Where should startups put their cash?
Cash management is a very common question for startup companies. After raising capital, your startup might have a significant amount of cash. That capital will be spent over time to develop the business (your burn rate). In the meantime, though, how should those funds be effectively managed?
Why don’t startups use SBA loans?
Entrepreneurs frequently use loans from the Small Business Administration (SBA) to acquire or grow small businesses. Startups, however, rarely use SBA loans for a variety of reasons. Before we get into that, let’s look at what an SBA loan is.
For a seed round, are many investors or a small group better?
Startups require funding, and founders spend a lot of time locating investors. If you’re looking for seed funding, is it better to assemble a large group of investors who provide smaller amounts, or a smaller group of investors who invest large sums?
Steps to shut down a startup
Even the best entrepreneurs build companies that don’t work out and move on to more success later. If you’re in the process of shutting down, I want to explain to you some of the steps to shut down your company appropriately.
Know your zero cash date
Zero cash date, also called cash out date, refers to the day a startup runs out of money. Founders, CEOs, CFOs, or really anyone associated with the company wants to make sure the company has plenty of cash and doesn’t hit the zero cash date.
How to make a good operating plan for your pitch deck
Pitching to potential investors will include some element of talking about your financial plan - but looking at a 1,000-cell spreadsheet is an invitation to get lost in the weeds. There’s a time and a place for that, but not in a 30-minute pitch. Here’s how to effectively abstract your operational data to aid fundraising conversations.
Accounting for startup financing from Pipe
Pipe.com is a new lending marketplace that allows companies with recurring revenue streams to generate cash or capital upfront by factoring, or trading, their future payment stream.
How should a startup account for its first revenue?
Collecting your first revenue is an amazing day in a startup. Someone is actually paying you money for something you built. It’s incredible. It’s like the ultimate validation, right?
Can you backdate payroll?
Today I’m answering the question, should your startup backdate payroll? And my emphatic answer is NO. Please do not do this. Do not backdate any payrolls for any reason.
How do early stage VCs find the startups to invest in?
It’s important to recognize that finding interesting startups to invest in is what early stage VCs are really exceptionally good at. They are amazing at generating really, really strong deal flow.
As a startup CEO, when can I give myself a raise?
Even in the money-driven world of vc-backed startups, founder wages and pay raises can be a sticky subject. Here, we break down when and how you can ask for a pay hike without alienating your investors and board members in the process.
Who is the highest paid person at a startup?
Most people would think the founder or CEO is the highest paid person at a startup. But that’s not the case. Typically one of two people, the VP of sales or the CTO, are the highest paid employees at early-stage startups.
Should your startup switch to unlimited PTO?
If you are reading this, you already know that PTO stands for paid time off. Many of our clients have asked us the question if they should offer unlimited PTO, or an unlimited vacation policy.
The IRS Opens Up Electronic Submission for Power of Attorney
Getting the power of attorney for a client used to be an unenjoyable venture, especially for major tax firms, like Kruze Consulting, who have multiple clients to consider.
Why Would a Founder or CEO of a VC backed startup get fired?
It’s really important to state upfront that no venture capitalist or board member ever wants to fire the founder from a startup.
How much can your startup save in payroll taxes?
Estimate your R&D tax credit using our free calculator.
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