How Transparency Can Keep Your Company Burn Rate Under Control

Even those with plenty of investors can find themselves out of cash at some point. But businesses with high burn rates are certainly more likely to experience such a predicament. A company’s burn rate is the amount of money it spends each month.

For plenty of young startups, burn rate might even be significantly higher than the amount of money being brought in each month. The startups that have plenty of venture funding can withstand that sort of lopsided cash flow for awhile. But it can’t stay that way forever.