Jiří Vízek, finanční manažer Integračního centra Praha a jeden z mentorů PrusaLab hardware akcelerátoru
Accelerator, Accelerator mentor, Interviews

Cash flow vs budget: What will decide the survival of your startup?

Many startups fail not because of a bad product, but because of financial unsustainability. How to properly set up financial management so that your project survives (not only) the first year? This can help you Jiří Vízek, financial manager Prague Integration Centre a mentor in the programme PrusaLab hardware accelerator. In the interview, she presents her expertise in financial management and strategic planning, and explains how she helps startups avoid key mistakes and create a sustainable growth plan.

What do startups often overlook?

According to Jiří Vízek, startups place up to too much emphasis on the budget, but they underestimate cash flow. As he himself says: „The budget can change dynamically from week to week, but if you run out of capital, in most cases it will mean the end of the startup.“

Key mentoring areas

Vizek offers startups three basic blocks, which will help them find their bearings in the financial management of the company:

  • Fundamentals of financial management: employment law, managerial accounting, controlling and administration setup.
  • The practical side of finance: budget preparation, cash flow management and organisational structure.
  • Strategic planning: PEST analysis and preparation for the Accelerator Demo Day pitch to investors.

Everybody does everything, but is that a good thing?

Startups start in small teams where they founders often take care of less technical activities, such as handling administration, invoicing or keeping accounting records. But that means less time for the product, business and growth. „Consider what you are strong at, consider where your place is in the company, and do not be afraid to invest, even through outsourcing, in areas where you are not strong.“

When you don't know, ask

Vízek points out that many founders he is afraid to admit that he doesn't know something. This might only fully manifest and backfire during the actual operation of the company. „At a time when I am not sure, an accelerator is precisely the environment where someone will always help me, and if they cannot help because the expertise is not here, the problem is at least identified and can be addressed.“

PrusaLab hardware accelerator it offers startups not only technological background and a development team, but also comprehensive mentoring in key business areas. In addition to product development itself, we help with finance and growth strategy, logistics, the legal framework and related areas so that their business is sustainable and scalable right from the start.

V previous video we spoke with by Luděk Drnec, CEO of DHL Express Czech Republic, on how start-ups often underestimate logistics.

Follow our mentor series and discover how the PrusaLab hardware accelerator can help your business too!