From cash crunch to conflicts with investors: The early signs of crumbling businesses

These days, a large amount of money is moving towards fast-growing startups. IPOs are happening, new unicorns are emerging, and valuations are rising rapidly. Such achievements should be celebrated because very few startups can accomplish them. But, if people think that a company is set for success by getting access to money, they are mistaken. It is often the case that many companies that look promising today might not last in the future.

While entrepreneurs cannot eliminate the risk of failure, they can minimise it by watching the early signs of the cracks and resolving them on time.

Cash crunch: The most fundamental requirement for a business is capital, and the most challenging thing in business is to raise capital. Many start-ups don’t get a chance to grow because of lack of funds. Raising money takes at least five to six months. Running a business, along with raising funds, is a difficult task.

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