How to get your numbers in shape for new investors

Dear Jo

I SET up my artisan baking business three years ago with my best friend and we’ve done really well, mainly supplying for corporate events and weddings. We’re about to go out on a funding round to expand outside London but my business partner is terrible on numbers. I’m OK but am worried an investor may tie us in knots on our forecasts. Should we be upfront or try to fudge it?

EVERYONE thinks expansion is just an extension of your business, but it’s not. It’s often a completely different mindset and demands a whole new way of thinking. I understand numbers but am not always great at presenting them, so I can understand your predicament.

I colour code any spreadsheet, using one colour for outgoings, one for overheads, one for income and so on. It makes the numbers easier to read and understand.

I found this process really helpful when I had to take over the accounts as well as being creative director. It was challenging and I made mistakes, but it equipped me to understand my business at a far greater level. You really need to be up to speed with the accounts, know them inside-out and take responsibility. This is not the time for error or to fudge it.

However, try not to stress out too much as people will understand that you are entrepreneurs, not mathematicians. Just make sure you do your homework.

By examining your business thoroughly, you’ll appreciate your worth and the assets you need to bring in for this next step.

Equity is your future treasure and giving up a piece of your company too early can be the wrong business move and the wrong thing personally.

You have a great business. Don’t put it or yourselves at risk by rushing things, and remember investors don’t come with just a chequebook.