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There is a time and place for putting things in Alphabetical Order. When I was a kid, Alphabetical Order meant I was usually the first or second kid seated in the classroom because my last name started with B. But… Presenting financial statements for your company in Alphabetical Order probably doesn’t make sense. Many startups begin with a default alphabetical chart of accounts, like the one QuickBooks provides: Advertising, Bank Fees, Contractors, etc. This jumble can be a headache to navigate as your business grows and your transactions increase. Use a standard chart of accounts tailored to your industry from the beginning — this simplifies management and scalability of your financial operations. On the expense side, I prefer to: Make the top level expense a Department (maybe General and Administrative, Sales and Marketing or Research and Development) ↳ Then within each of those, group personnel related expenses together and then other things together. If you can’t quickly see how much money you’re spending in each department, let alone by vs other stuff in each department, it will only get harder to understand over time. By setting these foundations early, you can scale your business without the financial oversight becoming overwhelming. We have a fantastic template to help you with this... Interested? Send me a DM & I'll send a copy your way.

How can eCom businesses succeed against Amazon? You need to focus on these 2 KPIs… Lifetime Value (LTV) & Customer Acquisition Cost (CAC) 1. LTV The average amount a customer will spend with you over their lifetime. To calculate LTV: → Find the average number of purchases per customer in a year → Multiply by the average purchase value → Multiply that by the average number of years a customer stays active Increase LTV through customer service, personalized experiences, and targeted marketing. You’ll build a loyal customer base that values your unique offerings. (And more importantly, keeps coming back). 2. CAC The amount you need to spend to acquire a new customer. To calculate CAC: → Add up all sales, marketing, and other customer acquisition expenses for a period → Divide by the number of new customers acquired in that period Minimize CAC through targeted ads, referral programs, and strategic partnerships. You’ll attract customers more efficiently than Amazon. (They rely heavily on brand recognition & a massive advertising budget) The ideal LTV:CAC ratio is 3:1 or higher. Keep in mind: → Product lifespan → Average purchase amount → Number of direct competitors Adapt your strategy to your needs. Adjust goals as trends change. This is how you beat the beast. Found this useful? Follow me (Chris Mossa) for more expert financial advice for startups and growing companies.

Is your startup turning $1 into $3?… Or $0.50? Here's how to avoid "buying revenue": Many startups focus solely on top-line revenue growth. This makes sense, as VC funds have historically looked at revenue growth as the main indicator of success and likelihood of being able to raise another round of capital. However, when you dig deeper, many are actually losing money on each transaction. Essentially, they're buying revenue. Not on purpose - but because the data to track ROI may be jumbled up with lots of other financial data. They spend more to acquire customers than those customers will generate in lifetime value. We've seen startups triple revenue year-over-year. But underneath the hood? — they're just turning $1 into $0.50… stylishly! Obviously, this is unsustainable. And points to deeper product or business model issues. To identify if you're buying revenue, closely monitor: → Customer acquisition costs → Customer lifetime value → Churn and Net Dollar Retention Successful startups navigate growth by keeping a keen eye on financial metrics. They make data-driven decisions to optimize their business model. And focus on turning $1 into $3, not $0.50. Don't buy revenue growth. Earn it. Follow me (Paul Bianco) to hear my (somehow controversial) views on why startups should grow slow and steady.

Startups need a month-end-close accounting process… As a startup founder, securing funding is your lifeline. Want to attract the right investors and secure loans? It’s not just about growth, tech, and market. They’re looking for clean, accurate financial statements. A streamlined month-end close process ensures your financials are always up-to-date and reliable. Here's what it shows: → Financial responsibility & understanding to investors → A clear picture of your company's financial health → More accurate forecasting This is how you build trust with investors and lenders. To streamline your month-end close process: → Automate processes with the right tech stack → Create a detailed checklist of tasks and responsibilities → Reconcile material items on your balance sheet and income statement every month Need some help? We've created a simple, templated month-end close checklist. Link in the comments. Follow me (Paul Bianco) to hear my (somehow controversial) views on why startups should grow slow and steady.

