Burn rates tell you in real time if you are at risk of going over budget. Because that’s so important to the success of each project, we asked two C-levels of growing companies how they manage burn rate, keeping expenses in check and avoiding surprises at the end of each project.
2 tips for controlling burn rate! Pay yourself first, and plan daily.
1. Pay Yourself First — Bryan Clayton, CEO of GreenPal (Uber for lawn care)
At GreenPal, we pay all salaries and company investments first each month — before paying our bills! This forces us to focus on what expenses we truly value. If we can do without something, we do. They say necessity is the mother of all invention. When we are obligated to pay ourselves first, we think twice about unnecessary expenses, stay lean, and all while delivering a great service.
2. Plan Each Day Meticulously — Uri Soroka, COO of Intellectsoft (software development)
For specifically tricky projects, we take Agile to its extreme. We plan out what should be done on a daily basis. This way we can see any potential pitfalls ahead of time and avoid wasting resources more than anticipated.
We started our daily planning practice after an unfortunate incident in our early days when one of our product teams announced two weeks before the release that they were, in fact, three months behind. It was imperative to make sure this never happened again!