Build Your Own Financials

One of the most common mistakes I see amongst ambitious, early-stage founders is that they often neglect their company’s financials.

After all, it’s an easy mistake to make. When there isn’t much revenue to manage, many founders look for the easiest way to get it done.

Some will download a hacky template and just cram their numbers into a few generic fields. Others try to farm it out to an accountant or a Fractional CFO.

This is a huge mistake.

Every founder should be building their own financial models, at least in the early days, for a few key reasons:

1. It’s a useful skill that every business leader needs if they expect to build their company beyond a few employees and 6 figures in revenue. Those who can “write” a financial model can also read one.

2. It helps a founder become intimately familiar with the relationship between every single expense, revenue stream, asset, and liability within their own company.

At the earliest stages, a founder’s most important job is to make sure that the company doesn’t run out of money.

And, the founder who builds their own financial models builds a better business.

Warren Shaeffer from Pear VC actually has a great post about this where he explains his 5 tips to creating a great financial model.

Check out his post here! 👉 https://lnkd.in/eUCEA3nv