cashflow modeling

Why startups?

Startup businesses are popping up all over the world. The list is endless. However, as start-ups begin, so do they fail.  

25% of startups don't survive past year 1, 50% within 5 years, a further 10% fail the following year. quotes 90% of startups fail.

One of the key factors in a startup is cash. Understanding the cash burn rate, break-even point and accurately performing cashflow modelling cannot be underestimated.

Scaling too fast is often cited as the reason for failure as the cash runs out quicker than expected.

In most cases its going to take longer to achieve success than the founders originally envisaged.

Founders may need to raise capital to support their growth and justify a reasonable valuation of the business (often hockey stick growth curves) can be a challenge.

Being able to see the impact of business decisions on this valuation is equally important.

how we can help?

We have helped a number of startup businesses get a clearer understanding of their cashflow needs. 

We are able to perform dynamic and integrated cash flow modelling with rolling actual results as your business operates from month to month.

Understanding cashflow is more than just profit or profitability. Quiet often, businesses might seem to be making a profit, yet the cashflow doesn't reflect this. 

Keeping a start-up business on track in terms of a steady growth path that doesn't place undue pressure on cash needs is achieved through cashflow modelling.

In addition to performing cash flow modelling, we provide accurate valuations of business using a range of recognised valuation techniques including a robust discounted cash flow.