At some point of the investment evaluation that we do, we will ask the entrepreneur to submit a business plan.
You might ask, “what a business plan???” Why does a startup even need a business plan? What kind of business plan do we need?
First, business plan is a must, absolutely. It actually demonstrate THE key requirement that: the entrepreneur has put a serious thought on his business and he knows how to drive the business forward.
It is not only the plan, but also the process of planning.
Continue reading “Business Plan: To Plan or Not To Plan”
Should you? Knowing that most of the numbers are based on assumptions, and most likely will be proven wrong.
The answer is, YES. Not for the sake of the number only, but to understand the financial mechanics (drivers) of your business – what drives revenue and costs. Because finance (and accounting) is the language of business, and us, venture capitals, speaks that language quite fluently… so entrepreneurs should be able to speak with the same language.
Continue reading “Should You Prepare a Financial Projection for You Startup?”