OpenAI has already raised billions of dollars in funding on the promise of developing true artificial general intelligence (AGI), the term used for AI that can rival human intelligence and learning capabilities. Simultaneously, the company is in the process of transitioning to a for-profit company, a move that has sparked legal challenges. At the same time, the company’s latest round of funding was provided on the condition that OpenAI successfully makes the transition within two years.

In that context, it’s not surprising the company has authored a blog post defending its transition and bracing the public for just how costly AI development will continue to be. The blog first highlights how the company was initially structured.

In 2019, we became more than a lab – we also became a startup. We estimated that we’d have to raise on the order of $10B to build AGI. This level of capital for compute and talent meant we needed to partner with investors in order to continue the non-profit’s mission.

We created a bespoke structure: a for-profit, controlled by the non-profit, with a capped profit share for investors and employees. We intended to make significant profits⁠(opens in a new window) to pay back shareholders, who make our mission possible, and have the remainder flow to the non-profit. We rephrased our mission to “ensure that artificial general intelligence benefits all of humanity” and planned to achieve it “primarily by attempting to build safe AGI and share the benefits with the world.” The words and approach changed to serve the same goal—benefiting humanity.

Moving forward, OpenAI says it will have to become more, establishing a structure that allows it to thrive and be sustainable.

As we enter 2025, we will have to become more than a lab and a startup — we have to become an enduring company. The Board’s objectives as it considers, in consultation with outside legal and financial advisors, how to best structure OpenAI to advance the mission of ensuring AGI benefits all of humanity have been:

1. Choose a non-profit / for-profit structure that is best for the long-term success of the mission. Our plan is to transform our existing for-profit into a Delaware Public Benefit Corporation⁠(opens in a new window) (PBC) with ordinary shares of stock and the OpenAI mission as its public benefit interest. The PBC is a structure⁠(opens in a new window) used⁠ by⁠(opens in a new window) many⁠(opens in a new window) others⁠(opens in a new window) that requires the company to balance shareholder interests, stakeholder interests, and a public benefit interest in its decisionmaking. It will enable us to raise the necessary capital with conventional terms like others in this space.
2. Make the non-profit sustainable. Our plan would result in one of the best resourced non-profits in history. The non-profit’s significant interest in the existing for-profit would take the form of shares in the PBC at a fair valuation determined by independent financial advisors. This will multiply the resources that our donors gave manyfold.
3. Equip each arm to do its part. Our current structure does not allow the Board to directly consider the interests of those who would finance the mission and does not enable the non-profit to easily do more than control the for-profit. The PBC will run and control OpenAI’s operations and business, while the non-profit will hire a leadership team and staff to pursue charitable initiatives in sectors such as health care, education, and science.

In the blog post, OpenAI reveals the astonishing cost of AI development.

“The hundreds⁠(opens in a new window) of⁠(opens in a new window) billions⁠(opens in a new window) of⁠(opens in a new window) dollars that major companies are now investing into AI development show what it will really take for OpenAI to continue pursuing the mission. We once again need to raise more capital than we’d imagined. Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness.”

OpenAI’s Dilemma

As the company outlines in its blog post, developing AGI is a costly endeavor, one in which no one knows the true cost. In addition, the clock is ticking for OpenAI to complete its transition to a for-profit. If the company fails to do so by the two-year deadline, it will have to return its latest round of funding. Meanwhile, Elon Musk has filed a lawsuit challenge OpenAI’s transition, as well as a temporary injunction to prevent the company from moving forward until the court can settle the matter.

At the same time, OpenAI has had a mass exodus of some of its best and brightest engineers, researchers, and executives over concerns the company has lost its way and is no longer focused on its original mission to develop AI safely. In fact, some departing executives have accused the company of prioritizing profits over safety.

Ultimately, 2025 could be a make-or-break year for OpenAI, and the company’s latest blog post could well be a recognition of that fact.

If you don’t know, reconciliation involves ensuring what’s on your books matches your bank’s statements. You might wonder why companies take the time to do this if you don’t own or operate a business yourself. Fixing errors is one of the top reasons, in addition to catching fraud and staying compliant. Thoughtful reasons aside, the reconciliation process can get tedious and inefficient. Here are ways to make it more streamlined.

Catch our chat on making reconciliation faster and more efficient!

