Master Budget Forecasting: A Founder's Guide

SDS 031: Securing Fundraising in 2024: Key Strategies

Hey! thank you for reading issue 031 of Startup Definition Sunday (SDS).

SDS is the newsletter for new & aspiring founders, bringing you clarity one actionable tip at a time.

SDS arrives every two weeks (you guessed it) on Sundays.

In every issue you can expect:

• 1 actionable tip you can implement right away

• 1 article you should read

• 1 gift for founders

Let's dive in:

(P.S. I'll never sell your information, ever)

Greetings!

Welcome to today's issue of SDS.

Writing to you every two weeks brings me great joy.

In case you missed the most recent issue, you can find it here.

Back when I was in university, like most people, I was broke.

To survive, I learned to build a budget in my notes app, which I still use to this day.

(Here's a screenshot for proof)

Now, you might wonder why you should care about my random musings on personal finance as a founder.

No, I'm not asking you to improve your personal finance skills (although it wouldn't hurt).

One reason: any successful founder has a solid grasp of budget forecasting for their company.

But many first-time founders often feel overwhelmed by the financial aspects of running a startup.

Today I'm here to share with you the three fundamental things you need to know to become a budget forecasting pro.

Understand your business model: Before you can even begin to forecast your budget, it's crucial to have a clear understanding of how your business generates revenue and the costs associated with it. Take the time to analyze your pricing structure, operational expenses, and any other revenue streams. By familiarizing yourself with your business model, you'll be better equipped to make accurate financial projections.

Create a realistic timeline: It's easy to get caught up in the excitement of your vision and set lofty goals for your startup. While ambition is commendable, it's vital to be realistic when forecasting your budget. Take into account factors such as market conditions, industry trends, and the time it takes to acquire customers or generate revenue. By setting achievable milestones and timelines, you'll have a better understanding of your cash flow and financial needs. More importantly, a realistic timeline empowers you and your team to remain motivated as you journey towards bringing your vision to life.

Build in contingencies: As a startup founder, there's one immutable reality you can count on: unforeseen challenges will emerge. The best-laid plans are no match for unexpected situations (anyone remember the dark days of COVID circa 2020?). That's why it's crucial to include contingency plans in your budget forecasting. Whether it's unexpected expenses, a longer sales cycle, or a dip in the market, having a backup plan will help you navigate these obstacles without derailing your financial stability.

Now, allow me to offer my two pesewas:

As a founder, your ability to effectively manage your company's finances is directly tied to its overall success. So, take the time to educate yourself, seek guidance from experts, and continuously refine your budget forecasting skills.

With dedication and a solid financial plan in place, you'll be equipped to navigate the financial challenges that come your way and steer your startup towards a prosperous future.

If you or someone you know should be receiving 2024 issues in their inbox, consider joining SDS so you don't miss exclusive sections in future editions.

If you only read one thing this week, read this...

My collaborators on biweekly office hours, Marge & Ona, have released part 1 of their 3-part series on FemTech in Africa.

Why is it worth your time? Many people view women's health as a social issue. Marge & Ona make the compelling case that women's health is an economic issue worth $316B to Africa's GDP. It's time for more innovators and backers to prioritize this often ignored sector for Africa's overall growth.

Founder's Corner

As an investor, I know how challenging it can be for founders to get noticed by angel investors, especially without the right connections.

That's why I created an inbound form to allow founders to share their decks directly with me. It takes less than 5 minutes to complete. By breaking the mold and providing an alternative way for founders to connect with investors, I hope to help level the playing field.

That's all for today! As always, thank you for being an engaged reader.

Until we meet again in two weeks, here's how we can stay in touch:

• 🐦 Find me on Twitter

• 💬 Hit me up on Linkedin

• 💌 Email me

• 🚀 Sponsor SDS (Reply to this email)

I’ll see you in two weeks,

Jasiel