Startups: Become self-sufficient, even at the cost of growth : Green & White

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Startups: Become self-sufficient, even at the cost of growth

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Osama A.

Osama runs a Social Media Marketing Agency and a Software Product Company. He has been involved in building online communities since 1997 and his major strengths are understanding how people choose to come together and work as strong cohesive units that believe in brands or causes. His team's flagship product offers highly innovative ways to get professional teams to work better together - resulting in significantly saved time in common tasks around getting people on the same page; and also resulting in a greater sense of trust among virtual teammates. You may contact him at hashmi@cdfsoftware.com with inquiries.

Thanks to Usman Sheikh for pointing to this article… the situation Stuart describes is both shocking and also described in an engaging way. Here’s a short excerpt:

To navigate through this climate, every CEO needs to perform a simple analysis: First, how much money is in the bank (not including debt)? How much runway does this give you at your current operational posture? And what are you going to do about it?

First choice, get to cash flow positive on that money.

Second choice, get the cash to last for two years..

Third choice, see how much money you can gather from existing investors to get to cash flow positive.

Last choice, go to outside investors to get the additional money. Yes, there may be exceptions to the rule, but it is not a pretty market for companies with a high burn right now, period.

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