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5 Financial Concepts Every Startup Founder Should Know

The Startup Magazine

Compared to Accounting, Finance is ruthlessly forward looking. Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. The basic lesson that founders can learn about asset valuation is that Accounting is past and Finance is future. Asset valuation.

Founder 148
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So, what if you run out of money?

Berkonomics

If fixed expenses, especially payroll, are paid out before cash is received from services or shipments, the company is financing its growth with ever-increasing working capital needs. Stress of this type always forces you or senior management to lose focus upon strategic issues and drop into day-to-day tactical mode.

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Never run out of money.

Berkonomics

If fixed expenses, especially payroll, are paid out before cash is received from services or shipments, the company is financing its growth with ever-increasing working capital needs. Stress of this type always forces senior management to lose focus upon strategic issues and drop into day-to-day tactical mode.