Quelles sont les stratégies de gestion financière les plus efficaces pour les startups?

Learning how to manage finance is quite often underrated. As an entrepreneur, one should have a basic understanding of costs, revenue cycle and expenses. Most often startups don’t die due to lack of funding, they die due to mismanagement of finances and resources. These might help: 1. Understand the supply chain thoroughly and arrive at your total cost of procurement(same goes for services business). If you are importing then, add foreign exchange margins. Go down to granular details. 2. Add people cost, ie cost of hiring, retaining(salary) and expanding 3. Understand your sale to cash cycle. 4. Calculate your runway 5. Do few scenario analysis

Having worked in 4 startups before, I would embrace the following Prioritize cash flow management to ensure liquidity, create a detailed budget, secure funding wisely, monitor key performance indicators, and be agile in adapting financial strategies to changing startup dynamics.

One key metric to focus during formative year, apart from revenue generation, would be planning around run rate of cash burn and expected Cash shelf life before next funding round...this could bring clarity while planning product/business stratgies...Categorise the Cash burn into investment zone and operation run zone.... Cash burn in investment zone to give better returns over period of time...Cash burn in operation zone is essentially admin cost which needs to kept at tight levels as they are critical for running business but don't generate return per se. Tracking quality of cash burn ( into above two buckets) could be validating point for management's strategy execution.

What you want to achieve. Startups are more focused on growth than on sustainability, hence their goals are more short-term in nature than long-term. This theory is acceptable as startups' main motive is to disrupt the existing system that requires aggressive growth. However, good startups always have long-term sustainability in mind. You don't expect startups to be in profits in the early stages, so their main source of cashflows is from fundraising, which can have winters in no time. So a good strategy is to balance between the short-term and long-term goals to be able to succeed.

In my opinion, dreaming is good, but not before starting a project! What is important at the beginning of a project is that we study all financial issues once optimistically and once pessimistically and then determine goals with more accurate information.

Constructing a realistic budget is akin to assembling a blueprint for a sturdy, enduring building. Start with a robust foundation, understanding your fixed and variable costs - akin to rent or salaries. Then, envision the revenue streams, like the beams holding up the structure, involving elements like sales and subscriptions. Regular review of this budget, similar to a building's maintenance, ensures longevity and success, allowing necessary adjustments without straying from the core structure. Think of it as a living entity, evolving yet steadfast, guiding you towards financial stability and growth.

Start Ups need clear & concise goals and vision bolstered by strong leadership backed up by a talented team to navigate the stormy waters that start up a face. Being agile & adaptive, having customer centric focus and Strategic partnerships is also critical. Develop a culture of continuous learning & improvement ensures that the venture stays current.

This is one of the crucial parts where finance leaders can add value to a company in its early stages. The cornerstone of effective planning in startups or scale-ups is adaptability. It is crucial to construct budgets with a framework that facilitates continual adjustments in response to evolving business dynamics. I recommend initiating the budgeting process with a bottom-up approach, followed by a comparative analysis against the plan. This approach provides valuable insights into areas requiring further attention, guiding us to a pragmatic and executable budget. Additionally, incorporating levers, as triggers for additional allocations or cutbacks based on performance enhances the overall strategic financial management.

Beware optimism and confirmation bias. Everyone want you to be a success. You, your staff, your investors, (or funders if you are a non-profit). Then as soon as you get that early flush of wins, the expectations jump up even higher. Make sure there are people in your circle who can challenge wild assumptions and group-think. Protect them from the optimists and stop them getting pushed out of the leadership circle as the 'squeaky wheel'. I am terribly guilty of such optimistic thinking - so need that challenge!!

I remember 3 and 5 year budget planning when income was expected to rise year by year!! Yet every year began with zero and so consolidation was as important as the increase.

