All Case Studies

Startup Needs Funding

June 5, 2018

A small but growing direct sales party plan company wanted to expand nationally. The entrepreneur was doing a fantastic job of increasing sales by herself but needed capital to hire staff and increase the company’s sales, marketing, and recruiting efforts.

Capacity was engaged to help the entrepreneur to win funding by making sure her business plan, model, financial proforma, and the entrepreneur herself are prepared in the way expected by lenders and investors. Understanding investor psychology is our key strength in this process. Valuing your pre or post revenue venture and making introductions to banks, angels, and hard money lenders is all part of this service.

If you have seen the ABC hit Shark Tank, you know how hard landing an angel investor is. We prepare the business plan, proforma financials, valuation, and the entrepreneur to have the best chance of winning an investment whether it be from investors, friends, family, or a combination. A one pager pitch sheet is prepared showing the 10 areas an investor wants to see and a pitch deck is assembled for live presentations.

The most important piece to this particular case study is that the entrepreneur took advantage of our 50/50 pricing option. This option was designed to allow a client with limited cash flow to take advantage of our services and expertise. The cost of the engagement is literally cut in half because the client agrees to do half the work.

Every engagement we do is rooted in research. Knowing what and how to research is our expertise, but the actual research itself is not difficult with appropriate guidance… it is just time consuming and hence responsible for the bulk of the expense in any given engagement. The 50/50 option allows the client to pay half in exchange for doing some of the research at our direction.

The massive benefit to this arrangement is the client learns more about their business, market, competition, financials, etc. than they might ever want to know. They become an expert on their business AND their industry.

This particular party plan entrepreneur applied the knowledge she gained as fast as she gained it. As a result, the company is taking off to the point she may never even have to ask for money!