From checking it twice to predicting your future, these are the
five stages of a start-up's finances:
Stage One: The Lone Wolf Transaction
In the beginning of the evolution of a start-up, it is likely
that the founder is in a lone wolf scenario. He or she is grinding
away to get the business off the ground. As a result, the owner is
wearing a lot of hats, such as CEO, CTO, marketing, HR or
accounting manager. You name it and the founder probably has his or
her hands in it. They are living in keeping overhead low land.
- Awesome Accounting
Advice
At this stage, all you care about is minimizing your cash burn
and maximizing your product market fit. You should know how much
cash you are burning each month and how many months of cash you
have as a safety net. However, do not forgo getting good financial
and tax advice early, or you will likely spend more time and energy
fixing problems that could have easily been avoided.
