1. IDENTIFY THE STAGE (60-Second Assessment)
Look for These Quick Signals:
STARTUP = Venture-backed OR less than 3 years old OR pre-profit
- Visual cues: Modern office, small team, founder-led
GROWTH = 20%+ annual revenue growth OR expanding locations OR hiring rapidly
- Visual cues: Construction/expansion, new equipment, busy atmosphere
MATURE = Market leader OR stable dividend payer OR 10+ years established
- Visual cues: Corporate structure, established processes, formal meetings
EARLY DECLINE = Recent layoffs OR closed locations OR falling market share
- Visual cues: Empty office space, aging equipment, cost-cutting signs
DECLINE = Multiple quarters of losses OR significant debt restructuring OR major asset sales
- Visual cues: Skeleton staff, maintenance issues, crisis management
2. SPOT THE DOMINANT NEED (Follow the Cash)
STARTUP: “Getting Started” Needs
- Equipment to operate
- Cash to survive until revenue
- Capital to hire talent
GROWTH: “Growing Pains” Needs
- Working capital for inventory
- Financing for new equipment
- Money for acquisitions
MATURE: “Optimization” Needs
- Efficient cash management
- Capital structure refinement
- Shareholder return mechanisms
EARLY DECLINE: “Refocus” Needs
- Debt restructuring
- Operational efficiency
- Non-core asset sales
DECLINE: “Survival” Needs
- Emergency liquidity
- Debt workouts
- Asset liquidation support
3. ASK ONE POWERFUL QUESTION (Door Opener)
STARTUP
“What’s the next major milestone that would significantly accelerate your growth?”
GROWTH
“What’s one thing that’s limiting how fast you can grow right now?”
MATURE
“How satisfied are you with the returns you’re generating from your available cash?”
EARLY DECLINE
“Which parts of your business would you invest more in if capital wasn’t a constraint?”
DECLINE
“What would be most helpful for stabilizing your situation in the next 90 days?”
4. MATCH THE SOLUTION (Quick Win)
STARTUP Solutions
- Equipment leasing (preserves cash)
- Invoice factoring (accelerates cash)
- Venture debt (extends runway)
GROWTH Solutions
- Trade financing (extends payables)
- Equipment loans (expands capacity)
- Acquisition financing (enables growth)
MATURE Solutions
- Cash management systems (optimizes returns)
- Bond issuance (improves capital structure)
- Dividend funding strategies (rewards shareholders)
EARLY DECLINE Solutions
- Working capital compression (releases cash)
- Debt restructuring (improves terms)
- Divestiture support (monetizes assets)
DECLINE Solutions
- Asset-based lending (provides liquidity)
- Debt workout (prevents default)
- Crisis cash management (preserves operations)
5. CLOSE WITH VALUE (Not Features)
Instead of:
“Our equipment leasing has competitive rates…”
Say:
“This equipment leasing solution means you can launch three months earlier without diluting your equity.”
Instead of:
“Our working capital line has a $10M limit…”
Say:
“This working capital solution lets you say ‘yes’ to that big customer order without stressing about cash flow.”
Instead of:
“Our cash management system has 24/7 access…”
Say:
“This cash management approach could increase your return on idle cash by up to 2%, which for your balance sheet means approximately $500K in additional annual income.”
REMEMBER:
Keep it SIMPLE – one great solution is better than five options
Match the solution to the STAGE, not just the request
Focus on the DOMINANT cash flow issue
Speak to VALUE, not features
