This is about startups, not music. 🙂
When you are building a new project, budget management is something you need to have a clear understanding.
When we are growing the company we may be using more money than we have in our monthly revenue, but you need to make sure you can do that. That is because you understand when your MRR (Monthly Recurring Revenue) will meet expenses or because you understand for how long you can do that without creating bigger risks to your operation.
Sometimes we are using extra money into areas we can stop when needed. That’s nice. The problem is when we are using extra money because we have hired too many people and we need to let people go. That is not only bad for your team. That is bad for your process, for your culture. Avoid creating plans where you will lose more than you need.
You can try different approaches while bringing new skills to your structure. Find companies that can help with you for a fixed time or companies where you can call on demand.
Cash burn is something companies need to master.
That can be part of your growth strategy.
That can also be your end.
— Daniel Wildt
Extra: this post started back in 2014, based on an Inc post. Still something important for every company.