AN EVAPORATING RUNWAY
Until the new business concept has proven itself and is generating a sustainable level of revenue, startup founders must deal with a pile of ever dwindling resources. The first five negative impacts all increase the likelihood that a new entrepreneur will run out of cash, time, support, or personal will before he or she can find an adequate revenue stream. Exerting additional pressure on desperate founders is a rule I find myself repeating to every aspiring entrepreneur who shares startup plans with me: Everything will take longer and cost more money than you think. This principle underscores the importance of developing realistic, hype-free estimates regarding your new venture’s pathway to profitability, so that you can set realistic timelines, secure adequate resources, and identify behaviors and practices that will maximize your startup’s staying power.
