Alkane Inc (ALKN)

[diamond_princess]

sortagreen had to put the kids to bed.My reply:
Burn rate is away for a new company to spend it's venture capital before generating positive cah flow from operations. In other words it's a measure of negative cash flow.
When you hire employees, sales, developments, human resources and finance. They are essential to a company's success, but they can be the cause of your demise.
You'll need a great staff to make the best of decisions. But incompetence, expensive contractors and over hiring will send a companys cost soaring.
If you are not recieving any revenue. The only way to get more money is to use your finance team tom raise funding when your cash runs short. The extra dollars can help you hang on. to make a few extra turns, wich could mean the difference of making or breaking.
A burn rate can also force a company to hire more engineers and contractors wich can make your cost immediately spiral out of control.