Business Development Specialist at Halal Investment | CEO of Friday Finance | Expert in Business Operations & Internal Audit | Driving Strategic Growth | MBA in AIS.
🌟 The Importance of Startup Expense Management. #Part_02 In the startup world, expenses can quickly spiral out of control if not managed effectively. For many founders, budgeting often takes a back seat to growth ambitions, but the reality is that financial discipline is crucial for sustainable success. 🔹 Why Manage Expenses? Studies indicate that around 70-85% of startups fail within their first 3-7 years. Surprisingly, 80% of founders lack a formal business background, and 70% do not follow a structured financial model. Effective expense management can be a game-changer, helping startups avoid common pitfalls and extend their runway. 🔹 What’s at Stake? Unmanaged expenses can drain essential resources, preventing startups from having the flexibility to pivot, hire top talent, or invest in customer acquisition. By monitoring and controlling spending, founders can save between 15-25% of their budget, resources that can be reinvested for growth. 🔹 Introducing KFM Theory This is where KFM Theory comes in. It categorizes expenses into three clear groups—Defensive, Middle, and Forwarding—making it easier to align spending with strategic needs. This method provides a balanced approach that helps founders maximize limited resources while minimizing financial risks. In the next post, we’ll dive into the Defensive Expenses category and how it forms the foundation of a solid startup expense management plan. Stay tuned! #KFM #BusinessResearch #Research #Startup #BusinessArticle #Business #Consultant #University #BusinessProfessor
