How Finance Problems Sneak Up

Finance rarely feels urgent, until it suddenly is. In the early days, you are focused on launching, iterating, hiring, and scaling. Maybe you have just raised a round or you are still figuring out how to get to revenue. Either way, there is money in the bank and a long to-do list ahead. It is tempting to put the numbers off for later. But for many founders, that 'later' arrives far sooner than expected and usually at the worst time.

A Founder’s Wake-Up Call

Six months after their seed round, a founder realised that their financial reality didn’t match the plan. They had built a lean team, set ambitious growth targets, and mapped out a 12-month runway. But product development was running over budget, a few quick hires had pushed costs up, and a large portion of the marketing budget had been spent early. What looked like a year of runway had quietly shrunk to just seven months, leaving much less room to manoeuvre.

The Hidden Leaks

Most finance problems don’t arrive as sudden crisis, they build quietly, through small, unnoticed leaks in budgets, forecasts, and spending. These gaps gradually narrow your options, limiting the flexibility you thought you had.

How Some Founders Stay Prepared

The founders who avoid these blind spots keep a close eye on cash not just revenue because cash on hand is what pays the bills. They run 'what-if' scenarios before they are needed, exploring the impact of slower growth or higher costs. They fix problems early, making small course corrections before drastic cuts become the only choice.

The Takeaway

Finance isn’t just about cutting costs. It is about keeping your options open and staying in control. The founders who maintain that control position themselves to last long enough to win.

Set aside an hour this week to review your cash position and run at least one 'what-if' scenario. It’s far easier to adjust early than to recover late.