Strategy to Prepare Financial Statements to Attract Investors – Desilicioiskitchen

Strategy to Prepare Financial Statements to Attract Investors

Desilicioiskitchen-Financial statements are important for companies to obtain capital from investors. What is the strategy for preparing credible financial reports? Small and medium enterprises often encounter obstacles in obtaining or increasing capital to develop their business. Therefore, they need a strategy to attract investors to be willing to pour capital in various ways, it can be through the presentation of financial statements or the performance of ‘naturally beautiful’ business operations.

From an investor perspective, East Ventures Investment Associate Devina Halim shares experiences and provides interesting insights for startups. According to him, investment trends change from time to time. Five years ago, investors were eyeing startups that focused on utilizing advanced technology. This is different from the current trend, which can come from various business sectors, including the retail, food and beverage, and health sectors. All forms of potential business can attract investment.

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Since its establishment in 2009, East Ventures has invested in around 160 start-ups, some of which have grown to become unicorns, including Tokopedia, Traveloka, Sociola, and Ruang Guru. Several companies in the food and beverage sector, namely, Fore Coffee and Greenly. The most basic thing that East Venture takes into consideration in investing is that the company will only invest in businesses that have Limited Company (PT) status. This is an attempt to legally mitigate fraud.

In terms of financial statements, business actors are advised to look for the most appropriate matrix that can be ‘sold’ to investors. For example, for retail or food and beverage companies, business actors cannot only show off the number of followers on social media accounts and claim it as a consumer base. They need to show other metrics that are directly related to the sales volume that ultimately leads to the company’s net profit.

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“As much as possible, at the beginning the net profit is kept positive. So not only as a high-tech company with large technology costs and bleeding financial reports at the beginning. Another important thing is to determine a clear target market so that the bottomline (profit) is no less healthy,” said Devina in the Entrepreneur Journal talk show entitled Strategy for Preparing Financial Statements to Attract Investors, which took place at GoWork Menara Rajawali, Jakarta, Monday (20/2).

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There are several components that are the main considerations for investors to invest in startup companies.

First, the target market. Companies must have a clear target market and enthusiasts that match the product.

Second, scalability. One of the biggest challenges in running a business is determining the right location to target the product’s target market.

Third, the ratio of return on investment or Return on Investment (RoI).

What business actors need to do is to make efficiency in various lines without hampering business development, for example reducing production costs or employee salaries.

In addition, business people also need to find solutions so that distribution patterns can be more efficient and on target. Business people must also have a strategy to prepare the right financial statements. Until in the end, operating expenses will shrink and can generate maximum profit and with a high RoI ratio.

Fourth, a productive company team. Investors will be very interested in the management team that complements each other in various lines of work. For example, there are those who have a leadership spirit and are able to lead the company in a long-term vision, there are team members who are capable of running marketing, and team members who are proficient with technological developments.

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Fifth, able to face the competition.

The competition in question is how the company has a strategy to survive in the industrial sector it is engaged in and win the competition with other competitors. Lastly, adapting to developing trends by having a good financial statement strategy.

Currently, Indonesia’s economic growth is driven by consumption with changes from one trend to another very quickly. Both from the industrial sector and technological changes that make everything lead to efficiency. For this reason, companies must be able to adapt to trends that continue to develop.

In the same place, the Co-Founder of Eatlah, Michael Chrisyanto, also shared his experience of starting his fast food business. Michael admitted that Eatlah’s initial challenge was capital. From the start, Michael along with two other Eatlah founders raised capital from their own coffers to start a business.

From a very minimal capital, the journey to sell fast food a la Eatlah is not easy. Michael and his partner had to face losses for the first 7 months. Nevertheless, the early days were quite difficult to deal with patiently while looking for gaps to get out of the challenge. He believes that a business that is started on a small scale can provide many lessons, especially through trial and error or trial and error.

One of the lessons learned is about efficiency. Starting from human resources, business locations, to the cost of supporting materials, of course without compromising product quality.

“Eatlah’s challenge at the beginning was capital, but I believe we started small so we can know what the progress is going to be. We study the gaps to build their business,” said Michael.

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Another lesson in starting a business to grow to what it is today is getting to know Eatlah’s target market through consumer segment research in various areas. In this case, Eatlah utilizes advanced technology, namely through data analytics. Since the beginning, his food box business concept has relied on technology.

In addition to data analysis, the business, which was founded in 2017, also relies on online delivery services for the distribution system.

“One of the company’s solutions comes from the use of advanced technology. Journals are also one of the solutions to help businesses develop their businesses,” said Michael.

Through the use of the Journal, Eatlah is easier to determine business strategy precisely and accurately. From the marketing line, for example, Michael and his colleagues are committed to setting aside 10 percent of the company’s profits for the marketing budget. With the available budget, the company determines the most appropriate marketing strategy to boost sales.

Now it has been answered how the strategy of compiling credible financial reports from this paper has been answered. Also take advantage of the store bookkeeping application to help accelerate your business.

Hopefully this information can be useful for those of you who need it.

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