 1. Mapping out the past 2. Making thoughtful estimates about the future 3. Figuring out if I have shortfall (so I can do something about it 𝙣𝙤𝙬) 𝗘𝘅𝘁𝗿𝗮 𝗧𝗶𝗽𝘀 💡𝘗𝘳𝘰 𝘵𝘪𝘱 1: have unknowns? Just build a line called "unknowns" to make things conservative. 💡𝘗𝘳𝘰 𝘵𝘪𝘱 2: forecast expenses early, receipts late (again, make it conservative) 💡𝘗𝘳𝘰 𝘵𝘪𝘱 3: 𝗳𝗼𝗿𝗴𝗲𝘁 𝗮𝗯𝗼𝘂𝘁 𝘄𝗲𝗲𝗸𝘀, 𝗷𝘂𝘀𝘁 𝗯𝘂𝗶𝗹𝗱 𝗶𝘁 𝗯𝘆 𝗱𝗮𝘆. 𝗟𝗲𝗮𝗿𝗻 𝗶𝗻 𝗬𝗼𝘂𝗿 𝗦𝗽𝗮𝗿𝗲 𝗧𝗶𝗺𝗲 The best way to practice? Start with your own life: + paycheck in - expenses out Build a short forecast, maybe 4 weeks at most. How'd you do? If you were even 𝘥𝘪𝘳𝘦𝘤𝘵𝘪𝘰𝘯𝘢𝘭𝘭𝘺 close, you have the raw skills to do this analysis at the business level. 𝗧𝗟;𝗗𝗥 1. Map out history 2. Make conservative estimates about the future 3. Make a plan now ~~~ 👋 Hey, I'm Chris Reilly, and I teach Financial Modeling based on real Private Equity and FP&A experience. 📌 See Financial Modeling Courses 👉 https://lnkd.in/eG_uVhsE

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When it comes to the business model, it’s not enough to simply describe your pricing. In order to convince investors, your slide must explain the following: - how you will make money - why that engine will be efficient - how it will turn into a competitive advantage in the long run And that’s where things get tricky. Many believe the best course of action is stripping the business model slide to the bones and avoiding burdening it with unnecessary metrics and information. The problems begin when some of those metrics and information you leave out turn out to be pretty darn necessary for selling your model to investors. So here are the 4 mistakes that I see founders make, and ways to fix them: Mistake #1: Treating Your Business Model as a Pricing Slide Instead of just listing pricing tiers, explain the overall mechanics of your business model, including primary revenue streams (subscriptions, transaction fees, etc.), and the logic/key drivers behind them. Mistake #2: Having Too Many Revenue Streams Early-stage companies should focus on a maximum of 3 core revenue streams, with 1-2 being the primary focus. Clearly differentiate between current and future revenue sources. Mistake #3: Not Showing Your Competitive Advantage Highlight the unique competitive edge or "moat" that makes your business model sustainable and de-risks it for investors (e.g., low costs, high margins, effective land and expand motion, scalability). Mistake #4: Not Discussing Business Model Economics Illustrate the attractive aspects of your unit economics to support your claims, such as low Customer Acquisition Cost (CAC), high Customer Lifetime Value (LTV), favorable LTV:CAC ratio, short payback cycles, and high profit margins. Bonus Tip 💡 The Ultimate Business Model Slide Investors love a slide that concisely presents the key business model drivers, the path to $100M+ revenue, and verification against the overall market size. So, keep your business model slide clean, focused on the primary model and key revenue streams, and include a few crucial unit economics metrics to justify your strategy. Here is a good example of business model slide that raised $1M in funding. (Attached Below) Source: Waveup Check out my free newsletter for more insights: https://lnkd.in/dKZQKHg2 . #startups #funding #venturecapital #founders #funding #fundraising #entrepreneurship #entrepreneur #founder #jobs #sharktank #pitchdeck #deck #investors #angelinvesors

