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.

by
Last Updated: 31 Aug 2010

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]

Find this article useful?

Get more great articles like this in your inbox every lunchtime

'I became governor of Iceland's central bank in 2009. Here's what I learned ...

And you thought your turnaround was tricky.

"It's easy to write a cheque you don't have to cash for 30 ...

But BP's new CEO has staked his legacy on going green.

AI opens up an ethical minefield for businesses

There will inevitably be unintended consequences from blindly adopting new technology.

The strange curse of No 11 Downing Street

As Sajid Javid has just discovered, “chancellors come and go… the Treasury endures forever”.

Men are better at self-promotion than women

Research shows women under-rate their performance even when they have an objective measure of how...

When doing the right thing gets you in trouble

Concern with appearances can distort behaviour, as this research shows.