Finance

Most startup financial models are beautiful lies. I’ve reviewed hundreds of early-stage models. And the pattern is clear: → CAC magically drops over time → Churn is “estimated” but never tracked → LTV isn’t calculated or worse, inflated → Headcount costs are wildly optimistic → There’s a “Misc” tab with $1.2M in it Why does this happen? Because founders treat models like investor theatre. Built to impress. Not to operate. The cost? → You raise capital with zero visibility on runway → You overhire and miss your margin targets → You make roadmap bets you can't actually afford → And worst of all? You realize too late that the business model doesn’t work Your model isn’t a pitch prop. It’s your decision engine. A good one should answer: → What happens if CAC jumps 25% next quarter? → Can we delay the next hire and still hit targets? → What’s real runway after expansion churn? If you can’t get those answers, you don’t have a model. You have a spreadsheet in a blazer. Here’s how to build one that actually works: 1/ Start with a clear purpose → What decisions should this model help you make? Hiring plan, pricing strategy, runway clarity? Be specific from day one. 2/ Ground it in real systems → Pull actuals from your CRM, accounting, and payroll. Your model is only as useful as the data it’s built on. 3/ Link your core financials → P&L, Balance Sheet, and Cash Flow should speak to each other. If they don’t, your forecast can’t be trusted. 4/ Segment revenue realistically → Break revenue down by product, customer type, or geography. Model retention, expansion, and churn by cohort — not hope. 5/ Reflect costs with accuracy → Include real team ramp times, founder comp, tech debt, and overlooked ops costs. This is where most risk hides. 6/ Run scenarios, add sensitivity → Best case, worst case, base case. Play with CAC, churn, and pricing levers. Your model should answer “what if?” 7/ Use and update it regularly → If your model isn’t revisited monthly, it’s already outdated. It should evolve with your business — not collect dust post-fundraise. Bottom line? If your model looks polished but doesn’t drive decisions.. Rebuild it. Your business depends on it. PS: Curious, what’s the one metric you check first when you open your model? ——— Need help making the numbers make sense? I’m Mariya. Fractional CFO for SaaS startups. I help founders get clear on what the numbers are really saying. 📩 DM me if your model doesn’t match your reality.

You don’t have a money problem. You have a money management problem. And if you're running a small biz... It can quietly kill your growth. Here's how most business owners lose cash: ☐ Mixing personal + business money ☐ Forgetting to track small expenses ☐ Paying everyone else, but not themselves ☐ Hoping, not planning, their cash flow ☐ Not knowing when they’re actually losing money I did most of these. Until I fixed them with simple steps. Here are 11 small but powerful finance tips that saved my sanity: Track everything → Use an app. Or even a notebook. Just track. Split your accounts → Biz money needs its own home. Always. Create a budget → Know what’s coming in. Know what’s going out. Pay yourself → You’re not a volunteer. Pay yourself like a pro. Review cash flow every week → You need to know your runway. Not guess it. Cut dead weight → Cancel tools and services that don’t earn back. Build an emergency fund → Aim for 3 months of biz expenses—minimum. Tackle high-interest debt first → Every delay costs you more. Automate your invoicing → Don’t rely on memory to get paid. Hire a pro bookkeeper → Even part-time help can save your time + peace. Review your numbers monthly → Trends matter. And numbers never lie. 📌 P.S. Most business owners don't need more money. They just need more control over it. What’s one finance habit you need to fix this month? 👇 I work with early-stage founders who feel stuck. → Not sure what’s next → Can’t get past the plateau → Ready to grow, but not sure how If your finances feel foggy, or your biz feels flat... Let’s talk. I help you build clarity and momentum.

