Finance and Accounting

What’s your job? Your job is to not run out of cash. Okay, there is more to financial management than this, but if you run out of cash, then nothing else will matter. In our dealings with the most successful entrepreneurs, we have noticed that they have a rock solid understanding of business financials. They can look at a financial sheet and a few ratios and understand the story of the business. Can you? Even if you’ve hired a finance expert, final accountability rests with you. It is your responsibility to have a solid enough understanding that you can answer these questions: Where is your cash coming from and where is it going? Will there be enough? What should you do?

A common response to that last question is: I need to raise more money (from investors, from the bank, wherever). There are many sources of funding – personal money, angels, banks, and finally, venture capitalists. Did you know that less than 3 percent of all businesses receive venture capital investment? More and more, angels are filling the capital gap. While you do need money, you need the right amount, from the right source, of the right type, at the right time. Many factors, such as stage of business, business vision and goals, the way you manage your business should influence your choices.

Here are some interesting FREE downloadable tools that are useful: