19 ms·
I would suggest asking some tough questions to the CEO/founder like this: - What is the burn rate of the company? - How much money do we have in the bank? -
by gacba 13y ago
I would suggest asking some tough questions to the CEO/founder like this:
- What is the burn rate of the company?
- How much money do we have in the bank?
- What kind of revenue are we getting (you may already know this, but it could be worth asking anyhow)?
- What is the current horizon for fundraising?
All of this adds up to whether the company is tightening its belt in anticipation of lean times. It's happened before to many companies (for startups I've been involved with, it was the end of paid happy hours and the twice-weekly bagels disappearing) and it will happen again.
It's a panic response to a shortening cash runway that often doesn't help extend it very much. Be aware of the situation and prepare yourself for the worst, if necessary. It may be what others suggest here (a salesman suggesting a lower cost alternative) or the CFO trying to clamp down on expenses based on what they see in the next quarter or two.
Control what you can, be prepared for the rest.