Use a Dedicated Account

This step seems like a no-brainer to larger organizations. A big corporation usually has no reason to mix the personal accounts of its employees with the company’s books. Small mom and pops or solopreneurs might. They’ll do it because it initially looks convenient. Why open two accounts, possibly pay double maintenance fees, and keep track of separate debit cards or checkbooks?

While having one account can seem simpler on the surface, your monthly reconciliations will take longer. You’ll have to separate your personal and business-related transactions. And even if you think you know what belongs where, there’s a chance you won’t remember. An elusive $20 transaction on your bank statement could’ve been for home office supplies. But it might just be the new pair of jeans hanging in your closet.

You want to skip these hassles when comparing bank statements against the books. Keeping a dedicated account ensures all the transactions you analyze are for business-related expenses and income payments. You’ll spend less time sorting through what’s what and double-checking each transaction to ensure it’s labeled correctly.

Get Your Paperwork in Order

You can’t expect efficiency if you don’t have all the information you need. If you’re a one-person operation, your paperwork may consist of a single bank statement and a box of receipts. It might be even more streamlined if you use one digital wallet account for everything. You accept invoice payments through this account and use it to pay for all your expenses.

For larger operations, there’s a tad more paperwork involved. Customers could pay their bills in multiple ways, particularly if your organization deals with a mix of clients. Likewise, your company could prepay some expenses and wait to pay others. Depending on their role, employees might be submitting expense reports sporadically or regularly.   

About one in five expense reports are missing important details or contain mistakes. A single mistake could add 18 minutes in processing time. Imagine if the error isn’t caught until the reconciliation process begins. You want to ensure you’ve ironed out all the details and the paperwork is in order before you start.  

Break It Down

It’s often less overwhelming to complete a complicated task if you tackle it piece by piece. You can approach your reconciliation process the same way. Plus, it can boost efficiency by helping you catch potential problems and mistakes early.

Nothing is more frustrating than getting to the end and suddenly discovering you’ve been working from an incorrect balance. Now you’ve got to scrap what you’ve accomplished, tracing your steps to find the error. Breaking down the process into sections by checking the previous month’s closing balance prevents frustrations from double work.

It also creates efficiencies by eliminating backtracking and re-reviewing every item. If you know you’re starting error-free, you can move forward that way. In addition, slicing up the process into smaller sections helps isolate mistakes. For example, you can focus on account receivables one day and payables the next. You could even get more granular by organizing the reconciliation of your receivables by client or customer type.

Consider Automation

Automation can be your best friend. No, you probably don’t want to fully automate your reconciliation process yet. Technology may be adept, but it’s not foolproof. You still need to maintain some manual portions of your approach.

But that’s not to say you can’t automate the more repetitive and time-consuming portions. Accounting and bookkeeping software can flag employee expenses from company credit cards. Software has the ability to import paperwork, including bank statements, and identify matching transactions. It can catch discrepancies and alert you about potential typos or other mistakes.

As most financial professionals know, transposing numbers is all too common and banks aren’t always error-free. Furthermore, automated tools run reports and analyses the human mind would take months to uncover. You can track patterns in profitability by department/section, function, and client. Automation also helps standardize processes across departments in larger organizations. Standardization increases efficiency by reducing inconsistencies and errors.

Making Reconciliations More Efficient

Shockingly, there are few standards when it comes to account reconciliation processes. Company A may do it differently than Company B. Generally accepted accounting principles (also known as GAAP) provide guidance for debits and credits. However, creating efficiency is up to the business.

Introducing shortcuts usually isn’t the best approach when you’re dealing with a business’s finances. It could create compliance and reporting nightmares. Instead, look for ways to streamline the paper trails, catch errors early, and standardize or automate repetitive steps. By taking these measures, you’ll spend less time reconciling and more on improving your business.             

This pivot into the world of cryptocurrency marks a notable shift for Trump, who previously expressed skepticism about digital currencies. The launch of WLF, however, signals a dramatic change in tone as he now frames decentralized finance as a key pillar of both his business strategy and his political platform.

Listen to a podcast conversation on Trump’s foray into crypto. It’s fascinating:

The Trump Family’s Foray Into Decentralized Finance

At the heart of World Liberty Financial is the concept of decentralized finance—financial transactions that occur without intermediaries such as banks or traditional financial institutions. This approach is built on blockchain technology, which allows users to borrow, lend, and trade assets without the usual layers of oversight. During the X Spaces launch, Trump positioned WLF as a vehicle to “disrupt outdated financial institutions” and empower individuals to control their own financial destiny.

