Finance in Plain Language

Launching and developing online schools and online courses is a complex process, especially when it comes to working with several projects at the same time. Dmytro Frolov, the founder of a production center and co-owner of an English language school, faced the need not only to launch new courses efficiently but also to maintain control over finances in the face of rapid business development. Find out how he managed to put his finances in order and ensure the stability of his projects with the help of Finmap in this article.

Meet: Dmytro Frolov and His Production Center

Dmytro Frolov is an entrepreneur who runs a production center specializing in launching and driving cold traffic to online schools and online courses. He also co-owns an English language school for Ukrainians founded by Kirill Makashov. These business lines pose many financial challenges for Dmytro, which must be addressed for the sustainable development of the projects.

Financial Traps: How Cash Gaps Almost Destroyed Business

Prior to founding the production center, Dmytro ran a marketing agency, but faced two serious cash gaps that negatively impacted his experience and reputation. Previous financial strategies based on manual calculations in Google Spreadsheets and working with old-school accountants were not effective, and Dmitry was tired of continuously trying to control the chaos in his finances.

One of the main mistakes was the perception of the account balance as a financial result of the business, which led to a misunderstanding of the company's real performance.

Thanks to these lessons, the entrepreneur began to study financial literacy and learn how to structure his finances correctly. This experience confirms the importance of proper financial accounting for any business, regardless of its scale. After all, 70% of businesses close due to cash gaps, which can be avoided if you manage your finances properly.

Finmap: From Chaos to Clear Financial Management

Since the launch of the production center, Dmytro and his team have been working with several clients at the same time (from 3 to 5 schools), creating an internal management system. When the English language school appeared, there was a need to build a financial system from scratch.

The growth of the business led to an increase in sales flow, the emergence of accounts receivable and the opening of accounts in different countries, which made it difficult to manage. Then, on the recommendation of a friend, Dmytro decided to turn to Finmap.

Immediately after connecting Finmap, he managed to combine all the accounts into one system and get a complete picture of the business's finances. On the very first day of using the tool, Dmytro saw how much money the company had, which was a real eye-opener.

Finmap made it possible:

• Quick access to financial information. At any time, Dmytro can use his smartphone to view the full picture of his finances, which has greatly simplified his control over the business.
• Automation of complex processes.Thanks to Finmap, salaries and payments to partners are now distributed without any problems. Systematizing expenses by categorizing them in a few clicks helps to avoid mistakes in payments.
• Integration of financial instruments. Previously, due to the large number of accounts, there was often a lack of funds to pay for certain services or salaries, as some expenses might not have been taken into account and automatic debits from linked cards or accounts went unnoticed. Thanks to Finmap, Dmytro can now quickly integrate all his accounts and systematize cash flows, which helps him avoid such situations and keep his finances under control.
• Preventing cash gaps. With Finmap, Dmytro can now track account balances and forecast cash flows, which allows him to identify possible cash gaps in advance and take the necessary steps to avoid them.

Why Does an Entrepreneur Need Financial Management from Day One?

Often, entrepreneurs rely on accountants alone, believing that this is enough to manage their finances effectively. However, this is a misconception, as controlling finances is a key responsibility of a business owner.

It's important not only to develop a product or marketing, but also to keep your finger on the pulse of cash flow.

Finmap helps to avoid the difficulties associated with manual accounting in Google Spreadsheets. With this system, you can easily control financial flows, including expenses for salaries, taxes, and advertising. This is especially useful for those who have many accounts and currencies.

Initially, the production center had a chaotic financial situation and could not clearly track expenses and income.

As we started to grow, our expenses increased every month, and the number of accounts grew with them. However, it was thanks to Finmap that we were able to integrate all financial flows into one system and get a clear picture of the state of our finances.

This allowed him to avoid cash gaps and plan expenses effectively. Financial transparency helped the entrepreneur to control every aspect of the business and make informed decisions.

Why is it Important to Start with the Financial System at the Start of the Project?

Creating a financial system at the start is much easier than trying to implement it when the business has already scaled up. With Finmap, you can track all expenses and income in real time, avoid mistakes, and keep control of your finances.

The biggest mistake that entrepreneurs make is to postpone the implementation of the financial system until later.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

‍Advice for Entrepreneurs from Dmitry Frolov

Dmytro recommends creating a reserve fund of 10-20% of revenue to cover salaries, advertising, and contractors during crisis periods. He emphasizes that businesses that had a financial cushion were able to better adapt in times of crisis (pandemic, war), quickly restart their projects or start new ones.

During the COVID-19 pandemic, his business grew by 300% in one month. Then the war created new difficulties, but thanks to migration processes, in particular the increased demand for online education among Ukrainians who went abroad, the business experienced an explosion of growth again. People were looking for opportunities to develop and learn, which led to an increase in the customer base.

Dmytro shared his experience in financial management, highlighting the key mistakes he faced before implementing Finmap.

Top mistakes in financial management:

1. Cash gap. Unforeseen expenses or improper cash flow management.
2. Chaos in the accounts. A large number of accounts in different systems can lead to a lack of funds for payments or services.
3. Unaccounted for costs. Entrepreneurs often forget about small expenses, which can create liquidity problems. In Finmap, all expenses are integrated automatically, allowing you to better control your finances.
4. Create chaos in spreadsheets instead of integrating the system in a week. In Finmap, all finances are automatically accounted for and systematized, allowing you to effectively manage cash flow.

Finmap as a Solution for Business Scaling

With the help of Finmap, Dmitry Frolov's production center was able to significantly optimize its finances, avoiding chaos in accounts and cash gaps. Automated processes have allowed the business to focus on scaling and growth, particularly during the pandemic and military challenges.

Finmap has become an indispensable tool for transparent financial management and a reliable partner for businesses seeking to grow without financial barriers.

Google has always supported Ukrainian business, and this year it took another step in this direction. In spring, the company launched the global programme "Google for Startups Ukraine Support Fund", which provides financial assistance to Ukrainian startups.

