Last version published: 25/02/2020 16:09
Publication number: ELQ-80153-4
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The Art of Startup Finance
The ultimate and in-depth guide on how to master finance and use it to launch and build a successful startup.
Financial literacy is an essential skill for every entrepreneur. Bill Reichert, a seasoned venture capitalist, will provide you with the critical knowledge you need to help go beyond simple statistics and use finance as a tool to help you manage your company.
So why should you care about start-up finance? You may be a visionary, but you need to understand your numbers to understand how to make your business better, make better decisions, make fewer mistakes, and hopefully turn your pennies into dollars.
Do not leave your finance and numbers to your accountants and bookkeepers; you need to understand the underlying financial flows of your business. This is key to understanding how to manage your business. And remember, finance is not always about money. It also refers to how long it takes your customer to buy your product, how much you spend on marketing to get the revenues you are aiming for and how long it takes to convert a prospect into a paying customer. These are but a few questions that are answered by financial analysis and will certainly be asked by investors.
The tools we're going to talk about will help you manage your day-to-day business activities. And most importantly, they'll help you anticipate the future and build an even more successful company.
There are five key elements of start-up finance that form a pyramid on which you can model your company. The base of the pyramid is your business. Above that the processes of your business, then your business model and your business model formula, followed by your operating budget and your long-term financial forecast and at the top of the pyramid, the monitoring your performance.
These tools will help you understand your company’s progress, what is currently happening in your company, and what you can expect will happen going forward.
And if you take full advantage of these tools, they can even give you an early warning system to help you anticipate your company’s future trials and opportunities.
The world of entrepreneurship is filled with uncertainty and constant change. So you need every tool that you can get to manage that uncertainty. By the end of this series, you will have the tools you need to build a successful company. And I hope you will see that finance is an essential tool to achieve this.
If you have any questions or comments, do not hesitate to private message us on our Eloquens channel.
Kauffman Founders School series feature Powerful Presentations with Nathan Gold, Intellectual Property with Peter McDermott, Founder's Dilemmas with Noam Wasserman, Entrepreneurial Selling with Craig Wortmann, Startups with Steve Blank, Surviving the Entrepreneurial Life with Meg Hirshberg, the Lean Approach with Steve Blank and Entrepreneurial Marketing with Anita Newton.
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