CBInsights regularly surveys businesses and they came up with this helpful analysis of top reasons for startups failing.
Point one is often a symptom of wider business problems but it shows how important it is to manage your cashflow. So…
is your business monitoring cashflow? 💸
Investing in your finance team to ensure they are reporting on cashflow or using software to keep tight control of cash could have turned 38% of business failures into a success.
Quantico Takeaway
Cash forecasting and strong processes are critical to future success. No matter where you’re at in your lifecycle, it's always worth getting your finance team (or inhouse FinOps team 😉) to prepare a cashflow forecast.
Once you know where there might be shortfalls you can go obtain additional funding ahead of time. We advise all partners to start this process in a timely manner to avoid last minute stress.
This is even more critical in the current potential market downturn.