In the second round, the fund totalled $10,000,000 in equity funding. In addition to financial support, Finmap and 23 other startups and tech companies receive mentorship and product support from leading experts of a global IT giant.

Finmap is a easy-to-use cash flow management tool that has helped more than 3,500 companies from more than 100 different industries to get their finances in order.

Entrepreneurs from 54 countries choose Finmap not only because of its convenient and intuitive functionality, but also because of the high level of data protection that meets the security standards of international companies and banks. The information is transmitted and stored on secure servers in Europe and encrypted using the highest 256-bit encryption standard.

Finmap is a leader in Ukraine in the niche of financial management for small and medium-sized business owners.

Finmap has connections to more than 2800 banks and financial services worldwide, support for 35+ currencies and 80+ cryptocurrencies. It also has a team of professional financiers who can help with financial management, mentoring, and the development of individual financial models for businesses.

Google's Support for Finmap: Recognised on a Global Scale

The competition for the programme was intense with many selection criteria.
Google chose Finmap because of its product innovation and ability to solve real business problems. This selection confirms the company's potential for growth and international scaling.

Receiving funding and mentorship is not only a confirmation of the company's right course, but also new opportunities for international development, job creation and the use of technology to solve unique challenges, collaborate and attract customers.

New Opportunities for Finmap with the Support of Google: What Does It Mean for You as an Entrepreneur?

The funds received from Google will be used to improve Finmap tools. The main focus is on the integration of new features to automate financial management and analytics.

This will not only expand Finmap's capabilities and improve the user experience, but will also provide a real opportunity for existing users to get more accurate and detailed data needed to make important business decisions. For new customers, this will mean easier access to effective tools that simplify financial management and help their companies grow.

New AI assistant Functions to Optimise Financial Management

Google gave preference to those who actively integrate AI into their products. One of Finmap's key advantages in the selection process was the use of an AI assistant that helps entrepreneurs quickly receive recommendations and advice and easily optimise financial management.

Google's support and experience will significantly expand the functionality and capabilities of the AI assistant, adding the ability to conduct in-depth analysis, analyse data, and provide valuable recommendations for business development. Users of the service will be able to receive insights on how to improve business processes based on their real data.

The new features will also reduce routine operations, find cost bottlenecks, and help avoid financial crises. Finmap users can now focus on scaling their business, and Finmap will help them to organise their money.

Try Finmap now

You have 7 days free, and our caring experts will help you figure it all out.

Try for free

* no need to bind the card

Business-Changing Financial Solutions: Supporting Local Businesses and Global Ambitions

The mission of Finmap is to help small and medium-sized businesses systematize financial processes and improve resource management. The founders of Finmap initiated a project to support Ukrainian entrepreneurs, assisting them in implementing effective financial management. This contributes to financial stability and business growth, even during challenging times.

The company's funders and financial experts have repeatedly participated as speakers and mentors in economic and social events: Defence builder, Vector of Reconstruction, Ukrainian Humanitarian Front, Star for life and others.

Support from Google opens the door to international markets. Finmap has an ambitious goal to become a key tool for financial management of small and medium-sized companies around the world. And you, as a Finmap user, have the opportunity to be at the forefront of this expansion.

The service helps entrepreneurs better understand their finances and make informed decisions. This not only facilitates the work of individual companies, but also actively contributes to the development of the Ukrainian economy.
The real-life cases of Finmap users are impressive:

• found $9,000 of avoidable expenses;
• have never fallen into a cash gap thanks to Finmap management;
• increased net profit by 10% per month;
• created a successful financial model for entering the international market;
• reduced the time spent working with finances by 50 times;
• For the first time in three years, we made a profit instead of constant losses and ‘falling into the red’.

These achievements were made possible by the implementation of the Finmap and with the help of a team of professional financiers who provide advice, financial management services, mentoring and the development of individual financial models for businesses.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

With Finmap, you get not just tools for financial management, but a reliable partner on the way to development and scaling.

If you want to:

• take the first step towards sustainable business development and transparent financial management,
• get advice on financial planning and business scaling,

Book a free expert diagnostic consultation and start turning your business goals into reality today!

It's a mistake to think that financial management is a tool only for the owner or manager of a company. In fact, it is a red thread that runs through all departments, uniting them into a single system and ensuring effective and coordinated interaction.

In this article, we will find out why it is important for companies to have well-established financial management in terms of marketing and marketing strategies. The example will be one of Finmap's partners, the Ukrainian digital company "Marketing Office", which provides comprehensive marketing services.

‍Financial Accounting From Day One: Marketing Office's Experience

"Marketing Office" was founded several years ago. The founder, Alina Kashapova, took a responsible approach not only to the selection of the team, but also to financial management from the very first days of the agency's existence. She had to work with companies that had not implemented financial accounting for decades, which caused constant problems in business and marketing.

Why Effective Marketing Requires Financial Management?

Financial accounting helps to make management decisions based on the real business situation. Without a clear financial record of income and expenses, it may seem that there is an opportunity to invest more in marketing to attract new customers. But a one-time injection of funds into marketing is not enough for stable and ongoing growth.

‍
It must be a constant, systematic process that is adjusted and updated. For example, a comprehensive website development and promotion can take 3-4 months. The client will receive the results of this marketing move in the future, and the funds for implementation should be spent throughout the process.
"Marketing Office" emphasises:

‍
Throwing money in and not drawing conclusions is a disservice to your business. Management of income, expenses, and financial results correlates with marketing processes.

So where do you get the money to reinvest in marketing on a regular basis?
Without a clear understanding of the company's state, a shortage of resources is unavoidable.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

Only financial management can assess the state of the business and find the answer to this question. Financial accounting analytics shows:

• How much money is currently invested in marketing.
• What is the share of marketing costs in the overall structure.
• Which costs are subject to optimisation and reduction.
• Which costs are subject to optimisation and reduction.
• Whether marketing campaigns bring the desired result.

Therefore, marketing is impossible without a clear financial strategy, since it is finance that determines the opportunities for attracting customers, developing the brand and implementing strategic plans.

