Management Tip of the Day: 3 things to know about new ventures

Fri Jun 25, 2010 10:47am EDT
 
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BOSTON (Reuters) - The Management Tip of the Day offers quick, practical management tips and ideas from Harvard Business Review and HBR.org (www.hbr.org). Any opinions expressed are not endorsed by Reuters.

"All new ventures are fragile. Even if revenues are growing, chances are your company hasn't yet hit breakeven. Be sure you know these three things to manage through this precarious time:

1. How many days you have to live. Businesses fail because they run out of cash. Knowing exactly how many months or days you have to live can help you better manage costs and your funding strategy.

2. Why you are doing this. Success requires hard work and constant attention. If you don't know exactly why you should make the effort, neither will your funders.

3. The top two critical issues. Be precise about which two issues deserve the highest priority. These may not be the most urgent, but are the ones that matter most to your venture's success."

- Today's Management Tip was adapted from "Three Questions for Entrepreneurs" by Scott Anthony.

 
<p>Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking</p>