Global entrepreneur Roman Ziemian explains why today’s most successful founders are prioritizing cash flow, financial optionality, and control before chasing rapid growth.
Liquidity: The Hidden Power Behind Startup Success
“If growth is the fire, liquidity is the oxygen.”
That’s a phrase Ziemian finds himself repeating often when advising startups, scale-ups, and even experienced founders.
As someone who has launched ventures across industries and geographies, he has witnessed firsthand how ambition without liquidity is like building a skyscraper with no emergency exits—a risk no smart entrepreneur should take. Yet, surprisingly, many still do.
The Illusion of Endless Growth
In today’s startup culture, growth is often worshipped like a deity. Founders celebrate revenue milestones, user acquisition spikes, and Series A rounds like championship wins.
But few stop to ask a critical question: How liquid is your position if something goes wrong?
liquid, refers to how easily and quickly an asset can be converted into cash without a significant loss in value. It’s not flashy, it doesn’t grab headlines, and it won’t land you on the cover of a business magazine. But when a supply chain breaks, a major client delays payment, or geopolitical risks shake the market (think global inflation or regional conflicts), liquidity becomes the thin line between survival and collapse.
Lessons from the VC Pullback: A Wake-Up Call
Look at what happened in 2022–2023 during the VC funding slowdown. Many companies—especially in the UAE and broader MENA region—that were scaling aggressively based on projected capital raises suddenly found themselves overleveraged and under-liquid.
They had payroll, commitments, and big expansion plans—but no cash buffer to pivot or absorb shocks.
Why Liquidity Must Come Before Growth
In today’s world of sticky inflation, high interest rates, and tighter capital, entrepreneurs must be sharper.
The smartest founders Ziemian knows are not just obsessed with scaling—they are focused on staying agile and liquid.
1. Investor Confidence
Ironically, liquidity attracts capital. Smart investors look for founders who manage burn rate, maintain a healthy cash runway, and create optionality. In Dubai’s investment ecosystem, Ziemian has seen that founders with proactive liquidity plans—whether through conservative revenue projections or backup credit lines—were the ones who secured funding even during downturns.
2. Survival in a Volatile World
Markets can change overnight. In early 2023, several UAE startups had to pause operations due to sudden vendor price hikes and foreign exchange (FX) fluctuations. Those with no liquidity collapsed; those with reserves or alternative funding strategies navigated the storm and even gained market share.
3. Control and Optionality
When you’re liquid, you have the flexibility to wait for a better offer rather than accepting the first one.You avoid selling equity cheaply or making panic decisions. Liquidity gives you leverage—better terms, better timing, and better choices.
How to Build a Strong Liquidity Strategy
So, how can founders prioritize liquidity without sacrificing growth? Here are key principles Ziemian shares with every entrepreneur he mentors:
● Cash Is Strategic, Not Lazy
Maintain a three-to-six-month operating buffer—and keep it accessible, not just in your investor deck. Review cash flow models weekly, not quarterly.
● Revenue First, Not Just Funding
Craft your go-to-market strategy to drive early and consistent revenue streams. Even small, consistent income streams create resilience. For example, wellness tech startups in Abu Dhabi thrived by locking in subscription-based corporate clients before public launch.
● Diversify Funding Sources
Don’t rely solely on venture capital. Explore convertible notes, local angel investors, strategic partnerships, and in the UAE, government grants or accelerator programs like Hub71 or Flat6Labs.
● Delay Scaling If It Preserves Cash
Scale with intention, not ego. Don’t expand offices, teams, or product features just because competitors are. Grow when your liquidity position supports it.
The New Definition of Smart Entrepreneurship
The business world is evolving rapidly—favoring not just the visionary but the financially disciplined.
We need to move beyond the outdated belief that growth at all costs is the only path to success. True success today is sustainable, intentional, and above all, liquid.
As Ziemian reflects from experience, liquidity isn’t the endgame—it’s the leverage you need to win every stage of the game.
Don’t wait until it’s too late. Build your liquidity strategy before your growth plan. That’s what smart entrepreneurship looks like today.
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