‍P&L Report: The Key to Informed Marketing Decisions‍

In order to avoid intuitive decisions and rely solely on numbers and facts, Marketing Office first of all refers to the client's financial statements, and directly to the P&L. If it is properly maintained and filled in, the marketing department can focus on the following issues:

1. Effectiveness of activities. The ratio of marketing expenses to company income will allow you to understand whether marketing provides an increase in new customers, whether sales volumes are growing, etc.  

2. Work with the assortment. The information from the report can give an understanding of which product or service needs additional promotion or replacement; which product/service is currently relevant to the client, etc.

3. Marketing strategy. Planning the financial part of marketing allows you to predict future revenues and avoid losses. Adjustments to the marketing strategy are always based on financial results.

Of course, in addition to these three issues, the P&L report can provide information on the trend and composition of marketing expenses, the type of customers (new or regular), the impact of sales department expenses, and much more.

Successful Business Control Through Finmap Reporting

"Marketing Office" Uses Finmap Not Only for P&L Reports. The company also actively uses the Projects report to keep track of work projects and various business lines.

Every month, we manage about 10-12 projects for clients. The more projects you have, the easier it is to get confused, so the expense accounting software makes life much easier.

‍
Alina Kashapova, as a business owner, constantly analyses key financial indicators to plan her business properly. The main ones are generated automatically in the Analytics section of Finmap, while the in-depth ones are calculated separately based on data from reports:

• Profit dynamics - whether the total profit is increasing according to the plan.
• KPI calculation - which performance indicators are realistic in the current period.
• Margin level - whether the margin meets the planned goals.
• Availability of free funds - whether there are funds for new expenses and investments.
• Analysis of future income and expenses - to avoid cash gaps.

Marketing and finance must work in tandem to achieve results, and regular financial management allows businesses to grow steadily and without unnecessary risks.

Financial management is not accounting, but a key element of a successful business. The use of modern tools such as Finmap helps entrepreneurs stay afloat, effectively manage financial flows, and grow.

Set up financial management with Finmap and start building a successful business strategy today!

How can an online school build an effective business model and ensure financial stability? This was the question facing Mathema, an online school specializing in teaching math to schoolchildren. Low repeat sales and insufficient control over cash flow were hindering its growth.

How to make financial accounting a tool for strategic decision-making? How to increase the transparency of financial processes and stabilize profits? The answers to these questions were found in the Finmap program, which changed Mathema ' s approach to financial management. In this article, we'll look at how Finmap implementation helped the school achieve financial sustainability.
‍‍

Mathema - Personalized Learning to Improve Math Skills

Mathema is an online math school founded in 2021 that specializes in one-on-one tutoring for students in grades 1-11. The school provides personalized learning that helps students improve their knowledge and fill in gaps. As of today, Mathema serves more than 2,000 students and conducts more than 20,000 lessons every month.

Key Tasks and Challenges on the Way to Success

At the beginning of his journey, the company's co-founder Vitaliy Shkil aimed to create a systematic, predictable and stablebusiness. The idea was to find a business model that would ensure repeatability of processes and transparency of results. Working in the field of education has always been interesting, but there was often a problem with adults dropping out of training even after paying for it in full. This created certain difficulties for the business due to the low level of repeat sales and short-term interaction with customers.

The turning point was the realization that education for children is a completely different market. Children cannot stop learning because it is an obligatory part of life for them, just as work is for adults. This creates an opportunity to build long-term relationships with clients, as the learning process lasts for years.

The Requests of the Online Math School Mathema that Needed to be Solved:

• Business scaling. Aiming to expand an online math school by attracting more students, increasing the number of classes and teachers. To do this, it is important to have a clear vision of cash flows while scaling to avoid financial risks, loss of funds, or inefficient use of resources.
• Increase in sales. The need to increase sales, which requires an accurate understanding of how to invest in attracting new customers in a cost-effective manner.
• Transparent financial management. The need for proper accounting of all financial transactions to ensure transparency and control over the business. This includes accounting for student revenue, teacher expenses, marketing, course platform, etc.

I was lucky with my finances, I always listened to smart people, and they all said: control your finances.

In his previous online course business, Vitaliy tried to keep financial records, but it was more "reporting for reporting's sake," without a real understanding of its usefulness. It did not help in business management and did not influence important decisions.

Case study When he started Mathema, his approach to finance changed. Vitaliy already had basic knowledge and understood the difference between cash flow and profit and loss (P&L) statements and why it was important. Thanks to this experience, he was able to build a financially stable foundation for the business, which helped in the development and scaling of Mathema.
‍‍

I was already applying my knowledge of financial accounting to a new business, making it financially healthy from the start. Because I realized that for me, finance is one of the areas from which I can diagnose something in business.

The main challenges for the company in the future were scaling and sales growth. As the business became bigger and more complex, there was a need for effective financial management, which became one of the key conditions for further successful development.

To do this, it was decided to use the Finmap financial accounting system , which helps to maintain control over cash flows and ensures stability in the face of business growth.

Why Switched from Excel to Finmap

Initially, Mathema used Excel to keep track of funds. It seemed like a simple and convenient solution, but over time, it became clear that Excel was no longer suitable for a growing business. It only helped to count money, but did not give a complete picture of finances, which made it difficult to work.

5 Reasons to Switch from Excel to Finmap:‍

• A complete picture of finances. Owners can see all the company's financial flows on one screen, which allows them to better control income and expenses.
• Different levels of access. In Finmap, you can customize roles for employees. For example, managers can see only what is relevant to their work, without having access to company expenses.
• Integration with banks. Finmap synchronizes with bank accounts, so all payments automatically appear in the system. This reduces the risk of mistakes that used to happen with manual accounting. For example, once $250 were lost in Excel and the team spent two hours looking for the error. With Finmap, this no longer happens.
• Transparency of all operations. All transactions are immediately displayed in the system, which makes it easy to track payments and not lose information.
• Reports for analysis.Finmap allows you to see monthly financial dynamics, which helps you make decisions about business development.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

I also want to support cool Ukrainian products like Finmap.

