Neeta Shah, CFA’s Post

Avoid a Startup Cash Crisis in 60 Seconds! Navigating funding and cash flow is crucial for your growth. Here’s what you should focus on and what to avoid: Do: ✅ Capital Crunch: Secure enough funding to operate and achieve key milestones. ✅ Burn Rate Balance: Control your spend to extend your financial runway. ✅ Boosting Revenue: Focus on acquiring customers and monetising your offerings. ✅ Cash Flow Management: Ensure your cash flow remains positive, watch your funding plan. ✅ Smart Scaling: Scale your operations in line with your cash resources Don’t: ❌ Ignore Investor Expectations: Failing to meet investor expectations will jeopardise future funding. ❌ Underestimate Costs: Don’t gloss over potential costs; unexpected expenses will derail your business. ❌ Neglect Financial Planning: Your cash forecast and dashboard is key to managing your capital. ❌ Overspend on Scaling: Don’t scale too quickly; premature expansion can lead to significant cash flow problems. ❌ Dismiss Market Feedback: Ignoring customer and market feedback can result in product misalignment and poor sales. PRO TIP: Mastering the financial strategies in this 60 second read will help you steer your startup towards sustainable growth and success, and avoid running out of cash.. I have successfully led over twenty companies (large, small and start ups) - I mentor early stage CEOs and Founders. Contact me to share your current business issues and concerns. Contact in comments 

What to start and run an amazing company? Then get used to doing the boring stuff. That's on YOU to own. The earlier you are, the more boring stuff you'll have to do on your own. Gurus make you think you just go from zero to millions by delegating. Sorry, but it doesn't work that way! YOU get to be the one: - Figuring out the entity structure, getting the thing legally started. - Doing the banking, financing, receivables, payroll, cash flow analysis - that's just the money side. - Defining the market segment, defining your ICP/buyer, the first batch of customers - the early marketing (which to me is moving into fun mode). - The early hiring, probably most of the early work itself - The reporting If you love all of this stuff, awesome. If you don't, get ready to dive into some unsexy areas of focus for a while (1-3 years) before you can delegate, and then, your the boring stuff just changes. But you get to own that too :) #entrepreneurship #startups #foundermode

Employee stock options: Are they worth the hype? They look amazing in theory, but the reality is... Making money from stock options is challenging.  Statistically, it’s a long shot. Why? 1. Your startup needs to be among the rare 10% that actually survives and succeeds. Without a liquidity event like an acquisition or IPO, your options might be worthless. 2. You need to stick around long enough for your shares to vest. Given the high turnover in startups, many employees may never see their options fully realized. 3. Using your options will cost you a lot of money and give you a big tax bill. It’s a big investment with no guarantee of return. 4. Timing your exercise is crucial to minimizing taxes. Most employees don’t know how to handle this complicated process well, which could mean they lose money. My advice for people looking to dive into employee stock options: → Learn how options work, why you’re being offered a certain amount, and the company's exit strategy. → Consult a financial advisor about risks and taxes. I’m not against stock options—just make sure you’re making informed decisions before embracing them.

“Do we hire someone internally or externally?” I had a founder ask me this the other day… Yes Growth Partners provides fractional finance support in various capacities, but I’ll be the first to say there is time to hire fractional support and there is a time when it might not be a good option for your startup. For anyone having this debate here is my honest founder-to-founder point of view: 𝐇𝐢𝐫𝐢𝐧𝐠 𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐑𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬 (𝐅𝐓 𝐨𝐫 𝐏𝐓): It’s best to bring in an internal resource when… → You have a lot of urgent, ad hoc or day-to-day tasks → You need to have someone that has specific knowledge of your business and/or industry → You need to hire someone for a role related to a core competency of your business 𝐇𝐢𝐫𝐢𝐧𝐠 𝐄𝐱𝐭𝐞𝐫𝐧𝐚𝐥 (𝐅𝐫𝐚𝐜𝐭𝐢𝐨𝐧𝐚𝐥 𝐓𝐞𝐚𝐦𝐬): It’s best to bring in a fractional team when… → You need to get work done that requires a specific set of skills (𝐚𝐧 𝐞𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐭𝐡𝐢𝐬 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐟𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠) → You need a recurring function that has a pre-defined cadence (𝐚𝐧 𝐞𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐭𝐡𝐢𝐬 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐭𝐨 𝐩𝐫𝐞𝐩𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐦𝐨𝐧𝐭𝐡-𝐞𝐧𝐝 𝐬𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭𝐬) → You have a project that requires a significant resource for a short period of time (𝐚𝐧 𝐞𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐭𝐡𝐢𝐬 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐭𝐞𝐜𝐡 𝐢𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧) Founders, would you agree? #Startups #StartupFinance #HumanResources