If startups have regular, accurate cash flow projections, they can identify potential problems beforehand. It helps companies to make sound decision depending on good forecasting and estimation All businesses specially startups must create an emergency cash reserve to meet their immediate needs without sufficient cash in the bank. It protects you from spending your personal savings or asking for debt Startups must have a budget prepared based on their income and expenses and stick to it. Look into your financial statements, and see if there is any unnecessary expense, especially variable expenses, that you can reduce to save money Poor cash management is a reason for business failure when you cannot pay liabilities and achieve your goals

One of the crucial aspect of managing your cash flow is knowing the total length of your cash cycle. This means, how fast you are receiving cash. A sale or raising an invoice doesn’t necessarily convert into cash in your account. These are some of the tips that might help: 1. Understand the typical credit terms offered in your line of business. This differs for diff sectors and industries. For instance, if you are in B2B, is the standard norm 30days or more? 2. Negotiate shorter credit term in the beginning by offering favourable pricing, or offering a discount for immediate payments. Your motive should be to receive cash asap when starting out. This also reduces the cost of collection, reconciliation and sometimes avoid bad debt.

Watch your burn rate! A dollar spent is a dollar gone. So make sure you spend wisely on productive assets with a payback within 12 months. Keep opex as low as you can. Have a side gig to pay your own living expenses. An overlooked strategy is to actually get some revenue in. You can and should be working with clients while you also develop your new product or service. With no revenue coming in, those cash reserves evaporate quickly.

Managing the cash flow is one of the most important things to manage for any startup. Personally, I have seen the cash crunch because of poor cash flow management in the early days of my startup journey. No matter of where the startup is, poor cash flow management can lead to a financial crisis in the system. When the startup is in the ideation or prototyping/MVP development phase, cash-flow management becomes one of the most crucial aspects to look at.

Keep it simple and start from the basics (as you are a start-up), earnings and costs (money-in, money-out). See how you could divide them into logical streams; for example: - earnings by products / customer-segments / different markets. - costs by fixed/variable/raw materials/people/marketing/... And then try to optimize them.

It should also be added that calculating the "opportunity cost" or the "accounting of lost opportunities" is one of the most necessary measures for companies.

An example I’ve encountered from my experience managing financial operations of Starts Ups is found in Growth Companies. How do you navigate a ship that’s already far out at sea. These are Growth companies. How do you navigate a culture or “this is how we’ve always done it” to one of self- discipline and responsibility while maintaining an ethic of entrepreneurship ? First you observe, and you take notes. I’ve identified 3 very important factors that threaten profitability and liquidity. Bargaining power of the supplier Bargaining power of the customer Threat of new entrants Your report provides a comprehensive & insightful look at the operations, making those necessary conversations more digestible and helpful to steer the ship.

I agree, with mandatory implementation of sufficient internal controls over the financial reporting, that can prevent and predict errors in the firm financial reporting process.

Effective financial management is crucial for startup success. Startups should embrace resource constraints and maintain a lean approach, as exemplified by WhatsApp’s early days when they focused on creating an exceptional product with minimal marketing expenses. Mastering cash flow management is equally vital. A startup might negotiate with suppliers, use invoice factoring, and diligently forecasted cash flow to navigate payment delays. Lastly, forming strategic partnerships, as Coursera did with universities, can enhance credibility, and expand networks. By implementing these strategies, startups position themselves for sustainable growth and long-term success.

Think of your startup's financial performance as a ship's compass. It's important to regularly check if you're on course. Simple indicators, like profitability or liquidity, act as your North Star. If you projected X sales this quarter but achieved Y, ask why. Tools like income statements serve as the ship's log, recording where you've been. Dashboards? They visually help in conveying your journey to stakeholders. Steer with knowledge, adjust with insight, and sail forward confidently.

In your entrepreneurial journey, view financial experts as seasoned guides. Their foresight can prevent missteps in areas like taxation or compliance, much like a seasoned traveler averting common roadblocks. Whether it's a consultant for strategic planning or a bookkeeper for meticulous record-keeping, their expertise is like a compass in navigating the complex financial landscape. It's not about walking the path alone, but journeying wisely with those who've charted these territories before. Thus, embracing seasoned advice isn't a cost, but a prudent investment into your startup's robust future.

Build a team of Partners for your Business. Accountant, Lawyer, Banker, Financial Planner, Insurance, Mentors. Have them in the same room with you so everyone is on the same page and working together for your best interests.

