Don't let your finances spook you!

As the leaves turn and the chill of autumn fills the air, change is all around us. The Financial Folio is here to help you through these transformative times. Here are some bite-sized October financial tips to keep you getting treats—not tricks!

• Quarterly Review: As October marks the end of the third quarter, it's an excellent time for startups to conduct a quarterly financial review. Review your financial statements, including income statements, balance sheets, and cash flow statements, to assess your financial performance for the quarter. Identify trends, successes, and areas that may need improvement.

• Investor Updates: If you have investors or stakeholders, provide them with an update on your financial performance and milestones achieved during the year. Transparency doesn't just work for Casper; being honest in your financial reporting can build trust and confidence among investors.

• Budget Reassessment: Take this opportunity to reassess your budget for the remainder of the year and plan for the upcoming year. Make necessary adjustments based on your actual performance in the past quarters and any changes in your business goals or market conditions.

TRIVA!

The October effect is often associated with a perception of stock market declines during October. However, what does historical data suggest about the overall market performance in October over the past century or more?

1. October has consistently been a month of market decline.
2. The October effect is a well-documented and statistically proven phenomenon.
3. On average, October has tended to be a net positive month in stock market performance.
4. The October effect is caused by supernatural forces.

Check out the answer at the end of The Financial Folio!?

Investor Insights

Top 3 Things to Include in Investor Updates?

Don't let your investor think you're going out of business! Typically, investors ask for quarterly reports. Updating your stakeholders with what's happening in your business keeps them engaged and interested in their investment.?

Financial Performance & Metrics

Sometimes, investors will have their own portals and reporting templates to use to outline key metrics they're interested in. If not, a good rule of thumb is to report on:?

• Revenue: Both monthly and annual recurring revenue (MRR and ARR) are commonly reported.
• Gross Margin: Investors may want to know about the company's gross margin, which reflects profitability.
• Runway: Startups often report how many months they can operate with their current cash on hand, which is known as the runway.

Operational Updates

Investors look for regular operational updates to get an idea of what's happening in the company's day-to-day operations. Sharing these updates is essential for building trust, ensuring transparency, and helping investors make informed decisions about their investments in the startup. Some areas to outline are:?

• Product Roadmap: Updates on the company's product development and features.
• Customer Acquisition Metrics: Information about leads, conversions, and customer acquisition costs.
• Net Promoter Score (NPS): A measure of customer satisfaction and loyalty.

Milestones & Achievements

Similarly to sharing the operational components of the business, investors want to know the big things you're planning and how you'll get your company there. It helps investors gauge progress, receive valuable feedback, and attract more backers. This section of the update might include significant customer wins, product launches, or strategic partnerships.

Article Roundup

Suggested reads

How to Present a Successful Quarterly Business Review

Practical tips to make QBRs more engaging and effective, focusing on key strategies such as structuring the presentation, using visuals, and engaging the audience for a more impactful review experience.

Read more

Is It Time To Reassess Your Business Strategy?

As your small business grows and other forces of change—such as the economy, market and your industry—impact your operations, supply chain and market demand, you need to regularly revisit your business plan to ensure you're continually aligning your strategy with your current goals.

Read more

Calculate Your Startup's Capital Requirements

Hours of convincing yourself to “just do it” brings you to a pivotal moment in your startup journey. You've visualized your business idea, crafted a compelling plan, and now stand on the edge of action. At this point, one fundamental question demands an answer: How much money does your startup need?

Read more

TRIVIA ANSWER!

Answer: c) On average, October has tended to be a net positive month in stock market performance.

While the October Effect may be an interesting historical concept, it should not be a significant factor in your financial planning decisions. Instead, focus on a well-thought-out financial plan that takes into account your unique financial situation, objectives, and risk tolerance.

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