Publisher's Synopsis
1 out of 4 startups shut down because they run out of cash. However, you will be running on fumes before your startup will. Therefore, it is not a surprise that messed-up personal finances are a primary reason that causes 1 out of 3 founders to quit.
You may believe that your personal financial situation will be solved when your startup raises money or you get 'that' big exit. However, less than 5% of startups will raise money, an even smaller percentage will raise follow-on capital, but a minuscule fraction will get an exit adding more than ₹5 lakhs to your net worth.
Are you sure that you want to bank on those odds for putting food on the table and a roof over your head?Even after they have raised capital, early-stage founders discover (to their dismay) that their startups will struggle to pay them market-rate salaries. There will rarely (if ever) be any bonuses and no chance of perks.
So, during the first 999 days of starting up, should you handout share certificates to your landlord or the local kirana store owner? You should not, you most likely cannot, and it is almost certain that the receiver will not accept them.
You can avoid this financial apocalypse with intelligent planning and effective budgeting so that you can support your startup until it can support you.
How can you do that? That is the primary purpose of this playbook.
