Anup Mehta is the co-founder and CEO of bkynd. bkynd is a tech startup facilitating acts of kindness. Prior to bkynd, Anup worked as a legal consultant.
At bkynd, managing company spend involves constantly tracking the right numbers. Find out which metrics founder Anup believes to be key, and how he keeps his recently launched company prepared for any scenario.
For a start-up that’s just launched, Anup believes there are three key metrics to monitor constantly: customer acquisition costs, earn and runway.
At bkynd, they try to spend as little as possible on acquisition, preferring to do it organically.
The other two metrics, earn and runway, are important to follow because of how easily their values can change, e.g. each time there’s an unforeseen expense.
With co-founders in Belgium, bkynd had already counted remote work as a reality for their business. But with COVID-19, everyone was sent home – making them clear free of those office costs sooner than expected.
For bkynd, this crisis was a welcome validation of their plans, as businesses everywhere are seeing the benefits of remote working, and just how seamless this change can be.
When you’ve just launched a start-up, numbers can get away from you. It’s tempting to push financial tasks to the end of your priority list. You’re excited about your product, and you’ve already got so much to do – looking at numbers can seem tedious in comparison.
But cash is king, and Anup has to keep reminding himself of it. A simple glance at your numbers now and then just won’t do.
You have to be honest about them, too, and not make excuses. The numbers don’t lie, and you will run out of cash if you don’t stay on top of them.
Bkynd overestimate their predictions to ensure they’re ready for whatever comes their way. But you should also have a solid plan about what you’ll do if the worst happens. If you run out of cash, how will you adjust your spending? Keep the answer to this question close to you.
Anup knows where he wants the company to be in six- and twelve-months time. But because the conditions of a startup can change so quickly, they choose to monitor spend on a weekly basis. This way, they can keep an even closer eye on unexpected expenses which might crop up.
As a new company, they haven’t yet felt the need to use a lot of technology to manage their spend. A business can easily control their balance, money coming in and money going out with a simple spreadsheet.
The value of tracking your cash in a crisis can’t be underestimated. And when you’re spending to survive, you should be even more aware of where your money’s going.