This is an excerpt from a regular column I write – <strong>Neely Ready</strong> – which appears in <a target=”_blank” href=”http://www.australiananthill.com/” title=”Australian Anthill Magazine Web site”>Australian Anthill</a>.
While sometimes apocryphal, start-up failure rates tell a sombre story: most start-ups don’t see their third anniversary. There are many causes of this high attrition rate, but a primary factor is poor cash flow management.
Some founders simply miscalculate how much capital is required to get their business off the ground. Others are overly optimistic when forecasting key milestones (such as the date of first sale or break-even point). Still others allow the heady exuberance of a new project go to their heads (and cheque book).
By following a few simple rules, you can stretch your dollar further, and enhance your chances of success: