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faqs [2016/05/28 13:42]
mdavis
faqs [2016/09/19 13:22] (current)
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-====== FAQs ======+====== FAQs ======
  
 {{keywords>​start-ups,​ entrepreneurship,​ Offtoa, pro forma, financial statements, capitalization table, IRR, cap table, lean startup, viral growth, organic growth, paid growth, validate assumptions,​ pivot, hypotheses, assumptions,​ Sustainable engines of growth, customer acquisition cost, viral coefficient,​ sticky growth, retention rate, attrition rate, average order size, sales cycle, viral cycle, planning a business, AOS, CAC}} {{keywords>​start-ups,​ entrepreneurship,​ Offtoa, pro forma, financial statements, capitalization table, IRR, cap table, lean startup, viral growth, organic growth, paid growth, validate assumptions,​ pivot, hypotheses, assumptions,​ Sustainable engines of growth, customer acquisition cost, viral coefficient,​ sticky growth, retention rate, attrition rate, average order size, sales cycle, viral cycle, planning a business, AOS, CAC}}
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     - Benefit: Easy to use (Every software says this! But we bet you'll agree!)     - Benefit: Easy to use (Every software says this! But we bet you'll agree!)
     - Benefit: You can determine which assumptions you should validate during the next stages of your company ​     - Benefit: You can determine which assumptions you should validate during the next stages of your company ​
-    - Benefit: No gotchas; you'll have a list of all your business assumptions (just like TurboTax ensures you have all your deductions)+    - Benefit: No gotchas; you'll have a list of all your business assumptions (just like %%TurboTax%% ensures you have all your deductions)
   - We facilitate quick changes to financial statements via simple edits to assumptions   - We facilitate quick changes to financial statements via simple edits to assumptions
     - Benefit: You can compare multiple scenarios for your company (so you can select the best one)     - Benefit: You can compare multiple scenarios for your company (so you can select the best one)
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 <​php>​echo "<​b>​What is "​.$conf['​comp_name'​]."?</​b>";</​php>​ <​php>​echo "<​b>​What is "​.$conf['​comp_name'​]."?</​b>";</​php>​
  
-For taxpayers, ​[[:​turbotax|TurboTax]]® asks questions in a simple, orderly fashion about your earnings, expenses, etc. and generates a tax return.\\+For taxpayers, ​%%TurboTax%%® asks questions in a simple, orderly fashion about your earnings, expenses, etc. and generates a tax return.\\
 For someone considering starting a new business, <​php>​echo $conf['​comp_name'​];</​php>:​ For someone considering starting a new business, <​php>​echo $conf['​comp_name'​];</​php>:​
  
-  - Generates //pro forma// ​ financial statements for the business, based on the assumptions of how you expect to run the business. It makes the otherwise arduous task (which you would pay an accounting firm $2000 or more to perform) into a simple and quick "TurboTax®-like" procedure. The //pro forma// ​ financial statements are designed to present your business in a professional way to prospective investors.+  - Generates //pro forma// ​ financial statements for the business, based on the assumptions of how you expect to run the business. It makes the otherwise arduous task (which you would pay an accounting firm $2000 or more to perform) into a simple and quick "%%TurboTax%%®-like" procedure. The //pro forma// ​ financial statements are designed to present your business in a professional way to prospective investors.
   - Performs an exhaustive analysis of the business plan, especially of those things that a potential investor would focus on - and points out potential problems - complete with advice on how to address problems - so that the business plan is solid and defensible BEFORE you enter the shark tank.   - Performs an exhaustive analysis of the business plan, especially of those things that a potential investor would focus on - and points out potential problems - complete with advice on how to address problems - so that the business plan is solid and defensible BEFORE you enter the shark tank.
   - Generates a Capitalization Table and Expected Rates of Return for investors but they are for your eyes, so you can adjust things prior to taking your plan to those investors.   - Generates a Capitalization Table and Expected Rates of Return for investors but they are for your eyes, so you can adjust things prior to taking your plan to those investors.
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 For someone running an ongoing business, Offtoa: For someone running an ongoing business, Offtoa:
  
