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What Do I Do If My Business Runs Out Of Cash?

YoungUpstarts

Once you have achieved a calm headspace, take a survey of your cash position: How much cash is left? If you answered “no” to #2, you need to scramble to get cash in time for #3. This is like taking a magnifying glass to each cash flow in and out and ensuring week-to-week survival. Do it again.

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How to Run a Productive Monthly Business Plan Review Meeting

Up and Running

Most importantly, we review our cash position and cash flow. What does our cash flow forecast look like for the next few months? While this doesn’t change too often in our situation as an established company, new startups might shift their strategy frequently as they search for a business model that works.

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8 Challenges To Overcome In The Growth Of Hyperlocal

Startup Professionals Musings

I still hear often the dream of a free service to users, supported by advertising, per the Facebook model. Entrepreneurs don’t realize that Facebook spent over $100 million, before revenues from advertising turned cash positive. Business founders need deep pockets for this model.

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The Importance of Burn Rate and Cash Runway

Up and Running

You need cash in the bank to operate, to pay employees, and to keep the doors open. If you’re out of cash, you’re out of business. In times of crisis and uncertainty, understanding your cash position is even more important. If the downturn is short-lived, what expenses do you cut to extend your cash runway?

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When to Bring A Startup CFO On Board

Early Growth Financial Services

Startup CFOs help to hone a startup’s business model and drive growth. They must simultaneously have a handle on the company’s cash position: answering questions like “are we spending in the right place?” and “how much cash/runway does the business have?” How do you know when it’s time to bring one on?

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a16z Podcast: Growth in Turbulent Times

Ben's Blog

Finally, we’ll zoom out and assess the big picture: how various categories of company may be impacted long-term, how this crisis compares to 2008 (and what that means for early-stage founders), and the industries and business models that are now prime for growth. So that’s why you have to account for those.

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Why cash is king

BeyondVC

The best plan in my mind is to make sure that any company we invest in has a tremendous market opportunity with a real business model and high operating margins that can eventually generate real cash flow. Sure I have a plan when I invest, but it is impossible to predict the future.