The recent economic downturn and today’s challenging fundraising conditions have many startups looking for ways to extend their cash runway. Burkland has compiled a new Cash Runway Extension toolkit to help.
The new toolkit is loaded with valuable tips, tools, and information from Burkland and our partners including these resources:
1. Need More Runway? Five Steps to Extend Cash
2. Scenario Response Planner from First Round Capital
In the early weeks of the Covid pandemic, First Round Capital published a field guide to help startup leaders navigate the difficult and uncertain time. The article includes a 5-Step Framework and Template with scenario and runway planning tools. This content from First Round is just as valuable and relevant today as it was a couple of years ago. I recommend all startup founders read it and take advantage of the planning tools.
3. Three-Year Financial Model Template
Burkland CFO Debbie Rosler shares an example of a 3-Year Financial Model. Debbie recommends building separate models for each of your scenarios and associated contingency plans to determine the cash runway. She provides insights, tips, and questions to ask yourself along the way.
4. Waterfall Analysis Template
Debbie also shares an example of a Waterfall Analysis, which she recommends implementing as part of a monthly (or more frequent) forecasting process. Regular forecasting and waterfall analysis will help you track trigger points that could drive you to shift to an alternate scenario and implement associated contingency plans.
5. Reducing Costs & Bringing in Capital
Right now startups are strongly advised to identify and implement the best measures to reduce costs and preserve cash flow. This article provides strategies for managing people cost, maximizing working capital, minimizing churn, and raising funds.
6. Improve Collections During a Crisis
7. Evaluating Your Startup’s Marketing Budget
Burkland partnered with VisualizeROI to create an interactive calculator tool to forecast marketing scenarios which can be exported into presentations for your Board and other stakeholders. The tool helps answer questions like “Where should marketing spend be lowered?”, “Where should it possibly be increased?”, and “What is a new realistic pipeline generation goal?”.
I hope the Cash Runway Extension toolkit gives you new ways to extend your startup’s cash runway, helps you weather the current tough economy, and position your startup for the best future. For more valuable resources like this, see all of Burkland’s startup toolkits, resource downloads, tax calculators, and articles.