Archives For cash is king

Time to Get into Your Market: a Sword of Damocles of the Start-Up

26 June, 2013 — 2 Comments

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…

In Financing , , , , , , , , , , , , , , , ,
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I Was Wrong! Cash is Not King. (The Metaphor of the Tub. Part 3)

19 June, 2013 — Leave a comment

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…

In Financing, Strategy and Business Model , , , , , , , , , , , , , , , , , , ,
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The Metaphor of the Tub (Part 2): Cash is King

5 June, 2013 — 3 Comments
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…

In Experiences, Financing , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
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Why is the Financial Plan so Important? The Metaphor of the Tub

20 May, 2013 — 2 Comments

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…

In Financing , , , , , , , , , , , , , , , ,
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