Results of Cooperation - What Has Changed in Mathema with Finmap‍

Since March 2021, Mathema has been actively using Finmap for financial management.

Key Results of Cooperation with Finmap:‍

• Control of the key metric. For an online school, an important indicator is the number of payments for the first lessons. This is the entry point for new students, and further income depends on its stability. With Finmap, owners can quickly track these payments and respond quickly to declines to avoid losing potential sales.‍
• Monthly analysis of P&L and Cash Flow. Once a month, the owners check the profit and loss (P&L) and cash flow statements in Finmap. This helps to draw conclusions about the state of the business and make plans for the future.‍
• Daily monitoring of cash flows. Every day, the owners monitor what is happening with the finances. Thanks to this, the company has never fallen into a cash gap. For example, Mathema has a fund to pay teachers, which is formed from subscription fees, and Finmap helps to keep track of these funds, preventing them from being spent on other needs.‍
• Cost optimization. Finmap allowed us to see the cost structure in detail and compare them. For example, it turned out that the company was paying too high a commission, which was optimized, freeing up additional funds for the budget.

Thanks to Finmap Mathema not only improved its financial management, but also received a tool for strategic planning. This allowed the company to avoid financial difficulties and use resources more efficiently.

The Finmap program has become an integral part of financial management, giving owners full control and confidence in the stable development of their business.

You can get this result for your business too! Try Finmap today and experience how easy it is to manage your finances, optimize costs, and plan for the future with confidence!

Looking at successful companies that have become key players in the market in 8-10 years and are already setting their own rules, it is hard to believe that they also started out small. Each of them has gone through a difficult individual path of development. But they all have one thing in common: they managed to establish financial management and overcome financial difficulties. 

From a Single Person to an International Company

«Sales Bureau» - is a prime example of a company “that has made it”. Now a successful international consulting company, back in 2016 it started its journey with one employee and three clients. Andrii's experience, knowledge and perseverance allowed him to scale the business. However, gaps in financial management prevented the business from growing fully.

Big Bills Don't Always Mean Big Profits

The company grew, new types of expenses, accountable persons, departmental budgets, new clients with new requests appeared. Drowning in the bureaucracy that was already at the company's doorstep was not an option. It was necessary to find an easy and effective solution that would allow us to systematise the mess of amounts and numbers.

I realised around the third year of doing business that if I want to earn more, scale the company, raise salaries for people, understand how much I personally earn, and have financial hygiene, I need to understand finance. Andriy Krupkin, founder of the «Sales Bureau»

The solution seemed obvious - to bring all financial sources into one system and streamline them.

By connecting Finmap and adding all the accounts, it was finally possible to relax — the funds in the accounts brought a sense of calm and hope. With such amounts, financial crises seem like fleeting concerns that immediately disappear when you look at the full capital.
However, for some reason, the problems did not disappear, and more and more often cash gaps destroyed the company's plans. 

We thought we had a lot of money because of the big cheques. But as it turned out, this is not yet profit. Andrey Krupkin, founder of the «Sales Bureau»

How to Tame Chaos and Cash Gaps with Finmap

Simply bringing all financial sources into one system was only the first step on the road to financial order. 

The second step was to manage receipts and write-offs, which were now in the palm of your hand. With Finmap, the cash flow process became transparent and understandable, which in turn allowed us to:

• completely abandon homemade signs;‍
• get rid of the chaos and confusion caused by these signs;
• unify and standardise financial management for all departments;
• control the movement of money in online time.

Andrey Krupkin, founder of the «Sales Bureau», shares his thoughts: 

If you don't use Finmap, you spend a million to a billion hours summing up all your inconvenient signs, where you can't even automate any processes. Finmap solves all these issues.

With each passing day, the situation became clearer and the company realised that without effective planning, the mess would not be completely tamed. Finmap's Payment Calendar came to the rescue, showing at a glance which days payments were expected from customers and when payments were due.

Thanks to the automatic calculation, the Calendar clearly shows when there may be a shortage of money to pay contractors or employees. 

So, after adjusting the payment terms and scheduled dates, cash gaps were crossed off the list of financial difficulties.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

 Key Insights from the Sales Office

Rational planning and the P&L report finally answered the question of where the profit was, which was hidden among a large number of transactions. Thanks to the date of the transaction and the period of the transaction, it was possible to clearly identify the money actually earned not only in terms of the year or month but even the week. 

Having tamed the turbulent financial flows, the «Sales Bureau» was able to identify the following points with the help of ready-made financial reports:

• expense sources that need reduction and optimization;
• the most popular and profitable services;
• how to optimize accounts receivable;
• which business areas are growing the fastest;
• business areas that require updating and modernization.

How Finmap and the ‘Sales Office’ Are Currently Working Together

The company has now fully established financial management and automated this process using Finmap tools. Now all top managers, the COO and the founder of the company have transparent information that can be accessed from any device.

Andriy says that Finmap-based financial control has allowed him to formulate a more accurate sales strategy. 

Comparing the experience of accounting at the beginning of our business and now, I am sure that we have managed to reduce the time spent on finance by 50 times! Andrey Krupkin, founder of the «Sales Bureau»

You can also see for yourself by registering with Finmap. Set up and automate your financial accounting and don't waste time on routine

Launching a new project or taking a business to the next level is always a challenge for an entrepreneur. Not only the success of the launch, but also the long-term stability of the company depends on competent financial planning.

How to effectively allocate resources at the startup stage? What costs should be taken into account to avoid financial difficulties in the future? How to create a financial model that will become a roadmap for your business?

These and many other questions will be answered by EMMER's case study, which demonstrates the importance of creating a financial model that becomes the basis for successful market entry.
‍

Meet EMMER, a sliding kitchen for Jeep Wrangler JL

For the modern explorer, the journey is as important as the destination.

