Major Financial Decisions

Major financial decisions in a startup revolve around managing resources, securing funding, and ensuring sustainable growth. These decisions shape the company’s financial health and long-term success.

Key Financial Decisions for Startups

  1. Funding Strategy – Choosing between bootstrapping, venture capital, angel investors, crowdfunding, or grants.
  2. Equity vs. Debt Financing – Deciding whether to raise capital by selling shares or taking loans.
  3. Pricing & Revenue Model – Setting competitive pricing and selecting revenue streams (subscription, freemium, direct sales, etc.).
  4. Cash Flow Management – Ensuring liquidity to cover operational costs and avoid financial instability.
  5. Budget Allocation – Prioritizing spending on product development, marketing, hiring, and infrastructure.
  6. Exit Strategy Planning – Preparing for IPO, acquisition, or mergers to maximize investor returns.
  7. Tax & Compliance – Structuring finances to optimize tax benefits and adhere to legal regulations.

Written by Swedish Ventures, Rolf Olsson. Remarks to this article could be sent to glossary@swedishventures.se

ASO: DD-01-16

ASO IDDD-01-16