Tip 17: Manage cash flow and your receivables (B2B)
Many B2B Business suffer from cash flow problems and get stuck in a vicious cycle
of delayed payments.
Our key advice on this topic is to pay attention to:
• Runway (cash in bank / Current monthly expenses): remember fundraising takes 6-12 months in most cases. If possible, have some cash reserves for unexpected shocks (tech, market, natural).
• Accounts Receivable Management, if payments are done by bank transfer, you need to be on top of them (automate reminders, call, WhatsApp, incentivise). Consider invoice discounting if you have significant receivables to manage.
Remember that running out of cash is the #2 reason startups fail. Sometimes it’s justified (i.e. no market need), other times it’s simply bad cash management.