You Need To Secure the Money End Of Your Startup Right Now

Why do startups run out of money? Here’s the most preventable way.

Why are entrepreneurs cavalier about managing money?

It’s not that entrepreneurs don’t care about where the money goes. That’s not the case at all. Paraphrasing something Red Hat founder Bob Young told me early in my career, which I completely identify with:

  • They want to avoid the courtroom at all costs, but you can expect them to push discussions about patents, contracts, and regulations to the bottom of their priority lists. That’s the other 40 percent of Legal.
  • They know that money is the scorecard that’s going to keep the doors open, keep growth up and to the right, and keep the mission and the dream alive.

Why entrepreneurs hate the nuts and bolts of accounting

In over 20 years of being an entrepreneur, I’ve never gotten good, or even passable, at accounting.

Everything is more expensive than you think it’s going to be

There are two clocks that are always ticking down to zero when you’re an entrepreneur. One is counting down the time until someone succeeds with your idea. The other one is counting down the minutes until your money runs out.

You will get nasty surprises if you don’t know where the money is

One entrepreneur I know just shared a story with me about realizing his company was potentially on the hook for a $60K tax bill. He figured this out near the end of last year.

You can’t grow until you know where you are

Growth is not just about landing more customers and selling more product. The truth is that most startups operate at a loss, or need to, in order to get traction in a market.

I’m a multi-exit, multi-failure entrepreneur. Sold ExitEvent. Building TeachingStartup.com & GetSpiffy. Former Automated Insights. More info at joeprocopio.com

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