Reblog – Finance Fridays (Sayahh’s Revenue Projections – Part 2)

Here is the next iteration of Brad Feld’s Finance Friday’s.  This post covers cash forecasts and financial projections.  As Brad points out, most startups start with a cash forecast to track expenses because it takes a bit of time to figure out how to best project revenues (the top line of the financial projections).

As one of my mentors has said over and over “it’s all about burn rate and fume date!!!”   Carefully tracking expenses gives you both the burn rate (how much net cash you spend each month) and fume date (the date you will likely run out of cash).  Even for a recovering lawyer (me), it is common sense.

Have a great weekend.

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s