A new service for Startups:
Avoid the "Cash Flow Gap" by preparing your
DACAD Budget today
Very often Proximo comes across a startup company that goes through a scenario similar to this:
They raise money from investors, they put together a product, they start their marketing and sales processes...Things look promising because deals are starting to close, and orders/subscriptions are starting to flow in...
BUT: very often the expected cash flow is delayed for a later stage (after full delivery, after acceptance, month by month payment terms...)
Unfortunately the expenses are usually not delayed :-(
This causes many startups to reach severe crisis despite the fact that they are seeing very positive business progress.
The remedy:
Manage a DACAD Budget!
Proximo is offering to prepare for you an excel file which is a professional DACAD budget.
With this file you, the startup CEO, will be able to continue on your own, maintaining control of your cash flow Vs. P&L and dealing ahead of time with the cash flow challenges, avoiding crises.
What is a DACAD budget?
It's a file that complies with the following principals:
D - Details 100% of your expenses and income, present and future.
A - Actual Vs. Planned: it shows clearly per month what are the gaps between the planned budget and the actual one.
C - Cash: it reflects the timing of each transaction in terms of cash flow
A - Annual: it is built to synchronize with the formal annual financial reports
D - Dependencies: It translates all the dependencies between events in your company to financial data that needs to be updated in accordance.
What's the "Cash Flow Gap"?
It's the scenario when a company experiences a shortage of cash despite the fact that there are deals coming in, but their expected income flow is in delay. As a result the company has difficulties meeting payment obligations to employees and/or suppliers.
Why should a startup prepare a DACAD budget?
...That's right, to AVOID the cash flow gap!
How?
By taking measures that can bridge gaps, for example: by extending a loan or an investment, by adjusting payment terms, by prioritizing expenses.
But there are also a lot of other benefits such as:
- Improved Control
- Improved trust of shareholders
- Improved managerial efficiency