Startups and high growth companies face unique challenges. Mistakes in financial operations can be particularly costly.

Do any of these apply to you?

ONE: Undercapitalization. 
Many startups underestimate the amount of capital they'll need to get off the ground and sustain operations until they become profitable.

TWO: Poor cashflow management.

Cash is king for startups. Poor planning can result in cash shortages, affecting the ability to pay bills, employees, or invest in growth.

THREE: Overestimating revenue.

Overly optimistic revenue projections can lead to overspending and financial instability.

FOUR: Undervaluing expenses.

Underestimating the cost of doing business can result in inadequate budgeting and a quick depletion of resources.

FIVE: Lack of financial controls.
Failing to establish proper controls and accounting practices can lead to disorganized finances, making it difficult to understand the business' true financial situation.

SIX: Failure to prioritize profitability.
While growth is important, some startups focus too much on user acquisition and expansion at the expense of a viable business model.

SEVEN: Inadequate pricing strategy.
Incorrectly pricing your product or service can result in either money left on the table or insufficient demand due to high prices.

EIGHT: Ignoring unit economics.
Focusing on overall metrics while ignoring the profitability of individual customer relationships can obscure underlying financial issues.

NINE: Not monitoring key metrics.
Ignoring important financial ratios and performance indicators can result in missed opportunities for optimization and growth.

TEN: Inadequate record keeping & failure to adapt.
Poor documentation can make financial analysis difficult and can be problematic during audits or due diligence for investment. While sticking to a financial plan that isn’t working rather than adapting to market conditions can be fatal for startups.