Discussions with a financier are all too often reduced to cash-flow calculations and forecasts. Of course, these “attachments” have their important place, but I believe that assessing a company’s operational and financial viability requires much more than that.
Ultimately, even more interesting than cash-flow statements and forecasts is why the company exists and how it intends to operate. What problem does the company aim to solve with its activities? How does it plan to act differently – or even better – than other companies in the same field? And is someone willing to pay for it?
Entrepreneurship requires a solid plan, but when a financier or investor evaluates a company and its prospects, they are not expecting a perfectly polished cash-flow calculation down to the last detail. It is important to remember that even the best plan is, in the end, “only” a plan and – at least in principle – worthless unless it can be implemented. And we also know that life rarely unfolds exactly as laid out on paper.
“That is why I would advise entrepreneurs preparing for financing negotiations: when presenting your idea to a financier or investor, do not start with an Excel sheet. Start with the story that explains why your company exists and how you intend to realize your vision.”
To me, the challenge – and at the same time the fascination – of entrepreneurship lies in the balance between planning and execution. It is about recognizing when something is planned well enough and when the focus should shift to doing. A perfect plan simply does not exist. Nor does it need to, if we are to believe Amazon’s founder Jeff Bezos: “We are stubborn on vision, but flexible on details.”
As in life, entrepreneurship brings surprises. In such moments, what matters is the ability to respond, learn, and act. Success is not built on a perfect plan but on the ability to operate amid uncertainty. That is why I would advise entrepreneurs preparing for financing negotiations: when presenting your idea to a financier or investor, do not start with an Excel sheet. Start with the story that explains why your company exists and how you intend to realize your vision.
Tuukka Hakala
Bank manager
OP Keski-Pohjanmaa
