Accompanying Copy
Before speaking to investors, the management team should be able to explain the business to itself. Why do customers choose us? Which parts of the business generate profit? Will the next stage of growth come from new customers, repeat purchases or the ability to deliver consistently at greater scale?
Checking those assumptions against operating data can reveal what still needs to be tested. If most revenue growth comes from a handful of large customers, the team can look at renewal rates, customer concentration and whether new accounts can make a similar contribution. That gives the company a clearer account of what drives growth and what additional capital would help it achieve.
Start by understanding how the business creates value. Then explain where capital can help it grow.
China Joint Capital Group Limited