The document provides 11 tips for managing cash flow as a startup: 1) Improve cash flow by taking in more money than spending until revenue grows; 2) Avoid unnecessary financial commitments when cash is low by leasing instead of buying and bartering when possible; 3) Treat variable costs carefully as the founders are personally funding the business; 4) Share office space or work from an incubator to reduce costs; 5) Buy used office equipment when purchases are necessary; 6) Extend the life of technology by 6 months; 7) Partner with local schools for free student interns; 8) Regularly renegotiate service fees; 9) Hold virtual meetings instead of traveling; 10) Seek providers experienced with startups;

1. In
Entrepreneurship,
11 Tips for Managing Cash Flow
CASH
RULES
Tom Walker

2. For founding teams
who may not have
quite developed the
cash flow mindset yet,
here are some things
to think about:

3. The only way for a company
to improve cash flow is to
take in more than you spend.
Until your business development
efforts begin to pay off and you
can push levers that grow revenue,
reducing costs is the only choice.

4. When you are starting out
and don’t have much cash,
don’t make any financial
commitments that you don’t
absolutely have to make.
Fixed costs are called fixed
for a reason.
Lease instead of purchase.
Barter rather than buy.

5. Create a culture
that treats variable
costs as if you are
spending your
own money—
which you
likely are.

6. SHARE
office space or locate
in a business incubator.

7. If you do have
to buy office
equipment,
go with used.

8. Make servers,
laptops, tablets,
and mobile phones
last six months
longer
than you believe
is reasonable.

9. Build a relationship
with nearby business
schools and MBA
programs to attract
student interns for
marketing research
and other projects.

10. Regularly
renegotiate
fees and terms
with Internet,
wireless, and
cellular carriers.

11. Conduct
VIRTUAL
MEETINGS
instead of buying
plane tickets.

12. Seek out
service
providers
that specialize in
working with
startups.

13. Utilize the services
of local and regional
economic development
organizations. These
groups can be
excellent sources
for no-fee expert
advice and best practices.
Sometimes they provide stipends for market research and even
proof-of-concept funding or grants.

14. When it comes to managing cash,
the culture
that you create in the beginning
will pay dividends
throughout the company’s life.