Cash Burn pitfalls

NZ startups burn through cash faster than you think, many fail before year five due to preventable traps. Spot these monthly pitfalls to safeguard your runway and thrive.

Overcommitting to Fixed Costs

Locking into leases, salaries, or contracts before growth hits creates rigid outflows that outpace revenue in NZ's tough economy. This slashes reserves fast.

Opt for variable costs and reassess via monthly alignment calls for agile frameworks.​

Ignoring Revenue Timing Gaps

Lumpy SaaS subscriptions or project fees arrive unevenly, starving cash mid-month even with strong overall revenue. NZ scale-ups suffer extra from seasonal slowdowns and late payments.

Factor cycles into forecasts and run weekly checks in founder sessions to stay ahead.​

Underestimating Hiring Burn

Post-funding team spikes balloon payroll without productivity gains, a Kiwi classic where one hire snowballs. Payroll devours 60% of burn in tech.

Analyse unit economics and tie growth to milestones with reporting packs.​

Marketing Spend Without ROI Tracking

Pouring funds into ads or events on hype yields flashy metrics but no lifetime value, as unproven channels flop. NZ founders chase TikTok trends sans conversion ties.

Insist on ROI dashboards in reporting to cut losers and fuel winners.​

Overlooking Hidden OpEx Leaks

Subscriptions, perks, and fees build "silent burn," shocking at quarter-end. NZ SMEs amplify this without tracking.

Audit risks in calls and apply human oversight to AI reports for quick fixes.​

Missing Runway Milestones

Net burn overshoots, missing 12-month targets—29% of startups fail here globally, echoing NZ's valley of death.

Track runway monthly (cash / net burn) with accountability frameworks.

Contact TBG

Secure your financial edge today. Contact TBG for monthly calls, reporting packs, and fractional CFO support—built for NZ startups and scale-ups.​