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If you talk to second-time entrepreneurs, there’s one piece of advice you’ll hear over and over again: know your numbers. It might sound simple, but it’s one of the most powerful habits founders must adopt—especially when talking to investors, or reporting to the board. In the early days of a startup, it’s easy to get caught up in product, growth hacks, and vision. But if you don’t have a clear handle on your finances, you’re flying blind. And that’s a risk you can’t afford.
When you're pitching to investors, they’re not just evaluating your product—they’re evaluating you. They want to know that you’re not only passionate but also in control. Being able to clearly explain your burn rate, revenue projections, and market KPI’s shows that you’re serious, prepared, and thinking like a CEO.
It’s not about having all the answers—it’s about showing that you’re on top of the fundamentals and that you’re tracking the right metrics.
“Projections are just bullshit. They’re just guesses.”
— Jason Fried, Founder of 37signals
But knowing your actual numbers? That’s real. That’s what builds trust.
Your board isn’t just there to approve budgets—they’re your partners in growth. But they can only help if they have a clear view of what’s going on. Regular, transparent financial updates help build alignment and reduce surprises. It also shows that you’re proactive, not reactive.
Founders who are open about both wins and challenges earn more respect—and more support.
Startups need to move fast. But you can’t make smart decisions if you don’t know where your money is going. Having real-time access to your financials means you can hire when the time is right, cut costs before it’s too late, and pivot with confidence.
It’s not just about reacting—it’s about staying ahead.
There’s a big difference between being a founder and being a CEO. Founders have ideas. CEOs turn those ideas into sustainable businesses. Knowing your numbers is one of the clearest signs that you’re making that shift.
It shows maturity, discipline, and leadership.
Many first-time founders learn this lesson the hard way. But second-time around? They rarely make the same mistake twice. They know that financial clarity isn’t optional—it’s foundational.
So if you’re just starting out, take this to heart: get close to your numbers early, and stay close. It’ll make you a better leader, a more credible fundraiser, and a more trusted partner to your board and team.
This article was written by Yafit Keret, CPA, CFO and CO-Founder& CEO of Proximo