Crypto is the future – I’m all in https://t.co/9hdjxrL3xn

— Eric Trump (@EricTrump) September 12, 2024

“We’re embracing the future with crypto and leaving the slow, outdated big banks behind,” Trump declared, framing the project as an answer to what he described as a bloated, overly politicized financial system. “If we don’t take the lead in crypto, countries like China will, and that’s not a future we want. America should be at the forefront of this financial revolution.”

This rhetoric aligns with Trump’s broader political ambitions, where he has vowed to make the United States the “crypto capital of the planet” if re-elected. It’s also a striking change for someone who, just a few years ago, warned that crypto was “potentially a disaster waiting to happen.”

But in an era of rapid technological and financial transformation, Trump now seems to view cryptocurrency as a necessary evolution of global finance. “Whether we like it or not, crypto is the future. We have to do it,” Trump said during the live event, highlighting how his children, particularly Barron, had opened his eyes to the potential of decentralized finance.

A Family-Led Crypto Empire: The Faces Behind World Liberty Financial

The involvement of Trump’s family has added an intriguing dynamic to the project, with each family member playing a distinct role in the venture. Donald Trump Jr. and Eric Trump are described as “Web3 Ambassadors,” responsible for shaping the platform’s vision and connecting with the broader crypto community. Barron Trump, often a lesser-known figure in the public eye, has been thrust into the spotlight as WLF’s “Chief DeFi Visionary.”

“Barron knows so much about this,” Trump remarked during the X Spaces event, describing his youngest son’s fascination with crypto. “He talks about his wallet. He’s got four wallets or something, and he knows this stuff inside and out.”

Apparently people need to be reminded that the Trump family is NOT launching a memecoin, but a crypto platform as confirmed by Donald Trump Jr.

There is no competition between $TRUMP @MAGAMemecoin and WLF. pic.twitter.com/xLUF5Ch2cl

— Steven Steele (@MrStevenSteele) September 16, 2024

While some might view the Trump family’s venture into DeFi as yet another celebrity-backed project, industry experts see potential in the power of their brand. “The Trump name carries enormous weight, particularly among a segment of the population that views Trump as an entrepreneurial icon,” says Brad Harrison, CEO of the DeFi platform Venus Protocol. “What will be crucial, though, is how the family navigates the complexities of the crypto space, where reputations can rise and fall quickly.”

Donald Trump Jr. was more direct in his messaging, focusing on the empowerment narrative often associated with decentralized finance: “We’re giving people the tools to take control of their own financial destiny. This isn’t just about finance—it’s about freedom. The traditional financial system has failed too many people for too long.”

Eric Trump, on the other hand, emphasized user experience, arguing that the success of WLF would hinge on its ability to simplify DeFi for the average person. “We have to make decentralized finance more intuitive and accessible,” he said. “It’s not just about the tech—it’s about ensuring everyone, from crypto enthusiasts to first-timers, can engage with this new financial system.”

The Platform and Its Governance Token

One of the key features of World Liberty Financial is its governance token, WLFI. Unlike many crypto tokens, WLFI is not designed to be transferable or yield-bearing; instead, it will grant holders voting rights over the platform’s future direction. According to Chase Herro, a key partner in the project, this token is central to the idea of community governance in the WLF ecosystem. “We’re not just building a platform. We’re building a decentralized organization where users have a real say in how the platform evolves,” Herro explained.

However, the non-transferable nature of WLFI has sparked some skepticism among seasoned crypto investors. “A non-transferable governance token without yield is an odd choice,” says Zach Hamilton, founder of Sarcophagus and venture partner at Venture51. “Typically, the allure of DeFi is liquidity and the ability to move assets freely. It’s unclear why users would buy into a token they can’t trade, even if it grants governance rights.”

Despite this skepticism, WLF’s public token sale is set to distribute 63% of WLFI tokens to accredited investors, with 17% allocated for user rewards and 20% reserved for the founding team. The founders have emphasized transparency in the sale process, with no pre-sales or VC allocations, in a bid to avoid the perception of favoritism or insider advantages—a concern that has plagued other crypto projects.