Working in a high-growth startup means constantly battling against people debt—the accumulated burden of underinvesting in people operations as the business scales. Most startups, in the race to grow, choose to prioritise talent acquisition over investing in their People Ops teams. While this may seem like a smart move at first, I’ve seen firsthand how this choice actually slows down hiring in the long run. Why? The talent team ends up carrying the burden of People Ops work without having the necessary expertise to do it well. Over time, the hard work that goes into hiring the best people becomes wasted as these new hires don’t feel supported in their roles. Confusion spreads, productivity dips, and the very people you worked so hard to bring on board begin to disengage. Startups often make the mistake of thinking they can scale successfully without a strategic People team. This leads to the dangerous accumulation of people debt — where culture and collaboration begin to suffer because there’s no strong operational framework in place to support them. Without investing in people systems, teams start to wonder who's accountable, communication falters, and everything from project timelines to innovation grinds to a halt, you lose great people. Investing in People Ops is a necessity if you want to keep your business moving forward.

Metrics matter. Period. Metrics tell a story. Metrics paint a picture. Metrics serve as your startup resume. When looking to raise capital, having solid metrics goes a long way with investors. Not every VC fund looks at all of the same metrics but these metrics are good ones to live by ⬇️ 📊Lifetime value - How much will one customer make you? Essentially, this is the benchmark of company profitability. 📊Customer acquisition cost - On the flip side, how much did you spend in marketing to acquire said customer? Typically this is compared against the lifetime value to get a more accurate profitability assessment. 📊Orders per customer - what is the quantity amount that a single customer is purchasing? 📊Net Promoter Score - Translated as the score generated from a customer’s response to “would you recommend this company, product or service?” Arguably the gold standard for customer service metrics. 📊Overhead/Revenue - How much does your company spend just to function? Operating costs/hiring/payroll are all expenses! You want to keep overhead costs as low as possible especially when a startup is just starting out. 👉🏽Drop your metrics questions in the comments so we can help you out!

Nearly 90% of startups fail due to cash flow issues and lack of profitability – highlighting the importance of tracking financial metrics. Here are 5 FINANCIAL KPIs that separate thriving startups from those that crash and burn: 1/ Burn Rate: Your burn rate shows how quickly your startup is spending cash compared to your available runway. Monitor how quickly you’re using cash compared to your runway – essential for long-term planning. Calculate monthly cash expenditures, compare them with cash reserves, and include a buffer for market uncertainties. A manageable burn rate ensures your startup has enough runway to scale and adapt, especially during challenging times. 2/ Gross Margin: Understanding your gross margin is key to seeing how efficiently you’re turning revenue into profit. Higher gross margin, more funds to reinvest. It reflects your ability to maintain a sustainable business model. Regularly analyse this metric to identify opportunities to reduce costs or optimise pricing strategies. 3/ Monthly Recurring Revenue (MRR): MRR is the backbone of predictable revenue streams, it shows the revenue your business generates each month from paying customers. Track month-over-month growth and break it down by customer segments to ensure steady and predictable revenue streams. A steadily increasing MRR is a sign of scalable revenue growth. 4/ Customer Lifetime Value (CLV): Identify high-value customer segments and focus on extending their lifetime with your brand. It’s an essential metric for identifying high-value customer segments. The more you invest, the higher the return over time - reducing churn and improving profitability. 5️/ Net Profit: Shows how much your business is making after all expenses. Consistent growth in net profit shows that your startup isn’t just surviving but thriving, with strong financial stability. Use this metric to evaluate the effectiveness of cost management strategies and identify areas for further optimization. Don’t just collect these metrics – review them weekly and use them to drive strategic decisions. What other KPIs do you find valuable for tracking business growth?

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

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. Need help, feel free to reach out.

Yesterday’s post on phantom revenue vs. edible revenue was pretty funny. But, the deeper message is simple: cashflow is a good proxy for customer value. And, here’s why bootstrapped founders often win at the cashflow game: __ Bootstrapped founders must master three concepts: 1️⃣ Doing more with less.  2️⃣ Expense (PNL) management.  3️⃣ Creating customer value quickly. Venture-backed founders have a cashflow lifeline—they can distribute investor funds from treasury 🏦 Bootstrapped founders do not have that luxury (they need edible revenue to survive, remember?) __ Bootstrapped founders wear the CFO-hat from Day 1. They must track:  ↳ Every debit.  ↳ Every outflow.  ↳ Every expense. __ But, there’s three easy levers you can pull to mimic bootstrapped founders: 1️⃣ Track your expenses → Ramp is fantastic (huge fan!)   2️⃣ Call your customers → “Hi Customer, are we actually solving your problem?”  3️⃣ Explore overseas talent → 3x your output for 30% the cost of a U.S. hire. Give these three a try and together we can eat more edible revenue. __ At Anavah Talent, we find the best workers in the Philippines and build incredible teams for our U.S. & Canadian clients. Done-for-you recruiting—done right the first time. Delight your customers—and your teammates. Reach out if we can help!