Profit, not revenue, is the key to success. Here's a 5-step Margin Analysis framework to track profit vs revenue As a financial consultant, I've worked with businesses struggling with profitability due to a lack of in-depth margin analysis. Managing your margins can be a game-changer for your bottom line. I work with clients on shifting their mindset that margin analysis isn’t just a one-time strategy; it’s a continuous process. To help clients stay on top of their game, I put together a checklist of daily, monthly, and quarterly habits to be sure you’re always optimizing your margins. Daily Habits: 1) Review Sales and Cost Data: Do a quick check if daily sales are in line with your projections and monitor unusual changes in costs. 2) Track Key Performance Indicators (KPIs): Focus on daily KPIs such as gross margin percentage and average order value to identify issues. Monthly Habits: 1) Analyze Margin Trends: Compare your current month’s margins against previous months to spot trends or anomalies. 2) Update Financial Projections: Adjust forecasts based on actual performance and any market changes. 3) Review Profitability by Product/Service: Identify which products or services are underperforming and consider adjustments to pricing or cost structures. Quarterly Habits: 1) Conduct a Comprehensive Margin Analysis: Deep dive into your financial statements to assess the health of your margins. Look at (COGS), operating expenses, and net profit margins. 2) Reevaluate Pricing Strategies: Based on your margin analysis, adjust your pricing strategy to ensure optimal profitability. 3) Optimize Cost Structures: Review your cost management practices and look for opportunities for cost reductions or process improvements. Hope this simplifies the process, and helps to start building these habits. Also, I've attached a brief guide on How To Strategically Improve Profit Margins If you need help developing and executing a financial strategy DM me ___________________ Please share your thoughts in the comments Follow me, Beverly Davis for more finance insights

Your financial report shows 40% growth.  But investors just pulled out. What are they seeing that you're not? The startup founder couldn't understand what happened. His reports showed impressive growth metrics. Yet investors were walking away after reviewing his financials. His executive team was confused. His board was losing confidence.  His funding round was in jeopardy. His reporting? Beautiful dashboards hiding critical structural problems. Here's what we discovered: - The reports were technically accurate but strategically misleading: - Revenue recognition was aggressive - Cash burn was buried in supplemental schedules Key risks were minimized or omitted. The framework we implemented: 1️⃣ Investor Lens Analysis – Restructured reports to highlight what investors actually care about 2️⃣ Cash Reality Spotlight – Brought cash flow to the forefront of all reporting  3️⃣ Metric Standardization – Aligned KPIs with industry benchmarks investors recognize  4️⃣ Risk Transparency – Created dedicated sections for contingencies and challenges  5️⃣ Narrative Alignment – Ensured story and numbers told the same truth The results? ✅ Funding round successfully closed  ✅ Investor confidence restored  ✅ Leadership gained true financial clarity Later, the founder admitted: "We were reporting what made us look good, not what would build trust. The difference cost us millions." Financial reporting isn't about showcasing strengths. It's about building credibility through transparency. Don't let poor financial reporting sabotage your growth. I help startups create investor-ready financial reporting that builds trust. DM "Reports" to learn more. #financialreporting  #businessgrowth  #finance

Think this deal is safe? Think again. Most people chase returns. They see double digits and their brain hits “GO.” But that’s the wrong first question. The right one is What risk am I really taking to get that return? Before I ever say yes to a deal, here’s what I look at 1. Risk vs Return Do I have the liquidity and the stomach for this? If not, it’s a no even if the numbers are shiny. 2. Borrower Strength Track record, decision-making under pressure, and ideally… a phone call that doesn’t raise red flags. 3. Financials & Skin in the Game I want to see capital invested, not just effort. Do the operators have real dollars in play? Is the balance sheet healthy, or built on duct tape and hope? Strong equity. Solid reserves. Real commitments. 4. Market Demand Are people moving in or moving out? Is the job growth and are the industries balanced 5. Exit Strategy If this borrower gets hit by a meteor tomorrow, can someone else finish the job and sell it? Quick Checklist ✅ ☑️ Risk fits my personal liquidity ☑️ Sponsor is solid, references check out ☑️ Financials show strength: reserves, margin, and room for error ☑️ Market demand is real, not wishful thinking ☑️ Multiple exit options Too many make emotional investment choices. Cold logic beats hype 10 times out of 10. If you want long-term wealth, you don’t just buy the return… You underwrite the story behind the return. Do you lead with return or risk when investing? Want a better framework to vet deals fast? Let’s swap checklists.

