Finance Navigator is the first corporate startup to spin-out of consultancy firm EY. Its founders, Alex Matthiessen, Lars Vereijken, and Wout Bobbink are aiming to solve a complex predicament amongst fellow startups; how to create a rock-solid financial structure for your newly founded company when you as founders (might) lack financial expertise? In this guest post, they address the four principal reasons why it is crucial to have a proper forecast in place for your startup from the get-go.
Engaging with investors
Based on research amongst our own startup customer base we can conclude that about 70% of the startups involved were triggered to start working on a financial plan because they started engaging with investors or were preparing for that. However, this is relatively late. Of course, it is crucial to have your company’s financial plan in top shape when you start engaging with investors, but your forecast serves a bigger purpose than just that. It should be the basis on which you are running your company, as it provides the insights whether you should start your company at all or whether you even need to raise capital.