Building Startups that Last

Due to various obstacles, startups and small businesses often face closure within 18-24 months. While the reasons for startup failure are numerous, the most commonly cited factors include:

• Limited to zero cash to operate business

• Unable to attract investors or qualify for financing

• Founding team members lack necessary skillset

• Lack of a clear or viable business model5)  Operated in a limited or nonexistent market for product or service​

Yet, that's not necessarily the case for all startups and small businesses. Small businesses create two-thirds of net new jobs & represent 43.5% of U.S. economic activity (or GDP) (Chamber of Commerce).

The insights shared below are from an article in HBR Magazine called "Startups That Last: How to Scale Your Business" by Ranjay Gulati & Alicia DeSantola.

CFOs can be one of the first hires to bring their expertise in strategy and finance to founding teams

The financial statement analysis can provide insightful data to suggest operational efficiencies & KPIs to spur & monitor growth

Planning and forecasting are paramount to scale the business that a forward-thinking CFO can lead, implement and measure.

Adding a CFO or any new team member will influence culture and values. Finding an individual who can maintain the core culture is key to high-growth startups.

Startups That Last: How to Scale Your Business

Authors: Ranjay Gulati & Alicia DeSantola

HBR Magazine 2016