The document discusses key financial insights for startups, emphasizing the importance of profit and cash flow management. It includes a series of true/false statements regarding bankruptcy, cash health, profit manipulation, and solvability ratios. The overarching message is that cash flow is critical for a business's health and sustainability.

1. Financial insights for Startups
Omar Mohout
26.04.14© sirris | www.sirris.be | info@sirris.be |

2. Question
1
Q2 Q3 Q4 Q5

3. Profit is the difference between income
and expenses

4. Profit is the difference between income
and expenses
WRONG

5. Question
2Q1 Q3 Q4 Q5 Q6

6. Bankruptcy has nothing to do with profit
or loss

7. Bankruptcy has nothing to do with profit
or loss
CORRECT

8. Question
3 Q4 Q5Q2Q3 Q6 Q7

9. Cash is an indicator of how healthy a
business is

10. Cash is an indicator of how healthy a
business is
WRONG

11. Question
4 Q5Q3Q1 Q2 Q6 Q7 Q8

12. Depreciation and profit are objective
parameters

13. Depreciation and profit are objective
parameters
WRONG

14. Question
5 Q6Q4Q2 Q3 Q7 Q8 Q9Q1

15. Profit is fiscally inspired

16. Profit is fiscally inspired
CORRECT

17. Question
6 Q7Q5Q3 Q4 Q8 Q9 Q10Q2

18. The majority of companies try to make
the lowest profit possible

19. The majority of companies try to make
the lowest profit possible
WRONG

20. Question
7 Q8Q6Q4 Q5 Q9 Q10Q3

21. Profit can be manipulated

22. Profit can be manipulated
CORRECT

23. Question
8 Q9Q7Q5 Q6 Q10Q4

24. A client with a solvability ratio of 40% can
always pays invoices

25. A client with a solvability ratio of 40% can
always pays invoices
WRONG

26. Question
9 Q10Q8Q6 Q7Q5

27. Most companies give free loans

28. Most companies give free loans
CORRECT

29. Question
10Q9Q7 Q8Q6

30. A company with lots of cash on the
balance sheet will not have cash
problems

31. A company with lots of cash on the
balance sheet will not have cash
problems
WRONG

32. CASH FLOW
is more important
than your mother

33. Cash flow is where the essential properties
of a business model are determined
 On-premise  PAY NOW (client-bootstrap)
 Services  PAY SOON (bank-bootstrap)
 SaaS  PAY LATER (reverse-bootstrap)
 Escrow  PAY FIRST (supplier-bootstrap)
 Power law  PAY NEVER (VC-bootstrap)

34. COST OF SALES
is the name of the
game

35. +32 474 711 368
omar.mohout@sirris.be
Omar Mohout, Growth Engineer
26.04.14© sirris | www.sirris.be | info@sirris.be |