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Alok Kejriwal on Cash Management in a Startup!

Hey, as promised I’m back with another one! 

Thanks for all the feedback – keep it coming – completely love it! And it really helps! 

In this video I’ll talk about a very important aspect of running the dhandha  – CASH MANAGEMENT! The soul of a startup is cash flow and how cash is managed. So I am going to talk on this holy subject! 

Check it out and tell me what you think in terms of content, ideas for improvement and MOST importantly topics that you want me to cover! Just add a comment and I will add it to my list!


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[Highlights of the video added by Asha]

“Getting Funded doesn’t mean your cash management is solved – it’s only begun! ‘Coz you’ll have to return that money multiple times over to the investor – by creating value!”

Principles to follow:

– If you’re the founder you need to be involved in the cash flow of the company – it is not the job of the accountant/CFO. If you can’t understand cash in and cash out as a concept, first study that! No one can handle cash better than the founder/owner.

– Keep your costs down. Be miserly and avoid spending on unnecessary things as a culture (and not just when your money starts drying up). Some of the best companies believe in being frugal.

– Keep understanding potential revenue flows. Dimension the few areas where you think you can generate revenue from.

“Don’t think of revenue generation as chapter 17 that will come later on and then you’ll think about it. No way. This is a chapter that begins the day you start up!” 🙂

“Where is the money gonna come from” is something you need to start thinking about early on…

– Salaries & People’s Cost:  Be careful about that. Those are costs that easily go out of control. Hire those who can give you 2/3 x productivity back. Everything you do has to have an ROI.

–  Cash management concept starts from the capital that has been given to you will create enormous value which also comes from recurring cash flow.

“Apart from Revenue Model, think of Recurring Revenue Model.”

– To remain alive – constantly look at milestones! Take course correction if need be.

“After getting funded, people forget about milestones!”

A common confusion – “People think funding is revenue.” It is NOT.

–  As a founder, you need to keep focusing on the Balance Sheet (for funding, which may or may not happen) but more so on the P & L.

“Be conservative about the money you receive or make – ‘coz it’s gonna make or break your business!”

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Wanna watch my other videos?
Here are some more on Co-founders , Hiring , Focus , IdeasMentors, Sales,
Raising Money & How to Sell

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4 Comments

  1. I don’t know if it’s co-incidence or what but every video posted by you is helping me move forward every day. Right at the time when I needed some gyaan on Cash management..this video popped up…. THANKS A TON!!

  2. Not to rate any of your videos but this one is right up there. Going to download this and listen to this every now and then! Thank you!

  3. “Just by getting funded doesn’t mean you’ve solved your cash problem. You’ve actually begun your cash problem”. Biggest takeaway for me from this video. B-school mein kisi ne yeh baat batayi he nahi 🙂

  4. Great work

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