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One simple formula to calculate the value of your SaaS business? SaaS Capital just published new research on SaaS valuations. According to them, you can calculate your SaaS startup's rough valuation using the formula below. The only parameters you need: 1. ARR Growth Rate 2. Net Revenue Retention Rate 3. Current level of their own SaaS Capital Index (SCI) Let me quote them: "A majority of actual Valuation Multiples were within +/- 40% of the predicted multiple, and likewise a majority were within +/- 1.7x" That's a lot of vagueness if you ask me. I appreciate the research they do, but this one is completely useless. Everyone is always looking for maximum simplification, but sometimes it's just not easy. So many more factors that need to be considered. What do you think about it? What valuation do you get for your business using the formula? PS: Feel free to reach out if you are looking for a more reliable ballpark number for your small SaaS. ✌️ #saas #startups #founders #valuation

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Forget 13 weeks. Let's get real: use my "Doomsday Cash Runway" Template (with download 🔽) ~~~ 𝗧𝗟;𝗗𝗥: grab the template here 👉 https://lnkd.in/eDzuV6Mf ~~~ 𝙄𝙣𝙨𝙩𝙧𝙪𝙘𝙩𝙞𝙤𝙣𝙨: 𝘾𝙖𝙨𝙝 𝙨𝙞𝙩𝙩𝙞𝙣𝙜 𝙞𝙣 𝙗𝙖𝙣𝙠 𝙧𝙞𝙜𝙝𝙩 𝙣𝙤𝙬 1. Open your bank website 2. How much cash is sitting in there right now? 3. Enter that number in cell C6 𝘼𝙙𝙙: 𝙍𝙚𝙘𝙚𝙞𝙫𝙖𝙗𝙡𝙚𝙨 𝙔𝙤𝙪'𝙧𝙚 𝙎𝙪𝙧𝙚 𝙔𝙤𝙪'𝙡𝙡 𝘾𝙤𝙡𝙡𝙚𝙘𝙩 If you know for sure (like 100%) you're going to collect on some AR, then enter that in cell C7. Want to be even more conservative? Make it $0. 𝙇𝙚𝙨𝙨: 𝙆𝙣𝙤𝙬𝙣 𝙋𝙖𝙮𝙖𝙗𝙡𝙚𝙨 Subtract out any known payables that are due shortly or spoken for: vendor payments, estimated tax payments, etc. These go in cell C8. 𝙏𝙝𝙚 𝙉𝙚𝙩 𝙍𝙚𝙨𝙪𝙡𝙩? The sum of the numbers above gives us a conservative snapshot of "net cash left today" (cell C10). 𝙇𝙞𝙣𝙠 𝙔𝙤𝙪𝙧 𝙀𝙭𝙥𝙚𝙣𝙨𝙚𝙨 You have a monthly financial model, yes? Take your total monthly expenses and link them through column E. 𝗙𝗼𝗿𝗴𝗲𝘁 𝗥𝗲𝘃𝗲𝗻𝘂𝗲. Expenses only. (Note: if you've built a Three Statement Model, link your "Free Cash Flow" instead, but be sure to strip out any Revenue flowing through AR) 𝘾𝙤𝙡𝙪𝙢𝙣 𝙃 𝙆𝙚𝙚𝙥𝙨 𝙄𝙩 𝙍𝙚𝙖𝙡 Time to get real. Column H calculates how many months of runway you have right now, expenses only, assuming you never generate another dollar of revenue or raise capital. This can sting. I know. It can also be extremely helpful. How months of "Doomsday Runway" do you need to sleep at night? See if you can maintain that number. Hopefully, this simple exercise can give you peace of mind. From there, everything else is upside. ~~~ 👋 Hey, I'm Chris Reilly, and I post about Financial Modeling in the middle-market. 𝘱.𝘴. don't forget to grab the template 👉 https://lnkd.in/eDzuV6Mf

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Forget 13 weeks. Let's get real: use my "Doomsday Cash Runway" Template (with download 🔽) ~~~ 𝗧𝗟;𝗗𝗥: grab the template here 👉 https://lnkd.in/eDzuV6Mf ~~~ 𝙄𝙣𝙨𝙩𝙧𝙪𝙘𝙩𝙞𝙤𝙣𝙨: 𝘾𝙖𝙨𝙝 𝙨𝙞𝙩𝙩𝙞𝙣𝙜 𝙞𝙣 𝙗𝙖𝙣𝙠 𝙧𝙞𝙜𝙝𝙩 𝙣𝙤𝙬 1. Open your bank website 2. How much cash is sitting in there right now? 3. Enter that number in cell C6 𝘼𝙙𝙙: 𝙍𝙚𝙘𝙚𝙞𝙫𝙖𝙗𝙡𝙚𝙨 𝙔𝙤𝙪'𝙧𝙚 𝙎𝙪𝙧𝙚 𝙔𝙤𝙪'𝙡𝙡 𝘾𝙤𝙡𝙡𝙚𝙘𝙩 If you know for sure (like 100%) you're going to collect on some AR, then enter that in cell C7. Want to be even more conservative? Make it $0. 𝙇𝙚𝙨𝙨: 𝙆𝙣𝙤𝙬𝙣 𝙋𝙖𝙮𝙖𝙗𝙡𝙚𝙨 Subtract out any known payables that are due shortly or spoken for: vendor payments, estimated tax payments, etc. These go in cell C8. 𝙏𝙝𝙚 𝙉𝙚𝙩 𝙍𝙚𝙨𝙪𝙡𝙩? The sum of the numbers above gives us a conservative snapshot of "net cash left today" (cell C10). 𝙇𝙞𝙣𝙠 𝙔𝙤𝙪𝙧 𝙀𝙭𝙥𝙚𝙣𝙨𝙚𝙨 You have a monthly financial model, yes? Take your total monthly expenses and link them through column E. 𝗙𝗼𝗿𝗴𝗲𝘁 𝗥𝗲𝘃𝗲𝗻𝘂𝗲. Expenses only. (Note: if you've built a Three Statement Model, link your "Free Cash Flow" instead, but be sure to strip out any Revenue flowing through AR) 𝘾𝙤𝙡𝙪𝙢𝙣 𝙃 𝙆𝙚𝙚𝙥𝙨 𝙄𝙩 𝙍𝙚𝙖𝙡 Time to get real. Column H calculates how many months of runway you have right now, expenses only, assuming you never generate another dollar of revenue or raise capital. This can sting. I know. It can also be extremely helpful. How months of "Doomsday Runway" do you need to sleep at night? See if you can maintain that number. Hopefully, this simple exercise can give you peace of mind. From there, everything else is upside. ~~~ 👋 Hey, I'm Chris Reilly. 🛑 Stop burning out nights and weekends at the office—I help middle-market finance professionals master real-world financial modeling in one week. 🌐 Click "Visit my website" for more information.

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Spreadsheet problems that Vareto solves, part 1. This is the story of how Vareto transforms the chaos of many spreadsheets into a single, beautiful model. 🎉 --------- Every finance leader that's led annual planning, long-range planning, or any other complex planning process knows it's painful. Primarily because it involves many different people. First, you create a calendar that lays out when inputs will be requested, collected, and approved. Then you bake in buffer time for reminders and iteration (aka "herding cats"). It takes hours to create spreadsheet templates for each stakeholder, usually with input cells highlighted plus a whole lot of additional data, calculations, and instructions to give people the right context. You do a lot of set-up work, you try to make it easy for everyone, yet the process still feels hard and frustrating: (1) Spreadsheet data goes out of date quickly, so you have to keep sending new versions of actuals. (2) Linking individual spreadsheets back into the main financial model is a special type of torture. Links break. Copy/paste errors abound.  (3) Your main financial model has no record at all of who did what and when because comments and approvals happen elsewhere (often via email). No matter how perfectly you execute this process, it is going to feel exhausting. Now there's Vareto, and everything is different. Imagine that you build a single beautiful model instead of many spreadsheets. Imagine you can share different pieces of this model, and each stakeholder sees and edits only what they're supposed to. Imagine that you can see their inputs in real-time, yet have full control over if and how the data flows into your financial summaries. Imagine that all discussion and approvals get captured in the same place, for easy iteration and auditing. If this resonates, you're going to love Vareto. Come talk to us. 😃

