www.startuphand.org/2021/12/17/financial-startup-basics-fundraising-tips/

Basics of financial startup are the essentials that startups need to know to ensure financial health and secure the funds required for growth. Without these basics, nine out of 10 startups fail. The reason is simple – cash flow. Without understanding how to track and forecast cash flow, a start-up cannot manage its budget or invest in growth.

Important startup accounting records such as income statements (revenue and expenses) and financial projections are essential for demonstrating the viability of your business model to investors. These models need to be carefully calculated in order to accurately reflect your business’s economics. This includes easy-to-overlook expenses such as shipping taxes and insurance, processing fees and utility costs.

If traditional lenders aren’t an option, family and friends can lend money to startups in the early stages. In this instance it’s crucial to set the terms of any loan in writing to ensure that there are no disagreements regarding repayment obligations or expectations for future performance.

Startups can also seek out venture capital from an individual investor or crowdfunding platforms such as Kickstarter. These types of financing usually require a business plan, that includes a comprehensive financial forecast. Creating a model allows you to better understand the financials of your business, allowing you to make informed choices about the amount of capital you need and what strategic goals you want to achieve by the time next year rolls around.