I think this article needs to be paired with an article about &quot;When to shut your company down.&quot; If I recall, that article exists and it basically says: when you lose hope.<p>Maybe I am not looking at this right but this part doesn&#x27;t make sense to me:<p><i>In many cases, &lt;2 months is the point of no return. If you are in this state it is immediately necessary to lay off your employees and give them severance, pay down your obligations, and use your remaining cash for shutdown costs.</i><p>So is that for companies that <i>had</i> a year+ of runway at some point and are now down to 2 months? What about companies that never had 1 year of runway? The differences between those are pretty big.<p>For example if you have a 4 person startup and 2 months of runway after being on the market for only 4-6 months, you are supposed to just shut it down?<p>No, you take consulting jobs and do side work till you can get higher revenue or some financing.<p>I think, like most startup articles, this applies to companies who have already gotten past seed stage, initial traction and thus is not applicable for 90% of us.