The Q4 Scaries antidote: A cash plan

We’re entering a time of year that can be high anxiety for many founders.

It’s a confluence of a few things all at once:

• Traditional VC players are entering their most popular annual fundraising season - if you’ve been getting some pings from investors lately, that's likely the reason!

• End-of-year tax payments represent your last opportunity to pay estimated amounts without incurring big fees

• If you’re profitable and optimizing cash by paying out bonuses before the end of Q4, you need to calculate those pools PLUS go into the new year with a depleted cash cushion

• And this is all happening during a time when borrowing debt is still annoyingly expensive… Many liquidity tools might not be as appealing to you as they’ve been in past years.

So what do you do?

Build a cash plan.

Cash plans tell you:

• How much cash you need to retain for next year

• If you need to borrow money, how long until you’ll pay it back (and how much you’ll pay in interest / save in tax)

• How quickly you can hire with your tighter runway

• Whether you can make it without reinvestment or whether it’s worth fundraising in the current market

• And much more!

Trying to get through Q4 without a cash plan?

I wouldn’t :)

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