Budgeting & Forecasting

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Startups raise capital in tranches and always have to be mindful of their “runway.” The CEO has the important task of building and maintaining investor confidence in the business to ensure the ability to raise subsequent rounds. Poor cash management is credited as one of the major reasons behind the failure of startups. One of the most successful elements of strategic cash management is to have a detailed annual budget/operating plan in place. It’s not enough to simply take the current burn rate and multiply it over time. Preparing detailed bottoms up plan requires thinking through all of the cost drivers which will increase expenditures in tandem with your revenue and growth drivers. A budget/operating plan communicates to board members and executives the financial demands of growth, allowing for informed decision making in the short and long term. 

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Banking Relationships

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We all know the importance of good relationships in business, and your relationship with your bank is no different.There is a tremendous value to be gained from forming and maintaining a successful relationship with your bank, and it should be a top priority for every startup. Remember, banks dislike surprises as much as you do. Keeping the bank in the loop ensures the long term collaborative experience you desire. If you treat your bank as part of the team, they typically will react as part of the team.

Banks are an important component of the business model and have tremendous potential to become strategic business allies if relationships are properly nurtured. The Finanzo team is seasoned with years of experience negotiating with banks and obtaining the best banking facilities on behalf of clients. To facilitate the bank relationship process, we can provide your startup with everything you need, including detailed financial reports, schedules, updates, summaries and internal monitoring procedures. Having a dedicated Finanzo CFO as part of your team gives the bank additional comfort that your company has the financial stability and sophistication to grow responsibly.

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