Laurent Saurel - Startup CFO’s Post

Founders, here are simple tactics to extend your runway. As fundraising takes longer and longer, VC-backed startups have to be creative to keep the momentum with limited capital. Do the following to increase your ability to stay afloat. 1️⃣ Plan, Plan, Plan. ➡ Have 3 cash-flow scenarios prepared - baseline, upside & downside. ➡ Continuously review and update your financial projections - you want to be in control and want no surprises. 2️⃣ Revenue. ➡ Optimize to get more users organically. ➡ Influencer partnerships show great results. ➡ Get out there and make connections. ➡ Offer early access deals to generate upfront cash. 3️⃣ Customer retention. ➡ Happy customers mean fewer to acquire to offset churn. ➡ Focus on your happy and less happy customers to reduce churn - your data will tell you who to emphasize for. ➡ Consider discounts for your early and loyal customers. 4️⃣ Expenses. ➡ Hire fractional leaders rather than full-time - get the expertise early, pay less. Hire full-time later. ➡ Use free tools rather than paid ones. ➡ Use interns – college kids love to learn from real companies, real problems. ➡ Negotiate or renegotiate contracts - never pay full price. 5️⃣ Vendor payments. ➡ Negotiate longer payment terms. ➡ Be open about your situation with your largest vendors and show them the upside – pay less now, more later. 6️⃣ Efficiency. ➡ Optimize your operations to improve efficiency. ➡ Automate repetitive tasks to save time and money - use (free) technology. 7️⃣ Funding alternatives. ➡ Explore alternative funding sources such as grants, state/government programs, or crowdfunding. ➡ R&D tax credit - if you are a company based in the US, the government will pay you back a portion of your payroll taxes. Don't be afraid to ask for help. Be open with your Board, they have connections and can help you negotiate better terms.

Founders, 7 simple tactics to extend your runway. As fundraising takes longer and longer, VC-backed startups have to be creative to keep the momentum with limited capital. Do the following to increase your ability to stay afloat. 1️⃣ Plan, Plan, Plan. ➡ Have 3 cash-flow scenarios prepared - baseline, upside & downside. ➡ Continuously review and update your financial projections - you want to be in control and want no surprises. 2️⃣ Revenue. ➡ Optimize to get more users organically. ➡ Influencer partnerships show great results. ➡ Get out there and make connections. ➡ Offer early access deals to generate upfront cash. 3️⃣ Customer retention. ➡ Happy customers mean fewer to acquire to offset churn. ➡ Focus on your happy and less happy customers to reduce churn - your data will tell you who to emphasize for. ➡ Consider discounts for your early and loyal customers. 4️⃣ Expenses. ➡ Hire fractional leaders rather than full-time - get the expertise early, pay less. Hire full-time later. ➡ Use free tools rather than paid ones. ➡ Use interns – college kids love to learn from real companies, real problems. ➡ Negotiate or renegotiate contracts - never pay full price. 5️⃣ Vendor payments. ➡ Negotiate longer payment terms. ➡ Be open about your situation with your largest vendors and show them the upside – pay less now, more later. 6️⃣ Efficiency. ➡ Optimize your operations to improve efficiency. ➡ Automate repetitive tasks to save time and money - use (free) technology. 7️⃣ Funding alternatives. ➡ Explore alternative funding sources such as grants, state/government programs, or crowdfunding. ➡ R&D tax credit - if you are a company based in the US, the government will pay you back a portion of your payroll taxes. Don't be afraid to ask for help. Be open with your Board, they have connections and can help you negotiate better terms. ----- ♻️Like, Comment, Share Follow Startup Vencha for more, Stop Thinking & Start Doing

Most startups ruin people's life for this sole reason. They don't know when to stop or where to reach. They start their business by drawing a budget of basic costs related to forming the business, setting up the store, hiring people. Now comes the surprising bits, costs they haven't accounted for : 1. Losses to cover till they break even 2. Marketing cost 3. Software - " I thought this was cheap,is there a cracked version for cloud software" SMH. 4. Working capital - " why is my cash balance low when I have rising sales and profit?" Now comes the sunk cost fallacy, as they have spend X amount - let's go all the way and spend more to see the ugly end. And they go deeper and deeper in debt, before they know they have to work nearly a decade to recoup the invested capital and loans raised. (not even considering the stress to endure) Simple solution - get your accountant to create a financial model of multiple cases , best case, base case and weak case. Hope for the best and prepare for the worst. Do share any cost or areas I have missed out to point out. P.S - I will train your accountant to provide you value adding reports that help you to grow your business.

