Many founders know the feeling: the money in the account is melting away, the next round of financing is not yet certain - and suddenly every month becomes a risk. The investor thinks about it, delays the decision or wants to see „a few more figures“ first. This phase often determines whether a start-up survives or not.
The problem: cash flow bottlenecks rarely occur overnight. They usually announce themselves early on - but many founders realise it too late.
Typical warning signals
An impending liquidity bottleneck often manifests itself in small, inconspicuous signs:
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- Customer payments arrive later than planned.
- Planned subsidies are delayed.
- Fixed costs remain stable, but sales stagnate.
- Liquidity planning is postponed „until next week“.
- The team is confident that the investors will „sign up soon“.
If you overlook these signs, you risk slipping into a financing gap - and then it becomes expensive, hectic or both.
Why early-stage start-ups are particularly at risk
Early-stage start-ups often have limited financial resources and few sources of income. A late payment or a postponed commitment can quickly jeopardise the entire structure.
What's more, many founders rightly focus on product and customers - but not enough on cash flow. Yet liquidity is the lifeline of a startup. A good pitch is useless if the account is empty before the investor signs.
So you remain capable of acting
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- Build a simple liquidity forecastEven a simple Excel spreadsheet with all expected incoming and outgoing payments for the next six months helps to identify bottlenecks at an early stage.
- Communicate transparently with investorsNobody likes surprises. Early openness creates trust and room for manoeuvre.
- Plan a bufferAlways assume that financing rounds take longer. A cushion of 3 months can be crucial.
- Create interim financingShort-term funding programmes, convertible loans or bridge financing can help to bridge gaps.
- Reduce variable costs in good timeInstead of frantically saving during the crisis, you can check early on which expenses are flexible.
Early warning system: recognise bottlenecks before they become dangerous
We offer you a practical checklist to download, which you can use to keep an eye on runway, cash flow, fixed costs, etc. at a glance. Because one thing is clear: Capital is scarce - but good preparation is priceless.