Secret Diary of an Entrepreneur: Burn rates and bank managers

When you're running out of cash, you really need to be very friendly with your bank manager.

I spent Monday morning working out my new business’s current burn rate (i.e. how long it will take to eat all up my cash). Not the cheeriest way to start a week, but there was an important point behind it: I needed to know how long I could realistically put off the decision about whether to pull the plug. The thing is I’m still completely torn – I went home on Friday convinced it was worth persevering, and by Sunday night had gone entirely the other way. So basically I wanted to work out how long I’ve got to prevaricate. The answer, as it turns out, is about five months (on the most pessimistic view). But really, the main thing I concluded from the exercise was that... [CLICK HERE TO READ MORE AND COMMENT]

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