Startup Scenario Planning: Cash Flow and Talent

Time for Robin’s thoughts: Startups fail for many reasons; running out of funding is probably the main one. Founders must constantly monitor cash flow and have more than one scenario in which financing goes smoothly and problems are solved. Smooth business development and fundraising are among the rarest startup experiences. More common are business setbacks, even harder fundraising, core-team departures, and major competitors entering. Entrepreneurs must prepare different scenarios, including the worst. Stable cash flow only keeps you from losing in the short term. To succeed, assembling the right talent matters most. When you find an outstanding person who fits, find a way to attract them. Even Romance of the Three Kingdoms tells of Liu Bei visiting the thatched cottage three times. Each company takes a different approach. The previous post mentioned Netflix’s very high pay, insistence on exceptional A-players, strict elimination of low performers, and “we are not family or brothers” approach—harsh, but effective. Other companies seek a family atmosphere. Each has advantages and disadvantages. Make your own culture clear and find the corresponding talent.