Cash Burn rate for an entreprenuer and a business.

[cherry123]

Yeah sometimes it is good for soke people or business to have high cash burn rate within a short time but there should also be an equal high rate of return too

 

[Niyi Briggs]

you are right on this that we should have a balance on the rate of regeneration as well as the rate on burning out the cash.This is where at times businesses fail to balance because they just cannot seem to figure out just how to maintain that strategy.

That balance is where profitability and sustainability of a business lies. And it is the very reason why some businesses fail when they fail to strike that balance.

 

[cherry123]

I agree to this wheh you are not striking a balance between your expenses and profit you would certainly run into murky waters in your business you need to be wise

 

[Passiveearner]

At some point, the principle does apply not only in companies, but also to personal expenses. But then, it varies to certain situations and cannot assumed the rate of expenses is absolute in a monthly basis.

Each and every person usually try to manage his expenses according to the best way. I think that they have to manage expenses by managing the cost it requires to produce finished products when it comes to manufacturing business.

 

[Bisolami]

you are right on this that we should have a balance on the rate of regeneration as well as the rate on burning out the cash.This is where at times businesses fail to balance because they just cannot seem to figure out just how to maintain that strategy.

Some business owners also do not know the right strategy that they can use for their business. Some of them even copy other people's strategy and it is not advisable.

 

[Heatman]

At some point, the principle does apply not only in companies, but also to personal expenses. But then, it varies to certain situations and cannot assumed the rate of expenses is absolute in a monthly basis.

If you don't try as much as possible to control your expenses in anything that you are doing even if it's in your business you will end up becoming bankrupt.

 

[Carson20t]

Some business owners also do not know the right strategy that they can use for their business. Some of them even copy other people's strategy and it is not advisable.

To be honest, unless you are a spy it is not so very easy to copy a duplicate strategy of a business but in my point of view I think it is not a crime to copy a business model provided you do not try to copy and paste but rather remain unique and authentic to your business blueprint and selling idea. Some case scenarios include some businesses like Google not being the first search engine, Amozon not being the first online franchise and Facebook not being the first online social platform. I guess that is why some businesses fall off and run bankrupt if they dared copy other strategies for people.

 

[Bisolami]

To be honest, unless you are a spy it is not so very easy to copy a duplicate strategy of a business but in my point of view I think it is not a crime to copy a business model provided you do not try to copy and paste but rather remain unique and authentic to your business blueprint and selling idea. Some case scenarios include some businesses like Google not being the first search engine, Amozon not being the first online franchise and Facebook not being the first online social platform. I guess that is why some businesses fall off and run bankrupt if they dared copy other strategies for people.

Well, you have a valid point. The only reason why you will be able to duplicate or copy another person's business plan is only when their strategy is open or they are not keeping their information well

 

[Shavkat]

If you don't try as much as possible to control your expenses in anything that you are doing even if it's in your business you will end up becoming bankrupt.

I am sure it will happen. That is why we need to forecast the financial part of a particular business. In fact, it is the primary reason why overspending is not a good thing in business.

 

[Bisolami]

I am sure it will happen. That is why we need to forecast the financial part of a particular business. In fact, it is the primary reason why overspending is not a good thing in business.

And it is also why we need people like financial advisors to help them in the business. It will help them to know the financial suture of the company

 

[cherry123]

Yes businesses need to find a way to manage their expenses so that cost of production would be reduced too low cost of finished products will reduce cost as well

 

[Shavkat]

And it is also why we need people like financial advisors to help them in the business. It will help them to know the financial suture of the company

Indeed. It is a good decision to hire an accountant for the company's financial matters. Although we can avail the accountant firm's services. We did this before with our family business.

 

[Etini Willie]

Some businesses especially production busines can see one have a very huge cash burn rate. But the consolation is that they make the money back. You might be having 100k now and it disappears in a matter of 3 days.

 

[cherry123]

Yes when it comes to cash burn rate it is pertinent to meet or invite people like financial advisors to help them in the business. It will help one to run a business better

 

[Bisolami]

Yes when it comes to cash burn rate it is pertinent to meet or invite people like financial advisors to help them in the business. It will help one to run a business better

This is why it is good for you not to go on with some things when you know that you do not have a financial advisor that will help you to do some things right. Business peopleneed to think about this

 

[cherry123]

Yeah this is more like you shouldnt go into a business when you know that you do not have a financial advisor Especially when you don't have a good knowledge of that financial help

 

[Bisolami]

Yeah this is more like you shouldnt go into a business when you know that you do not have a financial advisor Especially when you don't have a good knowledge of that financial help

Even apart from not having a financial advisor, when you know that you cannot handle a business, it is better not to go into it. It will be good if you can just find other things to do.

 

[Sophie]

Cash is always burning be it at the beginning, midpoint or finishing period of a business
I don't believe that business owners can actually determine the cash burn of a business

 

[Bisolami]

Cash is always burning be it at the beginning, midpoint or finishing period of a business
I don't believe that business owners can actually determine the cash burn of a business

I think this has to do with flows. It has to do with how the business is flowing if it is going well or not before we can talk about the cash business rate. The owner of the business may not be able to determine that

 

[Yohanna]

If you have a high cash burn rate within a month, it is believed that you should also have a high rate of return. With that, they would be a balance on how the business is run.

Having a reasonable income is a virtue and it is what each and every business owner should try to incorporate. The essence of establishing the business is to maximize profit by increasing the turnover rate of the business.