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I've met many smart founders with real revenue, yet somehow they're always scrambling for cash.

They think capital efficiency is just “burn vs investment” - but that framework is exactly what’s killing them.

After managing 8 figures in revenues, selling 2 companies, and watching 50+ portfolio companies, I’ve learned there are actually three types of spending:

• Revenue-generating (sales that close, ads that convert)
• Capability-building (systems, A-players, infrastructure)
• Pure burn (everything else)

The fatal mistake is that founders treat capability-building like burn. They see it as a cost instead of compounding value. So they either cut the wrong things or spend on the wrong things.

Here are the 5 habits that keep founders trapped in this broken thinking:

Habit #1: Treating Capability Investments As Costs

Here’s what isn’t burn:

Paying for leadership coaching after your first key hire
↳ Protects against the $100K+ cost of a bad manager.

Hiring an assistant for repetitive tasks eating 10 hours/week
↳ Buying back founder time at 10x+ ROI.

Sales training for your small team
↳ Multiplying what’s already working.

Here’s what is though:

• 15 SaaS tools you barely use
• A full-time hire for a part-time problem
• The rebrand because you’re bored of your logo
• Conference sponsorship with zero follow-up plan

Habit #2: Evaluating spend through the wrong lens

Before every expense it’s smart to consider its impact on either revenue or lasting capability.

Questions to ask:

• Will this directly generate revenue in 90 days?
• Does this build a system that works without me?
• Can I measure the ROI before I buy?

Instead, too many early-stage founders default to the wrong lens.

• Can we afford this?
• What’s the cheapest option?
• How long can we delay this?

Founder A: “Can we afford a part-time CFO? Let’s wait until Series A.” Burns $35K over 6 months from invisible leaks

Founder B: “Will a $10K/month CFO consultant catch enough leaks in cash flow and ad efficiency within 90 days? What’s the ROI?” Invests $30K over 3 months, secures $17K monthly savings by optimizing spend.

One saved money. One made money.

The difference? The lens they used to evaluate the decision.

Habit #3: Never auditing where money actually goes

If you’re checking your bank balance over your burn categories, run this audit quarterly.

Pull last quarter’s expenses. Categorize every dollar:

• Revenue-generating (closed deals, converting ads)
• Capability-building (systems, key hires, infrastructure)
• Pure waste (everything else)

You’ll be surprised at how much zombie subscriptions, “growth experiments”, and “strategic initiatives” are wasting.

If more than 15% of your spend can’t justify its existence, you’re capital-blind..

Habit #4: Confusing motion with progress

Motion that burns cash:

• Hiring developer #4 when #1-3 are underutilized
• Building features based on one customer’s request
• Attending every startup event “for networking”
• Switching tools every quarter chasing the “ideal stack”
• Adding team members to feel like you’re “scaling”

Progress that compounds:

• Documenting why deals close, then doing more of that
• Automating the process that eats 5 hours weekly
• Hiring only after proving the role generates 3x its cost
• Building only what 10+ customers will pay for today

Motion feels good. But Progress pays bills.

Habit #5: Hoping revenue catches burn

“We’ll be profitable next quarter” - How many times have I heard this from founders 6 quarters straight!

You can’t keep spending like revenue will 3x after you finally have your viral moment.

The delusion typically shows up like:

• “Once we ship this feature, revenue explodes”
• “That big enterprise deal closes any day now”
• “The new hire will fix everything”

Meanwhile, burn stays constant, yet revenue doesn’t.

Start here: Cancel one subscription today. Just one.

The clarity from that single decision will show you what else needs to go.

And yes, it’s uncomfortable saying no to your team.

But it’s less uncomfortable than the all-hands where you announce layoffs.

At The Elevate CEO Retreat, we dissect these patterns and rebuild your capital framework.

We run your numbers through the same frameworks I used to manage 8-figure budgets.

Over 2.5 days. you’ll see exactly why you’re always short on cash.

Ready to go from Founder Who Spends to CEO Who Invests? This is your next move:

 September 8-11

 Saltwater Resort, Surf City, North Carolina

 1,500 (includes accommodation, breakfasts, lunches, team event)

 Apply here