True: Startups get hit hardest when the market turns. False: It's impossible for startups to prepare for this. In times of financial uncertainty, many startups worry about slow growth and fewer fundraising dollars. Slowdowns (market or investment) hit early-stage companies hardest because they lose access to capital. The margin for error is already tight. And in a downturn… it can evaporate overnight. So, what can startups do to prepare for this? 1. Maintain a steady cash flow: Beyond just investor funds… Have an active collections process to keep money flowing in from customers on time. It's easy to let late payments slide when things are going well… But this is a death spiral when runway shortens. 2. Respond proactively to market changes: As soon as you notice changes in the market… Plan what you need to do for your customers. Specify your short-term growth goals and focus on making those goals a reality. Cut any expenditures that don't serve that mission and put your energy towards weathering the storm. 3. Prioritize every dollar: You need to understand exactly where every dollar is going. Look at your gross cash burn. Then categorize all of your expenses into tiers based on how essential they are. This helps you better understand where to make cuts as well as what you'll need to invest in to survive. 4. Be diligent about vendor expenses: Always know when you pay each of your vendors (and how that affects your cash flow). Don’t make payments early without reviewing upcoming cash flow first. And make sure you have a weekly cash flow in place to do this work. Maintaining a good relationship with your vendors is a balancing act. But vital in a downturn. 5. Fundraise with existing investors: Start with who you know! Your existing investors don't want you to fail. They have skin in the game and have shown their support. Talk to them first. Gauge their appetite for follow-up investments to help you manage runway before going to new investors. Many startups have survived financial instability and found success. Some even thrive! You just need to be proactive with your finances. If (when) the time comes, you’ll be thankful you did! Found this useful? Follow me (Chris Mossa) for more expert financial advice for startups and growing companies.

It's funny how founders pretend to be CFOs 🤔 Some are forced to try due to size and budget. However, most operators can afford to hire a really solid fractional CFO or firm to support them, but they push this off like it's the plague until they are mid fundraise and find out their financials are all wrong... I personally did this with my last business, and it killed us when we went to raise. Fractional finance and accounting is extremely accesible these days, and contrary to what most believe...it's highly affordable for startups. My current CEO once said - If your car is making funny noises, you don't watch youtube videos to try and fix it yourself....you take it to a mechanic. I've seen a much better path for founders. The founders and operators I respect the most have humbly let go of trying to act as their companies CFO and have hired a professional to help them. Those founders succeed because they are able to understand what is happening "under the hood" and can accurately map out what is needed to execute. Go get yourself a quality accounting firm or Fractional CFO...I promise it is money well spent. And if you need a recommendation, my pick is Graphite. #founders #startup #venturecapital

Startups don't think about this… Too much money can actually poison a company. Over the past decade (other than the past 18 months), the VC space has been a huge bull market. This led to many companies getting funded. (Probably more than they should have). But excessive funding can actually be a bad thing. It creates extreme pressure to grow faster than is sustainable. There's a limit to how quickly you can scale a team while maintaining quality. Raising too much can lead to just as much, if not more trouble than not raising enough. Here’s how to know if your startup is ready for VC funding: 1. You have a consistent & functional business ↳ with a clear target market 2. You have a funding game plan ↳ for how it will be used to drive growth 3. Current demand outweighs available market supply ↳ for all your products or services 4. You deeply understand your customers' needs ↳ and your unique value proposition 5. The business is growing organically ↳ especially through satisfied customer referrals Raising VC funding at the right time with the right plan can be rocket fuel. Raising VC funding prematurely and overspending can lead to disaster. Know where your startup stands before taking the plunge. Follow Paul Bianco to hear my (somehow controversial) views on why startups should grow slow and steady.

Great tip for founders trying to fundraise

VC or bootstrapping? Knowing your startup's ‘North Star’ can help... Your ‘North Star’ is a guiding principle that provides clear direction and purpose about where you’re going. And like it or not… As a founder — your business and personal life are intertwined. So your startup's North Star should combine both. This gives you a clear direction for the next 5, 10, or 15 years. At Graphite, our two North Stars are: 1. Be a great place for people to work and build their careers long-term 2. Deliver exceptional service to our clients These guiding principles have helped us grow steadily and with purpose. When deciding whether to raise venture capital or bootstrap, lean on your North Star. For service-based businesses: Bootstrapping is a great route to maintain high-quality service & employee experience. For product companies: VC funding might be necessary to cover expenses before generating revenue. If you do take on outside funding, make sure it aligns with your North Star — the amount, type, and partner who’s investing. Be clear on your goals, direction, and financial strategy. Clarity is powerful. Found this useful? Follow Chris Mossa (me) for more expert financial advice for startups and growing companies.

To raise money, many founders use aggressive projections. I call this the Founder's Dilemma… In order to raise capital, startups often present optimistic growth plans. But more often than not, things don't work out exactly as planned. Making excuses at board meetings and repeatedly missing plans while continuing to spend is a recipe for disaster. I've seen this pattern lead many companies into a death spiral: 1. Miss plan 2. Run out of money 3. Request more funding with even more aggressive projections 4. Repeat steps 1-3 I coach my clients to avoid this trap by being proactive: - Be transparent with investors about challenges & plans to address them. - Reset expectations early if growth is slower than expected. - Cut spending to align with actual revenue. This lets you maintain credibility when you eventually meet (or exceed) revised projections. Struggling founders make excuses — digging a deeper hole. Successful founders confront reality — and bring a ladder to climb out. ------ Follow Paul Bianco to hear my (somehow controversial) views on why startups should grow slow and steady.