Why startups go bankrupt in summer – 5 tips from a CFO consultant
When most companies go on vacation in the summer, a risky phase begins for startups. While customer budgets are paused, decisions are postponed, and payments are delayed, costs continue to accrue in the background.
Liquidity planning becomes a strategic imperative during this time. It determines whether a startup will survive the summer with stability or experience unpleasant surprises in July and August. A good liquidity forecast protects against bottlenecks, allows for early countermeasures, and is therefore an important element of sound financial management .
Many insolvencies of young companies do not result from a lack of demand, but from a lack of liquidity: that is, from the difference between cash inflows and outflows.
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Especially during the summer months, business processes slow down in many industries. Decision-makers go on vacation, projects are delayed, and payment deadlines are pushed back further. At the same time, fixed costs such as rent, salaries, and license fees continue unabated. For startups already operating on tight budgets, this quickly creates a dangerous gap.
The cash flow forecast functions like a financial radar. It considers all income and expenses and records how much money will be available at what time. Ideally, this is planned on a weekly basis, but at least monthly. Here are some points to consider:
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