The number one job of a CEO....

The #1 job of a CEO is to make sure the company never runs out of money. When the company is out of cash, the equity that folks put tens of thousands of hours into building, becomes worthless. Company building is about solving big problems, painting the vision for the path forward, and investing in calculated bets to scale. It is also about survival in all conditions, and building a culture of financial discipline.

For start-ups, extending run-way is also important if your plan is to pursue an exit through M&A. Potential buyers are smart, and they are more than happy to wait it out, or to delay the deal, until you are almost out of cash. They'll get a better price, when you are out of alternatives. Capitalism can be brutal.

Uber was rumored to have raised a round of capital just one week before it ran out of cash. While the business overall is a success story, this was way too late, and many more have not been as lucky. During the financial recession in 2008, Lehman Brothers collapsed. GM and Chrysler barely made it, when they were bailed out by the government. Thousands of start-ups have gone out of business since then.

The three major ways to extend run-way are to cut costs, raise additional capital, or generate higher revenue. Costs are easier to cut, given they are often fully within a company's control. Team's should consider going through an exercise to print out every expense for the company, and review them with the leadership team with an eye towards cutting costs.

Perhaps the most important thing to remember - people are a company's most valuable asset, so this should be the last area to cut. You need people to innovate, and talented groups of folks working together are behind every generational company you see today.