EMMER is an innovative retractable kitchen designed for owners of Jeep Wrangler JL adventure vehicles. The design combines advanced technology with striking aesthetics, while enhancing the enjoyment of impeccable outdoor cooking.

Challenges and financial calculations: How to successfully launch a business project in the US market
‍

EMMER is a business project that will be launched from scratch in the US market. This is a new experience for the owner, but he has a golden rule:

First, you have to win the calculations.

Before launching any project, an entrepreneur should carefully evaluate all costs and potential revenues. Even if the project seems very attractive, it is important to determine whether it makes sense from a financial point of view. The key is to understand the conditions under which the business will be profitable, or at least not cause losses.

The task was to clearly define the conditions for the success of the business project, taking into account the required sales volume and the price of the product. To do this, several key parameters had to be taken into account, including launching the project on the Kickstarter platform. This platform allows you to raise pre-funding from potential buyers, spend time making the product, and send it to users. However, the implementation process has many nuances that need to be taken into account to achieve success.

Project features: Why the financial model is key to success on Kickstarter
‍

Launching a company on Kickstarter requires not only a presence on the platform, but also careful preparation. One of the key stages is the pre-launch campaign, which lays the foundation for future success. Preparatory activities include collecting a database of potential customer email addresses and creating an active community around the product. All these actions require significant investments.

The main costs are worth highlighting:

• Organizing a PR campaign
• Presentation of the product through influencers, which requires the production of the product, its shipment to the United States, and payment for the services of influencers
• Hiring an agency to professionally launch a Kickstarter campaign
  ‍

In addition, you need to consider the following costs:

• Kickstarter commission
• Acquiring fees
• Taxes in the country of production
• Customs clearance costs in the United States
• Payment for the work of the team that will implement the project
  ‍

Success on Kickstarter is determined by how carefully these costs are planned. Only a well-calculated financial model will allow you to not only cover all expenses but also ensure the profitability of the campaign. It's not just about preparing a budget, it's about strategic planning that lays the foundation for scaling your business.
‍

EMMER needed effective solutions to overcome a number of challenges and to grow successfully:

• Project development: The need to improve the current project to take it to the next level required the development of new approaches and strategies to ensure competitiveness and sustainable growth‍
• International expansion: Expansion into international markets required adaptation to different market conditions
• Financial planning: The need to create a financial model that will allow to estimate the profitability of the business, determine the required volume of sales and services. The financial model should help to understand what factors affect profitability and how to optimize them to achieve financial goals

Financial planning and analysis with Finmap: how to optimize costs and maximize profits
‍

The most effective way to analyze all expenses and profits is to build a financial model with the help of Finmap specialists, as there are many parameters to consider.

The owner of EMMER knew that Finmap was not just a program for accounting for money, but also a team of professional financiers offering expert services for creating and developing projects.

It was also known that Finmap helps both new startups and existing businesses reach a new level.

What is a financial model and what role does it play in the decision-making process?
‍

A financial model is a tool used to forecast the financial performance of a business. It is a mathematical representation of the financial aspects of a company, including revenues, expenses, profits, cash flows, investments, and other financial indicators. The model allows you to analyze the current financial situation and forecast future results based on various scenarios, such as changes in costs, pricing, market environment, etc.

Financial models are widely used for business planning, investment project evaluation, management decision-making, and strategic planning. They can be developed for companies of any size and in any industry, and can be used to assess risks and opportunities.

Creating a financial model: how Finmap helps EMMER make winning decisions
‍

The process of creating a financial model begins with an in-depth analysis of your business. Finmap experts collect detailed information about the project, which allows us to accurately calculate financial flows and forecast future income.

What Finmap specialists take into account:

Vitrate structure:

1. Product costs (cost price and logistics)
2. Operating expenses (salaries, development costs, prototypes)
3. Payment system fees, legal and unforeseen expenses

Marketing and sales:

1. The cost of a marketing manager's salary
2. Marketing budget (typically 30% of the planned Kickstarter collection)
3. Content and PR costs

These costs form the basis for calculating EBITDA, taxes, and the final net profit. The financial model also takes into account different pricing strategies. For example, Kickstarter often offers significant discounts to attract early adopters, while it is important to maintain margins for subsequent sales through dealers.

The main purpose of the financial model is to help determine and achieve the optimal amount to collect. It's important to set a realistic goal that can be exceeded rather than risking too much. For example, Kickstarter campaigns usually last two months and raise between $100 thousand and $150 thousand, but it is better to set a goal, for example, $80 thousand, which can be exceeded.

The financial model also allows entrepreneurs to experiment with different combinations of prices and sales volumes, such as retail price, dealer price, early bird price. This helps to understand how changes in strategy affect the overall business picture and how much money can be raised on the platform.

It's important to take into account all expenses, including pre-launch campaign costs, to assess the realism of the goals. For example, if you raised $130k but spent $108k on it, will you be able to sell enough products in a month to be in the black?

A financial model is a forecasting tool. It helps to plan sales for the whole year so that the company remains profitable. Working with the model, you can assess the impact of various scenarios, such as selling only through dealers or only at retail, and understand how this will affect the business.

You also need to take into account the tax jurisdiction: in Ukraine, the tax can be 5%, and in Europe, it can be up to 40%. The financial model shows under what conditions the business will be profitable or risk becoming unprofitable.

A financial model allows an entrepreneur to clearly understand what expenses and income to expect and how different strategies will affect the financial result. It helps to optimize costs, find variables that can be adjusted, and make informed decisions that will ensure business profitability.

Results of cooperation: Financial models for optimization and global growth

Finmap's financial modeling service has been a key factor in EMMER's success.

What has EMMER gained from working with Finmap?