A few thoughts are always better than one and I believe that when someone looks from the outside, he can guide us better. Using the professional recommendations of certified consultants in any industry can keep us away from facing problems in advancing our goals.

Do not skimp on your accounting/financial budget. A good, solid bookkeeper or accountant who understands the nuances of a startup is a must have from day one. Your books are the backbone of your business. All financial planning starts here.

Often entrepreneur / founders prefer to take charge of all Financial accounting / controls / funding related matters themselves - despite not having deep experience in the domain. The concern usually is around affordability of top-class finance professionals. However -newer concepts/ trends of engaging "fractional" or Flexitime senior professionals as Interim-CFOs - can be a great way to access the right expertise in a viable format.

Learn 2 things if you can: 1. Excel to compute a simple spreadsheet of your P&L. Don't worry, you will quickly learn to add rows and columns as your business evolves. 2. Learn to Negotiate terms of trades with your suppliers as well as your buyers. Ask for (a)discounts from your suppliers on pricing and (b) ask for a favourable credit cycle, ie an extend the credit period. Similarly negotiate with your buyers and pass on some incentives for paying you sooner, ie reduce the credit cycle.

Very well said! Procurement or buying is an art. Ask the seller to justify his price and negotiate the terms and conditions in your favour. U may have good order book, good revenue and great delivery, but if u are not able to convert these to Cash. It's all in vain. How will you pay your suppliers. A working capital focus a big must! IMHO. We need to replace nicety by astute professionalism. Prepaid options( good mobilisation advance and more) for start ups is important to cover your cost. Let us now look at strategies to convert start ups into grown ups🌿.

Stay informed about the latest financial management practices, industry trends, and economic factors that might affect your business. Attend workshops, seminars, or webinars, and consider joining business networks or forums where you can learn from the experiences of others. Continuous learning and adaptation are key to staying competitive and financially healthy.

Try to continuously improvement your business for example with continuous process optimization. The continuous improvement cycle for example involves four key stages: Plan, Do, Check, and Act (PDCA). This iterative process aims to enhance efficiency and effectiveness. In the Plan phase, businesses identify areas for improvement, set specific goals, and plan the necessary changes. During the Do phase, the planned changes are implemented. In the Check phase, businesses assess the outcomes and compare them to the initial goals. Finally, in the Act phase, based on the evaluation, adjustments are made. This continuous improvement cycle then repeats, ensuring a constant loop of assessment, adjustment, and enhancement.

The 6T Model can be a useful learn and improvement startegy for start-ups as it emphasizes principles such as Teamwork, Training, Time management, Target setting, Total Quality Management (TQM), and Technology integration, which are relevant to the success of start-ups. However, its applicability depends on the specific situation and industry of the start-up.

Working Capital(WC) and its specific requirements, and understanding them can be a crucial input to your financial strategy. Working capital management is important because it's a strategy for ensuring a company has enough money to cover its routine expenses, debts, unexpected costs and basic materials. It also helps a business minimize the money it spends and maximize its return on investments.

Here’s a breakdown of all the areas that effective finance management is must for startups. - Income - Budget - Savings - Investment - Debt management - Insurance - Tax planning

Start ups need to understand basic accounting principles and especially as they relate to the revenues and expenses. A simple excel worksheet containing these basic P & L information would be very helpful.

One of the most important financial management strategy for startups is establishing strong financial controls! This involves implementing policies and procedures to ensure accuracy, transparency, and accountability in financial transactions and reporting. It includes practices such as regular reconciliations, segregation of duties, and internal audits to safeguard assets and maintain compliance with regulations.

Startup founders should be familiar with doing profit and loss statements, as they show a clear picture of the financial performance of a business. Many startups generate revenue, but find themselves short of money after handling bills. That's because they don't take into consideration the various elements that contribute to the final figure they are left with at the end of the month. If a startup is finding itself short of money despite reasonable revenue and not having an unnecessary expenditure, then it's time to go back to their business model and reassess if it should target a different type of customer, cut down on certain key activities, find partners to reduce some of the financial load, or develop alternative revenue streams.