The Essential Nature of Financial Planning for Startups
There are many reasons why a company might need to prepare financial projections; to attract investors or for approval of bank loans. However the most important one is that it provides the business with a rationalisation that its future is guaranteed, if it can deliver what the projections says. Financial planning is a critical aspect of the journey of startup founders and it’s something they have to nail early on. This might seem intimidating especially for those who do not have a financial background but in truth there is little to be afraid of. Ultimately, what one has to keep in mind is that the financial plan is not something that one can get right or wrong; it is an estimate which will invariably have a lot of uncertainties. As long as those are well considered, the projections themselves should be fine. Why is it important? Can you find the place you’re looking for in a new city without looking at a map? You might and it is possible that you will find it, but you are also lik