Do you really need a Financial Model for your startup?

As CEOs of a company we have 3 main tasks:Give clear guidance and tools for people to do their jobs.Let them do their job (or as my coach likes to say “get the f/()=^out of the way).And make sure you don’t run out of money.It sounds basic, and maybe it is, but really if you can nail those 3 points there’s no chance your company won’t succeed.People need tools and software and a budget to do their jobs.And you need to make sure you never run out of money to pay for those tools, people and softwares..There are different ways on how we can finance a business, of course (debt, income, non-dilutive debt, grants, investment, etc). But one of the most common ones for startups is to raise VC rounds. Meaning to sell a portion of your business based on a future valuation to raise a high amount of money to grow your business.Why? Because we can grow at a super fast pace that other companies just can’t.Ok, but today’s topic is not about how you can finance your business. But we will sure cover how you can put a future value to your business through financial models.So we are here to talk about financial models. But I prefer to think that we are here to understand how we can make sure we never run out of money.The answer? We plan, we measure and we keep control of our resources.But what does “Financial Modeling” actually mean? It’s quite simple. Financial modeling just means putting your company’s earnings and expenses in a spreadsheet and using that to make informed decisions and predict future events.Of course, that’s the short and simplified version. Because Financial Models can be as complex as you want them to be, but my suggestion is always the same:…