Why do startups fail? 🪦
Top reasons for startup failure
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.
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.