This Week in Startups Low-Burn | Scaling Your Startup S2 E8 with Neyborly’s Ben Seidl & Xendoo’s Lil Roberts | E1224
Jun 3, 2021
Join Ben Seidl, CEO of Neighborly, and Lil Roberts, CEO of Xendoo, as they reveal essential strategies for managing startup burn rates. Ben shares insights on how to control financial challenges and maintain agility while Lil provides tips for sustaining financial health during growth. They discuss the importance of proactive financial management, setting clear growth goals, and understanding expenses. Together, they explore the balance of frugality and strategic investments needed to scale a successful startup.
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Burn Rate Depends on Several Factors
- Consider your company's growth needs and investor interest when determining burn rate.
- Understand that there's no single "correct" burn rate; it depends on various factors.
The Burn Multiple Framework
- Use the burn multiple (net burn / net new ARR) to assess capital efficiency.
- A burn multiple below 1x is excellent, while anything over 3x signals problems.
Stay Engaged in Finances
- Stay actively involved in your finances, even if you outsource some tasks.
- Review bank and credit card statements regularly to catch any financial leaks.