Financial Management For The Start Up Company V 1.0

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  • The focus of financial management should be on communication and the direction should be forward looking.
  • Accounting is merely a component of financial management. Pretty simple concept because it is all based on one equation and has three “scorekeeping” reports.
  • So let’s take a step back and look at the practical aspects of financial management and establish a basic framework in terms of FOUR guidelines.
  • Know where you are going and put in place the systems that will get you there.
  • Be very aware that.......................the devil is in the details. So pay careful attention to the details
  • Remember that Cash is KING Surprises are for Birthday parties NOT your Start-Up company.
  • Not enough financial managers do this.............................
  • Remember the old days.......................the three P’s of management success Then there became six requirements for management success TWO P’s and FOUR E’s Because execution is TWICE as important as planning
  • And finally...............................Guideline number FOUR Maybe the first among equals. Requires a clear focus on what will be coupled with strong people skills.............. It clearly recognized change, albeit incremental change as a major constant over the evolution of the emerging company.
  • And this has much broader applications................................
  • Financial Management For The Start Up Company V 1.0

    1. 1. Financial Management Guidelines for the Start–Up Company. © C. F. Advisors 2010 Growing Business. Managing Success.
    2. 2. What is Financial Management? Translation of numbers into words; numbers record transactions; words communicate the story and an understanding of the story enables us to attain results. Financial Management Guidelines for the Start–Up Company.
    3. 3. Accounting Basics Assets = Liabilities + Equity Balance Sheet Income Statement Statement of Cash Flow ONE pretty simple equation and THREE Statements (Reports) Financial Management Guidelines for the Start–Up Company.
    4. 4. Guideline Number 1. <ul><li>Establish a solid financial foundation. </li></ul>Financial Management Guidelines for the Start–Up Company.
    5. 5. Establish a solid financial foundation. <ul><li>Develop a Long Range Financial Plan </li></ul><ul><li>Departmental Structure </li></ul><ul><li>Accounting System </li></ul><ul><li>Chart of accounts </li></ul><ul><li>Procedures and Controls </li></ul><ul><li>Expectations </li></ul><ul><li>Annual Audit </li></ul>Financial Management Guidelines for the Start–Up Company.
    6. 6. Guideline Number 2. <ul><li>Pay close attention to detail. </li></ul>Financial Management Guidelines for the Start–Up Company.
    7. 7. Pay close attention to detail. <ul><li>Micro-manage cash </li></ul><ul><li>NO verbal agreements </li></ul><ul><li>Maintain good records </li></ul><ul><li>Implement/use Purchase Order system </li></ul><ul><li>Measure results -- trend right </li></ul><ul><li>NO surprises </li></ul>Financial Management Guidelines for the Start–Up Company.
    8. 8. Guideline Number 3. <ul><li>Continually look ahead. </li></ul>Financial Management Guidelines for the Start–Up Company.
    9. 9. Continually look ahead The past is interesting, but the future is relevant. <ul><li>Planning in the absence of execution is at best, an interesting academic exercise. </li></ul><ul><li>Execution in the absence of planning is at best, luck! </li></ul>Financial Management Guidelines for the Start–Up Company. <ul><li>Continually look ahead. </li></ul>
    10. 10. Guideline Number 4. <ul><li>Develop a results oriented culture as you transition (over time) from: the “kitchen table” to the “management table” </li></ul><ul><li>No prima-donnas or egos please </li></ul>Financial Management Guidelines for the Start–Up Company.
    11. 11. Final Thoughts. <ul><li>The BEST way to predict the future is to </li></ul><ul><li>MAKE IT HAPPEN: </li></ul><ul><li>Under Promise </li></ul><ul><li>and </li></ul><ul><li>Over Deliver! </li></ul>Financial Management Guidelines for the Start–Up Company.
    12. 12. C. F. Advisors is committed to the concept that Financial Management at the Start-Up Company is all about: <ul><li>Building a solid financial foundation </li></ul><ul><li>Paying close attention to detail </li></ul><ul><li>Continually looking ahead </li></ul><ul><li>Developing a results-orientated culture </li></ul><ul><li>[email_address] 952 996-9091 </li></ul>Financial Management Guidelines for the Start–Up Company.

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