Trump’s Evolution on Crypto and Regulatory Hurdles

Perhaps the most surprising aspect of Trump’s crypto venture is his rapid evolution on the subject. During his presidency, Trump was highly critical of digital currencies, frequently labeling Bitcoin as a “scam.” But as his children became more involved in the industry, Trump began to see the potential for decentralized finance to revolutionize banking, particularly in how it could bypass traditional gatekeepers and give individuals more control over their finances.

“I wasn’t overly interested at first,” Trump admitted. “But seeing how my kids embraced it, and seeing the potential of this space, I knew it was something I needed to get involved in.”

Although I don’t think Trump fully understands Crypto, it seems his sons do. Eric, Donald, & Barron.

Not just what it is, but how it can positively impact everyday Americans, & the world.

It Removes middlemen whom profit from “pushing paper”.

Removes gov’t & private entities’,… pic.twitter.com/t5PKUmPMJD

— Mrs. Hexican (@MrsHexican) September 17, 2024

Yet, the timing of the venture raises questions about regulatory scrutiny, particularly given Trump’s current bid for the presidency. The platform’s decentralized nature may allow it to operate outside traditional financial regulations, but it could also raise constitutional issues, especially around the Emoluments Clause, which prohibits U.S. officials from accepting financial benefits from foreign governments.

“There’s certainly a risk of constitutional entanglements if Trump were to win the presidency again,” says Ciara Torres-Spelliscy, a law professor at Stetson University. “Decentralized finance platforms can easily be used by foreign actors, and that raises significant questions about conflicts of interest.”

The regulatory environment also poses a significant challenge. Crypto insiders have long criticized the U.S. Securities and Exchange Commission (SEC) for what they see as an aggressive stance toward the industry. Trump was quick to echo these concerns, blaming the current administration for stifling innovation. “The Biden administration has been extremely hostile to crypto. We need to foster innovation, not choke it with red tape,” Trump stated.

Trump’s comments align with broader industry frustrations toward SEC Chair Gary Gensler, who has taken an enforcement-first approach to regulating crypto. “We need clear rules, not lawsuits,” said Donald Trump Jr. “The current regulatory regime is hostile to innovation, and it’s hurting American leadership in the space.”

Implications for the Future of Crypto

The launch of World Liberty Financial comes at a critical moment for the cryptocurrency industry. With regulatory pressure mounting, and questions about the sustainability of decentralized finance lingering, the Trump family’s foray into crypto could have profound implications. If successful, WLF could serve as a high-profile example of DeFi’s potential to disrupt traditional financial systems.

“This could be a watershed moment for decentralized finance,” says Harrison. “If Trump can leverage his platform to bring mainstream attention to DeFi, it could accelerate adoption and change the trajectory of the industry.”

But as with any new venture, the risks are significant. DeFi platforms are often vulnerable to technical failures and hacks, as seen with previous projects like Dough Finance, which was led by some of the same figures now involved in WLF. A hack that drained the platform of all funds contributed to its rapid downfall.

“The key will be in execution,” says Hamilton. “There are no guarantees in crypto. If WLF experiences a major setback, it could damage not just the platform, but the entire Trump brand.”

For now, the Trumps are betting big on the future of crypto—and their ability to shape it. In his closing remarks during the X Spaces event, Trump reiterated his belief that decentralized finance is the path forward for both America and the world. “Crypto is a massive business,” he said. “It has the potential to reshape everything we know about finance, and we’re going to lead the way.”

Trump’s Bid to Lead the Crypto Revolution

The launch of World Liberty Financial marks a significant step for Donald Trump, both as a businessman and political figure. By embracing decentralized finance, Trump is positioning himself as a leader in the future of global finance, offering a vision of financial freedom that resonates with both crypto enthusiasts and his political base. For sophisticated investors and crypto executives, the project’s success will depend on its ability to navigate the complex regulatory landscape, deliver on its promises, and maintain public trust.

As the 2024 election approaches, Trump’s foray into crypto will undoubtedly be scrutinized. But if he can pull it off, World Liberty Financial could become a defining venture in both his business legacy and the evolution of the digital currency landscape. With its promise of decentralized control and financial empowerment, WLF has the potential to capture the imagination of a global audience—if it can overcome the operational, technical, and regulatory hurdles ahead. In this bold move, Trump has not only doubled down on crypto but also staked his reputation on a high-risk, high-reward future in the world of finance. How this plays out will have profound implications for both his entrepreneurial and political endeavors.

