How Transparency Can Keep Your Company Burn Rate Under Control

By Annie Pilon No business is immune to failure. Even those with plenty of investors can find themselves out of cash at some point. But businesses with high burn rates are certainly more likely to experience such a predicament. A company s burn rate is the amount of money it spends each month. For plenty of young startups, burn rate might even be significantly higher than the amount of money being brought in each month. The startups that have plenty of venture funding can withstand that sort of lopsided cash flow for awhile. But it can t stay that way forever. In fact, a high burn rate is what caused virtual assistant startup Zirtual to abruptly shut down recently, despite successful multi-million dollar funding rounds within the past few months. So, what is a business that needs to spend money in order to make money to do? Danielle Morrill, co-founder of business information startup Mattermark, thinks that more startups should be transparent about how much they spend. And Mattermark
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