Unless your rich dad is bankrolling your entire startup without concern for what and how you spend, you need to keep your expenditures under control, and plan your finances well right from the day zero. This is one of the most important Mantra to make your startup successful, especially for the Bootstrappers.
An alarmingly high percentage of startup closures are due to poor financial management. If your business is not going to be profitable, it won’t survive. You need to have a sound financial budget for projected expenses, startup costs, sales, revenue, profits, etc. Financial management is actually not too difficult if you are using the right set of tools, but is one of the most important factors for success of any startup.
You need to spend time on thinking about the optimal financial management in the current planning process of your startup, which will make it ready to take advantage of opportunities as they come together. I will recommend that as the founder of your startup, it will be in your best interest to learn and be comfortable with numbers. Believe me, no part of financial management is rocket science, and you can easily learn to understand how each aspect of your financial plan affects your startup, which will allow you to quickly find optimal solutions to increase profitability.
Write to us [email@example.com] for a FREE Financial Management spreadsheet that you can use to plan and structure your startup’s financial cost projections.