subcdedenoc1980
New member
@catlady92 YES, my favourite topic. What do you want to know? You give me the business and predicament, I'll try to make free money for you, deal?
Generally, a theme I do in my businesses is create what's called an upside down or negative working capital cycle. Say you own a store that sells shoes, well as you scale you could be in financial difficulty b/c you need inventory and then have a time it takes to sell them. This is working capital intense...with the companies I own I control the capital and have a big head start before I pay out my cost of sales. This company that'll do > $20MM next 12-18 months I started with $0....$0. I did do canvassing, chatting w/ people, advisory work, farted a round for a bit drawing stuff in my man cave. But then when I decided on my business model I just explained it to people, we tried it, and wow it worked. My first SaaS saw 30X cash on their $ and we broke even in 7 months, and it's rolling now and will have created about $9MM in cash flow off $180K or so invested. Plus they got approved for my royalty financing so never need to raise debt or equity again it looks like.
When I started this biz, I sold retainers and then turned around and hired after. I have a 45-day period where we collect before paying out the cost of goods sold. Then when I go finance companies...we keep the $ in my account and disburse to incremental salespeople, who go sell and then the $ from sales goes into our account and we disburse net $ out to partners immediately as it comes in. But we eliminate collections, cycles, and we keep generating more float which in turn funds a capital pool that we use to manage growth (infinity return capital since this is just float we're making big returns on).
Generally, a theme I do in my businesses is create what's called an upside down or negative working capital cycle. Say you own a store that sells shoes, well as you scale you could be in financial difficulty b/c you need inventory and then have a time it takes to sell them. This is working capital intense...with the companies I own I control the capital and have a big head start before I pay out my cost of sales. This company that'll do > $20MM next 12-18 months I started with $0....$0. I did do canvassing, chatting w/ people, advisory work, farted a round for a bit drawing stuff in my man cave. But then when I decided on my business model I just explained it to people, we tried it, and wow it worked. My first SaaS saw 30X cash on their $ and we broke even in 7 months, and it's rolling now and will have created about $9MM in cash flow off $180K or so invested. Plus they got approved for my royalty financing so never need to raise debt or equity again it looks like.
When I started this biz, I sold retainers and then turned around and hired after. I have a 45-day period where we collect before paying out the cost of goods sold. Then when I go finance companies...we keep the $ in my account and disburse to incremental salespeople, who go sell and then the $ from sales goes into our account and we disburse net $ out to partners immediately as it comes in. But we eliminate collections, cycles, and we keep generating more float which in turn funds a capital pool that we use to manage growth (infinity return capital since this is just float we're making big returns on).