Financial prediction tips for the success of the startup

As many of the most important global economic indicators tell us, we finally go out of the economic crisis and gradually fall back to better market conditions. Time has rarely been so attractive in the past six years to go on strike and to take over entrepreneurial life all day. Better economic conditions associated with the maturation of the startup accelerator process, the Angel investment practices and even crowd financing have rarely offered such a fertile reason for your startup ideas in order to become a reality.

However, great ideas are only part of the puzzle, and too often overlooked is the same kind of strict and passion for understanding and observing your finance – not least if you follow this critical financing you need. The financial dynamics of a start-up are unique, and for every multi-million dollar financing round, about which you read every day, there are countless more that are left behind due to poor attention to detail and there is no strict approach to financing.

Resist the temptation to overestimate
If you work so hard on a company that you are passionate, you can make it easy to overestimate the value of your company with the relentless optimism that is necessary for a successful entrepreneur. However, if you only keep half a eye on all the news with startup financing -if you read about many of the good, bad and almost apparently crazy investments -this would be understandable. Recently, Messaging App YO 1 million US dollars has brought in for the simple premise to send a “YO” to your contacts – but with all media attention, there are many more questions about whether this seems to be successful overnight to really do it.

Nobody wants to be a hit. In your own company, you have to be able to talk about the future of your company convincingly – especially about finances. I have lost an overview of the frequency of how often I and the investors I know was disappointed that such a convincing business idea and a team were made indefinite due to a lack of strictness in their financial projections and their understanding. Good ideas are a dozen today, but the rounded skills and skills to deal with all aspects of the start of a startup-in one thing not an important finance.

Do you know your value
The world's greatest negotiating skills cannot help you if your basic prerequisite for business assessment is inaccurate. So how do you estimate a company before it has earned income? There are various spreadsheets and unwanted consultants, but they lack the accuracy they need if they really challenge them by a potential investor for their financial data. Consider tools such as Worthworm, the analyzes, industry compounds and a number of evaluation methods to see your company better from the perspective of an investor and to secure good business. Make sure that your math tasks diligently and with the tools that exist to help and, above all, resist temptation to overestimate your company.

Don't be greedy
You probably don't need an investment of several million dollars to get started, although the idea of ​​having more money than you really need is comforting-with many connected strings, you will be delivered that you will regret below. Concentrate on strategically gathering the means you need to successfully perform your carefully thoughtful plan, and to be able to clearly show that your potential investor's money is spent correctly and on the right things. Remember that many of the greatest start-up stories of today are very small and completely achievable financing rounds compared to today. Airbnb collected only 20,000 US dollars in seed money and now has a value of 2.5 billion US dollars, while Skype took over 250,000 US dollars to Angel investment and was acquired by Microsoft for $ 8.5 billion in 2011.

For investors, consideration is always a risk and reward. Your key to increasing your first round of investment in the right way and to the best terms for you and the investor also depends on your convincing vision, idea, energy and experience as with your ability to demonstrate that you have a realistic view and approach to your finances and your idea can certainly lead to long -term financial success.