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Chapter 6 - The Chief Finacial Officer's Duties

Finding Your Niche
From: Fire Up Your Startup and Keep It Up
By: Bruce Langston

Bruce was the CFO for the author’s company. Topics include finding your niche; budgeting and forecasting; acquisitions and due diligence; selected axioms.

Chapter 6 Excerpt:

“Now a few words on budgeting and forecasting: For a young company starting out, just like a young family, it is very important to accurately budget your expenses against your revenue. When first starting out, this may really be more of a cash flow projection since cash is usually tight and, after all, cash is the stuff with which employees and overhead are paid. It must be realistic on the revenue side and cautious on the expense side. Too often budgets or forecasts are sprinkled with “a miracle happens here” scenario. Looking at your cash position, budget and forecast may be an almost daily routine. You’ll have to ask Gary sometime about his pull out board in his desk where he kept his cash and short and long term AR balances. He looked at it every day. Don’t be afraid to adjust when reality is different from what you budgeted.”