5 TOP FINANCE TIPS
Richard Wadman from Francis Clark with Winter Rule sets out how to ensure the best possible start for your business by backing up your great idea with numbers that add up.
- Get your finances straight as a priority. Failure to do so can leave you devoting a disproportionate amount of time to 'fire-fighting' rather than making sales.
- Do projections and be realistic in the assumptions made – base the finance requirements on the projected cash flow.
- Robust financial projections make getting investment more likely. Whilst financiers may be excited by your idea, they'll also be considering their return on investment and will need to be convinced that you have thought out the financial implications of your business model – and you have the ability to deliver. Projections play a persuasive role in both arguments.
- Remember the simple fact that businesses fail because they run out of cash.
- Don't make the common mistake of thinking profit = cash to spend; remember to project ahead to make sure everything's covered.
Get more finance tips from our Q&A with Oxford Innovation's Andrew Farmer.
