financial insights for startups

11 avril 2023© sirris | www.sirris.be | info@sirris.be |

Financial Business Models for Tech StartupsOmar Mohout

Question 1

Q2 Q3 Q4 Q5

Profit is the difference between income and expenses

Profit is the difference between income and expenses

WRONG

Question 2Q1 Q3 Q4 Q5 Q6

Bankruptcy has nothing to do with profit or loss

Bankruptcy has nothing to do with profit or loss

CORRECT

Question 3 Q4 Q5Q2Q3 Q6 Q7

Cash is an indicator of how healthy a business is

Cash is an indicator of how healthy a business is

WRONG

Question 4 Q5Q3

Q1 Q2 Q6 Q7 Q8

Depreciation and profit are objective parameters

Depreciation and profit are objective parameters

WRONG

Question 5 Q6Q4

Q2 Q3 Q7 Q8 Q9Q1

Profit is fiscally inspired

Profit is fiscally inspired

CORRECT

Question 6 Q7Q5

Q3 Q4 Q8 Q9 Q10Q2

The majority of companies try to make the lowest profit possible

The majority of companies try to make the lowest profit possible

WRONG

Question 7 Q8Q6

Q4 Q5 Q9 Q10Q3

Profit can be manipulated

Profit can be manipulated

CORRECT

Question 8 Q9Q7

Q5 Q6 Q10Q4

A client with a solvability ratio of 40% can always pays invoices

A client with a solvability ratio of 40% can always pays invoices

WRONG

Question 9 Q10Q8

Q6 Q7Q5

Most companies give free loans

Most companies give free loans

CORRECT

Question 10Q9

Q7 Q8Q6

A company with lots of cash on the balance sheet will not have cash

problems

A company with lots of cash on the balance sheet will not have cash

problems

WRONG

CASH FLOWis more important than your mother

Cash flow is where the essential properties of a business model are determined On-premise PAY NOW (client-bootstrap)

Services PAY SOON (bank-bootstrap)

SaaS PAY LATER (reverse-bootstrap)

Escrow PAY FIRST (supplier-bootstrap)

Power law PAY NEVER (VC-bootstrap)

COST OF SALESis the name of the

game

11 avril 2023© sirris | www.sirris.be | info@sirris.be |

+32 474 711 368

omar.mohout@sirris.be

Omar Mohout, Growth Engineer