All of this information is valuable, and it is why hackers target them. These hackers try to get into a company’s system and steal this data. A data breach can cause a lot of problems for both the company and its customers. From identity theft to even outright fraud, there are so many issues finance companies have to prevent.

Therefore, it is very important for finance companies to have strong measures in place to protect this information. 

6 Ways to Prevent Data Breaches

Data breaches are not exactly new to the business world. Over the years, there have been quite a few incidents. Finance firms are at risk of data breaches because of the potential for fraud and abuse. So keeping hackers out of your system is crucial. 

Here, we will look at six simple ways finance companies can prevent a data breach.

Monitor for Suspicious Activity

Finance companies are meant to have a system in place to monitor their networks. So, if there is any unusual activity, it can help them catch a data breach early. There are many tools available that can monitor your company’s data. They will quickly alert you if your data is being accessed or if someone is trying to log in from an unusual location. With a hedge fund cybersecurity solution, they can detect it before too much damage is done. 

Use Strong Passwords

Another way they can protect their data is to use strong passwords. It is better to use a strong password, especially one that is long and has a mix of letters, numbers, and special characters. Your password should not be something that is easy to guess.

It is important that employees change their passwords regularly. Also, they should not use the same password for different accounts. The company can even use tools that manage passwords to help their employees create and store strong passwords.

Keep Software Up to Date

If your systems are old and not updated, it will be easy for hackers to get in. Most of the time, software companies release updates when they fix a problem with their software. If your company does not update its software, it will leave the door open for hackers. 

Hence, it is important that finance companies make sure all their software is up-to-date. They can set up automatic updates so they don’t miss anything.

Besides updating the software, companies may also need a total overhaul of outdated hardware. There’s only so much software can fix. If the hardware is outdated, it may not meet international standards. This may incur a cost, but the cost is cheaper than the result of a hack. 

Train Employees

Even before your systems, your employees are the first line of defense against data breaches. So you need to train them on what to look out for. This way, they can know what to do if they see something suspicious. Ensure that your company has regular training sessions for employees. 

Let them know how to recognize phishing emails and other common hacking attempts. They should also know the importance of keeping their work environment secure. Employees should learn how to lock their computers when they are away from their desks.

These trainings should be organized randomly and regularly to ensure that employees are properly sensitized. As technology advances, they need to be up to date with the new ways cyber thieves employ to steal information.

Use Encryption

When data is encrypted, even if a hacker manages to steal it, they will not be able to read it. Encryption makes sure that the data is unreadable to anyone who does not have the right key to view it. Hence, finance companies should use encryption for all sensitive data. They can encrypt data regardless of where it is stored or sent to. 

A good cybersecurity solution provides top notch encryption services to put both the financial business and their customers at ease. 

Outsource cybersecurity 

While having an in house cybersecurity team is a good thing, it may not necessarily keep your business safe from hackers. The reason is simple. Hackers work every day to come up with new technologies to gain access to company systems. In house cybersecurity teams get trained but may not have up to date training to keep hackers at bay. 

On the other hand, when you outsource your cybersecurity team, you’ll work with seasoned professionals who constantly update their knowledge. They can work around the clock to keep finance systems safe and reduce operational risk. This kind of middle office outsourcing service is cheaper in the long run compared to the cost of getting hacked. 

Final thoughts 

It is important to have a good cyber security protocol in place to keep data safe. Companies hold the trust of their customers and a data breach destroys that trust. Not to mention the loss on the company’s part. Finance companies can protect themselves and their customers from the serious consequences of data breaches. However, they need a good monitoring system to ensure that there isn’t any breach. Everyone in the company has a role to play in keeping information safe. From training staff to outsourcing the cybersecurity team, finance companies can

According to Bloomberg, the company recently hired Michel Del Buono as chief investment officer. His duties will include overseeing a range of wealth-management services.

Providing wealth-management services could be a highly profitable business for the firm. Companies usually charge 1% of a client’s assets, with profits reaching as high as 50%.

While a16z did confirm Del Buono’s hiring to Bloomberg, it declined to comment on any future business plans.

“2023 was a landmark year for Tipalti. Despite broader market challenges, we’ve successfully expanded our reach and capabilities, reinforcing our position at the forefront of finance automation,” said Spoja. Tipalti’s platform, designed to automate accounts payable, has become increasingly vital for companies seeking efficiency and cost reduction in their financial workflows.

