So you’ve got a startup? You’re either going to need capital, or you’ve already got it. If you’ve already got it, then you need a strategy for how to use it, so you don’t blow it, before your product is ready to go to market. My series on Accounting for Startups will help you put together the information you need to get the financing, as well as manage it, once you have it.
If you have a startup, you will need a strategy for managing your costs and VC Funding
This was inspired, in part, by Gary Vaynerchuk’s Ask Gary Vee Episode 197 on 43North, Pitching, Investing & Scaling Your Company:
The first thing we’ll need to do is, put together the picture of what you need to spend money on. Let’s say you’re a software developer with the next amazing app coming to market. In the beginning, and long beyond, you’ll want to bootstrap it. This means spending the absolute bare minimum you have to.
You’re going to need e-mail, and this day and age it makes sense to use Google Apps for Work. This is made more so true, when you consider that you have access to all of the google office apps, like Google Docs, and Google Sheets. You can start off with free Gmail accounts if you need to, so it’s all free.
I highly recommend getting into a product like QuickBooks Online, as soon as possible. If you can’t swing the cost, then Google Sheets will be your next best option, for tracking the financial accounting for your startup.
Before you have anything to track, I want you to start thinking in terms of laying out a model for what it will cost to run your business, and get that app developed. How long will it take, and what will it cost, between now and then?
With these numbers in place, you have a better chance of getting financing, earlier on, as long as they are conservative.
In this first video I am going to start you off with something very basic, so you can begin to think about, and layout what the costs will be.
Then we’ll take this a step or two further, and lay it all out on a timeline, so start seeing, both the costs, and the monthly cash flow needs. This is where accounting for startups, starts. Then we’ll start to look at how you can track your initial accounting using Google Sheets. You can go quite a distance this way, and even get some great reporting from it.
Eventually the time will come, when you will need to use some real accounting software, and when it does, I’ll be here to show you how to use QuickBooks Online for Startups.
Now let’s look at how to develop your business model, and take it to the next level.