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Entrepreneurs : comment gérer sa finance dans les 18 premiers mois d’activité ?

As a CEO, you’re often on your own when it comes to managing your finances. You have to dedicate time to it, even when you have other priorities, because it’s essential to avoid major surprises.

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3 tips for managing your company's finances from the start

1. Choose an accountant to support you as soon as you incorporate your company.
2. Don't wait until the end of the fiscal year or a fundraising round to wonder where your receipts are.
3. You need to have your numbers and understand them! You must be able to explain them and make them VC-ready for later on. This means putting the right organization and tools in place. Eventually, VCs will be interested in your business model.

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The numbers every CEO needs to know

All of this means you need to:

• Know your recurring revenue. This isn't always straightforward at the beginning (setup fees, cash collection, advance billing, etc.).
• Know how to maximize your innovation-related expenses and tax credits in your accounting.
• Understand how your personnel costs and social charges are calculated.
• Make your income statement more analytical.
• Master the impact of your working capital requirements on your cash flow.
• Know your cash burn at all times.
• Be comfortable with the concept of EBITDA.

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Tracking KPIs

Now that your accounting and organization are in place, you need to build your dashboard and track your KPIs (cash burn, MRR, churn, gross margin, CAC, LTV, etc.). And not just growth KPIs.

1. Prioritize tracking your monthly cash burn. Because before you can grow, you have to survive.
2. Update your forecast to know your "day of death" (if you fail to secure the necessary funding).
3. When it comes to financing, equity fundraising isn't the only thing that matters. It’s difficult to raise capital in 2023, so plan for several scenarios.
4. At the same time, think about non-dilutive financing. BPI, of course, but also banking partners.
5. Banking relationships are essential! Bankers love to support solid projects that are well-funded with equity (especially in B2B).
6. Don't forget to quickly put together your tax credit applications (for research and innovation) and your JEI status.
7. Beyond securing funding for your company, you need to anticipate and manage day-to-day financial risks (losing a major client, cyberattacks, economic crises, etc.).
8. Communicate effectively internally to develop your leadership.
9. And communicate externally with your investors and bankers.
10. If needed, hire a part-time CFO before your Series A. This will allow you to conduct your own financial due diligence if necessary.

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Too many CEOs lose interest in the finance function during the first few months after launch. When a company grows too fast, that can be a disaster!

You need to know your numbers inside out—you’re the one in the pilot's seat!

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