The first time I looked at a VC term sheet, I made the classic founder move: Scanned for valuation. Mentally celebrated. Big mistake. Because the stuff that actually matters? It’s hidden in the fine print. Here are 3 terms that quietly screw over founders: 1) Liquidation Preference – If it’s 2x participating, investors get paid twice before you see a dime. That “big exit”? Might feel more like a rounding error. 2) Board Control – You built the company, but if the board’s stacked with VCs… they can fire you. Even if you’re hitting your numbers. 3) Option Pool Shuffle – If VCs ask to increase the option pool before they invest, guess who gets diluted? You. Always ask: pre- or post-money? Too many founders learn this stuff the hard way. You don’t raise your Series A to get blindsided. >> Read the term sheet. >> Understand the incentives. >> Protect your equity. What’s the sneakiest term you’ve seen on a VC term sheet? Did you negotiate your first deal solo or bring in a lawyer? What’s one thing you wish you knew before signing? Teaser: we are working on an agent that will make sure that you don't sign your company away: upload and we will flag what you need to know. #startups #founders #venturecapital #fundraising

How This Space Tech Startup Secured $5.5M (Without Giving Up Equity). Last year, I invested in Raven Space Systems. They developed a novel way to 3D print aerospace hardware: • Faster • Cheaper • More efficiently Before pursuing VC money, they secured $5.5M through grants from NASA, Air Force, and The National Science Foundation. This was pure capital for R&D to: • Validate their technology • Access specialized facilities • Build government & commercial credibility Incredible benefits, yet not without challenges. Applications are competitive, time-consuming, and often come with restrictions on fund usage. 6 steps for capital-intensive startups to access non-dilutive funding: 1) Find the Right Grant Programs → Focus on SBIR (Small Business Innovation Research) → STTR (Small Business Technology Transfer) programs. → These offer billions annually in non-dilutive funding for early-stage R&D. Key Agencies: NASA, NSF, DoD, (AFWERX), USDA, and others. 2) Prove Your Tech Solves a Big Problem → Funders want mission-critical solutions over "cool" innovations. → Eg: NASA funds projects that improve performance in space exploration. → Use data or case studies to demonstrate the urgency of the problem → And the effectiveness of your solution. 3) Develop a Clear Proposal → Specific R&D milestones → Measurable outcomes → Commercialization plans Align your proposal with the funder's mission and values and highlight how your project advances their goals. 4) Leverage Strategic Partnerships Strengthen by collaborating with universities, labs, or prime contractors. E.g: Raven partnered with the University of Oklahoma for material testing and technical validation. Partnerships mean specialized equipment and critical expertise. 5) Engage with Grant Officers → Reach out to program managers before applying → For insights on aligning your application with agency priorities → Clarify any ambiguities and tailor your proposal accordingly 6) Iterate And Improve → Treat rejections as opportunities to learn → Many startups win grants on attempt 2 or 3 → Refining on feedback can significantly improve success rates After validating their tech with grants, Raven then raised VC to: • Scale manufacturing • Build sales teams • Enter new markets Validate with grants. Scale with VC. Combine both for a winning position. ____________________________ Hi, I’m Richard Stroupe, a 3x Entrepreneur, and Venture Capital Investor I help early-stage tech founders turn their startups into VC magnets Enjoy this? Join 340+ high-growth founders and seasoned investors getting my deep dives here: (https://lnkd.in/e6tjqP7y)

