Como você pode reduzir a queima de caixa em sua startup?

Understanding the cash flow is most critical to keep the cash burn in check. Most of the time, people focus on P&L, then BS, and then CF. It should be the other way around.

Every start up has to have a "short term revenue goal"- very clear objective. Have a strong listed "target customer profiling" & start commercial possibilities for "cash inflow". Keep a "strict expense cap" on "non-important expenses" which does not have an impact on product progress. "Founders, Top Mangement" need to have an "Hands On Approach" in every areas of business to ensure no waste expenditures and have a heads up always on expenditures. "Monitor expenses continuously".

"Earn and burn is better than burn and earn" for a startup. Plan for needs rather than wants, hold your horses, and keep it super simple.

Avoid going into any high-burn deals in the first place. If a founder is running for a cliff when you get in, they will always be running for a cliff.

I've been at the helm of a startup before, and reducing cash burn is undoubtedly a crucial task. I suggest some initiatives: - Constant monitoring of cash flow - Maintaining a lean structure - Renegotiating contracts (take a look at all your existing contracts and see if you can renegotiate better terms) - Understanding how technology can optimize your processes

Remember “money is time” and once spent, cannot be recovered. If you think this is the last month of your runway, you will be able to decide the right way to prioritise. Good principles of zero based budgeting will always apply in this aspect. Just because you have planned doesn’t mean you need to spend it. You got to understand what milestone you are achieving this month/quarter and see how you want to maximise the existing resources. As a shrewd businessman you should - understand the funnel and when it gets converted before investing on resources whether its personnel or raw materials - avoid frills , identify between need to have, nice to have and compulsory to have - be transparent on your cashflow to your management

Focus, focus & focus: That is the most important lever you have in reducing costs. While most founders will say and honestly feel they are focused, at heart many are also opportunistic and as a result make too many bets. This focus will also create clarity for the team and clarity drives efficiency and this in turn reduces costs as well. It is incredible what one, focused top performer can accomplish versus an unfocused group of mediocre employees!

Managing spend is a big part of my assessment and I have some recommendations for reducing burn: 1. Be creative with capital sources: Non-dilutive sources of capital should be used to optimize your tech, validate results by way of studies, etc (if in healthcare), and otherwise mitigate technical risks. There are several sources of non-dilutive capital outside of grant's and its a really good idea to put some effort into securing it and leveraging it well 2. Reduce fixed expenses on working spaces, etc: Labs have advanced their business models to accommodate STEM startups and several county level economic development programs provide matching grants and location. 3. Optimize your customer outreach: Have a really solid BD strategy

I know startup founders who are riding around in BMWs and have half a million dollar homes. Man sell that stuff!! When I went from corporate to entrepreneur, I sold my BMW and other high costs I didn’t need and I lived minimalist! I even lived in cheaper countries per the exchange rate for the American dollar. I lived in Mexico for a while and my dollar went 3x as far. It is not for everyone but I bootstrapped everything to include my professional services firm and my VC firm. The billion-dollar bootstrap companies are rare but many times their stories are some of the most monumental and inspiring. It can be done. #vc #vcinsights #venturecapital #venturecapitalist

Cash burn can be measured and managed by its outcome. Many founders spend substantial amounts on marketing but still fail to retain customers, ultimately affecting the LTV (Lifetime Value) for startups. Such instances indicate that before allocating excessive funds to marketing, founders need to focus on refining their products/services based on market feedback and customer needs. Another reason for high burn could be unnecessary manpower or excessively high payouts, both of which are controllable with proper management techniques. Startups need to prioritize product/service refinement and efficient resource allocation to ensure sustainable growth and long-term success.

Test key assumptions around pricing, customer demand, etc. Pivoting based on real market feedback can avoid wasting money on ideas that won't work.

Every day, assumption considered by startup has to be evaluated, validated, reassessed, calculated in terms of cash flow generation at the end of the business cycle. In case, it got delayed, the company has to suffer in terms of losses.

This is crucial for avoiding costly mistakes. By testing your assumptions with real data and feedback from others in the business, you can ensure that your business decisions are based on reality rather than guesswork. This process allows you to identify and correct any faulty assumptions early on, saving you time and money in the long run, as well as embarrassment. Additionally, being open to pivoting or iterating based on new information demonstrates adaptability and a willingness to evolve, key traits for long-term success particularly in this segment.

