There has been a ton of hoopla about startups and the problem with cash flow and burn. Many big investors are sounding the alarm that late-stage companies are spending too much money. The idea is that if they continue to spend as they have and growth isn’t where it should be, they could disappear overnight. This will have a trickle-down effect on earlier-stage startups.
I think this is fair. But I also think this is always the case. Mismanaging time and money will vaporize any startup. Maybe the reason for the noise at this time is because investors think this is more likely to happen now which is completely reasonable.
So what does this mean for your early-stage startup?
I think this means a few things but the most importantly to make sure you manage your monthly spend and company focus (i.e. time). Build a roadmap, hit self-imposed deadlines, don’t have any dead-weight on the team, are things you should always be doing but even more so when money becomes tight.
If Winter is truly coming, stay sharp, focused, and good luck.