$250k/mo burn. 3 months runway left. No VC cash. "You don't need a miracle, you need a plan". That's what I told a startup founder who hired me as a CFO. Runway increased from 3 to 9 months. Here is how: ▶️ The crisis: • Baseline burn: $250k/month • Cash in bank: $750k → 3 months of runway • No VC lifeline: out of question for now. • Goal: buy time to hit 6+ months runway and qualify for non-dilutive capital. • Acknowledging that this situation is a failure in terms of planning. ▶️ The playbook: 4 levers to pull We attacked burn from all angles: cost cuts, cash flow optimization, revenue acceleration, and non-dilutive financing. 1. Cost reduction: saved $80k/month Why? Fixed costs are the easiest to control quickly. Tactics: • Cloud infrastructure (savings: $25k/month): => Renegotiated AWS commit discounts (locked in 3-year terms for 40% savings). • Software stack (savings: $15k/month): => Audited 35 tools. Cut duplicate/redundant apps. => Demanded 20% discounts from vendors by threatening cancellations (yes, dirty). • Team restructuring (savings: $40k/month): => Reduced headcount by 12% (underperforming roles). => Shifted to contractors in lower-cost regions. => Paused all non-critical hires. 2. Better payment terms: unlocked $20k/month in cash flow Why? Stretch payables without damaging relationships. Tactics: • Vendor negotiations: => Extended Net-30 to Net-60 terms with 4 key vendors. • Customer Collections: => Hired a part-time collections specialist to chase late payments (>30 days). 3. Faster sales cycles: added $20k/month in Revenue Why? Speed = cash. Tactics: •Removed friction: => Cut demo steps from 3 calls to 1. => Launched a self-service “Start Now” plan (no sales call, 14-day trial). • Upsold existing customers: => Targeted inactive users with a “reactivation” campaign (12% converted to paid add-ons). 4. Non-dilutive financing: added $300k in Cash Why? Buy runway without giving up equity. Tactics: • Revenue-based financing: => Secured $200k at 8% fee (repay 5% of monthly revenue until 1.4x repaid). • AR factoring: => Sold $100k of outstanding invoices (90% advance rate, 3% fee). ▶️ Results • New monthly burn: $130k/month (48% reduction). • Cash balance after 3 months: 750k(initial)−390k (3 months burn) + 300k(financing)=660k • Extended Runway: 660k/130k = 5+ months → 9+ months with financing. ▶️ Key takeaways for founders • Cut fast, cut deep: Focus on high-impact fixed costs first (cloud, payroll, SaaS tools). • Cash flow > Accounting profit: Stretch payables, pull forward receivables. • Simplify to accelerate: Remove friction in sales, pricing, and onboarding. • Get creative with financing: Revenue-based loans, prepayments, and AR factoring buy runway. You don’t need a miracle — you need a plan. If you’re staring down a single-digit runway, DM me. Let’s fix this.

I’ve secured over $1.2M in funding for my company. But the path has not been what you’d expect. After 3 years of building Chezie, here's our actual fundraising journey: - $20K of our own savings - $275K from grants - $160K from friends/family - $110K from pitch competitions - $100K from accelerators - $470K from VCs - $25K from revenue-based financing Two things most founders miss: 1. Revenue unlocks everything     Without paying customers, we wouldn't have qualified for grants, VC, or loans.      Focus on revenue first and all of the other funding options become available to you.      2. Don't limit your options     Only about a third of our funding came from VCs. Another third was completely equity-free.      Be open to whatever funding source you can get to reach your goals. The reality is that there's no 'right way' to fund your startup. Whether working your day job longer, consulting to get some early revenue, taking loans, or raising from friends and family, do whatever works. The best funding source is the one that keeps your company alive. And sometimes that means taking the path others won't. Build your company your way. What untraditional funding paths have you taken to grow your startup? Share them in the comments! 👇🏾

Every M&A is unique, and is dependent on the context and circumstances of the deal. Nevertheless, certain factors consistently make or break deals and mergers. Here are three takeaways from my experience: 1. Strategic Alignment & Execution: Clarity on "why" you’re doing the deal is everything. It should guide decisions at every stage. In one transaction, misalignment between us and the sellers led to a tough integration process—and the departure of key team members. That lesson stuck. In the next deal, we made the “why” central to every discussion, aligning everyone around a shared goal. The result was a smoother process, strong team retention, and long-term success. 2. De-risking deal roadblocks: Every deal comes with risks—but they aren’t one-size-fits-all. Evaluating risks in the specific context of the buyer, seller, and market is critical. Use data to dig deep into culture, product, financials, and go-to-market risks, and create actionable plans to mitigate them early. 3. Process & Integration: Closing the deal is just the start. A clear integration plan that ties back to the why we did this deal with well defined milestones can expedite ROI. At the same time, flexibility is key. Start with a well defined plan but stay agile and ready to change as the integration progresses.