According to management studies, business monitoring and controlling increases a startup's chances of obtaining fair financing. How does this work?
The business monitoring and controlling system enables you to retrieve business information over time, which will prepare you optimally for negotiations with investors. On the one hand, the information enables you to demonstrate your thorough understanding of your market and industry. On the other hand, the information enables you to justify and validate your business plan and financial forecast. Both will help you to present your startup to potential investors in a convincing way during negotiations with them and obtain the necessary funds to accelerate your business.
The following steps will help you to implement a simple but effective business monitoring and controlling system.
Identify the industry-specific KPIs and those that are most relevant to your success.
Start tracking and monitoring these KPIs periodically.
Relate your KPIs to industry benchmarks and compare them with those of your competitors.
Use the retrieved business information to create a validated business plan and financial forecast.