Fri Sep 20 08:15:59 UTC 2024: ## Early-Stage Startups Should Still Build Detailed Budgets, Even If They’re Speculative
**By Jason Lemkin**
Even though early-stage startups are heavily reliant on speculation, it’s crucial for founders to develop detailed budgets including cash flow analysis, according to SaaS expert Jason Lemkin. He argues that this process, while potentially “wrong” in its specifics, serves as a valuable tool for learning and understanding the founders’ vision.
Lemkin emphasizes that a well-thought-out budget, even if not entirely accurate, can provide a clear direction and demonstrate the founders’ meticulous planning. This process helps investors assess the team’s ability to think strategically and understand their underlying assumptions.
Ultimately, by creating a detailed budget, early-stage startups can gain a deeper understanding of their own business model and present a more informed picture to potential investors.
First Piper 