By Don McClain, Founder of Medro Advisors
https://medroadvisors.com
When an owner seeks capital, the closing date usually gets plenty of attention.
The first 90 days after closing deserve the same attention.
That is when the business begins using the proceeds, the property owner advances the project, or the buyer takes responsibility for an acquired company.
Before choosing financing, write down what needs to happen during those first three months. Identify the expenses, expected collections, payment obligations, and people responsible for execution.
In today’s Medium article, I explore the question that starts this process: What does the money need to accomplish?
Read the full article:
https://dlmcclain1.medium.com/what-does-the-money-need-to-accomplish-f1e32d01ea6a
For a Growing Business
Suppose a business receives funding to open a second location.
The opening budget includes equipment, deposits, and initial inventory. But the first 90 days may also include payroll, utilities, marketing, and replenishment orders while sales are still building.
The owner needs to account for those expenses alongside the financing payments.
A useful planning exercise is to separate spending into three categories:
Expenses required before opening.
Expenses required to operate during the ramp-up.
Cash held in reserve for delays or slower collections.
Then compare that schedule with realistic revenue expectations. If the business takes longer to reach its target, determine how the shortfall would be covered.
Through Fasty Funding, part of the Medro Advisors platform, we help business owners explore working capital and growth funding options nationwide.
https://fastyfunding.com
Read today’s Fasty Funding perspective:
https://lnkd.in/p/eZRr5s9w
More articles and announcements:
https://fastyfunding.com/fasty-funding--in-the-news--media
For a Commercial Property Owner
A refinance may resolve an approaching maturity while leaving important work ahead.
During the first 90 days, the owner may need to complete improvements, negotiate leases, pay contractors, or carry vacant space.
The closing statement should connect to an operating plan that identifies the funds available for each obligation.
If the loan includes construction draws or holdbacks, the owner needs to understand the release requirements and timing. Expenses may come due before reimbursement becomes available.
The same planning applies to the eventual exit. What milestones need to be achieved before the property can support a sale or another refinance?
Fast Commercial Capital focuses on commercial real estate financing, bridge capital, acquisitions, and recapitalizations within the Medro Advisors platform.
https://www.fastcommercialcapital.com
Read today’s FCC perspective:
https://lnkd.in/p/eD2anGTe
More articles and announcements:
https://www.fastcommercialcapital.com/fast-commercial-capital---in-the-news--media
For a Business Buyer
An acquisition changes who is responsible for keeping the business moving.
The first 90 days may involve transferring vendor relationships, retaining employees, communicating with customers, and learning responsibilities previously handled by the seller.
Those activities can affect both expenses and collections.
Before closing, the buyer should identify who will manage each essential function, what support the seller will provide, and how much operating cash will remain available.
If the seller has been handling several roles personally, the buyer’s budget needs to reflect the cost of covering those roles.
Alianza Partners focuses on business acquisitions and ownership transitions as part of Medro Advisors.
https://sites.google.com/view/alianzapartners
Read today’s Alianza Partners perspective:
https://lnkd.in/p/erE8rMrX
More articles and announcements:
https://sites.google.com/view/alianzapartners/news-media
Turn the Plan Into a Funding Conversation
A first-90-days plan gives the financing discussion a concrete foundation.
It helps explain the amount requested, the use of proceeds, the timing of expenses, and the expected source of repayment.
It also creates a way to evaluate proposed terms. How much cash will remain after closing? When do payments begin? What happens if revenue arrives later than expected?
At Medro Advisors, we bring the business objective, transaction requirements, and capital options into the same conversation.
Read today’s Medro Advisors post:
https://lnkd.in/p/ecSEkgmT
Read my personal perspective:
https://lnkd.in/p/e2VsCRQm
This practical connection between preparation, financing, and execution is also a theme in my forthcoming book, Funded.
The goal is to help owners and investors approach capital with a clearer understanding of what they need to accomplish—and what they will need to do once the money arrives.
About the Author
Don McClain is the founder of Medro Advisors, which brings together Fasty Funding, Fast Commercial Capital, and Alianza Partners. His work focuses on business funding, commercial real estate capital advisory, and ownership transitions. He is the author of the forthcoming book Funded.
Explore Medro Advisors:
https://medroadvisors.com
Medro Advisors news and media:
https://sites.google.com/view/medroadvisors/news-media
Read today’s companion article on Medium:
https://dlmcclain1.medium.com/what-does-the-money-need-to-accomplish-f1e32d01ea6a