From dreaming up an idea in the garage, to pushing the business to market, startups have many unique needs and face many particular challenges. In fact, only about 50% of new businesses survive through 5 years of business4, a majority of those reported that cash flow, or lack thereof, was a main reason for failure.
But why should we be concerned with the success of startups? Because they are the foundation of the economy. Small and mid-sized businesses make up an incredibly large portion of the global economy, and they are born from startups. By ensuring startups’ success, we can create better long-term outcomes for more than just the entrepreneur, we can change the global economy for the better and impact countless lives.
Now is the time for startups to focus on moving beyond just survival; it’s more important than ever to plan for growth and future opportunities. Accountants and bookkeepers have been helping SMEs through advisory services, and now the technology is available to help startups this way, too. Portfolio companies and investment groups have always been looking at ways to improve the success rate of their investments, but with the advancements in cloud technology, the landscape of advising startups is changing for all finance professionals.
It appears that successful startups all have three things in common: they all prioritize cash flow, marketing, and their business security. It should go without saying that cash flow is a huge factor in any successful business, and startups are no different. By understanding their True Break Even and closely monitoring the AR & AP, it’s easier to spot underlying problems and fix them before they become an issue.
And while cash is king, marketing is everything. In some ways cash flow and marketing go hand in hand, because marketing creates awareness and demand. And without a consumer base or demand, the supply is irrelevant. Successful startups also protect their business values both internally and externally. Making sure the entire team is on the same page and all the investors and other involved parties are aligned is no small feat. Startup culture draws many people in, but without having everyone following the same path towards the end goal and vision, the company will experience difficulty with growth.
Of these three things successful startups are doing, no one is more important than the other. They are all intrinsically linked; cash flow, marketing, human resources, and maintaining the culture while bringing in other involved groups, all sync up to create an unstoppable and successful force in the startup world.
All advisors, whether they are accountants, bookkeepers, investors, or other companies, can take steps to help change the outcomes for startups. We have the technology available to help them plan for their future, meet their goals, and launch successfully.
ProfitSee’s tools can now help businesses throughout all their stages of growth: from initial starting point to wild success. ProfitSee StartUp seamlessly transfers to ProfitSee MBA, CFO, or Enterprise when the business is ready, making financial success more attainable than ever.
ProfitSee StartUp is built to redefine the entrepreneur’s experience in starting a company. From dreaming to take off, our tools help you cultivate success from day one.
With transparency to all involved parties, StartUp provides better calculated risk management, strategy building, scenario planning, smart budgeting, cash flow forecasting, and more to build a successful future for your business.
ProfitSee’s StartUp tool will allow for:
- Better calculated risk management
- Smart budgeting
- Scenario building
- Cash flow forecasting
- Strategic business planning
- And more from day one!
By using real-time data these businesses will have an easier path for driving growth, presenting to investors and funding groups, and notifying all involved parties of progress.
Features of StartUp
Create multi-year strategies to project business plans, mitigate risk, and plan for growth needs.
There are strategies that encompass sales, marketing, human resources, and more. Whether you're looking at a simple plan or a complex business model, ProfitSee StartUp has flexible components that can be layered to show the outcomes of (almost) any idea.
Create good-better-best options and account for upcoming needs with ease.
Starting a business can be quite risky. In fact, every year 29% of startups fail due to cash flow issues. Whether you're starting a business, looking to invest in a new business, or advising startups, ProfitSee StartUp can help mitigate risk and produce better outcomes.
Using a custom or standardized Chart of Accounts, it's easy to create and share robust budgets.
Using the Formula Builder creates a streamlined, efficient process to:
- Enter fixed amounts
- Adjust amounts by a certain percentage or fixed amount
- Apply trends or expected seasonality
- Easily delete entries
Along with using strategies and scenarios to plan for upcoming needs, it's important to track cash flow performance.
Once the company is funded, bills and invoices will start to come through. By tracking the performance against the budget and projected outcomes of strategies, we can tailor the business plan and keep the startup on track for success.
Using the Investor Dashboard, startups are able to provide full transparency and collaborate with all parties involved. Both the startup and the parties of interest can use the tools to their advantage, all while staying informed of others' actions.
Collaborating on business plans has never been easier!