[vivegi]

If you have <6mo of runway at current cash levels, your first order of business would be to cut costs to get to breakeven in the next 60-90 days. That means a target of cutting out annual costs of around $11-12M broken down to around $4M+ cost reduction within the next 60-90 days.

This could mean

  - headcount reduction,
  - facility lease terminations, 
  - redundant vendor contract terminations (eg: if you have 3 suppliers reduce to 2 asking them to bid for services or use any volume discounts to work in company's favor through the consolidation), 
  - shutdown any loss-making service lines (use these to guide the previous points)
  - outsourcing/offshoring to leverage lower product/service-line costs, 
  - price increases,
  - firing loss-making customers,
  - techstack optimization

You can run targeted commission-based sales over the next 60-90 days that brings deals that are PAT-accretive. I am assuming sales closed this quarter starts contributing positively within the subsequent one or two quarters.

My personal advice is to focus on getting to breakeven ASAP as that gives you additional degrees of freedom for you to execute your strategy.

Good luck.

[susanwise]

New money in does not want to execute this plan, and last money in wins. Given the debt vs. cash scenario, I don't have enough cash to execute he 60-90 day burn wind down plan. But from a logical perspective I completely agree with you and really should have pushed for this approach a year ago. We cut down our burn by nearly 50% last year, but turns out really should have cut it by 80-90% to not have to be in this spot.

[vivegi]

That is difficult.

It constrains you to raising additional money at unfavorable terms whereas executing the cost reduction plan under complete control of current management would give you additional time to postpone the raise at possibly better terms (since your company isn't bleeding as much) and a possibly better fundraising enviroment given where the larger economy is at.

But that is difficult to execute if everyone that matters doesn't want to go down that path.

Good luck in any case.