How To Optimize Your Startup Financial Strategy

Printer Print Email Email

Fremont: Building a company that has a great team, an ever rising sales graph, and great products and services that results in happy customers is the primary goal of all CEOs and founders. But with so much of chaos, they sometimes tend to forget the other most important task: managing economy of the organization and continue raising fund with escalating valuations. Below mentioned are few such steps that will help them to increase their company valuations and optimize their financial strategy.

Valuation and Milestone

How To Optimize Your Startup Financial Strategy, valuation and monitizationStartup entrepreneurs can reach their milestones easily if they understand the change over time in the startup valuations. The valuation of a startup is based on the calculation of risk and rewards attached to the company. The valuation is inversely proportionate to risks and directly to rewards. But, in real times, risks does not reduce, instead the increments and rewards go up after a particular milestone is achieved, which can be increased customer traction, increase sales, strong management team, good hiring, and accomplishment of the initial goal. Once the scaling of the company starts, the valuation of the company increases as a multiple of revenue or profit.

 



next new