Which of these is a bigger FINANCE problem for founders?

Question

Kayode Odeleye · Accepted Answer

@t_vdovychenko  thanks for sharing the resource. I agree completely that a recession in particular means founders need to think carefully how they spend

It's counter intuitive though. you'd think "just give me the money" and I'll be fine but a lot of times one can do more with less

Answer

Both funding issues and cash flow management pose significant challenges for founders, but cash flow management is often the more pressing concern. This is because even with substantial funding, improper cash flow management can quickly lead to insolvency.

Mei · Answer

It depends on what stage you're at. Every founder faces both issues.

Tatiana Vdovychenko · Answer

When it comes to finance problems for founders, both raising capital and managing capital can be significant challenges. However, during an economic recession, managing capital becomes even more critical. With limited resources and uncertain market conditions, founders must carefully allocate and optimize their capital to sustain their operations. Despite the negatives, an economic recession also presents opportunities for growth and innovation. It's crucial for founders to stay proactive, adapt their strategies, and identify new avenues for success. https://jetsoftpro.com/blog/how-...

Balaji K7 · Answer

I think managing the capital is a unique skill. So I will choose that.

Kayode Odeleye · Answer

@juanmorris77 Interesting perspective, I would have thought founders focus more on the funding issues without bothering about the cash management

Though to your point, cashflow management is more important long term. If you manage cash well even if funding is tight, you'll survive.

If you get funding sorted and you're bad with cash management, you're toast

JD · Answer

Founders often face the challenge of managing cash flow, which is one of the biggest financial problems they can face.

Cash flow problems can arise from not having enough cash on hand to pay bills, or from not being able to collect payments from customers quickly enough. This can lead to problems with debtors, suppliers, and the government.

Kayode Odeleye · Answer

@g0_ramirez you’re right it depends on each founder’s circumstances

Which of these is a bigger FINANCE problem for founders?

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