Developing a financial and business strategy for startups is crucial for guiding the company's growth, managing resources effectively, and attracting investors. Here's a comprehensive guide to crafting these strategies: A. Vision and Mission 🔵 Vision Statement: Define the long-term goal of your startup. What do you aspire to achieve? 🔵 Mission Statement: Articulate the purpose of your business. Why does your startup exist? What problem are you solving? B. Value Proposition 🔵 Unique Selling Proposition (USP): Identify what makes your product or service unique. How do you stand out from competitors? 🔵 Customer Value: Describe the benefits your customers will gain from your offering. Focus on solving a specific pain point. C. Market Positioning 🔵 Target Market: Clearly define your target audience. Who are your ideal customers? 🔵 Competitive Analysis: Analyze your competition and identify opportunities to differentiate your startup. 🔵 Go-to-Market Strategy: Develop a plan for reaching your target market, including marketing channels, pricing strategy, and sales approach. D. Financial Projections 🔵 Revenue Model: Detail how your startup will generate revenue. Will you use a subscription model, one-time sales, or freemium? 🔵 Sales Forecast: Estimate your sales over the next 3-5 years based on market research and realistic assumptions. Expense Forecast: Project your startup’s expenses, including operating costs, salaries, marketing, and research and development. E. Funding Strategy 🔵 Initial Funding Requirements: Calculate how much capital you need to start and sustain your operations until you become profitable. 🔵 Funding Sources: Identify potential funding sources, such as bootstrapping, angel investors, venture capital, crowdfunding, or loans. 🔵 Investor Pitch: Prepare a compelling pitch that clearly communicates your business plan, market opportunity, competitive advantage, and financial projections. #business #strategy #financials #BusinessStrategy #PitchDeck #InvestorDeck #MarketPosition #StrategicWriting #Funding

Why Most Startups Fail to Scale Profitably 🚨 Growth is exciting, but profitability? That’s the real challenge. How Our CFO Services Helped a Startup Scale Profitably Helping startups grow is about more than raising funds. It’s about sustainable growth that ensures long-term success. Here’s how our CFO services made that happen for one fast-growing startup: 1. Cash Flow Management Over “Cash Burn” → Instead of focusing on just raising capital, we focused on managing cash flow. → Real-time forecasts helped them plan ahead and invest with confidence. → Result? A 30% improvement in cash flow stability. 2. Profit Margin Optimization, Not Just Sales Growth → Sales alone don’t drive success—profit margins do. → By focusing on their highest-margin services, we saw a 17% increase in profitability. → They learned that less can be more with the right strategy. 3. Data-Driven Decisions → With custom dashboards tracking KPIs (like CAC and CLTV), decisions were based on insights. → Fast, data-backed choices meant smarter, quicker adjustments. → This built trust with investors and stakeholders alike. 4. Investing in Team Development → Strong finances support a strong team. → We helped fund key hires and skill development, reinforcing their growth. → Employees thrived, and turnover dropped—critical for any scaling startup. 5. Focused Financial Discipline → Growth doesn’t mean unlimited spending; it requires discipline. → We implemented a budgeting system that aligned with their long-term vision. → Every dollar was intentional, creating a culture of sustainable spending. Outcome? ✅ 42% Revenue Growth ✅ 17% Increase in Gross Margins ✅ Improved Cash Flow Stability Profitability isn’t just a result of high sales; it’s a mix of smart financial strategy, data-driven insights, and disciplined budgeting. How a CFO partner could help your startup scale profitably? Drop a comment or DM me to learn more. "The Financial Soul"—we help startups, eCommerce, crypto, agencies, and more navigate these trends with ease. Dm "Services" and let's scale profitability Repost this post to help your network scale profitability♻️♻️ Follow Aashish Singhal for financial success

