A startup may not have the luxury of cash, but a startup is still one with a business plan.
Here are five of the most common startup concepts, along with some of the financial aspects of that business plan:1.
A cash flow model.
This is a business model that’s been used successfully by several successful companies over the years.
Cash flow models are business plans that aim to reduce costs and maximize revenue.
Examples of successful cash flow models include:2.
A valuation model.
The valuation of a business is the price a company would be willing to pay for that business at today’s prices.
An example of a valuation model would be a valuation of Netflix.3.
A profit model.
A business’s profit is the amount a company can make in a given year.
This includes both direct and indirect profit.
Examples include a stock valuation or a sales model.4.
A debt model.
Businesses that are debt-free are able to pay their bills in cash or other assets.
Examples would be car dealerships, credit unions, and online lenders.5.
A financing model.
When a business can pay its debts in cash, it is considered to be in good financial shape.
Examples are a loan, a convertible note, and a secured loan.6.
A revenue model.
Revenue is how much money a company makes from a given activity, such as selling products.
A company’s revenue can be considered to reflect both direct revenue from products and indirect revenue from a variety of other sources.7.
A return on equity (ROE).
ROE is a percentage of revenue that a business gets from its product.
For example, an internet-based company might have a ROE of 15%, while a business that sells food could have a much lower ROE.8.
A stock price.
The price a stock has been quoted on a particular day is the number of shares of the stock on that particular day that were traded.
The number of share prices has a direct correlation to how much stock a company has.
Examples can include a price of a stock on a trading exchange, or the price of the company itself.9.
A liquidity strategy.
A successful startup has a liquidity strategy that aims to manage and control liquidity.
These strategies are often based on the idea that a startup can only succeed when its product is cheap.
A long-term business plan (LTP).
A long term business plan aims to keep a company profitable for at least a certain amount of time, and also to achieve profitability in the future.
Examples could include buying back stock, or creating a company to take over a failing business.11.
A strategic plan.
A strategy to improve or improve the business in some way is often considered a strategic plan, and is usually one that’s used by businesses with a lot of cash.
Examples may include a strategic planning for a new business, or a strategic plans for a competitor.12.
A product roadmap.
A roadmap is a plan for the development of a product or service that is followed by a significant number of customers.
These customers can be people who are willing to buy the product and then will continue to use the product for a certain period of time.
Examples such as a mobile app, or new product launches may include an LTP.13.
A technology roadmap.
Technology is an integral part of a startup, and one that can be used to develop a new product or business.
A good example is a smartwatch, which is one of the products that are being developed at the startup.
This smartwatch is not only being developed by the startup, but it is also being used by customers who are also interested in the product.14.
A platform roadmap.
Platforms are a set of tools that developers can use to develop new software applications.
Platform development is often done using the software they use.
Examples might include WordPress, GitHub, or any other web development platform.15.
A service roadmap.
Service development is a process that is used to build out a product, such a website, or app.
Services include any type of service that users need to be able to use.
Services such as Uber, Yelp, or Spotify are examples of services that are built with a service roadmap in mind.