09- BURN RATE for startups and small businesses

Do you, as an aspiring startup or small business or entrepreneur know what your “Burn Rate” is, if you are asked?

In this episode, Chris Benjamin explains the term BURN RATE and why it is important for the startup to know, especially when seeking funding from angel investors or venture capitalists or other sources of funding.

As you will hear in this very brief audio episode, your burn rate is the ratio or rate of spending that your venture has performed in a short period or an average over time — usually on a monthly basis in terms of amount of dollars.

This is probably one of the very first questions that you may get when you are looking for funding — either an additional round of venture capital or angel investing.

We deliver this message because many startups rush into their quest for funding without knowing this term (one that should be kept in their entrepreneurial toolbox), and thus, they may be looked upon as “amateurs” who are not knowledgeable enough when conversing with the sources of funding.

We hope that you can keep your BURN RATE to a satisfactory level when you are seeking additional funding.