Running out of cash is the #1 reason startups fail, accounting for 38% of all failures. (CB Insights)
That’s why having a handle on cash runway is so crucial.
Here are 3 common cash flow mistakes to avoid courtesy of Sifted, a resource for startups founded by the Financial Times’ innovation editor John Thornhill:
1️⃣ Relying too much on manual spreadsheets. 👉 Make sure you have a structure in place so the information you’re relying on is up-to-date.
2️⃣ Only looking at actual spending. 👉 This month’s spending may not match next month’s. Accurate forecasts are crucial.
3️⃣ Not planning for a crisis. 👉 Always keep in mind the worst-case scenario, and prepare for it.
If you’re interested in learning how to run a cash runway analysis, the HCP runway analysis template below can help. ⬇️
What do you think of this template? Please share in the comments below. 🗯️