1. A structured financial model: Professional financiers have developed a customized model for the company, which provided a clear understanding of the possibilities for increasing profits. All data is displayed in clear tables that take into account many parameters, which allows for effective management decisions. This has helped optimize finances and increase the efficiency of management processes, which will allow the company to successfully develop and launch new projects.
2. Optimization of financial flows: Automated cash flow tracking will reduce costs and increase profitability. In addition, detailed data analysis will allow for better cash flow forecasting and budgeting, which has significantly increased financial stability.
3. International Expansion: With Finmap's support, the brand will not only be able to successfully expand its operations to new international markets, but also ensure transparency and efficiency of financial processes at all stages of projects. Finmap's support includes detailed cost and revenue analysis, development of financial models that meet the requirements of new markets, and assistance in optimizing financial strategies. This includes budget planning, cash flow management, investment planning, and strategic financial management to achieve sustainable growth and profitability on a global scale.

Whether you're planning to launch new projects or looking to improve the financial performance of your existing business, creating a financial model is a critical step.

Use Finmap to successfully implement and realize your projects.

How a small business can overcome a financial crisis and stabilize income in conditions where every hryvnia counts?

‍How to optimize expenses and increase profit without using complex financial programs?Thehrdwood, a company that managed to turn challenges into opportunities, knows the answer to these questions.

Thehrdwood - Natural Products for Space Harmony

Artem Kornieiev founded Thehrdwood in 2013 in Kyiv, creating a company specializing in producing exquisite wooden products. The company's products, presented on marketplaces like Etsy, Amazon, and its own website, quickly gained popularity in the USA, Canada, the UK, and other countries.

Before the war, the company focused primarily on customized engraved products. Kitchen boards with family recipes, which became true bestsellers, were particularly popular. The company was the first to offer such unique gifts, earning recognition and popularity.

From 2020 to 2021, the business grew rapidly, gaining extensive reach and support from marketplaces.

In 2022, the war significantly impacted the company's activities. Logistical problems made deliveries uncompetitive, and finding alternative routes took about four months.

This led to a significant increase in delivery times and a threefold drop in sales of customized products. However, instead of halting operations, Thehrdwood shifted its focus to producing home workspace and decor items.

Challenges on the Path to Success

‍Artem and his team faced a number of challenges that required quick and decisive actions:

• Profitability Analysis: The need to understand the company's actual financial situation and determine which business areas were most profitable, where to focus, and which areas to cut back.
• Financial Instability: A large number of accounts, channels, and marketplace reports created confusion in financial reporting.
• Financial Transparency: The need for a convenient and clear financial reporting system to help make the right decisions.

Meeting Finmap

After several attempts to use Western financial systems that did not meet expectations, Artem found Finmap. From the first demo video, he realized that this was exactly what was needed: a simple, convenient, and effective program.

Finmap - A Reliable Strategic Partner

Artem and his team discovered that Finmap was not just a financial program but a true strategic partner. Finmap also helps find financial experts and provides financial consulting and support.

Results of the Collaboration:

• Revenue Growth: For the first time in three years, the company became profitable by implementing effective business development strategies and continuously analyzing the market. Regular online meetings with a financial expert became an integral part of the work: data analysis, identifying weak points, and finding ways to address them. An annual strategy and three development scenarios were developed.
• Expense Optimization: The company not only reduced expenses but also ensured positive cash flow, laying the foundation for further growth.
• Financial Stability: Thehrdwood managed to ensure business stability and growth using a simple and effective management reporting system.
• Innovative Budgeting: Implementing a budgeting system for different expense items allowed for more efficient resource management.

Every week, Artem, along with a financial expert, checks if the company is on track and calculates the expected income at a certain sales pace. If deviations from the plan are found, they respond promptly and cut unnecessary expenses.

Financial data is digitized and displayed on clear dashboards, allowing for quick responses to changes. The system made financial management easy and convenient, even from a smartphone.

• ‍Break-even Point: The company knows the stage at which sales cover all expenses. For the rest of the month, Thehrdwood operates at a profit.

Like many small businesses, Thehrdwood faced serious financial challenges. By timely seeking expert assistance, the company not only survived but also thrived, turning the crisis into an opportunity for growth.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

Thehrdwood achieved new heights during difficult times, becoming a true example of a successful enterprise ready for future challenges. Artem and his team do not rest on their laurels and continue to collaborate with a financial expert from Finmap to achieve ambitious goals and bold plans.

Do you ever feel like your business is stuck in a cycle of constant financial difficulties? We know how difficult it can be to run a business in an uncertain environment. Especially when cash gaps and recurring losses hinder growth.

However, there is a way to change the situation for the better. Find out how a publishing house and educational projects managed not only to overcome financial difficulties but also to achieve a 10% monthly profit growth.

Losses and uncertainty: what to do?

Our client, a well-known publishing house with educational projects, faced the following problems:

• Cash gaps
• Constant losses
• Inefficient reinvestment
• Ineffective investments in new projects
• It was difficult to determine which products were profitable and which were unprofitable.

These risks posed the threat of bankruptcy, poor management decisions, and investing resources in unprofitable products.

How Finmap's financiers changed the situation

We started with a detailed analysis of profitability to determine which areas of activity were profitable and which were unprofitable. Then we implemented a systematic control of financial indicators with Finmap, which allowed us to track the financial position in real time.

Impressive results of cooperation

Thanks to the cooperation, the client achieved the following results:

• Complete absence of cash gaps
• Effective financial management
• Financial modelling of new projects
• Competent management of investments and reinvestment of profits
• Profit growth by 10% per month from the second month of cooperation

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

New financial structure and investment policy

We helped to create a clear financial structure for the business, reduce staff costs and increase efficiency. An effective investment management policy was also implemented, which significantly increased the profitability of the projects.

What kind of entrepreneur do you want to be?

Are you ready to get rid of financial difficulties and reach a new level of business development? At Finmap, we are committed to helping you achieve this. Our team of financial experts is ready to provide the support you need to optimise your business:

• Analysing the profitability and profitability of projects
• Implementation of a financial performance control system
• Effective financial and investment management
• Development of an individual financial strategy

Take the first step towards the stability and growth of your business. Let's get your financial affairs in order together!

Are you familiar with the feeling of fear that comes with the arrival of payday tomorrow, and there are only a few hundred hryvnias left in your bank account? Do you panic when important suppliers demand payment, and you don't have enough funds?

