Raised Funds, Here's Simple Cashflow Management Tips?

Hey there, startup founder!

Congrats on raising between $1M and $10M! ??

Now, it's time to ensure that your hard-earned funds are managed wisely.

Let's dive into the essentials of startup cash management.

1. Safety First: Spread your money across multiple safe accounts. Don’t put all your eggs in one basket!
2. Avoid Additional Risks: Stick with the base interest rates. It’s not the time to gamble with your funds.

• Key Questions to Consider

1. Should I put everything in one bank account? - Definitely not! Diversify your funds across 2-3 bank accounts to mitigate risk.
2. How to keep my cash liquid? - Invest in liquid funds or T-Bills backed by government securities. Safety and liquidity are your best friends here.

• Checklist for Safe Fund Management

1. Check Insurance Coverage: Ensure your bank accounts are well-insured.
2. Build Multiple Banking Relationships: Don’t rely on just one bank.
3. Hold Majority of Cash in Large Banks: Keep 80% or more in one of the country’s largest banks.
4. Implement Clear Processes: Establish robust processes for larger transactions (e.g., maker-checker, authorized signatories, approvals).
5. Invest Surplus Funds: Money not needed in the next 6 months? Invest it in short-term government securities.
6. Prepare a Cashflow Roadmap: Create a detailed monthly cash flow plan.

By following these best practices, you'll ensure that your startup’s funds are safe, accessible, and working for you.

Happy managing, and here’s to your continued success!

Stay financially savvy!

Akash from Jordensky

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