Developing a financial and business strategy for startups is crucial for guiding the company's growth, managing resources effectively, and attracting investors. Here's a comprehensive guide to crafting these strategies: A. Vision and Mission 🔵 Vision Statement: Define the long-term goal of your startup. What do you aspire to achieve? 🔵 Mission Statement: Articulate the purpose of your business. Why does your startup exist? What problem are you solving? B. Value Proposition 🔵 Unique Selling Proposition (USP): Identify what makes your product or service unique. How do you stand out from competitors? 🔵 Customer Value: Describe the benefits your customers will gain from your offering. Focus on solving a specific pain point. C. Market Positioning 🔵 Target Market: Clearly define your target audience. Who are your ideal customers? 🔵 Competitive Analysis: Analyze your competition and identify opportunities to differentiate your startup. 🔵 Go-to-Market Strategy: Develop a plan for reaching your target market, including marketing channels, pricing strategy, and sales approach. D. Financial Projections 🔵 Revenue Model: Detail how your startup will generate revenue. Will you use a subscription model, one-time sales, or freemium? 🔵 Sales Forecast: Estimate your sales over the next 3-5 years based on market research and realistic assumptions. Expense Forecast: Project your startup’s expenses, including operating costs, salaries, marketing, and research and development. E. Funding Strategy 🔵 Initial Funding Requirements: Calculate how much capital you need to start and sustain your operations until you become profitable. 🔵 Funding Sources: Identify potential funding sources, such as bootstrapping, angel investors, venture capital, crowdfunding, or loans. 🔵 Investor Pitch: Prepare a compelling pitch that clearly communicates your business plan, market opportunity, competitive advantage, and financial projections. #business #strategy #financials #BusinessStrategy #PitchDeck #InvestorDeck #MarketPosition #StrategicWriting #Funding

Here are 8 More Things First Time Founders Should Know Starting a business is a challenging and often unpredictable journey, but with the right mindset and preparation, it can be incredibly rewarding. Here are ten essential points to keep in mind if you're considering launching your own startup: (1) Raise money the right way. There are regulatory and business rules around fundraising, and plenty to learn and practice before you can do it correctly. Avoid brokers and finders, and steer clear of anyone who promises help without investing their own money or effort. Always seek legal advice. (2) Keep meticulous records. Never run a company without a bookkeeping system from day one. Organize and save records of every transaction and expense diligently. (3) Understand vesting. Vesting isn’t optional, and even founders’ shares should vest over time with a cliff. Familiarize yourself with these terms and plan for the departure of founders and key employees well in advance, rather than in the midst of a termination or resignation. (4) Commit to continuous learning. Deeply understand your market, customers, competition, technology, and trends. Read extensively, network, and stay updated with the latest news. (5) Build on past inventions. Everything worth doing has been attempted before, and most successful new approaches are already established. If you believe you have no peers, predecessors, or competition, you’re either mistaken or pursuing something insignificant. (6) Embrace imitation. There’s no shame in copying others. Whatever you do can be replicated. Strive to be the best, not necessarily the first or most original. (7) Play your own game. You can’t outdo the world’s best on their own terms, so create a different game with rules they can’t follow. Serve their customers ten times better, cheaper, and with something more compelling—that’s the margin required to beat an incumbent. (8) Recognize failure as a symptom. Startups die when they run out of money, but that’s not the core issue. The real problem lies in bad decisions, unaddressed systemic flaws, and a lack of preparation and proactive planning for when things go wrong.

