Archives For Financing

Chasing the Dream

Some business projects require exorbitant figures of funding in proportion to the entrepreneur capital. These projects are out of your reach, unless your father is a millionaire or you’re a genius. This idea seems obvious, but some entrepreneurs love their idea so much that they do not see it that way.

I remember an entrepreneur presenting his project in a forum of investors. He needed three million euros, because he needed to set up a manufacturing plant. Continue Reading…

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The “time to market” or time to get into your market is a very important concept that affects startups. It has to do with the time it takes from product conception until the first sales are achieved.

Many startup entrepreneurs expect to sell in the first few days, but it usually will take months, in some cases many months, until the first sales are achieved. The reason is that many startups are created without having a product ready for sale. They are created just to finish the products and to sell them. When you launch a new product or service it requires time to make it known to customers and sell it. Continue Reading…

cash is king is wrong

The main idea of ​​my post “Cash is king” and the previous one “The Metaphore of the tub” was that cash is the most important thing in startups. Although I confirm the general validity of the post, I would like to expect on the idea “cash is king” and make some exceptions.

I have known some entrepreneurs so focussed on raising funds for their project, that they forget everything else. Continue Reading…

Photo of zizzybaloobah on Flickr

In business and investment the expression “cash is king” is widely used. This idea is the highest priority in terms of startup finance. A startup can assume that the first year will not bring benefits, provided it has clear when they will start. But what makes a high percentage of startups disappear shortly after its creation, is the red or running out of cash. Cash is one of the three legs of the financial plan, along with the income statement and balance sheet. This is most important in the case of startups. So, “cash is king”. Continue Reading…

Some years ago, I developed a metaphor to explain to entrepreneurs how important it is to plan the financial needs properly.

In my opinion, creating an innovative company is like having a tub full of water. The water is like the company’s money, the initial financing which makes the start-up activity possible.

At the moment of creation, it is as if the plug was taken away and the tub begins to drain. Continue Reading…