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📊 Interesting chart from Meritech Capital on Public SaaS ARR Multiples by Quartile: With similar metrics, you can assume that the intrinsic value of your small SaaS company in terms of ARR multiples is at least 30% lower. Or to put it the other way around: If you are running a small SaaS business, you need better KPIs to get a similar market multiple. As you can see, the ACV / retention metrics of all groups are still quite decent. It's almost impossible to get there with a pure PLG SaaS business - which is why they are usually "worth a bit less" than Enterprise SaaS businesses with a sticky, mission-critical product. Exceptions prove the rule. What surprises you most about this diagram? For me, it was the high ARR/FTE values.

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💡 Helpful benchmarks for SaaS leaders to consider. Thanks for sharing Dirk. #saas #fundraising #corporatefinance #technology #startups

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Data | Data | Data Remember the old adage in real estate? Location | Location | Location Today everyone is in the data business. I heard a phrase from a CEO that hired a CIO in which I will never forget. He told that person "I want you to drive the imperfections out of my business". That resulted in 10x growth. There are two things that are underestimated: -the need to start from day one with data structured in a way that you can actually leverage it to make decisions -the critical ability to automate the output I really like the chart below to help founders visualize and think through data layering and how to leverage it. Of course there are exceptions to various types of businesses and things missing but the #1 most critical first step is to implement a data model. If you start from day one it won't be as hard as it will be to implement in year three - and by that time your competitors will have opened up an even bigger lead. The best widget doesn't always win - EXECUTION does.

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Stuck in the SaaS Dead Zone? The longer you linger, the more company value you lose! In my experience, many SaaS companies are currently facing a tough reality: stagnating growth without a corresponding increase in profitability. This is the Dead Zone, and it’s a dangerous place to be. Lingering here too long can seriously erode your company’s value. Ideally, you want to reignite growth. But if that feels out of reach, you should focus on improving your bottom line asap. A highly profitable company — even without growth — holds significantly more value than one struggling on both fronts. Public SaaS data shows that highly profitable companies with no growth have a median ARR multiple that’s 78% higher than those in the Dead Zone. I can tell you that there will be similar valuation differences in the private market. You can read more about it in my latest saas.wtf newsletter! ✌️

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📊 SaaS vs. Non-SaaS: The Valuation Gap Did you know? SaaS businesses often command higher valuations in contrast to non-SaaS companies. Here's why: ⭐️ Predictable Revenue: Subscription models provide stable income streams ⭐️ Scalability: Cloud-based delivery allows for rapid growth ⭐️ Lower Costs: Cloud-based delivery also enables a more cost-effective business model These advantages translate into higher multiples and increased investor interest. Is your tech company leveraging the SaaS model to its full potential? #FutureOfWork #SaaS #Technology #EdTech #HRTech #WorkTech #WellbeingTech #MergersAndAcquisitions #InvestmentBanking