I asked a business if I could invest in them, and they said no. Why? Because they knew they didn't need it. This is the story of the best startup that I’ve seen for a long time. (They’re smashing it right now). So why did I want to invest, and why did I think that they were going to do well? 1. Low expectations – The founder knew that the business would never be a unicorn and leaned into it. There was no need to take on funding because it could quite easily achieve its goals. Their goal was achievable. 2. The idea was simple - They just wanted to automate their own job to make their life easier. The primary aim was to make a tech business; however, if it didn’t work out, they planned on using it to save themselves time in their day-to-day job. 3. They knew the field very, very well - They were a lawyer in this space, and they knew it so well. They did the same task five times a day (ish). They were the ones to do it, and they knew how to do it. 4. They had a great network in the space – They could quite easily build an advisory board and sell the product. 5. They were personable and just a nice guy – They knew their field well, and they weren’t a jerk. It was likely that people would buy from them. 6. They wanted to test the market first – THE FINAL AND MOST IMPORTANT REASON! They wanted to build an MVP on the cheap as a test before committing resources to a full build. I absolutely love it when founders do this! They prioritize getting a first version out to test the market rather than looking for cash to throw at a full build. So the takeaway: Have lower expectations than a unicorn, make your idea simple, do it in the area that you know well, have a good network in the space, be a nice person, and test the idea. That’s how you do it in my opinion.

Here are 8 More Things First Time Founders Should Know Starting a business is a challenging and often unpredictable journey, but with the right mindset and preparation, it can be incredibly rewarding. Here are ten essential points to keep in mind if you're considering launching your own startup: (1) Raise money the right way. There are regulatory and business rules around fundraising, and plenty to learn and practice before you can do it correctly. Avoid brokers and finders, and steer clear of anyone who promises help without investing their own money or effort. Always seek legal advice. (2) Keep meticulous records. Never run a company without a bookkeeping system from day one. Organize and save records of every transaction and expense diligently. (3) Understand vesting. Vesting isn’t optional, and even founders’ shares should vest over time with a cliff. Familiarize yourself with these terms and plan for the departure of founders and key employees well in advance, rather than in the midst of a termination or resignation. (4) Commit to continuous learning. Deeply understand your market, customers, competition, technology, and trends. Read extensively, network, and stay updated with the latest news. (5) Build on past inventions. Everything worth doing has been attempted before, and most successful new approaches are already established. If you believe you have no peers, predecessors, or competition, you’re either mistaken or pursuing something insignificant. (6) Embrace imitation. There’s no shame in copying others. Whatever you do can be replicated. Strive to be the best, not necessarily the first or most original. (7) Play your own game. You can’t outdo the world’s best on their own terms, so create a different game with rules they can’t follow. Serve their customers ten times better, cheaper, and with something more compelling—that’s the margin required to beat an incumbent. (8) Recognize failure as a symptom. Startups die when they run out of money, but that’s not the core issue. The real problem lies in bad decisions, unaddressed systemic flaws, and a lack of preparation and proactive planning for when things go wrong.

Venture businesses live or die by fundraising. The other 99.9% of businesses live or die by cash flow. This is an embarrassingly simple insight. I've spent most of my career working with venture-backed startups and, thus, never really thought about it. Duh. About 10 months ago, my co-founder and I decided to reach out to family and friends in different industries to interview them. We wanted to get out of our tech bubble and see other industries' problems, processes, and software. We interviewed folks in construction, real estate, private equity, wealth management, and energy. We found that many of the problems they communicated could be traced back to cash flow. Can't buy materials for the project before we get paid. Can't invest in that infrastructure update until we get paid. Can't add more headcount until we get paid. But the simple insight above was not that simple; it's nuanced. We have spent the last 3 months talking to finance teams about the "process of cash flow." How are finance teams tracking, billing, invoicing, and collecting the cash? These processes blew us away. - Tons of manual data entry - Almost no automation - Systems that won’t connect or talk to each other - No real-time analytics! (This is a dagger to the heart of tech people. We can’t imagine manually analyzing data just to get standard operating metrics.) - Software from the 1990s that I get a headache looking at (Takes 6 clicks to do anything) - People mailing and receiving physical checks (WTF) - Finance teams still using mainframes! (WT literal F) I'm (surprisingly) excited and delighted to be chatting with finance folks to see how we can modernize the process of cash flow. If you or your team are spending too much time on AR processes and collections, shoot me a note. We may be able to help! We are onboarding free beta users in the next few months.