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A top trend I have noticed past 3 years:
Startups are MUCH, MUCH worse at finance. Like, all of them.
No proper finance or account until even after raising millions, even to $5m+ ARR.
The issues are real and include:
Startups are MUCH, MUCH worse at finance. Like, all of them.
No proper finance or account until even after raising millions, even to $5m+ ARR.
The issues are real and include:
- terrible at collections. start-ups without an A/R function often have $250k-$500k in uncollectible receivables.
- metrics that break and don't make sense. starts to harm you in later fundraising.
- inability to do cohort analyses, or even often, any basic analyses
- metrics that break and don't make sense. starts to harm you in later fundraising.
- inability to do cohort analyses, or even often, any basic analyses
- if you don't have real financials, how can you know your real churn? or burn?
- yes, SAFEs and debt do not require you to hire a part-time controller. but you need >help<, even at $500k in ARR.
- a random app is not enough.
- yes, SAFEs and debt do not require you to hire a part-time controller. but you need >help<, even at $500k in ARR.
- a random app is not enough.
at least commit to one KPI: collect at least 110% of your MRR each month in cash.
if you can do that without even a 1-day a week controller, great
but if you fall below 100%, something is W R O N G
if you can do that without even a 1-day a week controller, great
but if you fall below 100%, something is W R O N G