7. Remote Work and Flexible Arrangements: Embrace remote work and flexible work arrangements to reduce office space and related expenses. Use technology to facilitate remote collaboration and communication among team members. 8. Raising Capital: Explore alternative sources of funding such as grants, government incentives, or strategic partnerships to supplement existing capital and extend runway without diluting equity. 9. Scenario Planning and Contingency Plans: Develop scenario plans and contingency plans to anticipate potential challenges or changes in market conditions. Be prepared to pivot quickly and adjust strategies to mitigate risks and minimize financial impact.

1. Talk to customers: Engage with your target audience to understand their needs and pain points. 2. Build prototypes: Create simple versions of your product or service to test with real users. 3. Conduct experiments: Try different approaches to see what resonates best with your audience. 4. Analyze data: Gather feedback and metrics to assess the validity of your assumptions. 5. Iterate: Based on what you learn, refine your ideas and strategies until you hit the mark.

Disruptive start-ups sometimes forget that once they have developed solid traction, they can try and push the boundary with pricing. One start-up I'm involved with has experimented with increasing the price of what is a very compelling B2B enterprise style product where they have solved a massive industry-wide problem. Customers and channel partners are realising its power. And, as prices have been steadily increased, not one customer has blinked. Sometimes, we are quick to talk up the solution, but we are slow (or perhaps a little too shy) to financially capitalise on it! Take your pricing model out for a spin and see how far you can push it (within reason) 😂

Pricing is the most important lever any business has to improve the financial performance. Increase in pricing will directly and immediately contribute to your EBIDTA growth. However increasing pricing is next to impossible, it is a strategic play in itself. Below points are critical to note if you want to optimise pricing for your startup and be successful - price for the value you offer - change the way you charge your customer - add additional layers in your offering which can create incremental value - segment your customers and differentiate as per their value system - learn how to price various components of your product or services , so that you can remove at appropriate time Price increase directly reduces cash burn

Review pricing frequently. Raise prices if customer acquisition costs allow. Consider tiered plans or freemium models. Upselling reduces cash burn per customer.

This can significantly impact your cash flow and overall business performance. First, let's start by understanding your value proposition, costs, and competitive landscape, you can set prices that maximize revenue while maintaining customer satisfaction. Experimenting with different pricing models allows you to find the most effective approach for your business. For example, consider subscription models, freemium offerings, and pay-per-use options, since each have their own advantages and can help you attract and retain customers while managing cash flow. Regularly reviewing and adjusting your pricing strategy based on data and market feedback ensures that you stay competitive and profitable - stay tuned and connected with the market.

10. Regular Financial Monitoring: Monitor financial performance regularly and track key metrics such as burn rate, runway, and cash flow projections. This enables proactive decision-making and adjustments to ensure financial sustainability. By implementing these strategies, startups can effectively reduce cash burn, extend runway, and position themselves for long-term success while maximizing value for investors.

Founders Equity is not the only source of funding.. Infact equity is the costliest mode of raising funds. Various options are available for you as a founder for your startup at various stages : 1. Early stages - incubators and accelerators can support you with grants, support functions. Startups India seed fund and various funds under departments of government in India are available for crossing the initial stage 2. Biggest customer can be your investor - explore how your biggest customer can be your investor 3. Debt funding has never been so easy.. various options are available where you can avail up to 5 Cr without security in India under CGTSME 4. You can get a loan up to 50 Lakhs under startup India seed fund These are top 4!

Exploring alternative funding sources is crucial for managing cash burn. Beyond venture capital, consider grants, loans, crowdfunding, or revenue-based financing. These options can provide financial breathing room without the stringent conditions of traditional VC funding, such as equity dilution. Diversifying funding sources not only supports growth but also reduces reliance on a single financial avenue, offering flexibility during uncertain times. It’s important to weigh the benefits and obligations of each funding type to align with your startup's growth trajectory and financial health

Consider grants, loans, crowdfunding, and revenue-based financing offer opportunities to secure funds with varying levels of commitment and requirements. Each option has its pros and cons, so you have to carefully evaluate which aligns best with your business goals and financial needs. Also, diversifying your funding sources can reduce dependency on any single channel, providing greater stability and flexibility in managing your cash flow and overall financial health.