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Does finance add nothing to your decision-making? Are your scale-up's financials an afterthought? As your SaaS company grows, the demands on your finance team evolve. What started as simple bookkeeping to keep track of expenses and invoices might no longer be enough to fuel your scale-up journey. When your financial management doesn’t keep pace, you’ll find yourself facing more cash flow surprises, missed opportunities, and a finance team that’s constantly overwhelmed.This is about strategy, foresight, and ensuring your financial operations are aligned with your business goals. If you’re noticing the cracks starting to show, it might be time to rethink your approach and elevate your financial game. This is part of the diagnostic I always undertake with new clients. From this analysis, I've gleaned the 10 clear signs that basic accounting support is insufficient for your business. 1️⃣ Cash Flow Headaches Are the New Normal If your cash flow keeps you up at night, it’s time to move beyond basic bookkeeping and get strategic about your finances. 2️⃣ Your Financial Reports Are All Data, No Direction If your reports aren't helping you make smarter decisions, you need more than just numbers—you need insights. 3️⃣ You're Letting Growth Opportunities Slip Away Are you maximising your financial data for strategic planning? If not, you could be missing out on significant revenue. 4️⃣ Budgeting Feels Like a Shot in the Dark Effective budgeting isn’t just about looking at last year’s numbers. It requires forecasting, scenario planning, and a strategic approach. 5️⃣ Investors Are Asking Tough Questions When investors start digging deeper, surface-level accounting won’t suffice. They want detailed, forward-looking financial analysis. 6️⃣ Scaling Operations Feels Like a Scary Ride Scaling should be a calculated move, not chaos. Your financial management needs to support your growth, not hinder it. 7️⃣ Your Profit Margins Are Taking a Hit Shrinking margins aren’t just a red flag—they’re a signal that you need advanced financial analysis to get to the root cause. 8️⃣ Compliance Is Becoming a Maze As your company grows, so do the regulations. Basic accounting won’t cut it when you’re facing complex compliance requirements. 9️⃣ You're Eyeing Global Markets 🌍 International expansion isn’t just about bigger opportunities; it’s also about bigger financial challenges. You need a sophisticated financial strategy to manage the risks. 🔟Your Finance Team Is Constantly in Crisis Mode 😓 If your team is always putting out fires, it’s a clear sign they need more support. A fractional CFO 😁 can help turn the chaos into clarity. Spot these signals early to keep your scale-up on the path to sustainable growth!

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💩 Investors' secret weapon to spot BS in your SaaS company's budget: OpEx Spend Ratios! I often see founders presenting overly optimistic forecasts that don't align with historical trends. For example: - Projecting stronger growth while reducing S&M spend - Planning to double the team with flat G&A costs Sound familiar? Before sharing your forecast with potential investors or acquirers, run a plausibility check using spend ratios. Key Ratio to Watch: CAC Ratio (Cost of ARR) While not a traditional spend ratio, it's crucial for assessing customer acquisition efficiency. Formula: CAC Ratio = S&M Expense / Net New ARR Calculate it three ways: 1. Blended: New + Expansion ARR 2. New: ARR from new customers only 3. Expansion: Incremental ARR from existing customers (for benchmarks, check Benchmarkit) Other Critical Spend Ratios: • Sales & Marketing (S&M) as % of Revenue/ARR • Research & Development (R&D) as % of Revenue/ARR • General & Administrative (G&A) as % of Revenue/ARR (for benchmarks, check SaaS Capital reports or Meritech Capital's public SaaS benchmarks) Assume savvy investors will compare your budget to: • Your historical ratios • Market benchmarks Significant deviations will raise red flags or at least eyebrows. Better be prepared with solid explanations for any outliers.

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As a way of switching off I read Fiction books, The Gray Man series is my current series of choice. From the first page they grab you just like my other favorites Reacher and Orhan X. From a business perspective Joey Lin CA CFA ACMA recently suggested reading Elion Musk's Biography. Ill be honest and say I didn't expect much from the book but ended up totally engrossed in his story. In my opinion Elon is one of the smartest and hardest working businesses people of our time. Thoughts?? If you compare Elon style of leadership of Money-Performance driven business to the Organizational Health-Culture focused business as per a lot of the other books I've read. The difference is Night and Day. What is clear though is that the key to success is surrounding yourself with people that align with the style of business your run Ill say this, As a People driven leader, I'm definitely not applying for a job at any of Elon's businesses anytime soon. 😁 Next I'm moving onto Legacy as recommended by Angela Sedran Any suggestions for what to read next would be greatly appreciated??? If you would like to catch up for a coffee and borrow any of the books on the shelf drop me a DM. Have a great rest of the week! #Organisationhealth #Culture #Leadership

