Does it really make sense to build a financial plan in a startup?

Money may not be a priority at the beginning but it'll become one after a while. The financial plan explains how you're planning to make revenues.

In a startup, a good financial plan has to be flexible enough to be re-evaluated often

Sounds easy? It does of you keep things simple and you validate your hypothesis. Yet often plans are pure assumptions and they're way off the reality. Not worth the pain making, unless you're forced to show a plan.

Business Ideas believes a plan is better than no plan as long as it's flexible and improved along the way. So give it a try, put figures together and prepare for changes ahead.

Comments

How can I balance my cashflow and my product development?

Unless you have a regular source of income that covers all of your product development spendings, you'll have to continuously make sure you don't overspend. This has hard consequences: postpone work that isn't top priority, be frugal when dealing with salaries, focus on revenue growth instead of quality. Bootstrapping a startup requires to make hard choices to preserve your cashflow! Cashflow is king for most startups: even if you hand team problems skilfully, maintain a upbeat pace compared to competitors, money problems are still able to kill your business relatively quickly. One way of handling this is to have several regular revenue streams that make it possible to invest in building a quality product over time even if you don't get any funding. Stable resources are the key to a sustainable product roadmap!

When in one's life is a good time to become an entrepreneur?

There's never been a better time to be an entrepreneur : you can start with hardly any money at all and there's loads of advice available. On Business Ideas at least. Isn't it better to catch small fish by yourself than work in a big factory? Now's the time for employees, even if they have a full job. A project can be simplified to be tested on a small scale , within a few hours a week, before being expanded. Now's the time for students, projects that are part of their studies can be extended to become a small business for a small cost. Now's the time for the unemployed, be your own boss and prove you can do much better than people would think.

Should I follow my mission and not my new year resolutions?

We all have a mission in life, be it to enjoy, reflect or serve, that gives a meaning to our daily actions . A broader direction guiding our many whereabouts. Everyone has a personal mission, more or less obvious, be them a knight on a crusade or not! People in general often ask you what your new year resolutions are , what your goals are, but rarely what your mission is. That's probably because they don't know they've got one too. Any important decisions to make? Any doubts in your life? Refer to your broader mission to clarify it all.

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