For any business, its biggest assets are cash, the talent it attracts, the ideas it generates and capital investments. Overbuying means it has disobeyed the first and basic rule of cash management: “Cash sooner is better than cash later.”
Startups must make purchase decisions carefully, and delay them as long as possible. This essential for successful bootstrapping.
Executive managers stress storyboarding the sales process and work backward to ascertain human resource needs. Sometimes a startup will have to make an investment in the right person even if the timing is wrong, but it should have the discipline to make this an exception and not the rule.
Moreover, these are sound business practices that will communicate to the outside world that the entrepreneur understands the business and knows how to manage its growth.