Burn rate (4): black beans and rice (or: cutting costs for a longer runway)

Of course, efficiency is a virtue. Waste is… wasteful, makes everyone worse at their jobs, and reduces the number of possibilities open to you and your team. Knowing where it goes Good financial management is essential for this, of course:…

Burn rate (3): revenue first (better before cheaper)

Given the formula [available cash / (income – expenditure), there are two obvious ways to extend your organisation’s life: you can increase income (revenue) or reduce expenditure. Revenue First You need to think about revenue first because without income it…

Burn rate (2): stayin’ alive

Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money. Most startups born in the bubble died in the bubble. Steve Blank – Is the Lean Startup Dead? If you can get your…

Burn rate (1): the formula

Your organisation’s burn rate is the amount of money you “burn” each month to do what you do. It’s a simple sum, but few organisations seem to keep a close eye on it. Expenses How much are you spending each…

Who pays? (client / user edition)

It means all kinds of things if the client or user of a non-profit organisation’s services pays. The organisation will be focused on the client, and their needs – “She who pays the piper calls the tune.” The non-profit will…

Who pays? (Donor edition)

“Who pays?” is an important question for all sorts of reasons. In the world of non-profits, donors often pay. This can mean: That the charity is free to act in the best interests of the people it seeks to serve,…

Resources about setting prices

A high enough price If you want to help a lot of people, you’ll need to do your job well and for a long time – something that won’t be possible if you don’t have any money. Charging a reasonable…

No shortage of money

There is no money shortage. It might not be where you’d like it, and there might not be people lining up to give it to you for whatever you think it would be well used for… but there’s plenty of…

Money: cause or symptom?

We often focus on the money, but it’s not a cause or an end in itself. It helps to think of your financial position as a symptom of faithful partnership development. Darren Wall

Trust

Make your systems strong. Have a clear process: where does the money come from, where does it go? Account for it transparently: how are movements of money planned, approved, recorded, tracked and evidenced? Have checks and controls: Who sets things…