According to Spoja, the robust growth in a year marked by economic stringency highlights the substantial impact and relevance of Tipalti’s offerings. “As companies looked to cut costs and enhance efficiency, our solutions were perfectly poised to address these needs, leading to significant growth,” she explained.

For CFOs contemplating integrating AI into their business models, Spoja recommends a proactive approach to automation. “The office of the CFO involves numerous repetitive tasks. Automating these can significantly free up resources, allowing CFOs and their teams to focus on strategic objectives,” she noted.

Tipalti is poised for even more significant expansion, particularly into new geographical markets. “Building on our success in the UK, we’re thrilled to extend our operations across mainland Europe, thanks to new EU licenses obtained in late 2023,” Spoja shared. Additionally, the launch of a new expense management platform is set to enhance Tipalti’s comprehensive suite of products further, enabling seamless global payments and employee reimbursements.

Spoja’s conversation with the NYSE highlighted Tipalti’s achievements and its commitment to setting new standards for automation in financial operations. “Our goal is to continuously evolve our platform to meet the dynamic needs of modern CFOs, making financial operations as efficient and scalable as possible,” she concluded.

As Tipalti accelerates its journey into 2024, its trajectory provides a blueprint for digital transformation in financial management, showcasing the power of strategic automation and global expansion in fostering business resilience and growth.

The Burden of Self-Salaries in Small Businesses

The financial strain on small businesses often comes from the salaries that owners draw from their ventures. The allure of higher personal earnings can be tempting and misleading, detracting from the fundamental goals of long-term business growth and stability. As the discussions pointed out, many small business owners transition from regular employment to entrepreneurship with expectations of higher compensation. However, this shift is fraught with financial perils if not managed with foresight.

The expert discussion highlighted that initial low or no salary for business owners could be a strategic choice that supports business health. Reinvesting profits back into the business rather than drawing a high salary can fuel growth, enhance infrastructure, and cover essential expenses like legal fees, marketing, and lead generation.

From Self-Employed to Business Owner: A Critical Transition

A significant highlight of the talk was the distinction between self-employed and business owners. The former often find themselves tied down to the company, unable to step away, and their presence is critical for the business’s operation. In contrast, a valid business owner sets systems that allow the industry to run passively and generate income without daily oversight.

This distinction is crucial in financial planning and business strategy. For instance, the panel discussed how, without understanding the nuances of cash flow management and proper salary allocations, a business is merely a job with extra steps and not a venture that genuinely ‘owns’ itself.

Strategic Expense Management and Growth Planning

One of the most compelling parts of the discussion revolved around strategic expense management. Experts emphasized the importance of meticulous financial tracking and management, especially in the early stages of a business. Engaging with professional accounting services that can act as de facto CFOs helps identify and trim unnecessary expenses and plan for scalable growth.

For example, understanding the actual costs of operations, such as customer acquisition and service delivery, can illuminate paths to efficiency and profitability. This process involves regular reviews of profit and loss statements and making informed decisions that align with long-term business goals rather than immediate personal benefit.

Real-Life Application and Active Cash Flow Management

Practical advice from the floor stressed active engagement in the business’s core activities – particularly sales. Generating active cash flow through direct sales efforts is essential, especially when a company does not have the cushion of substantial startup capital.

Furthermore, the ability to adapt to multiple roles within the business was touted as beneficial. The willingness to ‘get one’s hands dirty’ and understand every facet of the operation can lead to better resource optimization and more informed strategic decisions.

Building Sustainable Business Models

The insightful session wrapped up with a strong message on sustainability and prudent financial planning. Aspiring entrepreneurs were encouraged to adopt a disciplined approach to business finance, focusing on building a robust operational foundation that transcends mere survival and gears towards thriving in competitive markets.

This discussion has illuminated the pathways through which small business owners can transform their operations from fragile startups into robust, profitable enterprises. By focusing on strategic reinvestment, careful expense management, and cultivating passive income streams, entrepreneurs can navigate the tumultuous waters of business ownership toward the coveted shores of financial independence and success.

Peloton has been struggling after being the darling of the pandemic bubble. As people sheltered and quarantined at home, the company’s fortunes skyrocketed, only to come crashing back down as things returned to normal. The company clearly hopes Coddington can help get things back on track.

Coddington formerly served as VP of Finance for Amazon Web Services. She will begin her job at Peloton on June 13. According to a regulatory filing, Coddington’s compensation will include an annual salary of $1 million, as well as $9 million in stock equity. The company will also provide $150,000 for relocation.