Every entrepreneur has faced such situations in the course of their activities. Why does a lack of funds occur at crucial, sometimes decisive moments, and how can this be prevented?

This dreadful scenario is called a cash gap — a situation where there is not enough money to cover the current obligations of the business.

Such a problem threatens bankruptcy and debts. Cash gaps can lead to unpleasant consequences beyond the company: decreased sales, damage to the company's reputation, conflicts with suppliers, tension within the team, staff changes, penalties from suppliers and banks, and production delays.

This article aims to help entrepreneurs permanently eliminate cash gaps. We will consider five key tips that will help ensure your business's financial stability, avoid stress related to a lack of funds, and create a solid foundation for sustainable growth.

By following these recommendations, you will be able to effectively plan cash flows, control expenses, optimize accounts payable, create financial reserves, and increase revenues.

Being proactive is the most effective way to combat cash gaps.

Where to start in combating cash gaps?

1. Plan Cash Flows

The Importance of Planning

Regular cash flow planning is critical for anticipating and preventing potential cash gaps. According to data from Minutes.co,

82% of small businesses fail due to cash flow problems.

Forecasting

‍ Make forecasts of income and expenses for future periods. This helps you better understand when cash gaps may occur and prepare for them in advance. According to a study by JP Morgan Chase,

the average small business has only 27 days of cash reserves.

2. Control Expenses

Expense Analysis

‍Regular analysis of expenses helps identify areas where savings can be made. Evaluate if expensive supplies can be replaced with cheaper alternatives without losing quality. For example, using more economical materials or optimizing production processes can significantly reduce costs.

Prioritization

Prioritize expenses that directly impact your income. Investing in raw materials, research and development, marketing, and staff training can directly increase sales and improve product quality. Reduce spending on less critical aspects of the business, such as unnecessary administrative fees.

Implement Flexible Budgets

According to Harvard Business Review,

companies that adopt a flexible budgeting approach in constantly changing business environments are more likely to avoid financial difficulties.

Use of Technology

‍Modern technologies can help track and optimize expenses. Use financial management software that automates processes and provides accurate expense reports. According to McKinsey,

implementing digital solutions can reduce costs by up to 30%.

3. Optimize Accounts Payable

Payment Terms

Negotiate longer payment terms with suppliers, if possible. This approach allows more funds to remain in your accounts to cover current expenses. Regularly review your cooperation terms with suppliers and look for better options.

Process Automation

‍Use financial software to automate the management of accounts payable. This helps avoid errors and ensures timely payments.

Setting Priorities

Prioritize debt repayment based on its importance to your business. Pay off those debts first that could cause the most significant problems if payments are delayed.

Tracking Debt

Regularly monitor the status of accounts payable. This helps avoid unexpected expenses and allows you to respond promptly to potential issues. Consider using analytical tools to forecast future financial needs and plan payments.

Experienced entrepreneurs use a payment calendar for this purpose. It acts like a "vaccine against cash gaps."

What is a payment calendar?

A payment calendar is a tool for financial planning of cash flows in a business. It is usually created for a month with weekly breakdowns or for a longer period suitable for your business.

It outlines expected income and expenses for a specific period, allowing the business owner to assess the company's ability to meet financial obligations on time.

A payment calendar can be maintained in homemade Excel spreadsheets, which is quite inconvenient and time-consuming. An alternative option is automated financial programs.

The convenience lies in the fact that all pre-scheduled payments are automatically included in the calendar, and it is possible to immediately see potential future cash gaps.

There is no need to manually enter all account balances, income, and expenses every month. Thanks to integration with banks, all data is automatically pulled in.

Working with the Finmap calendar is done in just a few clicks:

Enter all planned expenses into the service: rent, salaries, taxes, etc.

Enter planned income: payments from clients, repayment of accounts receivable, etc.

A short video will help you understand the useful functions of the payment calendar.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

Now, in the payment calendar, you can clearly see during which periods you might experience a cash gap and preempt it by rescheduling or canceling payments, negotiating with clients for earlier payments, etc. This visibility allows proactive management of your cash flow to avoid financial strain.

4. Use Financial Reserves

Creating Reserves

‍Establish a reserve fund to cover unexpected expenses. This helps prevent cash gaps during sudden financial difficulties. Financial experts recommend having reserves sufficient to cover expenses for three to six months.

Investments

Consider investing a portion of your profits in liquid assets that can be quickly converted to cash if needed.

Diversification of Reserves

‍Spread your reserve funds across different accounts and assets to reduce risks. For example, keep some funds in savings accounts, some in bonds, and some in other liquid investments.

Regular Review of Reserves

Regularly review and update your financial reserves to ensure they meet your business's current needs. This helps you be prepared for any financial challenges and avoid cash gaps.

5. Increase Revenues

Marketing Strategies

Implement effective marketing strategies to attract new customers and increase sales. Utilize SEO, social media, and other channels to enhance brand visibility.

Investing in quality content marketing can significantly boost website traffic. Additionally, retargeting ads can reclaim up to 26% of visitors who have previously visited your site, increasing conversion chances.

Diversification

Consider diversifying your product or service offerings to reduce risks associated with dependence on a single income source.

Partner Programs

Implement partner programs to acquire new customers through existing partners. This can expand your market significantly without substantial marketing costs. According to Forrester,

companies using partner programs can generate up to 15% of their total revenue through these channels.

Customer Loyalty

Invest in loyalty programs to retain existing customers. Bain & Company reports that

increasing customer retention by 5% can lead to revenue growth of 25-95%.

Consider implementing discounts, bonuses, and special offers for loyal customers to encourage repeat purchases.

Avoiding cash gaps is a key aspect for sustainable business development.

Implementing these five strategies will help ensure financial stability and mitigate the stress associated with cash shortages.

Try Finmap now

You have 7 days free, and our caring experts will help you figure it all out.

Try for free

* no need to bind the card

Plan cash flows, control expenses, optimize accounts payable, create financial reserves, and increase revenues.

