Basics of financial startup are the fundamentals that startups must be aware of to ensure financial health and secure the funds needed to grow. Without these essentials nine out of 10 startups fail. The reason is simple – cash flow. Without an understanding of how to track and project cash flow, startups will not be able to manage its budget or invest in growth.

Investors need to see your startup’s financial projections as well as income statements. These models have to be carefully calculated to accurately reflect your business’s economics. This includes easy-to-forget costs like shipping, taxes and insurance, payment processing fees and utility costs.

If traditional lenders aren’t available family members and friends can great post to read provide financing to startups in the early stages. In this case however, it’s essential to have all loan terms outlined to avoid conflicting repayment obligations or future performance expectations.

Startups can also seek venture capital from crowdfunding platforms or private investors such as Kickstarter. However, these kinds of funding usually require an approved business plan that includes a comprehensive financial model. You can gain a better understanding of the financial situation of your business by creating an accounting model. This will allow you to make educated decisions about how much capital to invest and what strategic goals you want to achieve over the next year.