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Best Practices for Converting a GmbH into an AG in Switzerland ______ Converting a GmbH to an AG makes sense if you aim for improved capital access, easier share transfers, and greater investor appeal. Below, I've outlined key steps and best practices to help you save time and money with your conversion: 🔹 Capital Increase 💵 To convert, an AG requires CHF 100,000 in capital (CHF 50,000 paid in). If needed, raise capital through deposits into a blocked account or by converting retained earnings. To save costs, prepare all documents in advance and combine the capital increase and conversion meeting with the notary in a single session. 🔹 Legal Documentation 📄 A legal advisor will prepare necessary documents, including a conversion plan and balance sheet. Financial statements must be recent, no older than six months. Additionally, SMEs can leverage simplified procedures under the Swiss Merger Act to skip certain steps if all shareholders agree, reducing both time and legal expenses. 🔹 Shareholders' Meeting 🗳️ Hold a meeting to approve the conversion, adopt new articles of association, and elect a board. The Swiss Merger Act allows all rights and obligations to transfer automatically to the new AG. Coordinating this with other steps and finalizing everything in one meeting can further expedite the process. 🔹 Registering with the Commercial Register 📅 The conversion is legally effective upon registration. The process typically takes 2-4 weeks and costs CHF 4,000 to CHF 5,000, including legal, notary, and registration fees. By streamlining document preparation and utilizing SME-friendly options, you can keep costs and processing time to a minimum. ______ Need expert finance guidance? Get in touch now! 👋 #VentureCapital #Startups #Finance #Business #CFO #Consulting

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Transparency builds trust. Learn the 10 financial steps every SaaS scale-up must follow.👇 It seems pretty obvious, but I've seen founders repeatedly fail to maintain transparency. What is financial transparency and why is it important? Simply put, financial transparency means openly sharing your company's financial data with key stakeholders (investors, board members, staff, and major clients). It's crucial for building trust, supporting informed decision-making, enhancing accountability, and ensuring good governance. It can even be a selling point for large enterprises. Here are ten steps to achieve it: 1️⃣ Accurate Bookkeeping: The Foundation Think of accurate bookkeeping as the bedrock of your finances. Without it, decisions are based on unreliable data, risking your business. 2️⃣ Regular Audits: The Safety Net Regular internal audits are more than just error-checking; they’re an early warning system to identify and resolve issues before they escalate. 3️⃣ Clear Financial Reporting: Investor Magnet 📊 Transparency in reporting isn’t just about compliance; it’s about confidence. Investors who see a clear picture of your finances are more likely to back you, often on better terms. 4️⃣ Forecasting: Planning for Tomorrow Forecasting is your roadmap. It helps you anticipate challenges, allocate resources wisely, avoid cash crunches, and seize growth opportunities. 5️⃣ Expense Tracking: Every Dollar Counts 💸 Rigorous expense tracking ensures resources are used efficiently. Cutting unnecessary expenses keeps every dollar contributing to growth. 6️⃣ Open Communication with Stakeholders: Building Trust 🤝 Keeping stakeholders informed builds trust and confidence in your leadership, ensuring everyone is aligned. 7️⃣ Compliance with Regulations: Staying Above Board Ignoring compliance is risky. Staying compliant protects you from costly mistakes and legal issues. 8️⃣ Transparent Pricing Models: Loyalty Builders 💡 Customers value transparency. Clear pricing builds trust and loyalty, making clients more likely to stay and refer others. 9️⃣ Financial Training for Staff: Empowering the Team 🧠 Financially educated teams make decisions that align with business goals, fostering a culture of ownership. 🔟 Strategic Reviews: Adapting to Thrive Regular strategic reviews keep your SaaS agile and responsive to market changes, helping you stay ahead. The Bottom Line: Financial Transparency is Non-Negotiable 🎀 For SaaS scaleups, financial transparency isn't just a good practice—it's essential for survival. It builds trust with investors, customers, and employees, and provides the clarity needed to scale effectively. By embedding transparency into your operations, you're setting the stage for sustainable, long-term success.

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