- Do the number crunching yourself. Even if you are not skilled at finances and have expert advice, take the time to build an income statement and balance sheet. You’ll learn a lot about your business in the process. It is relatively easiest part of the this process. You can learn on this through online sources such as bookboon or by YouTube. Come to think about this, a lot of this I do learnt through YouTube.
- Document your assumptions and the sources for your numbers whether they are economic forecasts, industry statistics, or your own rational guesses. Also as best as possible try to stress test your assumptions and number. How to do this stress-testing? Well maybe I’ll describe in detailed in future post.
- Pay close attention to cash planning. Although most people think of profits first, cash flow can be more important for a startup venture.
Categories: Personal Development