STARTUP GOVERNANCE EARLY WARNING SYSTEM

(Collapse Detection & Survival Dashboard)

Most startups do not die suddenly — they decay quietly. The signals appear months before collapse: burn outpacing reality, narratives growing louder than execution, culture fraying beneath forced optimism, investors turning silent before they disengage. By the time the crisis is visible externally, internally the warning lights have been flashing for a while.

This Startup Governance Early Warning System is a structured collapse-detection framework designed to quantify those early signals across financial health, founder behaviour, culture, product, market position, and governance discipline. It converts intuition into measurable indicators, helping founders and investors diagnose risk before it becomes irreversible. Because survival in startups is rarely about brilliance alone — it is about catching structural weakness early enough to correct it.

How it works
Score each signal 0 = Healthy | 1 = Watch | 2 = Danger
Add totals → Determine Risk Level → Trigger action.


SECTION 1 — FINANCIAL HEALTH SIGNALS

Indicator012
Runway>12 months6–12 months<6 months
Burn disciplineControlledRisingUncontrolled
Revenue qualityGrowingFlatDeclining
Unit economicsPositive pathUnclearBroken
Cash visibilityClearSome gapsConfused

Score: ___ /10

Early danger pattern: Revenue illusion + burn denial.


SECTION 2 — FOUNDER BEHAVIOUR SIGNALS

Indicator012
Decision clarityClearHesitantErratic
Emotional stabilityCalmStressedVolatile
Reality acceptanceHonestDefensiveDelusional
Execution speedConsistentSlowingStalled
TransparencyOpenSelectiveOpaque

Score: ___ /10

Danger sign: Founder narrative stronger than execution.


SECTION 3 — TEAM & CULTURE SIGNALS

Indicator012
Key team retentionStableSome exitsCore leaving
Hiring qualityStrongMixedWeak
Ownership mindsetHighDecliningLow
Internal trustStrongFrictionFear
Execution rhythmSmoothUnevenChaotic

Score: ___ /10

Silent killer: Culture decay before performance collapse.


SECTION 4 — MARKET & PRODUCT SIGNALS

Indicator012
PMF strengthStrongWeakeningMissing
Customer loveHighNeutralDropping
ChurnLowRisingHigh
Product velocityFastSlowingStalled
Competitive positionStrongPressuredLosing

Score: ___ /10

Critical: Product stagnation hides under storytelling.


SECTION 5 — INVESTOR & GOVERNANCE SIGNALS

Indicator012
Board trustStrongTenseBroken
Reporting disciplineCleanDelayedAvoided
Fundraising outlookPositiveUncertainWeak
Investor supportActivePassiveWithdrawing
Governance clarityClearFrictionConflict

Score: ___ /10

Early danger: Investors go silent before they disengage.


SECTION 6 — EXECUTION REALITY CHECK

Indicator012
Strategy clarityClearFuzzyConfused
FocusTightScatteredLost
Speed vs marketAheadMatchingBehind
Resource allocationRationalInefficientWasteful
Delivery vs promisesMatchesLaggingBroken

Score: ___ /10


TOTAL GOVERNANCE RISK SCORE

Total = ___ /60

ScoreGovernance HealthMeaning
0–12STRONGStable, scalable
13–24WATCHFix early
25–36RISKStructural issues forming
37–48DANGERFailure probability rising
49–60CRITICALCollapse trajectory

FAILURE TRAJECTORY PATTERNS (Recognise Early)

Pattern 1 — Slow Financial Bleed

Burn ↑ → Revenue flat → Narrative ↑ → Reality ↓

Pattern 2 — Founder Drift

Vision → Stress → Confusion → Avoidance → Freeze

Pattern 3 — Culture Erosion

Key exits → Fear → Silence → Execution drop → Death

Pattern 4 — Product Illusion

Story strong → PMF weak → Growth forced → Collapse

Pattern 5 — Governance Breakdown

Trust ↓ → Transparency ↓ → Investors withdraw → Funding dies


TRIGGER ACTION FRAMEWORK

If Score 13–24 (WATCH)

  • Tighten reporting
  • Clarify strategy
  • Control burn
  • Fix hiring quality

If Score 25–36 (RISK)

  • Reset priorities
  • Address founder stress
  • Rebuild execution discipline
  • Strengthen product-market reality

If Score 37–48 (DANGER)

  • Major strategy correction
  • Leadership introspection
  • Cost restructuring
  • Investor alignment intervention

If Score 49–60 (CRITICAL)

  • Survival mode
  • Radical focus
  • Leadership change (if needed)
  • Emergency funding or controlled shutdown

MONTHLY 5-QUESTION SURVIVAL CHECK

If answer “NO” to 3+ → danger rising.

  1. Are we closer to product–market truth than last month?
  2. Are we financially more disciplined than last month?
  3. Is team belief stronger than last month?
  4. Is execution speed improving?
  5. Is reality clearer — not more confusing?

ELITE ADD-ONS I CAN BUILD FOR YOU

  • Startup Collapse Probability Model (predicts failure risk)
  • Founder Burnout & Breakdown Detector
  • Investor Withdrawal Early Signal Map
  • Startup Health Dashboard (scorable monthly)
  • Governance Stress Heatmap
  • Survival Mode Playbook
  • Founder Decision Quality Index
  • “Should We Pivot?” Decision Engine

If you want, next logical tools are:

Startup Collapse Predictor (probability model)
Founder Burnout Detector (psychological failure early warning)
Survival Mode Operating System (what to do when things go bad)

Say which one.

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