Most early-stage companies do not fail because of a bad product. They fail because they misread their own cash position.
Startups often track revenue, users and burn rate, but miss the subtle cash flow killers that appear between the P&L and the bank account.
Mistake 1: Confusing revenue with cash. A signed contract is not money in the bank. Mistake 2: Ignoring payment terms. A 90-day receivable delays your runway calculation by a full quarter. Mistake 3: Forgetting tax withholdings. Mistake 4: Not modeling a worst-case scenario. Mistake 5: Updating the forecast only once a quarter.
The fix is a simple 24-month cash model with three scenarios. Update it monthly. Your future self — and your investors — will thank you.