Coddington served as VP at Amazon since January 2021, and worked at the company for a total of six years. Prior to that, she held senior leadership roles at Adara, Walmart, and Netflix.

“Liz is a deeply talented finance executive and will be an invaluable addition to Peloton’s leadership team,” said Peloton CEO Barry McCarthy. “Having worked at some of the strongest and most recognizable technology brands, she not only brings the expertise needed to run our finance organization, but she has a critical understanding of what it takes to drive growth and operational excellence. I have seen her intellect, abilities, and leadership firsthand and am excited to work closely with her as we execute the next phase of Peloton’s journey.”

If starting your own tech business has long been a dream lurking at the back of your mind, then perhaps now is the time to grasp the nettle and make that dream a reality. In an age where there are more entrepreneurs than ever, expert advice is everywhere. We’ve narrowed down the key financial points you need to consider when launching your tech startup.

Write a Financial Plan But Keep an Open Mind

Traditionally all startups need a finance plan. While the format this takes has changed over the decades, the principle is still the same. Though the reasons for creating one have evolved. Nowadays, it’s not the bank manager you’re trying to impress but maybe your investors. It might be that your venture is entirely self-funded but even so having your ideas and plans set down on paper is the perfect way to concentrate the mind and set the course. 

You don’t need to create reams of documentation, far better to come up with a slide deck to lay down your plans and your development. Limit yourself to ten slides and tell your story as you see it.

And while this plan is a great place to start, like all good stories there are bound to be some twists and turns, some plot twists, along the way. Be prepared to adapt your story around these unpredictable events, keeping your goals in sharp focus.

Keep Checking Back on Your Product Audience

How do you know what your customers need? You ask them. The only way you’ll build a product that makes you money is to build a product that fulfills a specific need. That specificity is set by your customer, not you. You’ll only find that out through your direct mailouts, your customer surveys and your social media efforts.

Listen carefully and listen regularly. Use that information to design the perfect product but one that you can adapt as your business and your audience grows. 

As a tech startup you’ll need to keep an ear to the ground, making sure you’re providing the most up-to-date and the most solution-oriented product. You’ll get all that information and more through listening to your customers.

Make Sure Your Distribution is Scalable and Affordable

Or to put it another way, make sure you can deliver on your promises. As your business grows, which it most likely will, have the finance in place to distribute on a growing scale. Whether that means taking on more resources in the form of staff or software – have these financial plans in place before they become an issue, not after. 

Go as far as having them built into your financial plan even before you launch. One less thing to consider when you’re ready to grow.

 Create a Culture Based on Your Financial Priorities

If you plan on building a team, part of that process is building a healthy culture into your business. Tech startups in particular can mean staff members working in isolation or silos but this can be addressed with a healthy culture of accountability and checking in.

If staying on top of invoicing matters to your business, create a culture of reward. Lay out to staff what’s important to the business and celebrate successes together. Learning to become a good leader is a new and often challenging dynamic to creating a startup that founders often neglect to consider. As well as designing, building and selling a product or service you must inspire others to grasp your vision.

“Vision is the ability to talk about the future with such clarity, it is as if we are talking about the past.” ~ Simon Sinek

Your team is the backbone to your organisation and the secret weapon to your financial success.

Hire Right

Following on from the last point, in order to create financial growth, you’re going to need to hire the right people. Be very clear in your own mind what you are looking for and the qualities your hires will need to bring to the table.

In an age where many people have retrained and upskilled, don’t rule out those who don’t come from traditional tech backgrounds. The determination and innovation they’ve demonstrated to retrain might be just what you’re looking for. 

Consider soft skills such as communication, empathy, determination and collaboration every bit as much as the hard skills needed for the job. Someone who shares your vision, works well within the team and shows scope for picking up additional skills is a huge asset both personally and financially.

You’re A Salesperson, Not Just a Founder

You might not know it but you are. You sell your business to everyone you talk to and everyone you employ. If you can’t describe what you do or why someone should buy your product or service, then how can anyone else in your team?

If you struggle to find clear and concise wording then it’s time to develop your elevator pitch. That 30-second talk where you explain succinctly who you are and what you do. Practise and test it and you’ll become the best salesperson for your own business. Don’t forget to also create a pitch deck to grab investor attention.

