From the course: Business Financials Explained
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Why investors care about your financials
From the course: Business Financials Explained
Why investors care about your financials
- So why are financials important to investors? Well, they're wildly important. First of all, they're not an option. This is a required part of your business plan. If you're going to talk to any financial investor, anybody, I don't care if it's friends and family, or it's the most sophisticated VC in the world, you're going to have to have financials. So it shows them how you're going to make money. This is exactly what they need to see. It shows them whether your business model and your business is overall feasible or not. So that's important as well. It tells them how well thought through your business strategies are, because as I said earlier, everything kind of connects up to the financial plans. All the other strategies connect up. So if you have challenged areas, if there's areas of weakness, they're going to see it in the financials. They're predictable. VCs and investors love nothing more than predictability,…
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