The hype around the startup scene in Australia is only getting stronger and stronger as innovative and energetic entrepreneurs emerge with commercial opportunities and ideas. Conferences and events are popping up all over Australia as an opportunity for these startups to network, share ideas and pitch to potential investors. Although this is an exciting period for these keen startups, the financial realities that come with this approach to business can quickly put up roadblocks that can be difficult to navigate without the knowhow. There are a growing number of startups reaching a standstill, not knowing how to grow their business further, not knowing how to raise capital, and certainly not knowing how to use that capital once secured. In many ways it’s a double edged sword for startups – with little money coming in it’s difficult to justify a spend on a professional advisor, however, without a professional advisor their dreams for business success could very quickly be dashed.
Understanding the various stages that take you from an entrepreneur with an idea, to closing on startup capital, and then to the next phase of landing on your feet and growing that business is what can keep startups from failing before they even begin. There is a desire amongst investors to see that a startup doesn’t only know how to grow and develop a product, but that they also have a plan for scaling up and being a true competitor on the national or even global stage. Going in without a plan is quite simply a recipe for disaster.
So what does this mean for a startup?
How can they begin to smarten up on these issues to ensure they make it through the next stage of growth?
Find out how to address these issues with some pointers from Azure Group’s Associate Director of Corporate Finance, Transactional Services and Virtual CFO, Anthony Harris.
This article is intended to provide general information only, and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.
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