Zero-based budgeting: A proven framework for extending runway
By Editor - Wed Mar 15, 4:32 am
Healy Jones Contributor Share on Twitter Healy Jones runs financial planning and analysis for Kruze Consulting. Growth at all costs is out — and cutting burn and extending runway is in. And now that many startups are running through the venture funding they raised in the go-go-go times of pre-2021, many founders are facing the difficult task of reducing expenses to extend their runway. As part of the finance consulting team at Kruze , I’ve worked with many startups that needed to extend their runways and realign their spending — many of them drastically. The best founders look for a framework to strategically cut burn while keeping their startup’s value drivers functioning. Enter zero-based budgeting. Zero-based budgeting (ZBB) is a budgeting approach that requires companies to build their budgets from zero every budget period to verify all of the line items are relevant and cost-effective. What is zero-based budgeting? Zero-based budgeting (ZBB) is a budgeting approach that requires companies to build their budgets from zero every budget period to verify all of the line items are relevant and cost-effective.
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Zero-based budgeting: A proven framework for extending runway