Financial for Startup

What is Startup actually?

• A process for building a software

• A phase in business life cycle

• An alternative of investment

• A round of funding

What is the main objective of a startup?

• To establish a new business in the market

• To generate maximum revenue

• To attract investors for funding

• To acquire other startups

Which ones are not business life cycle phases?

• Idea

• Startup

• Seed

• Growth

• Maturity

As Startups, Why do we need to understand financial?

• Startups are not non-profit organizations. They do business for profits.

• Startups have limited resources for competition. Effectively resources allocation is needed.

• Financial management enables informed decision for Startups.

• Financial management helps Startups generate good ideas

Revenue scales with transaction volume, and the platform becomes an intermediary in transactions.

Which one is the nature of revenue model as described above?

• Freemium

• Pay-per-use

• Transaction fee

• Subscription

Provides a steady, predictable stream of revenue and encourages customer loyalty and engagement through regular updates and support

Which one is the nature of revenue model as described above?

• Freemium

• Pay-per-use

• Licensing

• Subscription

Initial high revenue from sales, potential for additional revenue through maintenance contracts.

Which one is the nature of revenue model as described above?

• Licensing

• Pay-per-use

• Advertisement

• Freemium

Which ones refer to COGS properly?

• The direct costs associated with producing or delivering the software product.

• Cost of Marketing and Sales commissions.

• Software Development Labors, Tools, Licenses, and Third-Party Services.

• Cost of prototyping and testing.

Which ones refer to operation expenses properly?

• Patenting

• Advertisement on FB.

• Outsourcing developers

• Buying computers and Laptops

Which ones refer to Budgeting properly?

• Forecasting company financial in 5 years

• Outlining expected expenditures.

• Outlining expected revenues.

• Align financial resources with the strategic goals of the startup.