Develop Financial Systems as Your Grow

That accountancy software you used at the beginning might have captured the right data to start with, but as your business scales, so too should your accounting systems. This generally involves financial investment and that’s an area where startup founders often need to take a deep breath. 

In order to keep customers as returning investors into your business, you must offer them the best experience they can have. It’s what’s going to help you stand out from the competition.

To do this, your systems must match your promises. And besides the physical software, your processes might also come under the microscope for change. The “we’ve always done it this way” mentality isn’t a helpful starting point so regularly review the customer pipelines and customer journey. Place yourself as a customer and honestly reflect on how it felt buying your product or service.

Try And Maintain a Work/Life Balance (Your Financial Success Depends On It)

As a founder you’re going to find yourself pulled in many directions at once. Product testing, the technical side of things, marketing, accounting and recruitment. It’s a lot. You could quite easily be working or thinking about working 24-7.  But whether that’s a productive use of your time is a different question.

To be at the top of your game, a degree of self-care is necessary. It might not be something you’d thought about much in the past but you’ll quickly learn about it when you feel the stress of running a startup starting to burn you out. 

You might not get all the rest and relaxation you’d ideally want but carving out time for a little now and gain is imperative. A walk, a morning off, an earlier finish – all these things will help you stay focused on your finances, but also give you some much needed headspace to consider the other things you’ve got going on.

Get Networking

Again this might not sound like a thing you do but in order to push your business towards financial growth, networking can be great as a platform for learning as well as selling.

Taking time to talk to other founders in the tech field will give you a very good idea of who your competitors are and some of the common challenges you face. It will also give you an opportunity to pitch your tech solutions to other companies and take on board their pitches as potential solutions for your business.

At the very least, you should get into some interesting conversations and see who else is out there in your sector.

Reframe Financial Failure

At each step along the journey of starting a new business there’s the possibility of failure. This might not be a catastrophic failure but a series of setbacks. The point is however big the failure, it has the power to throw you off course unless you learn to address and handle it differently.

In the past it might have been that you see financial failure as a natural stopping point, a warning that your ideas aren’t viable. But if you’ve had the courage to start your own business and are convinced you’ve found a product or service that’s genuinely needed, stopping isn’t an option.

Instead reframe how you feel about failure. See each set back as another step further along the road to success. Opportunities to learn and refine your offer. Not easy to do but essential given the likelihood of failure at some point along your journey.

Starting a tech startup is a brave step, it requires resilience, fortitude and a willingness to learn. It might also be the most financially rewarding thing you’ve ever done. Turning your own skills into a business that adds genuine benefit to a customer can be exceptionally satisfying. 

Take these financial tips on board and start putting your dreams down on paper, ready to turn them into a reality.

Google is reportedly switching from Oracle finance software to SAP, with the move occurring in the next few weeks.

Google made the announcement in an email to employees, seen by CNBC. The move doesn’t appear to be related to Google’s Supreme Court win over Oracle earlier Monday. Nonetheless, there is no love lost between the two companies.

As CNBC points out, Oracle refused to certify its software for Google Cloud for years, costing Google business as some companies were hesitant to use a cloud solution that didn’t have Oracle’s blessing. In response, Google started focusing on SAP deployment with its cloud offerings, rather than Oracle.

That relationship appears to be advancing to the software Google uses in-house, with it adopting SAP’s financial software and migrating away from Oracle.

Code-named “Cache,” the service is expected to roll out next year, and is just the latest in a string of efforts by tech companies to branch out into finance. Apple made headlines with Apple Card, Facebook is working on its Libra cryptocurrency and Amazon has been investigating the possibility of offering its own checking account.

Google seems intent on maintaining good relations with banks and customers alike, something both Apple and Facebook have struggled with. Facebook faced enough political backlash to scare off backers of its Libra currency, while Apple upset its partner, Goldman Sachs, by downplaying the bank’s involvement.

Despite its intentions, Google faces challenges of its own, not the least of which is a perception that it does not protect user privacy. Following a revelation that Google was collecting the records of millions of patients through its partnership with the Ascension healthcare group, the Department of Health and Human Services is planning on launching an inquiry. In view of that, analysts are already predicting that Congress will fight Google’s foray into banking.

If Congress doesn’t prevent Google from launching it’s service, customers will be able to access their checking account through Google Pay. While Google Pay is set to reach 100 million users in 2020, a Google checking account will likely skyrocket those numbers even higher.