Startup Cash Flow Basics: Keep Your Small Business Stable in Year One
Early-stage businesses usually break from cash timing, not from a lack of demand.
Think of this as a founder blog with a practical checklist you can run weekly.
Step 1: Track weekly inflow and outflow
Weekly tracking helps you react before cash issues become critical.
- 1
Create a 13-week sheet
Use a rolling 13-week cash flow model to forecast near-term liquidity.
- 2
Separate fixed and variable costs
This reveals which expenses can be cut without breaking operations.
Step 2: Protect runway
Runway equals how many months your business can operate with current cash.
- 1
Set a runway floor
Aim for at least 4 to 6 months of operating expenses in reserve.
- 2
Link hiring to recurring revenue
Expand team cost only when recurring income can sustain new payroll.
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