Cash is key. We need to have cash for executing our business plan. Even if we do not, we need to know where it will come from. Arranging/raising cash late can lead to disastrous consequences.
In Beveragewala, we started growing really fast. In March 2015, we were doing around 20 orders a day. By May, we were upto 75 orders and by June, we were doing close to a 100 orders a day. Our monthly burn had increased multifold and the money we had which we thought would last us for another 6-8 months looked to finish within 2-3 months. We valiantly started approaching investors and other sources of funds. Since we could not do the same in time, we had to close down eventually. Maybe if we had more cash with us, we would have lasted some more time, maybe enough to scale more, get investment and build on our core.
So my advice to early stage entrepreneurs is to be very proactive about your cash requirements. Always have enough cash so as to avoid a similar end.
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