When it comes to growing a startup, getting the numbers right isn’t just optional—it’s foundational. From understanding your business model to preparing for fundraising, the financial habits you build early can either propel your growth or slow you down.
In a recent webinar, our Director of Startup Banking, Rob Burnett, sat down with Alexandra Satine, Founder and CEO of Your Cohort, for a candid and insightful conversation on what it really takes to build a strong financial foundation in the early days of a business. Together, they broke down how to build a business that’s truly fundable. Here are the biggest takeaways from their conversation:
Start Strong with Back Office Finance
Early financial systems matter, especially bookkeeping. Alexandra stressed that one of the smartest things a founder can do is establish a bookkeeping process early, whether it’s done in-house or outsourced. Clean financial data from day one supports forecasting, fundraising, and daily decision-making.
She also highlighted that the accounting method should match your revenue model. For instance, startups with upfront payments often need to use accrual accounting, particularly if they plan to seek venture funding. Her advice: fix your back office before it becomes complex. Waiting until you’re scaling to clean up your systems will be harder and more expensive.
Decide Whether to Outsource Bookkeeping
While Do-It-Yourself (DIY) bookkeeping might seem cost-effective, Alexandra advises founders to consider the bigger picture. Doing your own books may pull you away from core business functions and could result in costly fixes later.
For founders managing multiple ventures, using the same bookkeeping firm can be efficient, but it’s critical to keep the books of each entity separate. That said, not all bookkeepers are created equal. Alexandra emphasizes the importance of finding a partner with industry-specific experience. Look for bookkeepers who understand the financial nuances of your business model, whether you’re building a Software-as-a-Service (SaaS) platform or launching a Consumer Packaged Goods (CPG) brand.
She also recommends prioritizing firms that offer transparent, transaction-based pricing over hourly rates. To streamline operations further, consider consolidating bank accounts to minimize complexity and reduce administrative costs. And if you’re early-stage, a Certified Public Accountant (CPA) might be more expensive than you need; there are plenty of startup-friendly bookkeeping solutions designed to meet your needs without breaking the bank.
Build Better Forecasts, Not Just Budgets
Forecasting is about more than creating a budget—it’s about giving your startup visibility into its financial future. Alexandra emphasized the value of detailed forecasts that are updated regularly and grounded in accurate, closed books.
Founders should categorize revenue streams, like subscriptions or one-time sales, and track monthly actuals against projections. This helps identify shortfalls and emerging opportunities early on. Cost forecasting is equally important, especially for tech-heavy companies with ongoing expenses for tools, platforms, and cloud infrastructure.
To streamline updates and improve accuracy, align your budget categories with your accounting system’s chart of accounts . Doing so makes monthly updates easier and more precise. She also recommends closely monitoring payment timing, like credit card due dates, to avoid unexpected cash crunches and maintain health liquidity.
Bringing on Partners
If you’re considering bringing in co-founders, advisors, or investors, Alexandra suggests treating those relationships like long-term commitments. Make sure prospective partners align with your mission and can offer sustained value beyond capital.
She recommends talking to other founders who have worked with the same investors to get a clearer picture of what to expect. When it comes to legal support, work with a lawyer who specializes in the funding path you’re taking—be it venture, private equity, or family office. Each route comes with different expectations around return timelines and exit strategies.
Another key tip: don’t overload your cap table early on. Bringing on too many investors too soon can lead to over-dilution, which may complicate future fundraising efforts.
Raising Capital
Before deciding how much capital to raise, it’s critical to understand the financial fundamentals driving your business. Successful fundraising starts with a clear grasp of your burn:
- Gross burn: how much it costs to run your business for 12–18 months with no revenue
- Net burn: your gross burn minus expected revenue
These figures help define your runway and give context for how much you actually need to reach key milestones, whether it’s building a product or scaling your team. Alexandra explained that sometimes it’s smarter to raise a smaller amount first, build traction, and then raise more once you have the metrics to support a higher valuation. “You’re telling a story with your numbers—make sure it’s one that investors want to buy into.”
Rob expanded on this by offering a broader perspective: raising money fundamentally shifts your business trajectory. “Investors, especially angels and VCs, expect high returns. That usually means rapid growth, multiple rounds, and prioritizing scale over short-term profit.”
That said, founders should weigh this tradeoff carefully. Bootstrapping or using debt allows for slower growth but more control. “You might grow slower,” Rob said, “but you maintain ownership and build on your terms. It’s about knowing what kind of company you want to build.”
Common Growth Pitfalls to Avoid
As companies scale, the margin for error shrinks. Alexandra sees a few consistent behaviors that separate founders who thrive from those who stall:
- Successful founders are coachable. They seek out people with experience in areas they don’t know and are open to feedback. This helps them build smarter, faster.
- On the flip side, founders who resist financial discipline, like skipping monthly closes or ignoring budgets, risk flying blind when making decisions.
Alexandra emphasized the importance of staying on top of your numbers, no matter your stage. She also warned against perfectionism. “Get your product out, get feedback, iterate.” Waiting too long to launch in search of perfection often slows growth and delays customer learning.
Lastly, be cautious when choosing investors. Some may require frequent updates or have expectations misaligned with your goals. The wrong partner can slow you down instead of helping you grow.
Keep the Momentum Going
This webinar was packed with actionable advice—but it’s just the beginning. Whether you want to revisit specific moments or dive deeper into the strategies Rob and Alexandra shared, you can access the full webinar recording on-demand.
Want to keep the conversation going? Connect with Rob Burnett and Alexandra Satine on LinkedIn. And if you’re looking for more insights like these, stay tuned—we regularly host founder-focused webinars to help you build and scale smarter. Not a Grasshopper client yet? Subscribe to our newsletter to stay in the loop.
By Julia Larkin in Business BankingStartups
