Separate fixed, variable and recurring costs
Fixed preparation costs can include legal work, accounting, audits, creative production and setup. Variable costs may include platform fees, payments and marketing acquisition. Recurring costs include reporting, investor administration and ongoing professional support. A fee paid in securities can dilute owners even when it does not reduce cash on day one.
Build three collection scenarios
Model a minimum close, your intended result and a stronger campaign. Use net collected funds rather than commitments or reservations. Keep pre-launch costs in every scenario, including the one where the campaign does not close. If the minimum viable raise cannot pay for the promised work, revisit the minimum, scope or economics.
Watch the sequence of cash flows
Create a month-by-month schedule showing when invoices are due and when proceeds become available. Include the possibility of slower financial-statement preparation, review delays or rolling closes. A business can be financially attractive on a total-cost spreadsheet and still run out of cash while waiting to collect proceeds.
Use the calculator as a first pass
The budget calculator subtracts assumed proportional fees and fixed costs from gross proceeds. Enter the costs from actual written scopes when available. Keep tax, interest, equity compensation, per-transaction charges and fulfillment details in a separate schedule if they do not fit the simple model. Assign an owner to refresh the budget as terms change.
Put it into practice
0 / 4 reviewedContinue with original sources
General education, not individualized investment, legal or tax advice. Rules, eligibility and product terms can change. Confirm the requirements for your company with qualified professionals.