By utilizing these strategies, you can minimize financial risks and ensure the prosperity of your business, while Finmap simplifies the process with its user-friendly payment calendar.

In addition to the payment calendar, Finmap allows you to:

• Monitor income and expenses through bank integrations.
• Aggregate data and operations across various projects, categories, contractors, and counterparties.
• Easily analyze finances and profits through intuitive graphs rather than complex reports.

Forget about the nerve-wracking tension caused by financial management. Discover what organization and transparency in business finances really mean!

Have you ever wondered where the money goes when it seems like your business is booming? Do you ever get lost in the numbers and can't figure out where the profit is?

A lack of clear financial control can lead to a loss of funds and growth opportunities. That's why a profit and loss statement (P&L) is an indispensable tool for every entrepreneur. It helps you see hidden problems and find ways to solve them, ensuring the sustainable development of your business.

‍Why is a profit and loss statement necessary for business?

Assessment of financial performance

A profit and loss statement allows you to assess the financial performance of your company in detail. You can see whether you have achieved your financial goals by comparing income and expenses.

For example, a restaurant owner can use this report to determine which dishes bring the most profit and which ones should be removed from the menu.

According to a study by the U.S. Bureau of Labor Statistics,

About 20 percent of small businesses close within the first year, 30 percent within two years, and 50 percent within five years, largely due to a lack of financial control.

Budgeting and strategic planning

With a regular profit and loss statement, you can plan your budget more effectively and develop development strategies.

For example, a company may find that it spends too much on marketing and redirect these funds to innovation or staff training.

According to a study by CB Insights,

One of the main reasons startups fail is a lack of proper financial planning and management, accounting for up to 39% of all failures.

Monitoring and controlling expenses

The income statement helps to identify excessive costs and find ways to optimise them. It provides an opportunity to respond to cost increases in a timely manner and take measures to reduce them, which helps maintain the company's financial stability.

Thanks to cost analysis, Dmytro Sheremeta, owner of Chistota cleaning company, saved $12 500 a year.

‍
Dmytro's company has always strived to provide high-quality cleaning services, using the necessary equipment, such as vacuum cleaners and ladders, which had to be delivered to the place of service. The cost of this delivery was usually included in the total price of the service. To transport the equipment, the company often used taxis, which resulted in unpredictable logistics costs depending on weather conditions, days of the week, and current taxi demand.

After analysing the costs using the profit and loss statement in Finmap, Dmitriy discovered that the company's logistics costs were higher than expected. Together with his team, he started looking for ways to reduce these costs. After careful analysis, it was decided to change the type of delivery and find a partner who transports goods using electric scooters.

This approach not only reduced delivery times, but also eliminated the dependence on fuel prices, making the cost of transportation more stable.
Before the cost optimisation, one round trip delivery cost the company $9, while after the implementation of the new logistics strategy, the cost dropped to $2.5. This has significantly reduced logistics costs and increased the company's efficiency.

Reporting to stakeholders

Investors and lenders pay attention to the income statement when assessing a company's financial position. This is especially important if you are planning to attract investments to scale your business. Reliable financial statements increase your attractiveness to investors.

The income statement is an indispensable tool for every entrepreneur. It provides a clear picture of the company's financial position, helps to identify hidden costs and optimise resources. Using this report allows business owners to plan effective strategies, make informed decisions based on real data, and ensure business stability and growth in the long term.

‍

Financial chaos? Forget it!

Finmap gives you control and order.

Try it — 7 days for free.

Try for free

no card required

‍

How to create a high-quality Profit and Loss report?

‍
A well-crafted income statement is the foundation of your business' financial health. It not only helps you understand the current state of affairs, but also opens up new opportunities for growth. To make your report as useful as possible, follow these key steps:

1. Select the reporting period. Determine the period for which the report will be prepared. It can be a month, quarter, or year, depending on the specifics of your business and industry standards.
2. Gathering financial information. Gather all the necessary financial data: revenues, expenses, operating profit (or loss), interest, taxes, and other financial indicators. It is necessary to collect not only the movement of funds on official accounts, but also on cash desks, cards, wallets, etc.
3. Classification of income and expenses. Carefully classify all income and expenses by their purpose and nature. The main income (from the sale of goods or services) and additional income (from investments, licences, etc.) should be separately identified. Expenses should be divided into categories, such as salaries, materials, marketing, administrative expenses, etc.
4. Calculate the net profit (or loss). Subtract total expenses from total revenue to calculate net profit or loss. This indicator is critical for assessing the company's financial position.
5. Comparison with previous periods. Compare the results of the reporting period with previous periods to identify trends and analyse the dynamics of financial indicators.
6. Prepare an analytical report. After preparing the main income statement, prepare an additional analytical report that contains detailed information on individual components of income and expenses, as well as an explanation of the reasons for changes in financial indicators.
7. Visualise the results. Use visualisation tools to improve understanding and ease of perception of financial information. Charts and dashboards help you quickly assess the company's financial position.
   ‍

Additional tips:

• Retrospective analysis. Compare results with previous periods to identify trends and predict future expenses and income.
• Market analysis. Take into account changes in the economic environment and market trends that may affect the financial performance of your business.
• Distribution of money. Separate your own funds from business funds. This will avoid the very common mistake of mixing finances.
• Professional approach. Take the advice of a professional financier for qualified quick advice on setting up accounting. If you do not have the funds for ongoing support, the first consultation will set the owner on the right track.
• Technological solutions. Use modern tools to automate financial accounting. For example, Finmap integrates with banks and payment systems, simplifying the process of data collection and analysis.

By following these steps and income statement standards, you will get a clear and objective view of your company's financial position. This will allow you to manage your business more effectively and make strategic decisions that will contribute to its growth and stability. ‍

For maximum convenience and efficiency, automate your accounting with Finmap and forget about complicated home-made spreadsheets. Finmap integrates with banks and payment systems, providing you with convenient graphs and dashboards that greatly simplify analysis and make informed business decisions.