Tactic 12: Finance
Path to Greatness: Building the Financial Model and Setting Up the Piggy Bank
Entrepreneurs need to convince others, and more importantly, themselves, they can create a business that achieves $50M in revenue in the first five years.
Introduction
A financial plan is important for an entrepreneur starting a new business because it helps the entrepreneur to:
Develop a budget and forecast the financial performance of the business, including projected revenues, expenses, and cash flows.
Monitor and manage the financial health of the business, including tracking actual performance against budget and making adjustments as needed.
Communicate the financial plans and performance of the business to stakeholders, such as investors, lenders, and employees.
Identify and evaluate potential sources of financing for the business, including loans, grants, and equity investments.
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