Startup Finance | Revenue Forecasts

Entrepreneurs need to be able to plan operations and evaluate decisions using projected financial information. Therefore, annual budgets, cash flow forecasts, and breakeven analyses are essential financial tools for founders to apply to their new ventures. Still, they provide the required information for potential investors or lenders when needed. After reading my posts on startup … Continue reading Startup Finance | Revenue Forecasts

Startup Finance | Making Assumptions

There are some general approaches that one can apply to ensure that you don't make the common financial errors as outlined in an earlier post. In that post, I listed eight mistakes commonly made by founders as they work to understand the mechanics of their business model. As I always state, projecting the financial performance of … Continue reading Startup Finance | Making Assumptions

Startups: Know Your Early Customer Metrics

In an earlier post, I have discussed the sales funnel's role in selecting promotional strategies to reach, acquire, and retain your target customer. Each stage of the sales cycle - Awareness, Consideration, Decision, and Post Purchase - was mapped to crucial marketing decisions. Focusing on a specific customer segment, you would take each stage of the … Continue reading Startups: Know Your Early Customer Metrics

Why Startups Should Focus On Pre-Launch Metrics

Everyone agrees that measuring and monitoring startup performance is a critical success factor for fledgling enterprises. However, while much is written about measuring startup performance post-launch, there is less attention to pre-launch metrics. In this post, I make the case that establishing a disciplined pre-launch culture, manifested by a history of goal setting, measurement, monitoring, … Continue reading Why Startups Should Focus On Pre-Launch Metrics

Financial Planning for Startups: Common Errors

You are spending a good deal of research time validating various parts of your business model. Your early research includes extensive engagement with the target customer (primary research) and investigation and monitoring of your competition (secondary research). Hopefully, you have acquired some early knowledge about how important the problem's solution is to the customer and … Continue reading Financial Planning for Startups: Common Errors