Re:What to do if your startup is running out of cash
by accountuser on Thursday March 26, 2020 @03:48AM
(#22691404)
On a personal note, a neighbor working for a food services company, serving FAANG size companies was converted from a full time to contractor, and then furloughed.
By his own admission, his employer didn't have enough cash for for other alternatives. There are sometimes no easy ways to deal with running out of cash, especially during a crisis such as this.
In industries reliant on just in time delivery, including that of cash, back inventory and cash piles are non existent. This crisis should be a reason to explore contingencies for such companies/industries
Edit: from another trending HN article [1]: "companies need buffers to face uncertainty –not debt (an inverse buffer), but buffers."
By his own admission, his employer didn't have enough cash for for other alternatives. There are sometimes no easy ways to deal with running out of cash, especially during a crisis such as this.
In industries reliant on just in time delivery, including that of cash, back inventory and cash piles are non existent. This crisis should be a reason to explore contingencies for such companies/industries
Edit: from another trending HN article [1]: "companies need buffers to face uncertainty –not debt (an inverse buffer), but buffers."
[1]: https://medium.com/incerto/corporate-socialism-the-governmen...