-  - Generates financial statements for the business, based on the assumptions of how you expect to run the business in the future. It makes the otherwise arduous task (which you would pay an accounting firm $2000 or more to perform) into a simple and quick “TurboTax®-like” procedure.+  - Generates financial statements for the business, based on the assumptions of how you expect to run the business in the future. It makes the otherwise arduous task (which you would pay an accounting firm $2000 or more to perform) into a simple and quick “%%TurboTax%%®-like” procedure.
   - The financial statements are designed to present your business in a professional way to prospective investors and lenders.   - The financial statements are designed to present your business in a professional way to prospective investors and lenders.
   - Performs an exhaustive analysis of the financial plan, especially of those things that potential investors and lenders would focus on - and points out potential problems - complete with advice on how to address problems - so that the plan is solid and defensible BEFORE you approach them.   - Performs an exhaustive analysis of the financial plan, especially of those things that potential investors and lenders would focus on - and points out potential problems - complete with advice on how to address problems - so that the plan is solid and defensible BEFORE you approach them.
-  - +
 <​php>​echo "<​b>​Who needs "​.$conf['​comp_name'​]."?</​b>";</​php>​ <​php>​echo "<​b>​Who needs "​.$conf['​comp_name'​]."?</​b>";</​php>​
  
-  * Entrepreneurs ​with or without accounting and/or finance skills+  * Founders, business owners and executives ​with or without accounting and/or finance skills
       * If you lack accounting and/or finance skills, <​php>​echo $conf['​comp_name'​];</​php>​ generates all your pro forma financial statements for you, and explains everything it is doing in plain English.       * If you lack accounting and/or finance skills, <​php>​echo $conf['​comp_name'​];</​php>​ generates all your pro forma financial statements for you, and explains everything it is doing in plain English.
       * If you have accounting and/or finance skills, <​php>​echo $conf['​comp_name'​];</​php>​ saves you hours of labor by generating all your pro forma financial statements for you, so you can spend your time crafting your strategy instead of playing with Excel formulae.       * If you have accounting and/or finance skills, <​php>​echo $conf['​comp_name'​];</​php>​ saves you hours of labor by generating all your pro forma financial statements for you, so you can spend your time crafting your strategy instead of playing with Excel formulae.
-  * Advisors to entrepreneurs ​(mentors, educators, incubators) can use <​php>​echo $conf['​comp_name'​];</​php>​ to help aspiring entrepreneurs ​understand their own companies. +  * Advisors to founders, business owners and executives ​(mentors, educators, incubators) can use <​php>​echo $conf['​comp_name'​];</​php>​ to help them understand their own companies. 
-  * Investors (VCs, angels) ​can use <​php>​echo $conf['​comp_name'​];</​php>​ to verify that candidate portfolio ​companies make financial sense.+  * investors and lenders ​can use <​php>​echo $conf['​comp_name'​];</​php>​ to verify that companies make financial sense.
  
 <​php>​echo "<​b>​What does "​.$conf['​comp_name'​]."​ do?</​b>";</​php>​ <​php>​echo "<​b>​What does "​.$conf['​comp_name'​]."​ do?</​b>";</​php>​
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   * Provides step-by-step guidance to craft your business strategy and capture your business strategy as a set of assumptions.   * Provides step-by-step guidance to craft your business strategy and capture your business strategy as a set of assumptions.
   * Automatically creates your //pro forma// ​ financial statements from your business strategy assumptions.   * Automatically creates your //pro forma// ​ financial statements from your business strategy assumptions.
-  * Provides detailed analysis of your pro formas, just like a potential investor would. And we recommend what you need to change in your strategy to fix any problems.+  * Provides detailed analysis of your pro formas, just like a potential investor ​or lender ​would. And we recommend what you need to change in your strategy to fix any problems.
  
 <​php>​echo "<​b>​Is "​.$conf['​comp_name'​]."​ compatible with lean startups?</​b>";</​php>​ <​php>​echo "<​b>​Is "​.$conf['​comp_name'​]."​ compatible with lean startups?</​b>";</​php>​
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   * Assumptions for Paid Growth   * Assumptions for Paid Growth
     - Marketing and Sales Activity. Of the many marketing and sales activities that your company may have, which one is going to drive revenue growth?     - Marketing and Sales Activity. Of the many marketing and sales activities that your company may have, which one is going to drive revenue growth?
-    - Customer acquisition cost (CAC). If spending $10,000 on the specific activity creates, say, 200 leads, and you expect to convert 20% of them into prospects, and 50% of those into paying customers, then CAC should be recorded as $500, i.e., \\  \\ $10,000 / (200 x 20% x 50%).+    - Customer acquisition cost (CAC). If spending $10,000 on the specific activity creates, say, 200 leads, and you expect to convert 20% of them into prospects, and 50% of those into paying customers, then CAC should be recorded as $500, i.e., \\  \\ $10,000 / (200 x 20% x 50%)\\ .
     - Sales cycle. On average, how months elapse between the marketing and sales activity and the resultant customers are acquired?     - Sales cycle. On average, how months elapse between the marketing and sales activity and the resultant customers are acquired?
   * Assumptions for Viral Growth   * Assumptions for Viral Growth

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