What are the early-stage pitfalls that startups should avoid?
Startups should avoid not knowing which numbers to look at for the health of the company, underestimating expenses, and hiring and scaling too quickly.
How can startups track their income and expenses?
Startups can track their income and expenses through online banking or bank statements without the need for bookkeepers or financial software.
How can startups determine their financial survival?
Startups can calculate their burn rate (money in - money out) and runway (existing bank balance divided by average burn) to determine how long they can survive financially.
Why is it important to raise money even if it's not needed?
Raising money, even if not needed, can make investors more willing to invest and provide a safety net for future profitability.
What should founders prioritize to avoid running out of funds?
Founders should prioritize understanding their company's financial numbers, checking them frequently, and balancing spending carefully while giving themselves enough runway to figure things out.