In the saga of entrepreneurial growth, exploring alternative funding sources is vital to mitigate cash burn. This quest for financial sustenance, essential for bridging cash flow gaps, demands astuteness, especially in tumultuous times. While traditional funding avenues come with strings attached, like equity dilution, forward-thinking entrepreneurs should consider diverse options: grants, loans, crowdfunding, and revenue-based financing. Such a strategic approach not only secures necessary capital but also equips startups to thrive amidst economic uncertainties. Spread Shark Love #divineintervention #gabenfreude

Para economizar numa startup, você pode começar a contratar mais pessoas pelo potencial de crescimento e interesse delas, além da capacidade de aprender rápido, do que apenas pelas qualificações. Além disso, terceirizar processos que não são core, como contas a pagar ou receber. Renegociar com fornecedores. Resgatar créditos em programas de perks dos principais softwares ou cloud providers. Procurar editais de fomento que você consegue alocar várias depesesas neles. Ensinar todos sobre integrações e automações para acabar com os trabalhos manuais.

Track leading indicators like customer acquisition costs, lifetime value, churn rate. Optimizing these allows efficient spending.

Cash flow of your main activities and operations is important for success from enterprises. Variables of each Clarifications submitted

DATA IS KING! Make informed decisions based on your key metrics. It's crucial to prioritize the metrics that are most relevant to your current stage of development, your objectives, and the specific characteristics of your industry. Examples of critical metrics include the cost of acquiring customers, the lifetime value of customers, gross margin, and the rate of net burn.

Business plan once finalised needs to be converted into a proper annual operating plan (AOP) Post that you need setup metrics across the organisation to monitor progress from Idea to monetisation of your business. Identifying metrics will help you to understand levers and its impact on cash burn Here are few sector agnostic ideas Idea - development cost by product, milestone progress vs plan Sales Funnel - funnel generation, funnel conversion, sales quota by team Operations - quality, client retention, client attrition, gross margins, cost of delivery Finance - ROI, DSO, Ebidta, gross and net burn HR - attrition, absenteeism Sales & Marketing - life time value of customer, acquisition cost, ROI of marketing activities

One of the best ways to reduce cash burn is to implement AI. Even in the infancy of AI, there are a ton of tasks that can be offloaded to AI. When seeking investment, investors will appreciate your narrative of how you are using AI to reduce OPEX and at the same time use it scale the company. This is particularly important in early and growth stage companies.

Critically important consideration of all startups. Three major components to establishing and maintaining low cash-burn (so you don’t have to “reduce” it when cash runs low). 1. Outsource as much as you can — administrative overhead can be reduced by offshoring tasks. 2. Leverage the resources your partners have. 3. Keep the number of your key personnel the size of a basketball team with the founder as the Coach. Think Chicago Bulls in the Jordan-Pippen era.

Able to manage the cash burn and ability to manage the decisions around it in a very objective way is the formula for your startup to be sustainable and succeed! Think multiple times before you commit to any new cost stream and and don’t do it unless - it enhances the value to customer further - it increase your revenue - it helps you to optimise current cost streams Stay objective while deciding on it.. Don’t do the following : - hire people without having a proper work-plan for them - ordering raw materials considering an ambitious sales plan without funnel supporting it - expanding without understanding unit economics and its impact In startups cash burn(money) is time! It gives more time for you to pursue your goals

To reduce cash burn, start by taking a hard look at your internal expenses, trimming anything that's not essential. It's like cutting fat in an organisation - it's a good thing that makes you leaner and more efficient. First, rein in any unnecessary spending; this helps the company in the long run. If that's not enough, you might have to cut into the 'muscle' of the organisation. This can sort out your finances quickly, but remember, it's tough and costly to build back what you've lost. So, make sure you've gotten rid of all the extra fat before you start making these deeper cuts. Treat this step with the seriousness it deserves, but know sometimes it is necessary.

Reduce Salaries/Team Size Put founders and early team on minimum salary needed. Hire slowly, ramping up team as revenue supports it.