Every company, whether it’s a small startup or a large multinational, needs a financial plan. As a partner of Start it @KBC, PKF-VMB offers its financial expertise to help startups set up that plan from a to z. Their professional guidance and support enables startups to build a strong financial foundation and take their business to the next level. We asked PKF- VMB’s financial experts to share their most important advice, through 5 must-read tips.

Tip #1: Get the basis right.

What’s the basis of a successful company? The numbers. You simply can’t run a healthy company without having accurate bookkeeping. What you need to do is make sure that your bookkeeping reflects your activity. Automatization is a crucial factor in this process, because it will enable you to stay up to date at all times. Accurate financials are the foundation of your company. Without them, you shouldn’t even be thinking about applying tips #2 to #5.

Tip #2: Look for free and cheap money.

Wait, what? Free money? Yes, you read it right. Investors and funding projects like VLAIO or Horizon Europe can offer you up thousands of euros, which you can use to grow your business. Another option is getting cheap money at the bank. Bullet loans, for example, are a great way to get extra funding at very attractive interest rates. These loans allow you to pay back the interests first, and the capital at a later stage. PMVZ also offers corporate loans that can help you get started.

Tip #3: Create a runway, using automated reports.

Once your bookkeeping is on point and your first round of funding is covered, you need to start thinking about the future. This is where management reporting comes in. The principal is pretty simple: learn from the past to predict the future. Look what has happened in previous years and take data from precedents into account to make accurate cash flow predictions. Don’t limit yourself to financial data. There is a lot to learn from your amount of sales leads, customer satisfaction data etc.

Tip #4: Define your KPI’s.

What do your key performance indicators (KPI’s) tell you? They are the green and/or red lights that pop up to tell you exactly how well or how poorly your company is doing. Think about your financial and non-financial KPI’s, because they are both essential for the valuation of your startup. Less is more: determine which KPI’s are significant to your organization and stick to them.

Tip #5: Be realistic when you calculate your startup’s value.

What is your company worth? Valuation is not carved in stone, as it is influenced by many factors – not only economically. Be realistic and inform yourself: talk to colleagues, fellow-entrepreneurs, financial experts and people who deal with valuations every day. Their opinions and advice will help you to value your business. Remember that investors who bring expertise to your startup can be more useful than money.